RESTRUCTURING, INTEGRATION AND OTHER COSTS

3 Months Ended

Mar. 31, 2012

RESTRUCTURING, INTEGRATION AND OTHER COSTS

RESTRUCTURING, INTEGRATION AND OTHER COSTS

5.     RESTRUCTURING, INTEGRATION AND OTHER COSTS

• The Company has largely completed measures to integrate the operations of Biovail and Valeant, capture operating synergies and generate cost savings across the Company. In connection with these cost-rationalization and integration initiatives, the Company has incurred costs including: employee termination costs (including related share-based payments) payable to approximately 500 employees of Biovail and Valeant who were terminated as a result of the Merger; IPR&D termination costs related to the transfer to other parties of product-development programs that did not align with the Company's research and development model; costs to consolidate or close facilities and relocate employees, asset impairments charges to write down property, plant and equipment to fair value; and contract termination and lease cancellation costs.

  The following table summarizes the major components of costs incurred in connection with these initiatives through March 31, 2012:

	Employee Termination Costs
										Contract Termination, Facility Closure and Other Costs
	Severance and Related Benefits			Share-Based Compensation			IPR&D Termination 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
Costs incurred and charged to expense		1,586			—			—			12,334			13,920
Cash payments		(3,288	)		—			—			(22,572	)		(25,860	)
Non-cash adjustments		442			(681	)		—			378			139
Balance, March 31, 2012	$	898		$	—		$	—		$	454		$	1,352

• Facility closure costs incurred in the three-month period ended March 31, 2012 primarily included an incremental $10.2 million charge for the remaining operating lease obligations related to our vacated Mississauga, Ontario corporate office facility.

  In addition to costs associated with the Company's Merger-related initiatives, in the first quarter of 2012, the Company incurred an additional $48.4 million of other restructuring, integration-related and other costs, including $18.2 million of severance costs, and made payments of $41.4 million. These costs were primarily related to the acquisitions of Dermik, Ortho Dermatologics, Afexa, iNova, Sanitas and PharmaSwiss, the consolidation of the Company's manufacturing facilities in Brazil, and worldwide systems integration initiatives.