FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

7.     FAIR VALUE MEASUREMENTS

• Assets and Liabilities Measured at Fair Value on a Recurring Basis

  The following fair value hierarchy table presents the components of the Company's financial assets and liabilities measured at fair value as of June 30, 2011 and December 31, 2010:

				As of June 30, 2011										As of December 31, 2010
				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:
	Cash and cash equivalents:
		Money market funds		$	59,842		$	59,842	$	—	$	—		$	91,448		$	91,448	$	—	$	—
	Marketable securities:
		Available-for-sale equity securities:
			Sanitas ordinary shares(a)		9,170			9,170		—		—			—			—		—		—
		Available-for-sale debt securities:
			Corporate bonds		2,954			2,954		—		—			6,340			—		6,340		—
			Government-sponsored enterprise securities		—			—		—		—			1,826			—		1,826		—
				$	71,966		$	71,966	$	—	$	—		$	99,614		$	91,448	$	8,166	$	—
Liabilities:
	Acquisition-related contingent consideration			$	(420,698	)	$	—	$	—	$	(420,698	)	$	(20,220	)	$	—	$	—	$	(20,220	)

(a)

In June 2011, in connection with an agreement to acquire AB Sanitas ("Sanitas"), as described in note 20, the Company invested $9.2 million to acquire 660,891 ordinary shares of Sanitas, which represented approximately 2.0% of the outstanding share capital of Sanitas.

• Fair value measurements are estimated based on valuation techniques and inputs categorized as follows:

  •

  Level 1 — Quoted prices (unadjusted) for identical securities in active markets.

  •

  Level 2 — Quoted prices (unadjusted) for identical securities in markets that are not active.

  •

  Level 3 — Discounted cash flow method (income approach) using significant inputs not observable in the market.

• The fair value measurement of contingent consideration obligations arising from business combinations is determined using unobservable (Level 3) inputs. These inputs include (i) the estimated amount and timing of projected cash flows; (ii) the probability of the achievement of the factor(s) on which the contingency is based; and (iii) the risk-adjusted discount rate used to present value the probability-weighted cash flows. The following table presents a reconciliation of contingent consideration obligations measured on a recurring basis for the six months ended June 30, 2011:

	Balance, January 1, 2011		Issuances		Net Unrealized Loss (Gain)(a)		Foreign Exchange(b)		Transfers Into Level 3		Transfers Out of Level 3		Balance, June 30, 2011
Acquisition-related contingent consideration		20,220		397,150		2,138		1,190		—		—		420,698

(a)

Recognized as acquisition-related contingent consideration in the consolidated statements of income.

(b)

Included in foreign exchange and other in the consolidated statements of income.

• Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

  There were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis subsequent to initial recognition in the six months ended June 30, 2011.