SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION

Schedule of segment revenues and profit

			Three Months Ended September 30						Nine Months Ended September 30
			2011			2010			2011			2010
Revenues(a):
	U.S. Neurology and Other		$	182,288		$	138,034		$	626,390		$	445,413
	U.S. Dermatology			131,642			34,720			394,202			115,112
	Canada and Australia			84,644			27,750			238,888			81,146
	Branded Generics — Europe(b)			134,055			7,763			326,448			25,002
	Branded Generics — Latin America			67,955			—			189,069			—
		Total revenues		600,584			208,267			1,774,997			666,673
Segment profit (loss)(c):
	U.S. Neurology and Other			82,289			46,582			319,547			186,311
	U.S. Dermatology			54,148			11,174			127,894			43,076
	Canada and Australia			27,132			10,289			77,731			31,424
	Branded Generics — Europe(d)			11,666			4,127			10,377			16,419
	Branded Generics — Latin America			7,765			(333	)		3,967			(333	)
		Total segment profit		183,000			71,839			539,516			276,897
Corporate(e)				(38,366	)		(35,698	)		(144,594	)		(103,261	)
Restructuring and integration costs				(15,874	)		(95,916	)		(61,039	)		(99,410	)
Acquired IPR&D				—			—			(4,000	)		(61,245	)
Acquisition-related costs				(9,498	)		(28,037	)		(12,874	)		(35,614	)
Legal settlements				—			(38,500	)		(2,400	)		(38,500	)
Acquisition-related contingent consideration				(6,904	)		—			(9,042	)		—
Operating income (loss)				112,358			(126,312	)		305,567			(61,133	)
Interest income				1,052			126			2,941			548
Interest expense				(87,504	)		(11,218	)		(239,328	)		(30,997	)
Write-down of deferred financing charges				—			(5,774	)		—			(5,774	)
Loss on extinguishment of debt				(10,315	)		—			(33,325	)		—
Foreign exchange and other				(3,590	)		301			64			345
(Loss) gain on investments, net				(140	)		(5,005	)		22,787			(5,552	)
Income (loss) before (recovery of) provison for income taxes			$	11,861		$	(147,882	)	$	58,706		$	(102,563	)

(a)

Segment revenues in the three-month period ended September 30, 2011 reflect incremental revenues from Valeant products and services as follows: U.S. Neurology and Other — $51.8 million; U.S. Dermatology — $63.5 million; Canada and Australia — $48.1 million; Branded Generics — Europe — $47.2 million; and Branded Generics — Latin America — $68.0 million. Segment revenues in the nine-month period ended September 30, 2011 reflect incremental revenues from Valeant products and services as follows: U.S. Neurology and Other — $174.0 million; U.S. Dermatology — $200.8 million; Canada and Australia — $139.5 million; Branded Generics — Europe — $142.8 million; and Branded Generics — Latin America — $189.1 million.

(b)

Branded Generics — Europe segment revenues in the three-month and nine-month periods ended September 30, 2011 reflect incremental revenues from PharmaSwiss products and services of $59.7 million and $141.3 million, respectively, commencing on the acquisition date (as described in note 3). Branded Generics — Europe segment revenues in the three-month and nine-month periods ended September 30, 2011 reflect incremental revenues from Sanitas products and services of $17.0 million, commencing on the Sanitas Acquisition Date (as described in note 3).

(c)

Segment profit (loss) in the three-month and nine-month periods ended September 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 — $11.5 million; U.S. Dermatology — $6.4 million; Canada and Australia — $7.3 million; Branded Generics — Europe — $6.7 million; and Branded Generics — Latin America — $10.6 million. Segment profit (loss) in the nine-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 — $30.5 million; U.S. Dermatology — $42.8 million; Canada and Australia — $25.7 million; Branded Generics — Europe — $23.7 million; and Branded Generics — Latin America — $38.5 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 $10.3 million and $39.0 million in the three-month and nine-month periods ended September 30, 2011, respectively. Branded Generics — Europe segment profit also reflects the addition of Sanitas operations commencing on the Sanitas Acquisition Date, including the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets of $5.9 million in the three-month period ended September 30, 2011.

(e)

Corporate reflects non-restructuring-related share-based compensation expense of $17.1 million and $72.4 million in the three-month and nine-month periods ended September 30, 2011, respectively, compared with $22.6 million and $26.2 million in the corresponding periods of 2010.