Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

Commitments and Contingencies

In 2006, we acquired Fumapharm AG. As part of this acquisition we acquired FUMADERM and TECFIDERA (together, Fumapharm Products). We are required to make additional contingent payments to former shareholders of Fumapharm AG based on the attainment of certain cumulative sales levels of Fumapharm Products, with the amount of each payment based on the level of total net sales of Fumapharm Products in the prior twelve month period, as defined in the acquisition agreement:

	Cumulative Sales Level
	$1.0B		$2.0B		$3.0B		Each additional $1.0B up to $20.0B
Prior 12 Month Sales	Payment Amounts (In Millions)
< $500 million	$	—	$	—	$	—	$	—
$500 million - $1.0 billion	25.0		50.0		50.0		50.0
$1.0 billion - $1.5 billion	50.0		100.0		100.0		100.0
$1.5 billion - $2.0 billion	—		150.0		150.0		150.0
$2.0 billion - $2.5 billion	—		200.0		200.0		200.0
$2.5 billion - $3.0 billion	—		—		250.0		250.0
> $3.0 billion	—		—		—		300.0

These payments will be accounted for as an increase to goodwill as incurred, in accordance with the accounting standard applicable to business combinations when we acquired Fumapharm. Any portion of the payment which is tax deductible will be recorded as a reduction to goodwill. Payments are due within 60 days following the end of the quarter in which the applicable cumulative sales level has been reached. During the three months ended March 31, 2014, we paid the $25.0 million contingent payment as we reached the $1.0 billion cumulative sales level related to the Fumapharm Products in 2013.