Segment Results (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Schedule of reportable segments information

The following represents selected information for the Company’s reportable segments for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013			2012
Net revenues to external customers:
Endo Pharmaceuticals	$	357,589		$	363,574
Qualitest	178,253			145,345
AMS(1)	122,652			130,166
HealthTronics	50,025			51,548
Total consolidated net revenues to external customers	$	708,519		$	690,633
Adjusted income before income tax:
Endo Pharmaceuticals	$	174,407		$	178,826
Qualitest	47,112			36,251
AMS	31,644			27,052
HealthTronics	10,289			12,408
Corporate unallocated	(84,498		)	(92,160		)
Total consolidated adjusted income before income tax	$	178,954		$	162,377

__________

(1) The following table displays our AMS segment revenue by geography (in thousands). International revenues were not material to any of our other segments for any of the periods presented.

	Three Months Ended March 31,
	2013		2012
AMS:
United States	$	78,367	$	86,970
International	44,285		43,196
Total AMS revenues	$	122,652	$	130,166

Schedule of revenue by reportable segment

The following table displays our AMS segment revenue by geography (in thousands). International revenues were not material to any of our other segments for any of the periods presented.

	Three Months Ended March 31,
	2013		2012
AMS:
United States	$	78,367	$	86,970
International	44,285		43,196
Total AMS revenues	$	122,652	$	130,166

Schedule of reconciliations of consolidated adjusted income (loss) before income tax

The table below provides reconciliations of our consolidated adjusted income before income tax to our consolidated income (loss) before income tax, which is determined in accordance with U.S. GAAP, for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013			2012
Total consolidated adjusted income before income tax:	$	178,954		$	162,377
Upfront and milestone payments to partners	(2,574		)	(45,841		)
Asset impairment charges	(1,100		)	(40,000		)
Acquisition-related and integration items, net(1)	(1,318		)	(3,749		)
Separation benefits and other cost reduction initiatives(2)	(14,404		)	(11,614		)
Amortization of intangible assets	(48,946		)	(53,360		)
Inventory step-up	—			(1,262		)
Non-cash interest expense	(5,450		)	(4,976		)
Net loss on extinguishment of debt	(11,312		)	(5,426		)
Watson litigation settlement income, net	19,227			—
Accrual for payment to Impax Laboratories Inc. related to sales of Opana® ER	—			(110,000		)
Certain litigation-related charges(3)	(76,532		)	—
Total consolidated income (loss) before income tax	$	36,545		$	(113,851	)

Additional selected financial information for reportable segments

The following represents additional selected financial information for our reportable segments for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013		2012
Depreciation expense:
Endo Pharmaceuticals	$	6,305	$	3,798
Qualitest	3,170		2,937
AMS	2,802		2,656
HealthTronics	2,981		2,992
Corporate unallocated	2,465		1,064
Total depreciation expense	$	17,723	$	13,447

	Three Months Ended March 31,
	2013		2012
Amortization expense:
Endo Pharmaceuticals	$	21,280	$	21,934
Qualitest	10,881		10,381
AMS	15,239		19,406
HealthTronics	1,696		1,789
Total amortization expense	$	49,096	$	53,510