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FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]  
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.