Fair Value Measurement

6 Months Ended

Jun. 30, 2011

Fair Value Measurement [Abstract]

FAIR VALUE MEASUREMENT

NOTE 11 — FAIR VALUE MEASUREMENT

     Fair value is the price that would be received to sell an asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy distinguishes three levels of inputs that may be utilized when measuring fair value, including level 1 inputs (using quoted prices in active markets for identical assets or liabilities), level 2 inputs (using inputs other than level 1 prices such as quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability) and level 3 inputs (using unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities). A financial asset or liability’s classification within the above hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

     Financial assets and liabilities measured at fair value or disclosed at fair value on a recurring basis as at June 30, 2011 and December 31, 2010 consisted of the following (in millions):

	Fair Value Measurements as at June 30, 2011 Using:
	Total		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	8.9	$	8.9	$	—	$	—
Investments		—		—		—		—
Liabilities:
Contingent consideration		241.7		—		—		241.7

	Fair Value Measurements as at December 31, 2010 Using:
	Total		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	11.1	$	11.1	$	—	$	—
Investments		23.1		23.1		—		—
Liabilities:
Contingent consideration		198.5		—		—		198.5

     Marketable securities and investments consist of available-for-sale investments in U.S. Treasury and agency securities and publicly traded equity securities for which market prices are readily available. Unrealized gains or losses on marketable securities and investments are recorded in accumulated other comprehensive (loss) income.

     The fair value measurement of the contingent consideration obligations is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a probability-weighted income approach. The measurement is based upon unobservable inputs supported by little or no market activity based on our own assumptions. Changes in the fair value of the contingent consideration obligations are recorded as a component of operating income in our consolidated statement of operations. For the six months ended June 30, 2011, $4.4 million and $10.7 million have been included within research and development expenses and interest expense, respectively in the accompanying condensed consolidated statement of operations.

     The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2011 (in millions):

	Balance at		Net transfers in to		Purchases, sales,		Total realized and
	December 31,		(out of)		settlements,		unrealized gains		Ending balance at
	2010		Level 3		issuances, net		(losses)		June 30, 2011
Liabilities:
Contingent consideration obligations		198.5		—		27.4		15.8		241.7