Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Carrying amounts and estimated fair values of other financial instruments

The following table presents the carrying amounts and estimated fair values of our other financial instruments at March 31, 2013 and December 31, 2012 (in thousands):



	March 31, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Current assets:
Derivative instruments	$	85	$	85	$	—	$	—
	$	85	$	85	$	—	$	—
Long-term assets:
Equity securities	$	2,539	$	2,539	$	1,746	$	1,746
Equity and cost method investments	14,427		N/A		15,195		N/A
	$	16,966			$	16,941
Current liabilities:
Acquisition-related contingent consideration—short-term	$	1,194	$	1,194	$	6,195	$	6,195
Current portion of Term Loan A Facility Due 2018	69,375		69,375		131,250		131,250
3.25% AMS Convertible Notes due 2036	795		795		795		795
4.00% AMS Convertible Notes due 2041	111		111		111		111
Current portion of other long-term debt	1,687		1,687		1,842		1,842
Derivative instruments	191		191		602		602
Minimum Voltaren® Gel royalties due to Novartis—short-term	32,093		32,093		31,878		31,878
Other	1,000		1,000		1,000		1,000
	$	106,446	$	106,446	$	173,673	$	173,673
Long-term liabilities:
Acquisition-related contingent consideration—long-term	$	2,770	$	2,770	$	2,729	$	2,729
1.75% Convertible Senior Subordinated Notes Due 2015, net	327,120		364,478		321,332		364,444
Term Loan A Facility Due 2018, less current portion	1,318,125		1,321,455		1,256,250		1,259,094
Term Loan B Facility Due 2018	60,550		60,992		160,550		162,260
7.00% Senior Notes Due 2019	500,000		535,938		500,000		536,563
7.00% Senior Notes Due 2020, net	396,973		427,500		396,899		429,000
7.25% Senior Notes Due 2022	400,000		429,000		400,000		431,500
Other long-term debt, less current portion	3,294		3,294		2,916		2,916
Minimum Voltaren® Gel royalties due to Novartis—long-term	6,615		6,615		13,846		13,846
Other	5,150		5,150		5,775		5,775
	$	3,020,597	$	3,157,192	$	3,060,297	$	3,208,127

Financial assets and liabilities measured at fair value on recurring basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2013 and December 31, 2012 were as follows (in thousands):



	Fair Value Measurements at Reporting Date using
March 31, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Equity securities	$	2,539	$	—	$	—	$	2,539
Derivative instruments	—		85		—		85
Total	$	2,539	$	85	$	—	$	2,624
Liabilities:
Derivative instruments	$	—	$	191	$	—	$	191
Acquisition-related contingent consideration—short-term	—		—		1,194		1,194
Acquisition-related contingent consideration—long-term	—		—		2,770		2,770
Total	$	—	$	191	$	3,964	$	4,155



	Fair Value Measurements at Reporting Date using
December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Equity securities	$	1,746	$	—	$	—	$	1,746
Total	$	1,746	$	—	$	—	$	1,746
Liabilities:
Derivative instruments	$	—	$	602	$	—	$	602
Acquisition-related contingent consideration—short-term	—		—		6,195		6,195
Acquisition-related contingent consideration—long-term	—		—		2,729		2,729
Total	$	—	$	602	$	8,924	$	9,526

Financial liabilities measured at fair value on recurring basis using significant unobservable inputs

The following table presents changes to the Company’s financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 (in thousands):



	Acquisition- related Contingent Consideration
Liabilities:
January 1, 2013	$	(8,924	)
Amounts (acquired) sold / (issued) settled, net	5,000
Transfers in and/or (out) of Level 3	—
Changes in fair value recorded in earnings	(40		)
March 31, 2013	$	(3,964	)



	Acquisition-related Contingent Consideration
Liabilities:
January 1, 2012	$	(8,687	)
Amounts (acquired) sold / (issued) settled, net	—
Transfers in and/or (out) of Level 3	—
Changes in fair value recorded in earnings	127
March 31, 2012	$	(8,560	)

Summary of available-for-sale securities

The following is a summary of available-for-sale securities held by the Company at March 31, 2013 and December 31, 2012 (in thousands):



	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
March 31, 2013
Equity securities	$	1,766	$	773	$	—	$	2,539
Long-term available-for-sale securities	$	1,766	$	773	$	—	$	2,539
Total available-for-sale securities	$	1,766	$	773	$	—	$	2,539



	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
December 31, 2012
Equity securities	$	1,766	$	—	$	(20	)	$	1,746
Long-term available-for-sale securities	$	1,766	$	—	$	(20	)	$	1,746
Total available-for-sale securities	$	1,766	$	—	$	(20	)	$	1,746

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

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-Name Emerging Issues Task Force (EITF)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Name Statement of Financial Accounting Standard (FAS)

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-Publisher FASB

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-Name Accounting Standards Codification

-Topic 320

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+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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