ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of estimated fair value of assets acquired and liabilities assumed

The fair values of the assets acquired and liabilities assumed are as follows:



(in millions)	Final Fair Value
Cash and cash equivalents	$	27
Inventories	11
Other assets	2
Identifiable intangible assets	994
Current liabilities	(5		)
Deferred income taxes, net	(352		)
Total identifiable net assets	677
Goodwill	770
Total fair value of consideration transferred	$	1,447

The following table provides the original estimate of fair value of the assets acquired and liabilities assumed of the business combinations, in the aggregate, as of the applicable acquisition date of each acquisition and the final estimate of fair value at the end of the applicable measurement period of each acquisition. The measurement period for each acquisition is closed.



(in millions)	Original Estimate of Fair Value			Measurement Period Adjustments			Final Fair Value
Cash	$	92		$	—		$	92
Trade receivables	50			(3		)	47
Inventories	143			(3		)	140
Other current assets	20			(1		)	19
Property, plant and equipment	95			(15		)	80
Identifiable intangible assets, excluding acquired IPR&D	1,122			(44		)	1,078
Acquired IPR&D	58			(4		)	54
Other non-current assets	3			—			3
Deferred tax (liability) asset, net	(55		)	61			6
Current liabilities	(124		)	(5		)	(129		)
Long-term debt	(6		)	—			(6		)
Non-current liabilities	(117		)	1			(116		)
Total identifiable net assets	1,281			(13		)	1,268
Goodwill	142			(3		)	139
Total fair value of consideration transferred	$	1,423		$	(16	)	$	1,407

The following table provides the fair value of the assets acquired and liabilities assumed in the Salix Acquisition as of the acquisition date.



(in millions)	Final Fair Value
Cash and cash equivalents	$	114
Inventories	232
Other assets	1,410
Property, plant and equipment	24
Identifiable intangible assets, excluding acquired IPR&D	6,756
Acquired IPR&D - Xifaxan^®IBS-D	4,790
Acquired IPR&D - Other	393
Current liabilities	(1,939		)
Contingent consideration	(334		)
Long-term debt	(3,123		)
Deferred income taxes, net of deferred tax assets	(3,428		)
Other non-current liabilities	(43		)
Total identifiable net assets	4,852
Goodwill	8,280
Total fair value of consideration transferred	$	13,132

The estimated fair values of the assets acquired and liabilities assumed, as initially measured and adjusted through the end of the measurement period are as follows:



(in millions)	Original Estimate of Fair Value			Measurement Period Adjustments			Final Fair Value
Cash	$	44		$	—		$	44
Trade receivables	64			—			64
Inventories	38			—			38
Other current assets	12			—			12
Property, plant and equipment	96			(1		)	95
Identifiable intangible assets, excluding acquired IPR&D	528			(8		)	520
Acquired IPR&D	19			1			20
Current liabilities	(31		)	(1		)	(32		)
Deferred tax liability, net of nominal deferred tax assets	(131		)	(1		)	(132		)
Other non-current liabilities	(11		)	4			(7		)
Total identifiable net assets	628			(6		)	622
Goodwill	282			2			284
Total fair value of consideration transferred	$	910		$	(4	)	$	906

The following table provides the fair value of the assets acquired and liabilities assumed of the business combinations, in the aggregate, as of the applicable acquisition date. There were no measurement period adjustments during 2016 and the measurement period for each acquisition is closed.



(in millions)	Final Fair Value
Cash and cash equivalents	$	35
Trade receivables	82
Assets held for sale acquired in the PreCision Acquisition	125
Inventories	75
Other current assets	14
Property, plant and equipment	57
Identifiable intangible assets, excluding acquired IPR&D	720
Acquired IPR&D	63
Other non-current assets	2
Current liabilities	(169		)
Long-term debt, including current portion	(11		)
Deferred income taxes, net	(71		)
Other non-current liabilities	(13		)
Total identifiable net assets	909
Noncontrolling interest	(20		)
Goodwill	458
Total fair value of consideration transferred	$	1,347

Summary of amounts and useful lives assigned to identifiable intangible assets

The following table summarizes the amounts and useful lives assigned to identifiable intangible assets:

The following table summarizes the identifiable intangible assets acquired and their useful lives:



(in millions)	Weighted-Average Useful Lives (Years)	Original Estimate of Fair Value		Measurement Period Adjustments			Final Fair Value
Product brands	9	$	491	$	(11	)	$	480
Corporate brand	17	37		3			40
Total identifiable intangible assets acquired	10	$	528	$	(8	)	$	520

The following table summarizes the amounts and useful lives assigned to identifiable intangible assets:



(in millions)	Weighted- Average Useful Lives (Years)	Original Estimate of Fair Value		Measurement Period Adjustments			Final Fair Value
Product brands	7	$	741	$	(6	)	$	735
Product rights	3	43		(1		)	42
Corporate brands	16	7		—			7
Partner relationships	8	8		—			8
Technology/know-how	10	321		(37		)	284
Other	6	2		—			2
Total identifiable intangible assets acquired	8	$	1,122	$	(44	)	$	1,078

The following table summarizes the amounts and useful lives assigned to identifiable intangible assets:



(in millions)	Weighted- Average Useful Lives (Years)	Final Fair Value
Product brands	10	$	508
Product rights	8	92
Corporate brand	15	33
In-licensed products	9	2
Partner relationships	9	51
Other	9	34
Total identifiable intangible assets acquired	10	$	720

Schedule of pro forma impact of merger and acquisition

The following table presents unaudited pro forma consolidated results of operations for 2015 and 2014, as if the 2015 acquisitions had occurred as of January 1, 2014 and the 2014 acquisitions had occurred as of January 1, 2013.



	Unaudited
(in millions, except per share amounts)	2015			2014
Revenues	$	10,710		$	10,248
Net loss attributable to Valeant Pharmaceuticals International, Inc.	(619		)	(375		)
Loss per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	(1.80	)	$	(1.09	)
Diluted	$	(1.80	)	$	(1.09	)

(in millions)

Weighted- Average
Useful Lives
(Years)

Final
Fair Value

Product brands

Corporate brand

Total identifiable intangible assets acquired