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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

For the three months ended September 30, 2013 and 2012, the Company recorded a $16.1 million and a $6.2 million provision for income taxes, respectively, based upon its estimated federal, state and foreign tax liability for the year. The worldwide effective income tax rates for the Company for the three months ended September 30, 2013 and 2012 were 67.5% and 40.0%, respectively. This increase in effective tax rate was driven primarily by the August 2013 acquisition of ProFibrix B.V. (ProFibrix) as the Company was unable to realize a tax benefit from foreign jurisdictions for expenditures since acquisition. The effective income tax rates for the three months ended September 30, 2013 also included a non-cash tax expense for future contingent payments related to the Company's acquisitions of Targanta Therapeutics Corporation (Targanta), Incline Therapeutics, Inc. (Incline) and ProFibrix. The effective tax rate for the three months ended September 30, 2012 included the non-cash tax expense for future contingent payments related to Targanta.

For the nine months ended September 30, 2013 and 2012, the Company recorded a $17.2 million and an $18.9 million provision for income taxes, respectively, based upon its estimated federal, state and foreign tax liability for the year. The worldwide effective income tax rates for the Company for the nine months ended September 30, 2013 and 2012 were 54.8% and 38.2%, respectively. This increase in effective tax rate was driven primarily by the August 2013 acquisition of ProFibrix as the Company was unable to realize a tax benefit from foreign jurisdictions for expenditures since acquisition. The effective income tax rates for the nine months ended September 30, 2013 also included a non-cash tax expense arising from purchase accounting for future contingent payments related to the Company's acquisitions of Targanta, Incline and ProFibrix. The effective income tax rate for the nine months ended September 30, 2013 also reflects the effect of a one-time $2.4 million income tax benefit arising from the retroactive reinstatement of the research and development tax credit included in The American Tax Relief Act of 2012 which was signed into law on January 2, 2013. The effective tax rate for the nine months ended September 30, 2012 included the non-cash tax expense for future contingent payments related to Targanta.

The Company continues to evaluate its ability to realize its deferred tax assets on a periodic basis and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant tax authorities, the progress of ongoing tax audits and the regulatory approval of products currently under development. Any changes to the valuation allowance or deferred tax assets in the future would impact the Company's income taxes.