Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

	March 31, 2013
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	750		$	299,172		$	40,595		$	—		$	340,517
Accounts receivable, net	—			615,116			77,039			19,038			711,193
Inventories, net	—			367,929			24,818			(7,990		)	384,757
Prepaid expenses and other current assets	—			47,472			8,576			(11,238		)	44,810
Income taxes receivable	53,016			(52,012		)	40,179			109			41,292
Deferred income taxes	—			268,081			8,369			—			276,450
Total current assets	53,766			1,545,758			199,576			(81		)	1,799,019
INTERCOMPANY RECEIVABLES	1,555,248			7,587,605			194,034			(9,336,887		)	—
MARKETABLE SECURITIES	—			2,539			—			—			2,539
PROPERTY, PLANT AND EQUIPMENT, NET	—			353,519			29,048			(322		)	382,245
GOODWILL	—			1,798,492			218,871			—			2,017,363
OTHER INTANGIBLES, NET	—			1,983,255			75,143			—			2,058,398
INVESTMENT IN SUBSIDIARIES	5,197,663			315,865			—			(5,513,528		)	—
OTHER ASSETS	59,056			27,084			25,409			(18,611		)	92,938
TOTAL ASSETS	$	6,865,733		$	13,614,117		$	742,081		$	(14,869,429	)	$	6,352,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	89		$	266,837		$	5,851		$	(400	)	$	272,377
Accrued expenses	24,669			1,021,771			30,209			(5		)	1,076,644
Current portion of long-term debt	69,375			906			1,687			—			71,968
Acquisition-related contingent consideration	—			1,194			—			—			1,194
Total current liabilities	94,133			1,290,708			37,747			(405		)	1,422,183
INTERCOMPANY PAYABLES	2,643,760			6,591,628			101,499			(9,336,887		)	—
DEFERRED INCOME TAXES	4,270			488,969			(87		)	—			493,152
ACQUISITION-RELATED CONTINGENT CONSIDERATION	—			2,770			—			—			2,770
LONG-TERM DEBT, LESS CURRENT PORTION, NET	3,002,768			—			3,294			—			3,006,062
OTHER LIABILITIES	6,431			259,068			9,708			(18,609		)	256,598
STOCKHOLDERS’ EQUITY:
Preferred Stock	—			—			—			—			—
Common Stock	1,411			—			30,430			(30,430		)	1,411
Additional paid-in capital	1,062,076			4,193,481			575,130			(4,768,611		)	1,062,076
Retained earnings (deficit)	826,922			793,956			(71,431		)	(722,525		)	826,922
Accumulated other comprehensive loss	(9,166		)	(6,463		)	(1,575		)	8,038			(9,166		)
Treasury stock	(766,872		)	—			—			—			(766,872		)
Total Endo Health Solutions Inc. stockholders’ equity	1,114,371			4,980,974			532,554			(5,513,528		)	1,114,371
Noncontrolling interests	—			—			57,366			—			57,366
Total stockholders’ equity	1,114,371			4,980,974			589,920			(5,513,528		)	1,171,737
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,865,733		$	13,614,117		$	742,081		$	(14,869,429	)	$	6,352,502

CONDENSED CONSOLIDATING BALANCE SHEET

(In thousands)

	December 31, 2012
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	512		$	499,932		$	47,472		$	—		$	547,916
Accounts receivable, net	—			601,967			75,752			13,131			690,850
Inventories, net	—			354,150			23,774			(20,286		)	357,638
Prepaid expenses and other current assets	—			12,675			8,591			6,484			27,750
Income taxes receivable	39,503			(35,708		)	32,585			109			36,489
Deferred income taxes	—			296,027			11,906			658			308,591
Total current assets	40,015			1,729,043			200,080			96			1,969,234
INTERCOMPANY RECEIVABLES	2,039,648			8,233,831			193,673			(10,467,152		)	—
MARKETABLE SECURITIES	—			1,746			—			—			1,746
PROPERTY, PLANT AND EQUIPMENT, NET	—			356,427			29,573			(332		)	385,668
GOODWILL	—			1,798,493			215,858			—			2,014,351
OTHER INTANGIBLES, NET	—			2,020,942			78,031			—			2,098,973
INVESTMENT IN SUBSIDIARIES	5,162,874			313,978			—			(5,476,852		)	—
OTHER ASSETS	65,727			27,766			24,122			(19,028		)	98,587
TOTAL ASSETS	$	7,308,264		$	14,482,226		$	741,337		$	(15,963,268	)	$	6,568,559
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	90		$	410,532		$	6,492		$	(232	)	$	416,882
Accrued expenses	31,981			1,096,261			42,708			(5		)	1,170,945
Current portion of long-term debt	131,250			906			1,842			—			133,998
Acquisition-related contingent consideration	—			6,195			—			—			6,195
Total current liabilities	163,321			1,513,894			51,042			(237		)	1,728,020
INTERCOMPANY PAYABLES	3,031,742			7,351,093			84,317			(10,467,152		)	—
DEFERRED INCOME TAXES	5,314			512,118			(867		)	—			516,565
ACQUISITION-RELATED CONTINGENT CONSIDERATION	—			2,729			—			—			2,729
LONG-TERM DEBT, LESS CURRENT PORTION, NET	3,035,031			—			2,916			—			3,037,947
OTHER LIABILITIES	—			159,319			9,800			(19,027		)	150,092
STOCKHOLDERS’ EQUITY:
Preferred Stock	—			—			—			—			—
Common Stock	1,400			—			30,430			(30,430		)	1,400
Additional paid-in capital	1,035,115			4,195,802			571,928			(4,767,730		)	1,035,115
Retained earnings (deficit)	811,573			754,551			(70,203		)	(684,348		)	811,573
Accumulated other comprehensive (loss) income	(6,802		)	(7,280		)	1,624			5,656			(6,802		)
Treasury stock	(768,430		)	—			—			—			(768,430		)
Total Endo Health Solutions Inc. stockholders’ equity	1,072,856			4,943,073			533,779			(5,476,852		)	1,072,856
Noncontrolling interests	—			—			60,350			—			60,350
Total stockholders’ equity	1,072,856			4,943,073			594,129			(5,476,852		)	1,133,206
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,308,264		$	14,482,226		$	741,337		$	(15,963,268	)	$	6,568,559

Condensed Consolidating Statement Of Operations

ds)

	December 31, 2012
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	512		$	499,932		$	47,472		$	—		$	547,916
Accounts receivable, net	—			601,967			75,752			13,131			690,850
Inventories, net	—			354,150			23,774			(20,286		)	357,638
Prepaid expenses and other current assets	—			12,675			8,591			6,484			27,750
Income taxes receivable	39,503			(35,708		)	32,585			109			36,489
Deferred income taxes	—			296,027			11,906			658			308,591
Total current assets	40,015			1,729,043			200,080			96			1,969,234
INTERCOMPANY RECEIVABLES	2,039,648			8,233,831			193,673			(10,467,152		)	—
MARKETABLE SECURITIES	—			1,746			—			—			1,746
PROPERTY, PLANT AND EQUIPMENT, NET	—			356,427			29,573			(332		)	385,668
GOODWILL	—			1,798,493			215,858			—			2,014,351
OTHER INTANGIBLES, NET	—			2,020,942			78,031			—			2,098,973
INVESTMENT IN SUBSIDIARIES	5,162,874			313,978			—			(5,476,852		)	—
OTHER ASSETS	65,727			27,766			24,122			(19,028		)	98,587
TOTAL ASSETS	$	7,308,264		$	14,482,226		$	741,337		$	(15,963,268	)	$	6,568,559
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	90		$	410,532		$	6,492		$	(232	)	$	416,882
Accrued expenses	31,981			1,096,261			42,708			(5		)	1,170,945
Current portion of long-term debt	131,250			906			1,842			—			133,998
Acquisition-related contingent consideration	—			6,195			—			—			6,195
Total current liabilities	163,321			1,513,894			51,042			(237		)	1,728,020
INTERCOMPANY PAYABLES	3,031,742			7,351,093			84,317			(10,467,152		)	—
DEFERRED INCOME TAXES	5,314			512,118			(867		)	—			516,565
ACQUISITION-RELATED CONTINGENT CONSIDERATION	—			2,729			—			—			2,729
LONG-TERM DEBT, LESS CURRENT PORTION, NET	3,035,031			—			2,916			—			3,037,947
OTHER LIABILITIES	—			159,319			9,800			(19,027		)	150,092
STOCKHOLDERS’ EQUITY:
Preferred Stock	—			—			—			—			—
Common Stock	1,400			—			30,430			(30,430		)	1,400
Additional paid-in capital	1,035,115			4,195,802			571,928			(4,767,730		)	1,035,115
Retained earnings (deficit)	811,573			754,551			(70,203		)	(684,348		)	811,573
Accumulated other comprehensive (loss) income	(6,802		)	(7,280		)	1,624			5,656			(6,802		)
Treasury stock	(768,430		)	—			—			—			(768,430		)
Total Endo Health Solutions Inc. stockholders’ equity	1,072,856			4,943,073			533,779			(5,476,852		)	1,072,856
Noncontrolling interests	—			—			60,350			—			60,350
Total stockholders’ equity	1,072,856			4,943,073			594,129			(5,476,852		)	1,133,206
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,308,264		$	14,482,226		$	741,337		$	(15,963,268	)	$	6,568,559

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

	Three Months Ended March 31, 2013
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated Total
TOTAL REVENUES	$	—		$	647,293		$	94,042		$	(32,816	)	$	708,519
COSTS AND EXPENSES:
Cost of revenues	—			253,752			57,636			(25,462		)	285,926
Selling, general and administrative	—			213,936			22,456			(10		)	236,382
Research and development	—			40,116			1,453			—			41,569
Litigation-related and other contingencies	—			68,232			—			—			68,232
Asset impairment charges	—			1,100			—			—			1,100
Acquisition-related and integration items, net	—			558			760			—			1,318
OPERATING INCOME	$	—		$	69,599		$	11,737		$	(7,344	)	$	73,992
INTEREST EXPENSE, NET	11,663			32,609			31			—			44,303
NET LOSS ON EXTINGUISHMENT OF DEBT	11,312			—			—			—			11,312
OTHER (INCOME) EXPENSE, NET	—			(24,137		)	4,046			1,923			(18,168		)
(LOSS) INCOME BEFORE INCOME TAX	$	(22,975	)	$	61,127		$	7,660		$	(9,267	)	$	36,545
INCOME TAX	(8,126		)	23,608			(2,366		)	(3,174		)	9,942
EQUITY FROM INCOME IN SUBSIDIARIES	30,198			1,886			—			(32,084		)	—
CONSOLIDATED NET INCOME	$	15,349		$	39,405		$	10,026		$	(38,177	)	$	26,603
Less: Net income attributable to noncontrolling interests	—			—			11,254			—			11,254
NET INCOME (LOSS) ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.	$	15,349		$	39,405		$	(1,228	)	$	(38,177	)	$	15,349

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In thousands)

	Three Months Ended March 31, 2012
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated Total
TOTAL REVENUES	$	—		$	627,872		$	85,260		$	(22,499	)	$	690,633
COSTS AND EXPENSES:
Cost of revenues	—			333,084			53,349			(21,613		)	364,820
Selling, general and administrative	—			229,252			25,218			(16		)	254,454
Research and development	—			87,674			1,014			—			88,688
Asset impairment charges	—			40,000			—			—			40,000
Acquisition-related and integration items, net	—			3,355			394			—			3,749
OPERATING (LOSS) INCOME	$	—		$	(65,493	)	$	5,285		$	(870	)	$	(61,078	)
INTEREST EXPENSE, NET	11,348			35,532			16			—			46,896
NET LOSS ON EXTINGUISHMENT OF DEBT	5,426			—			—			—			5,426
OTHER EXPENSE (INCOME), NET	—			522			(62		)	(9		)	451
(LOSS) INCOME BEFORE INCOME TAX	$	(16,774	)	$	(101,547	)	$	5,331		$	(861	)	$	(113,851	)
INCOME TAX	(6,028		)	(32,972		)	7			(333		)	(39,326		)
EQUITY FROM LOSS IN SUBSIDIARIES	(76,599		)	(2,999		)	—			79,598			—
CONSOLIDATED NET (LOSS) INCOME	$	(87,345	)	$	(71,574	)	$	5,324		$	79,070		$	(74,525	)
Less: Net income attributable to noncontrolling interests	—			—			12,820			—			12,820
NET LOSS ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.	$	(87,345	)	$	(71,574	)	$	(7,496	)	$	79,070		$	(87,345	)

Condensed Consolidating Statement Of Comprehensive Income (Loss)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Three Months Ended March 31, 2013
	Endo Health Solutions Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated Total
CONSOLIDATED NET INCOME	$	15,349		$	39,405	$	10,026		$	(38,177	)	$	26,603
OTHER COMPREHENSIVE (LOSS) INCOME	(2,364		)	817		(3,199		)	2,382			(2,364		)
CONSOLIDATED COMPREHENSIVE INCOME	$	12,985		$	40,222	$	6,827		$	(35,795	)	$	24,239
Less: Comprehensive income attributable to noncontrolling interests	—			—		11,254			—			11,254
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.	$	12,985		$	40,222	$	(4,427	)	$	(35,795	)	$	12,985

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

(In thousands)

	Three Months Ended March 31, 2012
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated Total
CONSOLIDATED NET (LOSS) INCOME	$	(87,345	)	$	(71,574	)	$	5,324		$	79,070		$	(74,525	)
OTHER COMPREHENSIVE INCOME (LOSS)	2,242			(832		)	3,202			(2,370		)	2,242
CONSOLIDATED COMPREHENSIVE (LOSS) INCOME	$	(85,103	)	$	(72,406	)	$	8,526		$	76,700		$	(72,283	)
Less: Comprehensive income attributable to noncontrolling interests	—			—			12,820			—			12,820
COMPREHENSIVE LOSS ATTRIBUTABLE TO ENDO HEALTH SOLUTIONS INC.	$	(85,103	)	$	(72,406	)	$	(4,294	)	$	76,700		$	(85,103	)

Condensed Consolidating Statement Of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

	Three Months Ended March 31, 2013
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated Total
OPERATING ACTIVITIES:
Net cash used in operating activities	$	(3,316	)	$	(52,701	)	$	(2,730	)	$	—	$	(58,747	)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(20,935		)	(3,021		)	—		(23,956		)
Proceeds from sale of property, plant and equipment	—			20			291			—		311
Acquisitions, net of cash acquired	—			—			(3,645		)	—		(3,645		)
Patent acquisition costs and license fees	—			(10,000		)	—			—		(10,000		)
Net cash used in investing activities	$	—		$	(30,915	)	$	(6,375	)	$	—	$	(37,290	)
FINANCING ACTIVITIES:
Capital lease obligations repayments	—			(39		)	(50		)	—		(89		)
Direct financing arrangement repayments	—			(857		)	—			—		(857		)
Proceeds from other indebtedness	—			—			223			—		223
Principal payments on Term Loans	(100,000		)	—			—			—		(100,000		)
Deferred financing fees	(7,251		)	—			—			—		(7,251		)
Payment for contingent consideration	—			(5,000		)	—			—		(5,000		)
Tax benefits of stock awards	—			1,998			—			—		1,998
Exercise of Endo Health Solutions Inc. stock options	12,826			—			—			—		12,826
Issuance of common stock from treasury	1,557			—			—			—		1,557
Cash distributions to noncontrolling interests	—			—			(12,832		)	—		(12,832		)
Cash buy-out of noncontrolling interests, net of cash contributions	—			—			(1,525		)	—		(1,525		)
Intercompany activity	96,422			(113,246		)	16,824			—		—
Net cash provided by (used in) financing activities	$	3,554		$	(117,144	)	$	2,640		$	—	$	(110,950	)
Effect of foreign exchange rate	—			—			(412		)	—		(412		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	$	238		$	(200,760	)	$	(6,877	)	$	—	$	(207,399	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	512			499,932			47,472			—		547,916
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	750		$	299,172		$	40,595		$	—	$	340,517

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In thousands)

	Three Months Ended March 31, 2012
	Endo Health Solutions Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated Total
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities(1)	$	1,398		$	58,035		$	(72,495	)	$	—	$	(13,062	)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(27,580		)	(1,532		)	—		(29,112		)
Proceeds from sale of property, plant and equipment	—			—			191			—		191
Patent acquisition costs and license fees	—			(5,000		)	—			—		(5,000		)
Net cash used in investing activities	$	—		$	(32,580	)	$	(1,341	)	$	—	$	(33,921	)
FINANCING ACTIVITIES:
Capital lease obligations repayments	—			(127		)	—			—		(127		)
Principal payments on Term Loans	(219,063		)	—			—			—		(219,063		)
Principal payments on other indebtedness	—			—			(439		)	—		(439		)
Tax benefits of stock awards	—			3,521			—			—		3,521
Exercise of Endo Health Solutions Inc. stock options	9,543			—			—			—		9,543
Purchase of common stock	(33,000		)	—			—			—		(33,000		)
Issuance of common stock from treasury	1,412			—			—			—		1,412
Cash distributions to noncontrolling interests	—			—			(13,120		)	—		(13,120		)
Cash buy-out of noncontrolling interests, net of cash contributions	—			—			(849		)	—		(849		)
Intercompany activity(1)	232,438			(318,552		)	86,114			—		—
Net cash (used in) provided by financing activities(1)	$	(8,670	)	$	(315,158	)	$	71,706		$	—	$	(252,122	)
Effect of foreign exchange rate	—			—			(212		)	—		(212		)
NET DECREASE IN CASH AND CASH EQUIVALENTS	$	(7,272	)	$	(289,703	)	$	(2,342	)	$	—	$	(299,317	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	48,318			455,756			43,546			—		547,620
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	41,046		$	166,053		$	41,204		$	—	$	248,303

__________

(1) Subsequent to the issuance of the first quarter 2012 financial statements, the Company determined that a revision was required to correct the classification of certain intercompany cash transfers among Endo Health Solutions Inc., referred to herein as the Parent, and Guarantor and Non-Guarantor Subsidiaries. The intercompany transfers for the three months ended March 31, 2012, which were previously included as a component of operating activities and are now being reclassified as a component of financing activities, included $232.4 million of net cash inflows received by the Parent, $318.5 million of net cash outflows paid by Guarantor Subsidiaries and $86.1 million of net cash inflows received by the Non-Guarantor Subsidiaries. In order to reclassify these transfers, adjustments have been made. The net effect of these adjustments was to include the impact of these intercompany cash transfers within financing activities. These adjustments had no effect on the consolidated Net cash used in operating activities or Net cash used in financing activities for the three months ended March 31, 2012 and the change did not impact the Condensed Consolidating Balance Sheets or Condensed Consolidating Statements of Operations.