Commitments and Contingencies

9 Months Ended

Sep. 30, 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 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
Prior 12 Month Sales	$1.0B		$2.0B		$3.0B		Each additional $1.0B up to $20.0B
	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 nine months ended September 30, 2014, we paid a $25.0 million contingent payment as we reached the $1.0 billion cumulative sales level related to the Fumapharm Products in 2013, a $150.0 million contingent payment as we reached the $2.0 billion cumulative sales level related to Fumapharm Products in the second quarter of 2014 and accrued $200.0 million upon reaching $3.0 billion in total cumulative sales of Fumapharm Products, in the third quarter of 2014.