Accounts Receivable

6 Months Ended

Jun. 30, 2011

Accounts Receivable [Abstract]

Accounts Receivable

5.   Accounts Receivable

Our accounts receivable primarily arise from product sales in the U.S. and Europe and primarily represent amounts due from our wholesale distributors, large pharmaceutical companies, public hospitals and other government entities. The majority of our accounts receivable have standard payment terms which are generally between 30 and 90 days. We monitor the financial performance and credit worthiness of our large customers so that we can properly assess and respond to changes in their credit profile. We provide reserves against trade receivables for estimated losses that may result from a customer’s inability to pay. Amounts determined to be uncollectible are charged or written-off against the reserve. To date, such losses have not exceeded management’s estimates.

Concentrations of credit risk with respect to receivables, which are typically unsecured, are limited due to the wide variety of customers and markets using our products, as well as their dispersion across many different geographic areas. We monitor economic conditions, including volatility associated with international economies, and related impacts on the relevant financial markets and our business, especially in light of sovereign credit issues. The credit and economic conditions within Italy, Spain, Portugal and Greece, among other members of the European Union, have deteriorated. These conditions have increased, and may continue to increase, the average length of time that it takes to collect on our accounts receivable outstanding in these countries.

Our net accounts receivable balances from product sales in these countries are summarized as follows:

	As of June 30, 2011
	Balance Included		Balance Included
	within Accounts		within Investments
(In millions)	Receivable, Net		and Other Assets		Total
Italy	$	116.5	$	11.3	$	127.8
Spain	$	81.7	$	36.7	$	118.4
Portugal	$	23.9	$	7.4	$	31.3
Greece	$	10.7	$	—	$	10.7

	As of December 31, 2010
	Balance Included		Balance Included
	within Accounts		within Investments
(In millions)	Receivable, Net		and Other Assets		Total
Italy	$	103.2	$	14.8	$	118.0
Spain	$	70.8	$	29.8	$	100.6
Portugal	$	17.8	$	5.5	$	23.3
Greece	$	3.9	$	—	$	3.9

Of the amounts included within the tables above, approximately $53.5 million and $45.0 million were outstanding for more than one year as of June 30, 2011 and December 31, 2010, respectively. Amounts included as a component of investments and other assets within our condensed consolidated balance sheets represent amounts that are expected to be collected beyond one year.

In May 2011, European Union finance ministers approved a three-year EUR78 billion rescue package for Portugal. Under the terms of the package, Portugal is required to correct its excessive deficit by 2013 and improve the efficiency and effectiveness of its health care system, including through austerity measures aimed at reducing healthcare costs. These measures include plans to standardize control procedures to reduce outstanding balances payable to drug suppliers.

Our concentrations of credit risk related to our accounts receivable from product sales in Greece to date have been limited as our receivables within this market are due from our distributor. These receivables remain current and substantially in compliance with their contractual due dates.