RESTRUCTURING, INTEGRATION AND OTHER CHARGES (Tables)

12 Months Ended

Dec. 31, 2012

RESTRUCTURING, INTEGRATION AND OTHER CHARGES

Schedule of major components of Medicis acquisition-related costs incurred

	Employee Termination Costs						IPR&D		Contract Termination,
	Severance and Related Benefits			Share-Based Compensation(1)			Termination Costs		Facility Closure and Other Costs			Total
Balance, January 1, 2012	$	—		$	—		$	—	$	—		$	—
Costs incurred and charged to expense	85,253			77,329			—		370			162,952
Cash payments	(77,975		)	(77,329		)	—		(5		)	(155,309		)
Non-cash adjustments	4,073			—			—		(162		)	3,911
Balance, December 31, 2012	$	11,351		$	—		$	—	$	203		$	11,554

(1) Relates to the acceleration of unvested stock options, restricted stock awards, and share appreciation rights for Medicis employees that was triggered by the change in control.

Schedule of major components of costs incurred and a reconciliation of the liability balance

	Employee Termination Costs						IPR&D			Contract Termination, Facility
	Severance and Related Benefits			Share-Based Compensation			Termination Costs(1)			Closure and Other Costs			Total
Balance, January 1, 2010	$	—		$	—		$	—		$	—		$	—
Costs incurred and charged to expense	58,727			49,482			13,750			12,862			134,821
Cash payments	(33,938		)	—			(13,750		)	(8,755		)	(56,443		)
Non-cash adjustments	—			(49,482		)	—			(2,437		)	(51,919		)
Balance, December 31, 2010	24,789			—			—			1,670			26,459
Costs incurred and charged to expense	14,548			3,455			—			28,938			46,941
Cash payments	(38,168		)	(2,033		)	—			(15,381		)	(55,582		)
Non-cash adjustments	989			(741		)	—			(4,913		)	(4,665		)
Balance, December 31, 2011	2,158			681			—			10,314			13,153
Costs incurred and charged to expense	1,654			—			—			12,769			14,423
Cash payments	(3,873		)	—			—			(22,767		)	(26,640		)
Non-cash adjustments	268			(681		)	—			227			(186		)
Balance, December 31, 2012	$	207		$	—		$	—		$	543		$	750

(1) As described below under “— Research and Development Pipeline Rationalization”.

Schedule of incremental share-based compensation expense

Stock options and time-based RSUs held by Biovail employees with employment agreements	$	9,622
Stock options held by Biovail employees without employment agreements	(492		)
Performance-based RSUs held by Biovail executive officers and selected employees	20,287
Stock options and RSUs held by former executive officers of Valeant	20,065
	$	49,482

Schedule of termination agreements with counterparties

Program	Counterparty	Compound	Contingent Milestone Obligations Terminated(1)		IPR&D Termination Charges
AZ-004	Alexza	Staccato® loxapine	$	90,000	Nil
BVF-007	Cortex	AMPAKINE®	$	15,000	Nil
BVF-014	MedGenesis	GDNF	$	20,000	$	5,000	(2)
BVF-018	LifeHealth Limited	Tetrabenazine	Nil		$	28,000	(3)
BVF-025	Santhera	Fipamezole	$	200,000	Nil
BVF-036,-040, -048	ACADIA	Pimavanserin	$	365,000	$	8,750	(2)

(1) Represents the maximum amount of previously disclosed milestone payments the Company could have been required to make to the counterparty under each agreement. These milestone payments were contingent on the achievement of specific developmental, regulatory and commercial milestones. In addition, the Company could have been obligated to make royalty payments based on future net sales of the products if regulatory approval was obtained. As a consequence of the termination of these arrangements, the Company has no ongoing or future obligation in respect of these milestone or royalty payments.

(2) Represents the amount of negotiated settlements with each counterparty that was recognized and paid by the Company in the three-month period ended December 31, 2010.

(3) Represents the carrying amount of the related acquired IPR&D asset capitalized in connection with the tetrabenazine acquisition in June 2009.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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- Definition

Tabular disclosure of restructuring and related costs by type of restructuring including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost.

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- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

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