GAIN (LOSS) ON INVESTMENTS, NET

12 Months Ended

Dec. 31, 2012

GAIN (LOSS) ON INVESTMENTS, NET

GAIN (LOSS) ON INVESTMENTS, NET

20. GAIN (LOSS) ON INVESTMENTS, NET

The components of gain (loss) on investments, net for the years ended December 31, 2012, 2011 and 2010 were as follows:

	2012		2011		2010
Loss on auction rate securities	$	—	$	—	$	(5,552	)
Gain on auction rate securities settlement	—		—		—
Gain on disposal of investments	2,056		22,776		—
	$	2,056	$	22,776	$	(5,552	)

In March 2011, in connection with an offer to acquire Cephalon, Inc. (“Cephalon”), the Company had invested $60.0 million to acquire 1,034,908 shares of common stock of Cephalon, which represented 1.366% of the issued and outstanding common stock of Cephalon as of March 14, 2011. On May 2, 2011, Cephalon announced that it had agreed to be acquired by Teva Pharmaceutical Industries Inc. and, consequently, the Company disposed of its entire equity investment in Cephalon for net proceeds of $81.3 million, which resulted in a net realized gain of $21.3 million recognized in earnings in the second quarter of 2011.