FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of components and classification of financial assets and liabilities measured at fair value

	As of September 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	$	135,314		$	135,314	$	—	$	—		$	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	$	135,314		$	135,314	$	—	$	—		$	318,181		$	311,014	$	—	$	7,167
Cash equivalents	$	135,314		$	135,314	$	—	$	—		$	306,604		$	306,604	$	—	$	—
Marketable securities	—			—		—		—			11,577			4,410		—		7,167
Total financial assets	$	135,314		$	135,314	$	—	$	—		$	318,181		$	311,014	$	—	$	7,167
Liabilities:
Acquisition-related contingent consideration	$	(381,037	)	$	—	$	—	$	(381,037	)	$	(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 Gain(c)		Foreign Exchange(d)		Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2013
Acquisition-related contingent consideration	$	(455,082	)	$	(67,355	)	$	104,288	$	33,511	$	3,601	$	—	$	—	$	(381,037	)

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(a) Relates primarily to the Eisai acquisition, and other smaller acquisitions, as described in note 3.

(b) Relates primarily to payments of acquisition-related contingent consideration related to the OraPharma acquisition, the Elidel®/Xerese®/Zovirax® agreement entered into with Meda Pharma SARL (“Meda”) in June 2011 (the “Elidel®/Xerese®/Zovirax® agreement”), and the Gerot Lannach acquisition.

(c) For the nine months ended September 30, 2013, a net gain of $33.5 million was recognized as Acquisition-related contingent consideration in the consolidated statements of (loss) income. The acquisition-related contingent consideration net gain was primarily driven by a net gain related to the Elidel®/Xerese®/Zovirax® agreement. In April 2013, Mylan Inc. launched 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 analysis in the third quarter of 2013 of performance trends since the generic entrant, the Company adjusted the projected revenue forecast, resulting in an acquisition-related contingent consideration net gain of $23.8 million in the first nine months of 2013.

Also contributing to the acquisition-related contingent consideration net gain was a net gain of $6.9 million which resulted from the termination, in the third quarter of 2013, of the A007 (Lacrisert®) development program acquired by Valeant as part of Aton Pharma, Inc. (“Aton”) acquisition in May 2010, which impacted the probability associated with potential milestone payments. The termination of this program also resulted in an IPR&D impairment charge in the third quarter of 2013, as described in note 10 titled “INTANGIBLE ASSETS AND GOODWILL”.

Refer to note 10 titled “INTANGIBLE ASSETS AND GOODWILL” for further information.

(d) Included in other comprehensive income (loss).