Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014 and December 31, 2013 (in thousands):



	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Current assets:
Guaranteed investment certificates—original maturities of three months or more	$	49,712	$	49,712	$	—	$	—
Commercial paper	14,752		14,752		—		—
Bonds	9,816		9,816		—		—
Current portion of loans receivable	30,283		30,283		—		—
	$	104,563	$	104,563	$	—	$	—
Long-term assets:
Equity securities	$	2,396	$	2,396	$	2,979	$	2,979
Loans receivable from joint venture	10,463		10,463		—		—
Other loans receivable, less current portion	8,177		8,177		—		—
Equity and cost method investments	43,752		N/A		15,654		N/A
	$	64,788			$	18,633
Current liabilities:
Acquisition-related contingent consideration—short-term	$	3,877	$	3,877	$	3,878	$	3,878
Current portion of 1.75% Convertible Senior Subordinated Notes Due 2015, net	351,728		375,091		345,421		372,481
Current portion of New Term Loan A Facility Due 2019	41,250		41,250		—		—
Current portion of New Term Loan B Facility Due 2021	4,250		4,250		—		—
Current portion of Term Loan A Facility Due 2018	—		—		69,375		69,375
3.25% AMS Convertible Notes due 2036	22		22		22		22
4.00% AMS Convertible Notes due 2041	106		106		111		111
Current portion of Paladin debt	4,889		4,889		—		—
Minimum Voltaren® Gel royalties due to Novartis—short-term	29,260		29,260		28,935		28,935
Other	1,000		1,000		9,000		9,000
	$	436,382	$	459,745	$	456,742	$	483,802
Long-term liabilities:
Acquisition-related contingent consideration—long-term	$	882	$	882	$	869	$	869
New Term Loan A Facility Due 2019, less current portion	1,058,750		1,058,998		—		—
New Term Loan B Facility Due 2021, less current portion	420,750		421,020		—		—
Term Loan A Facility Due 2018, less current portion	—		—		1,266,094		1,265,970
Term Loan B Facility Due 2018	—		—		60,550		60,686
7.00% Senior Notes Due 2019	500,000		540,938		500,000		536,563
7.00% Senior Notes Due 2020, net	397,279		432,500		397,200		430,500
7.25% Senior Notes Due 2022	400,000		436,750		400,000		431,750
5.75% Senior Notes Due 2022	700,000		719,250		700,000		703,500
Paladin debt, less current portion	18,867		18,867		—		—
Minimum Voltaren® Gel royalties due to Novartis—long-term	—		—		7,392		7,392
Other	7,593		7,593		8,443		8,443
	$	3,504,121	$	3,636,798	$	3,340,548	$	3,445,673

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, 2014 and December 31, 2013 were as follows (in thousands):



	Fair Value Measurements at Reporting Date using:
March 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	698,750	$	—	$	—	$	698,750
Guaranteed investment certificates—original maturities of less than three months	—		18,815		—		18,815
Guaranteed investment certificates—original maturities of three months or more	—		49,712		—		49,712
Commercial paper	—		14,752		—		14,752
Bonds	—		9,816		—		9,816
Equity securities	2,396		—		—		2,396
Total	$	701,146	$	93,095	$	—	$	794,241
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	3,877	$	3,877
Acquisition-related contingent consideration—long-term	—		—		882		882
Total	$	—	$	—	$	4,759	$	4,759



	Fair Value Measurements at Reporting Date using:
December 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:
Money market funds	$	843,390	$	—	$	—	$	843,390
Equity securities	2,979		—		—		2,979
Total	$	846,369	$	—	$	—	$	846,369
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	3,878	$	3,878
Acquisition-related contingent consideration—long-term	—		—		869		869
Total	$	—	$	—	$	4,747	$	4,747

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, 2014 (in thousands):



	Acquisition-related Contingent Consideration
Liabilities:
January 1, 2014	$	(4,747	)
Amounts (acquired) sold / (issued) settled, net	—
Transfers in and/or (out) of Level 3	—
Changes in fair value recorded in earnings	(12		)
March 31, 2014	$	(4,759	)

The following table presents changes to the Company’s financial assets and 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	)

Summary of available-for-sale securities

The following is a summary of available-for-sale securities held by the Company at March 31, 2014 and December 31, 2013 (in thousands):



	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2014
Money market funds	$	698,750	$	—	$	—		$	698,750
Guaranteed investment certificates—original maturities of less than three months	18,815		—		—			18,815
Total included in cash and cash equivalents	$	710,065	$	—	$	—		$	710,065
Total included in restricted cash and cash equivalents	$	7,500	$	—	$	—		$	7,500
Guaranteed investment certificates—original maturities of three months or more	$	49,712	$	—	$	—		$	49,712
Commercial paper	14,728		24		—			14,752
Bonds	9,846		—		(30		)	9,816
Total other short-term available-for-sale securities	$	74,286	$	24	$	(30	)	$	74,280
Equity securities	$	1,766	$	630	$	—		$	2,396
Long-term available-for-sale securities	$	1,766	$	630	$	—		$	2,396



	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
December 31, 2013
Money market funds	$	843,390	$	—	$	—	$	843,390
Total included in cash and cash equivalents	$	73,390	$	—	$	—	$	73,390
Total included in restricted cash and cash equivalents	$	770,000	$	—	$	—	$	770,000
Equity securities	$	1,766	$	1,213	$	—	$	2,979
Long-term available-for-sale securities	$	1,766	$	1,213	$	—	$	2,979

- 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.

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- 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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