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RESTRUCTURING AND INTEGRATION (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of major components of merger-related costs incurred and a reconciliation of the liability balance

	Employee Termination Costs

	Employee Termination Costs									Contract Termination, Facility Closure and Other Costs
	Severance and Related Benefits			Share-Based Compensation			IPR&D Termination Costs⁽¹⁾			Contract Termination, Facility Closure and Other Costs			Total
Balance, January 1, 2010	$	—		$	—		$	—		$	—		$	—
Costs incurred and charged to expense		58,727			49,482			13,750			12,862			134,821
Cash payments		(33,938	)		—			(13,750	)		(8,755	)		(56,443	)
Non-cash adjustments		—			(49,482	)		—			(2,437	)		(51,919	)

Balance, December 31, 2010		24,789			—			—			1,670			26,459
Costs incurred and charged to expense		14,548			3,455			—			28,938			46,941
Cash payments		(38,168	)		(2,033	)		—			(15,381	)		(55,582	)
Non-cash adjustments		989			(741	)		—			(4,913	)		(4,665	)

Balance, December 31, 2011	$	2,158		$	681		$	—		$	10,314		$	13,153

(1)

As described below under "— Research and Development Pipeline Rationalization".

Schedule of incremental share-based compensation expense


Stock options and time-based RSUs held by Biovail employees with employment agreements	$	9,622
Stock options held by Biovail employees without employment agreements		(492	)
Performance-based RSUs held by Biovail executive officers and selected employees		20,287
Stock options and RSUs held by former executive officers of Valeant		20,065

	$	49,482

Schedule of termination agreements with counterparties

Program	Counterparty	Compound	Contingent Milestone Obligations Terminated⁽¹⁾		IPR&D Termination Charges

AZ-004	Alexza	Staccato® loxapine	$	90,000		Nil
BVF-007	Cortex	AMPAKINE®	$	15,000		Nil
BVF-014	MedGenesis	GDNF	$	20,000	$	5,000	⁽²⁾
BVF-018	LifeHealth Limited	Tetrabenazine		Nil	$	28,000	⁽³⁾
BVF-025	Santhera	Fipamezole	$	200,000		Nil
BVF-036,-040, -048	ACADIA	Pimavanserin	$	365,000	$	8,750	⁽²⁾

(1)

Represents the maximum amount of previously disclosed milestone payments the Company could have been required to make to the counterparty under each agreement. These milestone payments were contingent on the achievement of specific developmental, regulatory and commercial milestones. In addition, the Company could have been obligated to make royalty payments based on future net sales of the products if regulatory approval was obtained. As a consequence of the termination of these arrangements, the Company has no ongoing or future obligation in respect of these milestone or royalty payments.

(2)

Represents the amount of negotiated settlements with each counterparty that was recognized and paid by the Company in the three-month period ended December 31, 2010.

(3)

Represents the carrying amount of the related acquired IPR&D asset capitalized in connection with the tetrabenazine acquisition in June 2009 (as described in note 3).

Schedule of major components of merger-related costs incurred by type of cost and operations

	Asset Impairments									Employee Termination Costs						Contract Termination, Facility Closure and Other Costs

	Manufacturing			Pharmaceutical Sciences			Corporate			Manufacturing			Pharmaceutical Sciences			Contract Termination, Facility Closure and Other Costs			Total
Balance, January 1, 2009	$	—		$	—		$	—		$	3,309		$	—		$	3,346		$	6,655
Costs incurred and charged to expense		7,591			2,784			10,968			4,942			1,441			2,307			30,033
Cash payments		—			—			—			(2,041	)		(1,278	)		(1,321	)		(4,640	)
Non-cash adjustments		(7,591	)		(2,784	)		(10,968	)		—			71			—			(21,272	)

Balance, December 31, 2009		—			—			—			6,210			234			4,332			10,776

Costs incurred and charged to expense		400			—			—			1,330			1,924			2,365			6,019
Cash payments		—			—			—			(7,540	)		(2,057	)		(3,017	)		(12,614	)
Non-cash adjustments		(400	)		—			—			—			(101	)		—			(501	)

Balance, December 31, 2010		—			—			—			—			—			3,680			3,680

Costs incurred and charged to expense		—			—			—			—			—			(356	)		(356	)
Cash payments		—			—			—			—			—			(1,078	)		(1,078	)
Non-cash adjustments		—			—			—			—			—			(2,246	)		(2,246	)

Balance, December 31, 2011	$	—		$	—		$	—		$	—		$	—		$	—		$	—

Schedule of revenues and expenses of disposal group included in consolidated statements of income

	2010			2009

Service and other revenues	$	5,642		$	12,027

Cost of services		7,211			13,849
Selling, general and administrative expenses		2,328			3,718

Total operating expenses		9,539			17,567

Operating loss		(3,897	)		(5,540	)
Foreign exchange gain (loss)		(102	)		93

Net loss	$	(3,999	)	$	(5,447	)

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

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