SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(All dollar amounts expressed in thousands of U.S. dollars)



	Balance at Beginning of Year		Charged to Costs and Expenses			Charged to Other Accounts			Deductions			Balance at End of Year
Year ended December 31, 2013
Allowance for doubtful accounts	$	12,485	$	5,765		$	10,324		$	(898	)	$	27,676
Allowance for inventory obsolescence	$	56,031	$	62,518		$	33,402		$	(52,106	)	$	99,845
Deferred tax asset valuation allowance	$	124,515	$	214,099		$	138,959		$	—		$	477,573
Year ended December 31, 2012
Allowance for doubtful accounts	$	12,328	$	838		$	(583	)	$	(98	)	$	12,485
Allowance for inventory obsolescence	$	22,819	$	22,619		$	26,299		$	(15,706	)	$	56,031
Deferred tax asset valuation allowance	$	128,742	$	(2,227	)	$	(2,000	)	$	—		$	124,515
Year ended December 31, 2011
Allowance for doubtful accounts	$	6,692	$	1,467		$	4,669		$	(500	)	$	12,328
Allowance for inventory obsolescence	$	28,065	$	4,051		$	2,730		$	(12,027	)	$	22,819
Deferred tax asset valuation allowance	$	186,399	$	(35,062	)	$	41,517		$	(64,112	)	$	128,742

For each of the years ended December 31, 2013 and December 31, 2012, the increase in the amounts charged to costs and expenses with respect to the allowance for inventory obsolescence was driven primarily by integration-related portfolio and manufacturing rationalization initiatives and growth in the business.

With respect to the allowance for inventory obsolescence, the $33.4 million in 2013 charged to other accounts represents obsolescence reserves assumed as part of acquisitions consummated during the year, with the most significant contributor being the B&L acquisition, which closed in August 2013. The $26.3 million in 2012 charged to other accounts represents obsolescence reserves assumed as part of acquisitions consummated during the year, with the most significant contributors being the QLT, Medicis, and Eyetech Inc. acquisitions, which closed on September 24, 2012, December 11, 2012, and February 13, 2012, respectively. The $2.7 million in 2011 charged to other accounts represents obsolescence reserves assumed as part of acquisitions consummated during the year, with the most significant contributor being the Sanitas acquisition, which closed on August 19, 2011. These assumed reserves were included as part of the purchase price allocations as of the respective acquisition dates, therefore, such amounts were not charged to costs and expenses.

With respect to the deferred tax valuation allowance, the $139.0 million in 2013 charged to other accounts represents valuation allowances assumed as part of acquisitions consummated during the year, with the most significant contributor being the B&L acquisition.