Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities

Schedule of notional amount of foreign currency forward contracts

		Notional Amount
Foreign Currency		June 30, 2012		December 31, 2011
Australian Dollar	$	23,061	$	17,169
British Pound		95,514		53,764
Canadian Dollar		56,749		67,281
Euro		574,659		714,446
Japanese Yen		514,960		606,538
Swiss Franc		38,007		49,182
Total	$	1,302,950	$	1,508,380

Schedule of fair value and balance sheet location of derivative instruments

	June 30, 2012
	Asset Derivatives				Liability Derivatives
	Balance Sheet				Balance Sheet
Instrument	Location		Fair Value		Location		Fair Value
Foreign currency forward contracts designated as hedging instruments*	Other current assets Other non-current assets Other non-current liabilities	$	62,6139,37513		Other current assetsOther non-current assetsOther non-current liabilities	$		19,7597882,473
Treasury rate lock agreements designated as hedging instruments	Other current assets		1,816		Other current assets			-
Foreign currency forward contracts not designated as hedging instruments*	Other current assetsOther current liabilitiesOther non-current assets		67,6071,09325,804		Other current assetsOther current liabilitiesOther non-current assets		27,35810,71123,651
Total		$	168,321			$		84,740
	December 31, 2011
	Asset Derivatives				Liability Derivatives
	Balance Sheet				Balance Sheet
Instrument	Location		Fair Value		Location		Fair Value
Foreign currency forward contracts designated as hedging instruments*	Other current assetsOther current liabilitiesOther non-current liabilities	$		68,889 129 -	Other current assetsOther current liabilitiesOther non-current liabilities	$			32,4303,94024,832
Foreign currency forward contracts not designated as hedging instruments*	Other current assetsOther current liabilitiesOther non-current assets		66,6392,46236,684		Other current assets Other current liabilities Other non-current assets		10,39522,28932,356
Total		$		174,803		$			126,242

*Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheets in accordance with ASC 210-20.

Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income

		Three Month-Period Ended June 30, 2012
		Amount of Gain/(Loss) Recognized in OCI on Derivative (1)	Location of Gain/(Loss) Reclassified from Accumulated OCI into Income		Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Instrument		(Effective Portion)	(Effective Portion)		(Effective Portion)	(Ineffective Portion and Amount Excluded From Effectiveness Testing)		(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Foreign currency forward contracts	$	44,223	Net product sales	$	18,980	Other income, net	$	137	(2)
Treasury rate lock agreements	$	(31,762)

(1)Net gains of $41,503 are expected to be reclassified from Accumulated OCI into income in the next 12 months.

(2)The amount of net gains recognized in income represents $798 in losses related to the ineffective portion of the hedging relationships and $935 of gains related to amounts excluded from the assessment of hedge effectiveness.

		Three Month-Period Ended June 30, 2011
		Amount of Gain/(Loss) Recognized in OCI on Derivative	Location of Gain/(Loss) Reclassified from Accumulated OCI into Income		Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Instrument		(Effective Portion)	(Effective Portion)		(Effective Portion)	(Ineffective Portion and Amount Excluded From Effectiveness Testing)		(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Foreign currency forward contracts	$	(31,221)	Net product sales	$	(7,600)	Other income, net	$	(2,925)	(1)

(1)The amount of net loss recognized in income represents $2,611 in losses related to the ineffective portion of the hedging relationships and $314 of losses related to amounts excluded from the assessment of hedge effectiveness.

		Six-Month Period Ended June 30, 2012
		Amount of Gain/(Loss) Recognized in OCI on Derivative (1)	Location of Gain/(Loss) Reclassified from Accumulated OCI into Income		Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Instrument		(Effective Portion)	(Effective Portion)		(Effective Portion)	(Ineffective Portion and Amount Excluded From Effectiveness Testing)		(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Foreign currency forward contracts	$	67,758	Net product sales	$	38,035	Other income, net	$	(1,741)	(2)
Treasury rate lock agreements	$	(31,762)

(1)Net gains of $41,503 are expected to be reclassified from Accumulated OCI into income in the next 12 months.

(2)The amount of net losses recognized in income represents $5,242 in losses related to the ineffective portion of the hedging relationships and $3,501 of gains related to amounts excluded from the assessment of hedge effectiveness.

		Six-Month Period Ended June 30, 2011
		Amount of Gain/(Loss) Recognized in OCI on Derivative	Location of Gain/(Loss) Reclassified from Accumulated OCI into Income		Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	Location of Gain/(Loss) Recognized in Income on Derivative		Amount of Gain/(Loss) Recognized in Income on Derivative
Instrument		(Effective Portion)	(Effective Portion)		(Effective Portion)	(Ineffective Portion and Amount Excluded From Effectiveness Testing)		(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Foreign currency forward contracts	$	(57,176)	Net product sales	$	(3,031)	Other income, net	$	235	(1)

(1)The amount of net gains recognized in income represents $2,691 in losses related to the ineffective portion of the hedging relationships and $2,926 of gains related to amounts excluded from the assessment of hedge effectiveness.

The following table summarizes the effect of derivative instruments designated as fair value hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2012 and 2011:

		Location of Gain (Loss)	Amount of Gain (Loss) Recognized in Income on Derivative
		Recognized in Income	Three-Month Periods Ended June 30,				Six-Month Periods Ended June 30,
Instrument		on Derivative	2012		2011		2012		2011
Interest rate swaps	(1)	Interest Expense	$	-	$	2,752	$	-	$	3,736

(1)The interest rate swaps were designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.  The hedged debt was marked to market, offsetting the effect of marking the interest rate swaps to market.  As of June 30, 2011, the fair value of the interest rate swaps was a $14,336 unrealized gain, $11,001 current assets and $3,335 non-current assets, on the consolidated balance sheet.

Schedule of effect of derivative instruments not designated as hedging instruments on Consolidated Statements of Income

	Location of Gain (Loss)	Amount of Gain (Loss) Recognized in Income on Derivative
	Recognized in Income	Three-Month Periods Ended June 30,				Six-Month Periods Ended June 30,
Instrument	on Derivative	2012		2011		2012		2011
Foreign currency forward contracts	Other income, net	$	23,810	$	5,969	$	15,927	$	34,920
Treasury rate lock agreements	Other income, net	$	3,718	$	-	$	3,718	$	-