INVENTORIES

9 Months Ended

Sep. 30, 2011

INVENTORIES

INVENTORIES

9.     INVENTORIES

• The components of inventories as of September 30, 2011 and December 31, 2010 were as follows:

	As of September 30 2011			As of December 31 2010
Raw materials	$	56,108		$	55,486
Work in process		40,781			43,587
Finished goods		183,900			158,574
		280,789			257,647
Less allowance for obsolescence		(21,141	)		(28,065	)
	$	259,648		$	229,582

• In the three-month and nine-month periods ended September 30, 2011, cost of goods sold included $2.7 million and $48.9 million, respectively, primarily related to the acquisition accounting adjustments on the acquired Valeant, PharmaSwiss and Sanitas inventories that were sold in those respective periods. As of September 30, 2011, substantially all of the acquisition accounting adjustments related to the Valeant and PharmaSwiss inventories had been recognized in cost of goods sold.

  The decline in the allowance for obsolescence in the nine-month period ended September 30, 2011 primarily reflected the write off of obsolete inventory against the allowance.