COMPREHENSIVE INCOME (Tables)

6 Months Ended

Jun. 30, 2011

		Three Months Ended June 30						Six Months Ended June 30

		2011			2010			2011			2010
Net income		$	56,360		$	33,969		$	62,842		$	30,819

Comprehensive income
Foreign currency translation adjustment^(a)			84,360			(5,965	)		183,440			(1,924	)
Net unrealized holding gain (loss) on available-for-sale equity securities^(b):
	Arising in period		2,441			—			21,167			—
	Reclassification to net income		(21,316	)		—			(21,316	)		—
Unrealized holding loss on available-for-sale debt securities:
	Arising in period		(70	)		294			(96	)		387
Pension adjustment^(c)			(102	)		—			898			—

Other comprehensive income (loss)			65,313			(5,671	)		184,093			(1,537	)

Comprehensive income		$	121,673		$	28,298		$	246,935		$	29,282

(a): Income taxes are not provided for foreign currency translation adjustments arising on the translation of the Company's operations having a functional currency other than the U.S. dollar, except to the extent of translation adjustments related to the Company's retained earnings for foreign jurisdictions in which the Company is not considered to be permanently reinvested.
(b): Primarily reflects the gain recognized on the Company's investment in shares of common stock of Cephalon (as described in note 15).
(c): Reflects changes in defined benefit obligations and related plan assets of legacy Valeant defined benefit pension plans.

Schedule of the components of accumulated other comprehensive income

	Foreign Currency Translation Adjustment		Net Unrealized Holding Gain on Available- For-Sale Equity Securities			Net Unrealized Holding Gain (Loss) on Available- For-Sale Debt Securities			Pension Adjustment		Total

Balance, January 1, 2011	$	98,926	$	—		$	(90	)	$	—	$	98,836
Foreign currency translation adjustment		183,440		—			—			—		183,440
Net unrealized holding gain on available-for-sale equity securities		—		21,167			—			—		21,167
Reclassification to net income		—		(21,316	)		—			—		(21,316	)
Unrealized holding loss on available-for-sale debt securities		—		—			(96	)		—		(96	)
Pension adjustment		—		—			—			898		898

Balance, June 30, 2011	$	282,366	$	(149	)	$	(186	)	$	898	$	282,929

- Definition

Tabular disclosure of components of comprehensive income (loss) including, but not limited to: (a) foreign currency translation adjustments; (b) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (c) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (d) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (e) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (f) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (g) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

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