SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

Schedule of segment revenues and profit

			Three Months Ended June 30						Six Months Ended June 30
			2011			2010			2011			2010
Revenues(a):
	U.S. Neurology and Other		$	234,503		$	159,075		$	444,102		$	307,379
	U.S. Dermatology			109,853			41,418			262,560			80,392
	Canada and Australia			84,000			28,884			154,244			53,396
	Branded Generics — Europe(b)			116,300			9,394			192,393			17,239
	Branded Generics — Latin America			64,731			—			121,114			—
		Total revenues		609,387			238,771			1,174,413			458,406
Segment profit (loss)(c):
	U.S. Neurology and Other			137,749			63,067			237,258			139,729
	U.S. Dermatology			38,938			16,359			73,746			31,902
	Canada and Australia			29,677			11,617			50,599			21,135
	Branded Generics — Europe(d)			(6,668	)		6,818			(1,289	)		12,292
	Branded Generics — Latin America			2,140			—			(3,798	)		—
		Total segment profit		201,836			97,861			356,516			205,058
Corporate(e)				(48,123	)		(28,349	)		(106,228	)		(67,563	)
Restructuring and integration costs				(27,626	)		(2,881	)		(45,165	)		(3,494	)
Acquired IPR&D				(2,000	)		(10,242	)		(4,000	)		(61,245	)
Acquisition-related costs				(1,869	)		(7,577	)		(3,376	)		(7,577	)
Legal settlements				(2,000	)		—			(2,400	)		—
Acquisition-related contingent consideration				(1,752	)		—			(2,138	)		—
Operating income				118,466			48,812			193,209			65,179
Interest income				1,086			234			1,889			422
Interest expense				(83,073	)		(9,952	)		(151,824	)		(19,779	)
Loss on extinguishment of debt				(14,748	)		—			(23,010	)		—
Foreign exchange and other				847			667			3,654			44
Gain (loss) on investments, net				21,158			(392	)		22,927			(547	)
Income before provison for (recovery of) income taxes			$	43,736		$	39,369		$	46,845		$	45,319

(a)

Segment revenues in the three-month period ended June 30, 2011 reflect incremental revenues from Valeant products and services as follows: U.S. Neurology and Other — $54.4 million; U.S. Dermatology — $75.6 million; Canada and Australia — $48.2 million; Branded Generics — Europe — $43.4 million; and Branded Generics — Latin America — $64.7 million. Segment revenues in the six-month period ended June 30, 2011 reflect incremental revenues from Valeant products and services as follows: U.S. Neurology and Other — $122.2 million; U.S. Dermatology — $137.3 million; Canada and Australia — $91.4 million; Branded Generics — Europe — $95.6 million; and Branded Generics — Latin America — $121.1 million.

(b)

Branded Generics — Europe segment revenues in the three-month and six-month periods ended June 30, 2011 reflect incremental revenues from PharmaSwiss products and services of $65.4 million and $81.6 million, respectively, commencing on the acquisition date (as described in note 3).

(c)

Segment profit (loss) in the three-month and six-month periods ended June 30, 2011 reflects the addition of Valeant operations. Segment profit (loss) in the three-month period includes the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets as follows: U.S. Neurology and Other — $2.0 million; U.S. Dermatology — $14.6 million; Canada and Australia — $8.8 million; Branded Generics — Europe — $7.3 million; and Branded Generics — Latin America — $11.9 million. Segment profit (loss) in the six-month period includes the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets as follows: U.S. Neurology and Other — $19.0 million; U.S. Dermatology — $36.4 million; Canada and Australia — $18.4 million; Branded Generics — Europe — $17.0 million; and Branded Generics — Latin America — $27.9 million.

(d)

Branded Generics — Europe segment profit reflects the addition of PharmaSwiss operations commencing on the acquisition date, including the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets of $23.6 million and $28.7 million in the three months and six months ended June 30, 2011, respectively.

(e)

Corporate reflects non-restructuring-related share-based compensation expense of $25.6 million and $55.5 million in the three months and six months ended June 30, 2011, respectively, compared with $1.9 million and $3.6 million in the corresponding periods of 2010.