Schedule of components and classification of financial assets and liabilities measured at fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2013 | | As of December 31, 2012 | | | Carrying Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Carrying Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | Assets: | | | | | | | | | | | | | | | | | Money market funds | | $ | 2,197,495 |
| | $ | 2,197,495 |
| | $ | — |
| | $ | — |
| | $ | 306,604 |
| | $ | 306,604 |
| | $ | — |
| | $ | — |
| Available-for-sale equity securities | | — |
| | — |
| | — |
| | — |
| | 4,410 |
| | 4,410 |
| | — |
| | — |
| Available-for-sale debt securities: | | | | | | |
| | |
| | | | | | | | |
| Auction rate floating securities | | — |
| | — |
| | — |
| | — |
| | 7,167 |
| | — |
| | — |
| | 7,167 |
| Total financial assets | | $ | 2,197,495 |
| | $ | 2,197,495 |
| | $ | — |
| | $ | — |
| | $ | 318,181 |
| | $ | 311,014 |
| | $ | — |
| | $ | 7,167 |
| Cash equivalents | | $ | 2,197,495 |
| | $ | 2,197,495 |
| | $ | — |
| | $ | — |
| | $ | 306,604 |
| | $ | 306,604 |
| | $ | — |
| | $ | — |
| Marketable securities | | — |
| | — |
| | — |
| | — |
| | 11,577 |
| | 4,410 |
| | — |
| | 7,167 |
| Total financial assets | | $ | 2,197,495 |
| | $ | 2,197,495 |
| | $ | — |
| | $ | — |
| | $ | 318,181 |
| | $ | 311,014 |
| | $ | — |
| | $ | 7,167 |
| Liabilities: | | | | | | |
| | | | | | | | | | | Acquisition-related contingent consideration | | $ | (433,108 | ) | | $ | — |
| | $ | — |
| | $ | (433,108 | ) | | $ | (455,082 | ) | | $ | — |
| | $ | — |
| | $ | (455,082 | ) |
|
Schedule of reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, January 1, 2013 | | Issuances(a) | | Payments(b) | | Net unrealized Loss(c) | | Foreign Exchange(d) | | Transfers Into Level 3 | | Transfers Out of Level 3 | | Balance, June 30, 2013 | Acquisition-related contingent consideration | $ | (455,082 | ) | | $ | (67,355 | ) | | $ | 85,811 |
| | $ | (1,484 | ) | | $ | 5,002 |
| | $ | — |
| | $ | — |
| | $ | (433,108 | ) |
____________________________________ | | (a) | Relates primarily to the Eisai acquisition as described in note 3. |
| | (b) | Relates primarily to payments of acquisition-related contingent consideration related to the OraPharma acquisition and the Elidel®/Xerese®/Zovirax® agreement entered into with Meda Pharma SARL (“Meda”) in June 2011 (the “Elidel®/Xerese®/Zovirax® agreement”). |
| | (c) | For the six months ended June 30, 2013, a net loss of $1.5 million was recognized as Acquisition-related contingent consideration in the consolidated statements of income (loss). The loss was primarily driven by a net loss of $1.8 million in the first half of 2013, primarily related to the Elidel®/Xerese®/Zovirax® agreement, as fair value adjustments to reflect accretion for the time value of money were partially offset by a net gain recognized in the first quarter of 2013. The net gain recognized in the first quarter of 2013 related to Mylan Inc.’s launch in April 2013 of a generic Zovirax® ointment, which was earlier than we previously anticipated. Also, in April 2013, we entered into an agreement with Actavis to launch the authorized generic ointment for Zovirax®. Refer to note 5 titled “COLLABORATION AGREEMENTS” for further information regarding the agreement with Actavis. As a result of these events, the projected revenue forecast was adjusted, resulting in an acquisition-related contingent consideration net gain of $3.1 million in the first quarter of 2013. |
| | (d) | Included in other comprehensive loss. |
|