0001082554 2012-02-23 0001082554 2011-12-31 0001082554 us-gaap:PreferredStockMember 2010-12-31 0001082554 uthr:SeriesAJuniorParticipatingPreferredStockMember 2011-12-31 0001082554 us-gaap:PreferredStockMember 2011-12-31 0001082554 uthr:SeriesAJuniorParticipatingPreferredStockMember 2010-12-31 0001082554 2010-12-31 0001082554 2010-01-01 2010-12-31 0001082554 2009-01-01 2009-12-31 0001082554 2011-01-01 2011-12-31 0001082554 2010-04-01 2010-06-30 0001082554 2009-12-31 0001082554 uthr:TechnologyPatentsAndTradeNamesMember 2010-12-31 0001082554 uthr:CustomerRelationshipsAndNoncompeteAgreementsMember 2010-12-31 0001082554 uthr:ShareTrackingAwardsPlanMember 2010-12-31 0001082554 uthr:ConvertibleNotesDue2011Member 2006-10-30 0001082554 us-gaap:ConvertibleDebtMember 2010-12-31 0001082554 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2010-12-31 0001082554 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2010-12-31 0001082554 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2010-12-31 0001082554 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2010-12-31 0001082554 uthr:ContingentConsiderationMember 2010-12-31 0001082554 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2010-12-31 0001082554 us-gaap:CorporateDebtSecuritiesMember 2010-12-31 0001082554 us-gaap:FirstMortgageMember 2010-01-01 2010-12-31 0001082554 uthr:ShareTrackingAwardsPlan2011Member 2011-03-15 0001082554 uthr:ConvertibleNotesDue2011Member 2006-10-01 2006-10-30 0001082554 uthr:MedicompIncMember 2011-03-31 0001082554 2008-12-31 0001082554 us-gaap:CommonStockMember 2009-01-01 2009-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2009-01-01 2009-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2009-01-01 2009-12-31 0001082554 us-gaap:RetainedEarningsMember 2009-01-01 2009-12-31 0001082554 us-gaap:ComprehensiveIncomeMember 2009-01-01 2009-12-31 0001082554 us-gaap:CommonStockMember 2009-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2009-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2009-12-31 0001082554 us-gaap:TreasuryStockMember 2009-12-31 0001082554 us-gaap:RetainedEarningsMember 2009-12-31 0001082554 us-gaap:CommonStockMember 2010-01-01 2010-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2010-01-01 2010-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-01-01 2010-12-31 0001082554 us-gaap:TreasuryStockMember 2010-01-01 2010-12-31 0001082554 us-gaap:RetainedEarningsMember 2010-01-01 2010-12-31 0001082554 us-gaap:ComprehensiveIncomeMember 2010-01-01 2010-12-31 0001082554 us-gaap:CommonStockMember 2010-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2010-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-12-31 0001082554 us-gaap:TreasuryStockMember 2010-12-31 0001082554 us-gaap:RetainedEarningsMember 2010-12-31 0001082554 us-gaap:CommonStockMember 2011-01-01 2011-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2011-01-01 2011-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-01-01 2011-12-31 0001082554 us-gaap:TreasuryStockMember 2011-01-01 2011-12-31 0001082554 us-gaap:RetainedEarningsMember 2011-01-01 2011-12-31 0001082554 us-gaap:ComprehensiveIncomeMember 2011-01-01 2011-12-31 0001082554 us-gaap:CommonStockMember 2011-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-12-31 0001082554 us-gaap:TreasuryStockMember 2011-12-31 0001082554 us-gaap:RetainedEarningsMember 2011-12-31 0001082554 us-gaap:CommonStockMember 2008-12-31 0001082554 us-gaap:AdditionalPaidInCapitalMember 2008-12-31 0001082554 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2008-12-31 0001082554 us-gaap:TreasuryStockMember 2008-12-31 0001082554 us-gaap:RetainedEarningsMember 2008-12-31 0001082554 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2011-12-31 0001082554 us-gaap:CorporateDebtSecuritiesMember 2011-12-31 0001082554 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2011-12-31 0001082554 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2011-12-31 0001082554 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2011-12-31 0001082554 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2011-12-31 0001082554 uthr:ContingentConsiderationMember 2011-01-01 2011-12-31 0001082554 uthr:ContingentConsiderationMember 2011-12-31 0001082554 uthr:ContingentConsiderationMember 2009-12-31 0001082554 uthr:ContingentConsiderationMember 2010-01-01 2010-12-31 0001082554 uthr:ShareTrackingAwardsPlanMember 2011-01-01 2011-12-31 0001082554 uthr:ShareTrackingAwardsPlanMember 2011-12-31 0001082554 uthr:ShareTrackingAwardsPlanMember 2010-01-01 2010-12-31 0001082554 uthr:ShareTrackingAwardsPlanMember 2009-01-01 2009-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember uthr:ShareTrackingAwardsPlanMember 2009-01-01 2009-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember uthr:ShareTrackingAwardsPlanMember 2009-01-01 2009-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember uthr:ShareTrackingAwardsPlanMember 2010-01-01 2010-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember uthr:ShareTrackingAwardsPlanMember 2010-01-01 2010-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember uthr:ShareTrackingAwardsPlanMember 2011-01-01 2011-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember uthr:ShareTrackingAwardsPlanMember 2011-01-01 2011-12-31 0001082554 uthr:MedicompIncMember 2011-01-01 2011-12-31 0001082554 uthr:MedicompIncMember 2009-01-01 2009-12-31 0001082554 uthr:MedicompIncMember 2010-01-01 2010-12-31 0001082554 uthr:RemodulinMember 2011-01-01 2011-12-31 0001082554 uthr:TyvasoMember 2011-01-01 2011-12-31 0001082554 uthr:AdcircaMember 2011-01-01 2011-12-31 0001082554 uthr:RemodulinMember 2010-01-01 2010-12-31 0001082554 uthr:TyvasoMember 2010-01-01 2010-12-31 0001082554 uthr:AdcircaMember 2010-01-01 2010-12-31 0001082554 country:US 2011-01-01 2011-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2011-01-01 2011-12-31 0001082554 country:US 2010-01-01 2010-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2010-01-01 2010-12-31 0001082554 country:US 2009-01-01 2009-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2009-01-01 2009-12-31 0001082554 country:US 2011-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2011-12-31 0001082554 country:US 2010-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2010-12-31 0001082554 country:US 2009-12-31 0001082554 us-gaap:SegmentGeographicalGroupsOfCountriesGroupOneMember 2009-12-31 0001082554 2011-10-01 2011-12-31 0001082554 2011-07-01 2011-09-30 0001082554 2011-04-01 2011-06-30 0001082554 2011-01-01 2011-03-31 0001082554 2010-01-01 2010-03-31 0001082554 2010-07-01 2010-09-30 0001082554 2010-10-01 2010-12-31 0001082554 uthr:PfizerIncMember 2011-01-01 2011-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2011-01-01 2011-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2010-01-01 2010-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2002-09-01 2002-09-30 0001082554 uthr:KurzweilTechnologiesIncMember 2007-05-01 2007-05-31 0001082554 uthr:KurzweilTechnologiesIncMember 2009-01-01 2009-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2010-12-31 0001082554 uthr:RevivicorIncMember 2011-07-11 0001082554 uthr:RevivicorIncMember 2011-07-01 2011-07-31 0001082554 uthr:TyvasoInhalationSystemMember 2009-09-30 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2011-01-01 2011-12-31 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2011-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2011-01-01 2011-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2011-12-31 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2010-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2010-01-01 2010-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2010-12-31 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2009-01-01 2009-12-31 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2009-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2009-01-01 2009-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2009-12-31 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2008-12-31 0001082554 us-gaap:InventoryValuationReserveMember 2008-12-31 0001082554 us-gaap:AuctionRateSecuritiesMember 2009-12-31 0001082554 us-gaap:AuctionRateSecuritiesMember 2010-01-01 2010-12-31 0001082554 us-gaap:PutOptionMember 2010-01-01 2010-12-31 0001082554 us-gaap:PutOptionMember 2009-12-31 0001082554 uthr:RemodulinMember 2009-01-01 2009-12-31 0001082554 uthr:TyvasoMember 2009-01-01 2009-12-31 0001082554 uthr:AdcircaMember 2009-01-01 2009-12-31 0001082554 uthr:ShareTrackingAwardsPlan2011Member 2011-12-31 0001082554 uthr:OxfordGlycobiologicalInstituteMember 2010-08-01 2010-08-31 0001082554 uthr:OxfordGlycobiologicalInstituteMember 2011-01-01 2011-12-31 0001082554 uthr:OxfordGlycobiologicalInstituteMember 2011-12-31 0001082554 uthr:OxfordGlycobiologicalInstituteMember 2010-01-01 2010-12-31 0001082554 uthr:OxfordGlycobiologicalInstituteMember 2009-01-01 2009-12-31 0001082554 us-gaap:ConvertibleDebtMember 2011-12-31 0001082554 us-gaap:ConvertibleDebtMember 2011-01-01 2011-12-31 0001082554 uthr:GlaxoSmithKlinePLCMember 1997-01-01 1997-01-31 0001082554 uthr:SupernusPharmaceuticalsIncMember 2006-06-01 2006-06-30 0001082554 uthr:EliLillyAndCompanyMember 2008-11-01 2008-11-30 0001082554 uthr:TorayIndustriesIncMember 2011-07-31 0001082554 uthr:TorayIndustriesIncMember 2007-03-31 0001082554 uthr:TechnologyPatentsAndTradeNamesMember 2011-12-31 0001082554 uthr:FiniteLivedContractBasedIntangibleAssetsMember 2011-12-31 0001082554 uthr:CustomerRelationshipsAndNoncompeteAgreementsMember 2011-12-31 0001082554 us-gaap:BuildingMember 2011-01-01 2011-12-31 0001082554 us-gaap:BuildingImprovementsMember 2011-01-01 2011-12-31 0001082554 uthr:FurnitureEquipmentAndVehiclesMember 2011-01-01 2011-12-31 0001082554 us-gaap:LandMember 2011-12-31 0001082554 uthr:BuildingsBuildingImprovementsAndLeaseholdImprovementsMember 2011-12-31 0001082554 uthr:FurnitureEquipmentAndVehiclesMember 2011-12-31 0001082554 us-gaap:ConstructionInProgressMember 2011-12-31 0001082554 us-gaap:LandMember 2010-12-31 0001082554 uthr:BuildingsBuildingImprovementsAndLeaseholdImprovementsMember 2010-12-31 0001082554 uthr:FurnitureEquipmentAndVehiclesMember 2010-12-31 0001082554 us-gaap:ConstructionInProgressMember 2010-12-31 0001082554 us-gaap:ConvertibleDebtMember 2010-01-01 2010-12-31 0001082554 us-gaap:ConvertibleDebtMember 2009-01-01 2009-12-31 0001082554 us-gaap:FirstMortgageMember 2011-12-31 0001082554 us-gaap:FirstMortgageMember 2011-01-01 2011-12-31 0001082554 uthr:RemodulinMember uthr:MochidaPharmaceuticalMember 2007-03-01 2007-03-31 0001082554 2011-06-30 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2011-12-31 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2011-01-01 2011-12-31 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2010-12-31 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2009-12-31 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2010-01-01 2010-12-31 0001082554 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2009-01-01 2009-12-31 0001082554 2008-06-30 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember 2011-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember 2010-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember 2009-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:TyvasoMember 2009-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:TyvasoMember 2010-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:TyvasoMember 2011-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember country:US 2011-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember country:US 2010-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember country:US 2009-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:RemodulinMember country:US 2011-01-01 2011-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:ProductConcentrationRiskMember uthr:TyvasoMember country:US 2011-01-01 2011-12-31 0001082554 uthr:TorayIndustriesIncMember 2011-07-01 2011-07-31 0001082554 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember country:US 2010-12-31 0001082554 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember country:US 2011-12-31 0001082554 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember country:US 2011-01-01 2011-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2011-01-01 2011-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2011-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2010-01-01 2010-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2009-01-01 2009-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2010-12-31 0001082554 us-gaap:EmployeeStockOptionMember 2009-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:EmployeeStockOptionMember 2011-01-01 2011-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:EmployeeStockOptionMember 2010-01-01 2010-12-31 0001082554 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:EmployeeStockOptionMember 2009-01-01 2009-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember us-gaap:EmployeeStockOptionMember 2009-01-01 2009-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember us-gaap:EmployeeStockOptionMember 2010-01-01 2010-12-31 0001082554 uthr:SellingGeneralAndAdministrativeExpenseMember us-gaap:EmployeeStockOptionMember 2011-01-01 2011-12-31 0001082554 us-gaap:CostOfSalesMember uthr:ShareTrackingAwardsPlanMember 2011-01-01 2011-12-31 0001082554 uthr:ConvertibleNotesDue2016Member 2011-10-01 2011-10-31 0001082554 uthr:ConvertibleNotesDue2016Member 2011-10-17 0001082554 uthr:ConvertibleNotesDue2011Member 2011-10-01 2011-10-31 0001082554 uthr:ConvertibleNotesDue2011Member 2011-01-01 2011-12-31 0001082554 uthr:ConvertibleNotesDue2016Member 2011-01-01 2011-12-31 0001082554 uthr:ConvertibleNotesDue2016Member 2011-12-31 0001082554 uthr:ConvertibleNotesDue2016Member us-gaap:PurchasedCallOptionMember 2011-01-01 2011-12-31 0001082554 uthr:ConvertibleNotesDue2011Member us-gaap:PurchasedCallOptionMember 2011-01-01 2011-12-31 0001082554 2011-10-01 2011-10-31 0001082554 2011-10-03 0001082554 uthr:TyvasoInhalationSystemMember 2011-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2011-10-01 2011-10-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2011-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2010-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2009-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2009-01-01 2009-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2010-01-01 2010-12-31 0001082554 us-gaap:SalesRevenueGoodsNetMember us-gaap:CustomerConcentrationRiskMember uthr:AccredoHealthGroupIncMember 2011-01-01 2011-12-31 0001082554 uthr:ConvertibleNotesDue2011Member 2011-12-31 0001082554 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember uthr:ConvertibleNotesDue2011Member 2010-12-31 0001082554 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember uthr:ConvertibleNotesDue2016Member 2011-12-31 0001082554 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember uthr:ConvertibleNotesDue2016Member 2011-12-31 0001082554 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember uthr:ConvertibleNotesDue2011Member 2010-12-31 0001082554 uthr:ShareTrackingAwardsPlan2011Member 2012-02-29 0001082554 us-gaap:SecondMortgageMember 2011-11-01 2011-11-30 0001082554 us-gaap:SecondMortgageMember 2011-11-30 0001082554 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2010-01-01 2010-12-31 0001082554 us-gaap:FirstMortgageMember 2010-12-31 0001082554 uthr:KurzweilTechnologiesIncMember 2011-12-31 0001082554 us-gaap:ChiefExecutiveOfficerMember us-gaap:EmployeeStockOptionMember 2011-12-31 0001082554 us-gaap:PendingOrThreatenedLitigationMember 2011-01-01 2011-12-31 0001082554 uthr:USBasedSpecialtyPharmaceuticalMember 2011-01-01 2011-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure uthr:Y iso4217:EUR uthr:customer uthr:segment uthr:Installments uthr:M uthr:D uthr:distributor uthr:plan uthr:numerator uthr:denominator uthr:quarter uthr:patent uthr:mgorml 591702000 357636000 1197000 1244000 592899000 358880000 743183000 165306000 120368000 188606000 171894000 67674000 40861000 421586000 333123000 171313000 25757000 2939000 5146000 19710000 12875000 -160000 -141000 769000 736000 -16162000 -7134000 155151000 18623000 43945000 -695000 -5290000 144000 299117000.0 -18665000.0 317782000.0 425401000 252162000 374921000 73707000 6840000 8752000 35520000 12585000 764487000 132849000 5122000 9861000 306044000 202135000 11137000 1518079000 1431635000 16146000 50280000 235968000 126292000 212577000 428686000 68929000 39252000 558709000 536867000 10882000 928690000 -9175000 67399000 31170000 883886000 1431635000 0 0 0.01 0.01 0.01 0.01 10000000 100000 10000000 100000 0 0 0 0 0.01 0.01 245000000 245000000 61506063 60017546 53609645 57555893 7896418 2461653 105916000 19462000 17920000 11394000 2398000 4675000 113942000 101015000 16839000 15714000 -2574000 -1551000 23826000 4406000 23452000 21956000 9196000 9061000 587000 -3422000 4776000 196000 -2734000 -3645000 25612000 9203000 -59676000 -29057000 250195000 211532000 99723000 18640000 95400000 662225000 310634000 421528000 249083000 3568000 -13901000 2099000 -121333000.0 -209236000 -162618000 70000000 1055000 31442000 85427000 32071000 23826000 4406000 -218079000.0 146756000 36477000 2758000 -2682000 151810000 -29100000 1818000 1250000 22683000 23931000 2445000 2571000 129452000 100352000 162676000 27662151 19462000 19462000 281000 -281000 10000 955939 32061000 32071000 4406000 4406000 40137000 40137000 56682369 105916000 105916000 63 33000 3335114 83313000 83346000 23826000 23826000 22651000 22651000 60017546 650827 8000 837690 217868000.0 217868000.0 61506063 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>1. Organization and Business Description </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;United Therapeutics Corporation is a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening conditions. As used in these notes to the consolidated financial statements, unless the context otherwise requires, the terms "we," "us," "our," and similar terms refer to United Therapeutics Corporation and its consolidated subsidiaries. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our lead product, Remodulin&#174; (treprostinil) Injection (Remodulin), was first approved in 2002 by the United States Food and Drug Administration (FDA) and has also been approved for use in countries outside of the United States. We sell Remodulin in the United States and in various other countries around the world. In 2009, we received FDA approval for Tyvaso&#174; (treprostinil) Inhalation Solution (Tyvaso) and Adcirca&#174; (tadalafil) tablets (Adcirca), both of which we market in the United States. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>4. Marketable Investments </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Held-to-Maturity Investments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Marketable investments classified as held-to-maturity consist of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Amortized<br /> Cost </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Gains </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Losses </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Fair Value </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Government-sponsored enterprises at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">308,202</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">155</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(170</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">308,187</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Corporate notes and bonds at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">276,118</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">113</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(442</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">275,789</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">584,320</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">268</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(612</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">583,976</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Reported under the following captions on the consolidated balance sheet at December&#160;31, 2011:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current marketable investments</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">240,803</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Noncurrent marketable investments</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">343,517</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">584,320</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;<br /></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Amortized<br /> Cost </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Gains </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Losses </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Fair Value </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Government-sponsored enterprises at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">282,005</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">52</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(152</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">281,905</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Corporate notes and bonds at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">225,394</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">144</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(68</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">225,470</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">507,399</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">196</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(220</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">507,375</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Reported under the following captions on the consolidated balance sheet at December&#160;31, 2010:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current marketable investments</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">374,921</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Noncurrent marketable investments</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">132,478</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">507,399</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table summarizes gross unrealized losses and the length of time marketable investments have been in a continuous unrealized loss position (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Fair Value </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Loss </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Fair Value </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross<br /> Unrealized<br /> Loss </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Government sponsored enterprises:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less than one year</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">170,018</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(170</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">152,844</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(152</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Greater than one year</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">170,018</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(170</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">152,844</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(152</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Corporate notes:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less than one year</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">149,383</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(442</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">107,883</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(68</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Greater than one year</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">149,383</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(442</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">107,883</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(68</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">319,401</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(612</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">260,727</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(220</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We attribute the unrealized losses on held-to-maturity securities as of December&#160;31, 2011 and 2010, to the variability in related market interest rates. We do not intend to sell these securities, nor is it more likely than not that we will be required to sell them prior to the end of their contractual term. Furthermore, we believe these securities do not subject us to undue market risk or counterparty credit risk. As such, we do not consider these securities to be other than temporarily impaired. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table summarizes the contractual maturities of held-to-maturity marketable investments at December&#160;31, 2011 (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31, 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Amortized<br /> Cost </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Fair Value </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Due in less than one year</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">240,803</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">240,884</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Due in one to two years</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">343,517</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">343,092</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Due in three to five years</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Due after five years</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">584,320</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">583,976</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Trading Investments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;During the years ended December&#160;31, 2011, 2010 and 2009, we recognized trading gains of none, $6.9&#160;million and $1.9&#160;million, respectively. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Equity Investments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2011 and 2010, we owned less than 1% of the common stock of a public company. Our investment is classified as available-for-sale and reported at fair value based on the quoted market price. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2011, we maintain equity investments totaling approximately $8.0&#160;million in privately-held corporations. We account for these investments at cost since we do not have the ability to exercise significant influence and their fair values are not readily determinable. The fair value of these investments has not been estimated at December&#160;31, 2011, as there have been no events or developments indicating the related carrying amounts may be impaired. We include these investments within non-current other assets on our consolidated balance sheets. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>5. Fair Value Measurements </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Assets and liabilities carried at, or permitted to be carried at, fair value are classified and disclosed in one of the following categories based on the lowest level input that is significant to a fair value measurement: </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2">Level&#160;1&#8212;Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities. </font></p> <p style="FONT-FAMILY: times"><font size="2">Level&#160;2&#8212;Fair value is determined by using inputs other than Level&#160;1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data. </font></p> <p style="FONT-FAMILY: times"><font size="2">Level&#160;3&#8212;Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment. </font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Assets and liabilities subject to fair value measurements are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>As of December&#160;31, 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;1 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;2 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;3 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market funds(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">72,905</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">72,905</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federally-sponsored and corporate debt securities(2)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">583,976</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">583,976</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Available-for-sale equity investment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">382</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">382</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total Assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,287</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">583,976</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">657,263</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Convertible notes maturing in 2016(3)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">292,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">292,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Contingent consideration(4)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,973</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,973</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">292,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,973</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">300,473</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;<br /></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>As of December&#160;31, 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;1 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;2 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Level&#160;3 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market funds(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">91,206</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">91,206</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federally-sponsored and corporate debt securities(2)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">507,375</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">507,375</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Available-for-sale equity investment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">373</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">373</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total Assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">91,579</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">507,375</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">598,954</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Convertible notes maturing in 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">421,721</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">421,721</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Contingent consideration(4)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,894</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,894</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">421,721</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,894</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">423,615</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Included in cash and cash equivalents, marketable investments and cash&#8212;restricted on the accompanying consolidated balance sheets. <br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Included in current and non-current marketable investments on the accompanying consolidated balance sheets. The fair value of these securities is principally measured or corroborated by trade data for identical issues or that of comparable securities in which related trading activity is not sufficiently frequent to be considered Level&#160;1 inputs. See also Note&#160;4&#8212;Marketable Investments&#8212;Held-to-Maturity Investments to these consolidated financial statements. <br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(3)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Included in non-current convertible notes and relate to our 2016 Convertible Notes. Refer to Note&#160;8&#8212;</font><font size="2"><i>Debt</i></font><font size="2"> for details. Pricing of our 2016 Convertible Notes has been estimated using other observable inputs including the price of our common stock, implied volatility, interest rates and credit spreads among others. Over time, we expect a market for the 2016 Convertible Notes to develop. At that time, we intend to use trade data as the principal basis for measuring fair value, as we did for our convertible notes that matured in October 2011. </font></dd></dl> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(4)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Included in non-current liabilities on the accompanying consolidated balance sheets. The fair value of contingent consideration has been measured using a probability weighted discounted cash flow model which incorporates Level&#160;3 inputs including estimated discount rates that we believe market participants would consider relevant in pricing and the projected timing and amount of cash flows. Refer also to Note&#160;17&#8212;</font><font size="2"><i>Acquisitions</i></font><font size="2">. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The tables below provide a reconciliation of the beginning and ending balances of Level&#160;3 assets and liabilities for the years ended December&#160;31, 2011 and 2010 (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="67"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Contingent<br /> Consideration </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Balance January&#160;1, 2011&#8212;Asset (Liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,894</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Transfers into Level&#160;3</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Transfers out of Level&#160;3</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total gains/(losses) realized/unrealized</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Included in earnings</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,575</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Included in other comprehensive income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Purchases</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,871</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Sales</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Issuances</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Settlements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,361</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Balance December&#160;31, 2011&#8212;Asset (Liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(7,973</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amount of total gains/(losses) for the year ended December&#160;31, 2011 included in earnings that are attributable to the change in unrealized gains or losses related to the outstanding liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,575</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;<br /></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="59"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="59"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="67"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Auction-rate<br /> Securities </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Auction-rate<br /> Securities<br /> Put Option </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Contingent<br /> Consideration </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Balance January&#160;1, 2010&#8212;Asset (Liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">29,332</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,741</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,602</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">30,471</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Transfers into Level&#160;3</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Transfers out of Level&#160;3</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total gains/(losses) realized/unrealized</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Included in earnings</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,868</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,741</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,776</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,903</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Included in other comprehensive income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">586</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">586</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Purchases</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Sales</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Issuances</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Settlements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(36,200</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,346</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(34,854</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Balance December&#160;31, 2010&#8212;Asset (Liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,894</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,894</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amount of total gains/(losses) for the year ended December&#160;31, 2010 included in earnings that are attributable to the change in unrealized gains related to outstanding liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,776</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,776</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>6. Accrued Expenses </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Accrued expenses consist of the following by major category (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Royalties and rebates</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">33,002</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">26,946</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Payroll related</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,945</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,271</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Research related</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,939</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,549</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,341</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,514</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">57,227</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">50,280</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>7. Share Tracking Award Plans </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We maintain two share tracking award plans: the United Therapeutics Corporation Share Tracking Awards Plan, originally adopted in June 2008 (2008 STAP) and the United Therapeutics Corporation 2011 Share Tracking Awards Plan, adopted in March 2011 (2011 STAP). Under these plans, we grant long-term, equity-based compensation to eligible participants. Share tracking awards convey the right to receive in cash an amount equal to the appreciation of our common stock, which is calculated as the positive difference between the closing price of our common stock on the date of exercise and the date of grant. Awards generally vest in equal increments on each anniversary of the date of grant over a three- or four-year period and expire on the tenth anniversary of the date of grant. The maximum number of awards that can be granted under the 2008 STAP is 9.0&#160;million of which, 403,000 remained available for issuance as of December&#160;31, 2011. The maximum number of awards that can be granted under the 2011 STAP is 2.0&#160;million, of which 408,000 remained available for issuance as of December&#160;31, 2011. In February 2012, our Board of Directors amended the 2011 STAP to increase the total number of awards available for grant by 2.0&#160;million and concurrently amended the 2008 STAP to cancel any remaining awards available for future grants thereunder. We refer to the 2008 STAP and the 2011 STAP collectively as the "STAP," and awards granted under either of these plans as "awards." </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The STAP liability balance was $79.9&#160;million and $125.6&#160;million at December&#160;31, 2011 and 2010, respectively, and has been included in other current liabilities on our consolidated balance sheets. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In estimating the fair value of awards, we are required to use inputs that materially impact the determination of fair value and the amount of compensation expense recognized. These inputs include the expected volatility of the price of our common stock, the risk-free interest rate, the expected term of awards, the expected forfeiture rate and the expected dividend yield. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A description of the key inputs used in estimating the fair value of the awards is provided below: </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected volatility</i></font><font size="2">&#8212;Volatility is a measure of the amount the price of our common stock has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. We use historical volatility based on weekly price observations of our common stock during the period immediately preceding an award that is equal to the expected term of an award (up to a maximum of five years). We believe the volatility in the price of our common stock over the preceding five years generally provides the best representation of future long-term volatility. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Risk-free interest rate</i></font><font size="2">&#8212;The risk-free interest rate is the average interest rate consistent with the yield available on a U.S. Treasury note with a term equal to the expected term of an award. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected term of awards</i></font><font size="2">&#8212;An award's expected term reflects the estimated time period we expect an award to remain outstanding. We apply the simplified method in developing an estimate of the expected term. We employ this methodology for estimating the expected term of awards until such time that more refined estimates based on historical exercise behavior of the awards can be established. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected forfeiture rate</i></font><font size="2">&#8212;The expected forfeiture rate is an estimated percentage of awards granted that are expected to be forfeited or canceled on an annual basis prior to becoming fully vested. We derive our estimate based on historical forfeiture experience for similar classes of employees. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected dividend yield</i></font><font size="2">&#8212;We do not pay cash dividends on our common stock and do not expect to do so in the future. Therefore, the dividend yield is assumed to be zero. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The table below presents the assumptions used to measure the fair value of awards at December&#160;31, 2011, 2010 and 2009: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="20"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="20"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected volatility</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">38.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">46.8</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">47.3</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Risk-free interest rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.5</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.7</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.8</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected term of awards (in years)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3.9</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4.5</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeiture rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6.7</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.4</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected dividend yield</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A summary of the status and activity of the STAP is presented below: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="55"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="47"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="47"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Number of<br /> Awards </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Exercise<br /> Price </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term<br /> (Years) </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Aggregate<br /> Intrinsic<br /> Value<br /> (in 000s) </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at January&#160;1, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,380,480</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">39.91</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,619,131</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">64.46</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(878,601</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">29.78</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(326,010</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45.85</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,795,000</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45.90</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7.6</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">56,124</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exercisable at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,728,762</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">36.10</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7.2</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">47,421</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected to vest at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,455,570</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">53.82</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8.5</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,056</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The weighted average fair value of awards granted, as of their date of grant, during the years ended December&#160;31, 2011, 2010 and 2009 was $27.80, $26.23 and $29.12, respectively. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Share-based compensation (benefit) expense recognized in connection with the STAP is as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Research and development</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(8,190</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">42,791</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">27,106</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Selling, general and administrative</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(8,023</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">47,926</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">34,209</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cost of product sales</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(174</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation (benefit) expense before taxes</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(16,387</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">90,717</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">61,315</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Related income tax expense (benefit)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,058</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(33,565</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(22,687</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation (benefit) expense, net of taxes</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(10,329</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">57,152</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">38,628</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation capitalized as part of inventory</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(203</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,002</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,336</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Cash paid to settle STAP exercises during the years ended December&#160;31, 2011, 2010 and 2009 was $28.7&#160;million, $32.9&#160;million and $8.2&#160;million, respectively. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>8. Debt </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Convertible Notes Due 2011 </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On October&#160;30, 2006, we issued at par value $250.0&#160;million of 0.50% Convertible Senior Notes that matured on October&#160;15, 2011 (2011 Convertible Notes). Upon maturity, the aggregate conversion value, which was determined over the consecutive twenty trading-day period beginning on October&#160;17, 2011, was $277.3&#160;million. Accordingly, we paid note holders the outstanding principal value totaling $250.0&#160;million in cash and issued 650,827 shares of our common stock for the remaining aggregate conversion value. Concurrently with the issuance of our common stock upon conversion, we received 650,827 shares of our common stock pursuant to the terms of a convertible note hedge transaction described below. We included these shares within treasury stock on our consolidated balance sheet at December&#160;31, 2011. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Convertible Notes Due 2016 </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On October&#160;17, 2011, we issued at par value $250.0&#160;million of 1.0% Convertible Senior Notes due September&#160;15, 2016 (2016 Convertible Notes). We received $242.5&#160;million in net proceeds from the offering after deducting fees paid to the initial purchaser (Deutsche Bank Securities,&#160;Inc.) and our offering expenses. We used the net proceeds to: (1)&#160;repurchase shares of our common stock under an accelerated share repurchase arrangement as described in Note&#160;10&#8212;</font><font size="2"><i>Stockholders' Equity&#8212;Share Repurchase</i></font><font size="2">; and (2)&#160;pay the net cost of the convertible note hedge and warrant transactions described below. The accelerated share repurchase, convertible note hedge and warrant transactions were all entered into with Deutsche Bank AG London Branch (DB London), an affiliate of Deutsche Bank Securities,&#160;Inc., and became effective on the issuance date of the 2016 Convertible Notes. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Terms of the 2016 Convertible Notes are substantially similar to those of the 2011 Convertible Notes. Interest will be payable semi-annually, in arrears, on March&#160;15^th&#160;and September&#160;15^th&#160;of each year. The initial conversion price is $47.69 per share and the maximum number of shares underlying the debt is approximately 5.2&#160;million shares. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Conversion can occur: (1)&#160;any time after June&#160;15, 2016; (2)&#160;during any calendar quarter that follows a calendar quarter in which the price of our common stock exceeds 130&#160;percent of the conversion price for at least 20&#160;days during the 30 consecutive trading-day period ending on the last trading day of the quarter; (3)&#160;during the ten consecutive trading-day period following any five consecutive trading-day period in which the trading price of the 2016 Convertible Notes is less than 95&#160;percent of the closing price of our common stock multiplied by the then current number of shares underlying the 2016 Convertible Notes; (4)&#160;upon specified distributions to our shareholders; (5)&#160;in connection with certain corporate transactions; or (6)&#160;in the event that our common stock ceases to be listed on the NASDAQ Global Select Market, the NASDAQ Global Market, or the New York Stock Exchange, or any of their respective successors. As of December&#160;31, 2011, none of the contingent conversion thresholds described above were met in order for the 2016 Convertible Notes to be convertible at the option of the noteholders. As a result, the 2016 Convertible Notes have been classified as a non-current liability on our consolidated balance sheet at December&#160;31, 2011. In future financial reporting periods, the classification of the 2016 Convertible Notes may change depending on whether any of the above contingent criteria have been subsequently satisfied. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At December&#160;31, 2011, the aggregate conversion value of the 2016 Convertible Notes did not exceed their par value using a conversion price of $47.25, the closing price of our common stock on December&#160;31, 2011. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Upon conversion, holders of our 2016 Convertible Notes are entitled to receive: (1)&#160;cash equal to the lesser of the par value of the notes or the conversion value (the number of shares underlying the 2016 Convertible Notes multiplied by the then current conversion price per share); and (2)&#160;to the extent the conversion value exceeds the par value of the notes, shares of our common stock. In the event of a change in control, as defined in the indenture under which the 2016 Convertible Notes have been issued, holders can require us to purchase all or a portion of their 2016 Convertible Notes for 100&#160;percent of the notes' par value plus any accrued and unpaid interest. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We analyzed the conversion option and other specific features embedded in the 2016 Convertible Notes and determined that we would not be required to account for these features separately as derivatives. However, because the 2016 Convertible Notes provide for settlement wholly or partially in cash, we are required to account for their liability and equity components separately so that the subsequent recognition of interest expense reflects our non-convertible borrowing rate. Accordingly, we estimated the fair value of the 2016 Convertible Notes without consideration of the conversion option as of the date of issuance (Liability Component). The excess of the proceeds received over the estimated fair value of the Liability Component totaling $57.9&#160;million has been recorded as the conversion option (Equity Component) and a corresponding offset has been recognized as a discount to the 2016 Convertible Notes to reduce their net carrying value. We are amortizing the discount over the five-year period ending September&#160;15, 2016 (the expected life of the Liability Component) using the interest method and an effective rate of interest of 6.7&#160;percent, which corresponds to our estimated non-convertible borrowing rate at the date of issuance. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We accounted for the 2011 Convertible Notes in a similar manner and allocated $72.4&#160;million to the equity component. The corresponding discount had been fully amortized at maturity using an effective rate of interest of 7.5&#160;percent. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest expense incurred in connection with our convertible notes consisted of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Contractual coupon rate of interest</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,510</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,250</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,250</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Discount amortization</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,118</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,705</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,581</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest expense&#8212;convertible notes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">17,628</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,955</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,831</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The carrying value of our convertible notes consisted of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Principal balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">250,000</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">249,968</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Discount, net of accumulated amortization of $2,118 and $58,402</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(55,820</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(14,000</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Carrying amount</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">194,180</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">235,968</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Convertible Note Hedge and Warrant Transactions </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In connection with each issuance of our convertible notes, we entered into separate convertible note hedge and warrant transactions with DB London to reduce the potential dilutive impact upon the conversion of our convertible notes. Pursuant to the convertible note hedge, we purchased call options on our common stock, under which we have the right to acquire from DB London up to the maximum number of shares of our common stock underlying our convertible notes at a strike price that is equal to the initial conversion price of our convertible notes. Our exercise rights under the call options trigger upon conversion of our convertible notes and the call options terminate upon the maturity of the convertible notes, or the first day the convertible notes are no longer outstanding. We also sold warrants to DB London that provide DB London rights to acquire from us up to the maximum number of shares of our common stock underlying our convertible notes at a strike price that is 120&#160;percent of the initial conversion price of the convertible notes. The warrants expire incrementally on a series of expiration dates following the maturity dates of our convertible notes. Both the convertible note hedge and warrant transactions will be settled on a net-share basis. If the conversion price of our convertible notes remains between the strike prices of the call options and warrants, our shareholders will not experience any dilution in connection with the conversion of our convertible notes; however, to the extent that the conversion price exceeds the strike price of the warrants, there will be dilution upon conversion our convertible notes. The convertible note hedge and warrants meet the indexation and classification requirements to be accounted for within equity. As such, the net cost of the convertible note hedge and warrant transactions have been recognized within additional paid-in capital on our consolidated balance sheets and their fair values will not be subsequently re-measured and adjusted as long as these instruments continue to qualify for equity classification. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In connection with the issuance of the 2016 Convertible Notes, we purchased call options to acquire up to 5.2&#160;million shares of our common stock with a strike price of $47.69. We also sold DB London warrants to acquire up to 5.2&#160;million shares of our common stock with a strike price of 67.56. The net cost of these transactions was $33.3&#160;million. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In connection with the issuance of the 2011 Convertible Notes, we purchased call options to acquire up to 6.6&#160;million shares of our common stock with a strike price of $37.61 and sold warrants to DB London to acquire up to 6.6&#160;million shares of our common stock at a price of $52.85 per share. We exercised the call options upon the maturity and conversion of the 2011 Convertible Notes and received 650,827&#160;shares of our common stock from DB London. The warrants we sold to DB London will mature in ratable increments on a series of expiration dates ending in March 2012. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Mortgage Financing&#8212;Wells Fargo </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In December 2010, we entered into a Credit Agreement with Wells Fargo Bank, National Association (Wells Fargo) and Bank of America, N.A., pursuant to which we obtained $70.0&#160;million in debt financing. The Credit Agreement has a forty-eight month term maturing in December 2014 and is secured by our facilities in Research Triangle Park, North Carolina and Silver Spring, Maryland. Annual principal payments are based on a twenty-five year amortization schedule using a fixed rate of interest of 7.0&#160;percent and the outstanding debt bears a floating rate of interest per annum based on the one month London Interbank Offer Rate (LIBOR), plus a credit spread of 3.75&#160;percent, or approximately 4.0&#160;percent as of December&#160;31, 2011. Alternatively, we have the option to change the rate of interest charged on the loan to 2.75&#160;percent plus the greater of: (1)&#160;Wells Fargo's prime rate, (2)&#160;the federal funds effective rate plus 0.05&#160;percent, or (3)&#160;LIBOR plus 1.0&#160;percent. The Credit Agreement permits prepayment of the outstanding loan balance in its entirety, subject to a prepayment premium which was initially 1.5&#160;percent during the first six months of the term and declines in 0.5&#160;percent increments at each successive six-month interval such that there is no premium if the loan is prepaid after June 2012. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Credit Agreement subjects us to the following financial covenants: (1)&#160;a maximum consolidated leverage ratio of 2.5:1.0, calculated as the ratio of our consolidated indebtedness to "Consolidated EBITDA" which is defined as consolidated net income, adjusted for the following as applicable: (i)&#160;interest expense; (ii)&#160;income taxes; (iii)&#160;non-cash license fees; (iv)&#160;depreciation and amortization; (v)&#160;impairment charges; and (vi)&#160;share-based compensation (stock option and share tracking awards expense), to be measured as of the last day of each fiscal quarter on a rolling four quarter basis; and (2)&#160;minimum liquidity of no less than $150.0&#160;million. Under the Credit Agreement, minimum liquidity is defined as the sum of our cash and cash equivalents, plus the fair value of our marketable investments as of the last day of a fiscal quarter less the sum of indebtedness that matures within the next twelve months and the liability related to vested STAP awards in excess of $50.0&#160;million. In addition, the Credit Agreement subjects us to various customary negative covenants. As of December&#160;31, 2011, we were in compliance with these covenants. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Mortgage Financing&#8212;Midland Loan Services (PNC Bank N.A.) </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In November 2011, we assumed a mortgage loan in connection with the acquisition of an office building that is located adjacent to our corporate headquarters. The outstanding principal balance on the mortgage loan of $3.7&#160;million bears interest at 6.35&#160;percent per annum, and the loan matures on June&#160;1, 2016. The mortgage loan is secured by the acquired office building and is payable in monthly installments which are based on a thirty-year amortization schedule. At maturity, the remaining principal balance will be due in full. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2011, future maturities relating to our mortgage financings are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 88pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,88pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,208</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,296</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">66,618</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,460</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">72,655</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Interest Expense </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Details of interest expense include the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">22,209</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,813</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">18,029</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Capitalized interest</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(842</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,154</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,367</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,710</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">12,875</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>9. Commitments and Contingencies </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Operating Leases </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We lease facilities space and equipment under operating lease arrangements that have terms expiring at various dates through 2018. Certain lease arrangements include renewal options and escalation clauses. In addition, various lease agreements to which we are party require that we comply with certain customary covenants throughout the term of these leases. If we are unable to comply with these covenants and cannot reach a satisfactory resolution in the event of noncompliance, these agreements could terminate. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Future minimum lease payments under non-cancelable operating leases are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 91pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ending December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,91pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,305</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,088</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,009</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,985</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,683</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Thereafter</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,226</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,296</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total rent expense was $4.6&#160;million for the year ended December&#160;31, 2011 and $2.7&#160;million for each of the years ended December&#160;31, 2010 and December&#160;31, 2009. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Milestone and Royalty Payments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are party to certain license agreements as described in Note&#160;14&#8212;</font><font size="2"><i>Assignment and License Agreements</i></font><font size="2"> below. Generally, these agreements include milestone payments in cash upon the achievement of certain product development and commercialization goals. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Future milestone payments under these arrangements have been estimated as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 91pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ending December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,91pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(1) </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,730</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,175</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">190</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,900</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,425</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Thereafter</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,370</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,790</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">The amounts and timing of future milestone payments may vary depending on when related milestones will be attained, if at all. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Additionally, certain agreements to which we are a party require us to pay royalties. Refer to Note&#160;14&#8212;</font><font size="2"><i>Assignment and License Agreements</i></font><font size="2"> to these consolidated financial statements. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Research Agreement </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We maintain a research agreement with the University of Oxford (Oxford) to develop antiviral compounds. Research under this agreement is performed by Oxford Glycobiological Institute, which is headed by a member of our board of directors and our scientific advisory board. Under the terms of the agreement, we are required to fund related research activities and make milestone payments for the successful completion of clinical trials. We are also obligated to pay royalties to Oxford equal to a percentage of our net sales from any discoveries and products developed by Oxford. Milestone payments and royalties are subject to reduction depending upon third-party contributions to discoveries and/or third-party licenses necessary to develop products. In August 2010, the term of the research agreement, which was to expire on September&#160;30, 2011, was extended through September 2016. In connection with the extension of the term, we agreed to pay Oxford a total of $2.9&#160;million (using the then prevailing exchange rate) in sixty equal installments. As of December&#160;31, 2011, approximately $2.7&#160;million remains outstanding. During the years ended December&#160;31, 2011, 2010 and 2009, we incurred $658,000, $610,000 and $588,000, respectively, in expenses under the terms of the agreement. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;From time to time, we may enter into other service agreements with Oxford relating to specific development activities that are outside the scope of our research agreement described above. We incurred expenses of $550,000, $401,000 and none relating to these additional service agreements during the years ended December&#160;31, 2011, 2010 and 2009, respectively. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>11. Comprehensive Income </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Components of comprehensive income include the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">217,868</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">105,916</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">19,462</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other comprehensive income:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign currency translation (loss) gain</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,709</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(642</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,802</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized prior service cost, net of tax</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(494</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,224</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">92</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized actuarial pension gain (loss), net of tax</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">487</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,129</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,339</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrealized gain on available-for-sale securities, net of tax</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">134</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">44</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Comprehensive income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">216,158</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">101,055</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">21,061</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>12. Income Taxes </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Components of income tax expense (benefit) consist of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federal</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">54,132</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">25,046</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,304</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">State</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,948</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,792</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,999</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">544</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">846</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">158</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total current</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">63,624</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">27,684</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,461</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federal</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,228</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,614</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(24,397</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">State</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,428</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,881</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,508</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">641</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,289</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">168</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,441</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,022</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(26,737</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other non-current(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federal</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,605</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,672</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,965</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">State</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,621</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,068</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,616</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(417</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">543</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,809</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">17,283</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,581</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total income tax expense (benefit)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">81,874</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">43,945</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(695</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Relates primarily to share-based compensation. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Presented below is a reconciliation of income taxes computed at the statutory federal tax rate to income tax expense (benefit) as reported (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Federal tax provision computed at 35%</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">105,018</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">54,302</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,738</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">State tax provision, net of federal tax provision</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,549</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,437</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">748</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Change in valuation allowance allocated to tax expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(833</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">General business credits</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(15,776</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(14,759</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(10,899</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Incentive stock option expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(290</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,201</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,354</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Section&#160;199 deduction</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,091</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,627</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,207</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Nondeductible compensation expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,607</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,342</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,821</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Nondeductible expenses</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,929</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">451</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,291</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total income tax expense (benefit)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">81,874</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">43,945</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(695</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Components of the net deferred tax asset are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax assets:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">General business credits</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">72,188</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">89,211</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Impairment losses on investments</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,892</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,875</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Realized losses on marketable investments</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,101</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,732</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">License fees capitalized for tax purposes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">69,720</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">58,942</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Nonqualified stock options</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">31,463</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">30,379</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">SERP</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">12,164</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,188</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">STAP awards</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">31,801</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">22,015</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">22,611</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">234,045</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">245,739</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Plant and equipment principally due to differences in depreciation</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(28,416</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(23,341</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,227</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,657</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net deferred tax asset before valuation allowance</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">204,402</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">220,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Valuation allowance</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,458</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(6,021</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 40pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net deferred tax assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">198,944</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">214,720</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Deferred tax assets are reduced by a valuation allowance when, in the opinion of our management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In evaluating our ability to realize deferred tax assets, we consider all available positive and negative evidence. Accordingly, we consider past operating results, forecasts of earnings and taxable income, the reversal of temporary differences and any prudent and feasible tax planning strategies. Future increases in the valuation allowance would result in a corresponding charge to earnings in the period such a determination is made. Conversely, future reductions to the valuation allowance would result in the recognition of a tax benefit in the period we conclude a reduction is warranted. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2011, we had business tax credit carryforwards of approximately $72.2&#160;million. These carryforwards expire on various dates through 2027. Certain business tax credit carryforwards that were generated at various dates prior to December 2008 are subject to limitations on their use pursuant to Internal Revenue Code Section&#160;382 (Section&#160;382) as a result of ownership changes as defined by Section&#160;382. However, we do not expect these business tax credits to expire unused. We are currently reviewing our stock trading history for the year ended December&#160;31, 2011 to ascertain whether any further ownership changes have occurred pursuant to Section&#160;382. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A reconciliation of the beginning and ending balances of unrecognized tax benefits for the years indicated is as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="44"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at January&#160;1, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,406</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">500</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross decreases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(7,406</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in the current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,233</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross decreases&#8212;tax positions in current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Settlements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Lapse of statute of limitations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,733</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at January&#160;1, 2010</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,736</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">670</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross decreases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in the current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in the current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Settlements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Lapse of statute of limitations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,406</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at January&#160;1, 2009</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,882</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">854</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross decreases&#8212;tax positions in prior period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in the current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross increases&#8212;tax positions in the current period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Settlements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Lapse of statute of limitations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrecognized tax benefits at December&#160;31, 2009</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,736</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;During the quarter ended September&#160;30, 2011, the Internal Revenue Service (IRS) completed its audits of our 2009 and 2008 tax years. Based on the completion of these audits, we decreased our reserves for uncertain tax positions by $7.4&#160;million. Included in unrecognized tax benefits at December&#160;31, 2011, 2010 and 2009, is $1.3&#160;million, $453,000 and $538,000, respectively, of tax benefits that, if recognized, would impact the effective tax rate. For the years ended December&#160;31, 2011, 2010 and 2009, we did not accrue, or recognize, any interest and penalties related to uncertain tax positions. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12&#160;months. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are subject to federal and state taxation in the United States and various foreign jurisdictions. Currently, our 2010 tax year is subject to examination by the IRS and our tax years from 2008 to 2010 are subject to examination by state taxing authorities. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>14. Assignment and License Agreements </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>GlaxoSmithKline&#160;PLC </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In January 1997, GlaxoSmithKline&#160;PLC (Glaxo) assigned to us patents and patent applications for the use of the stable prostacyclin analogue UT-15 (now known as treprostinil) for the treatment of PAH and congestive heart failure. Under the agreement, Glaxo is entitled to receive royalties on sales exceeding a specified threshold for a minimum period of ten years (or until expiration of the licensed patents) following the date of the first commercial sale of any product containing treprostinil. The terms of the agreement provide Glaxo rights to negotiate a license with us if we license any part of the marketing rights under the agreement to a third party. Additionally, if we grant any third-party license rights to treprostinil-based products, Glaxo would be entitled to a percentage of all related fees that we would receive on such arrangements. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Pfizer&#160;Inc. </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Pursuant to a December 1996 license agreement, Pfizer&#160;Inc. (Pfizer) exclusively licensed to us patents and a patent application for the composition and production of treprostinil. Related royalties are reduced by up to 50&#160;percent in the event that we pay royalties to a third party in order to market or develop treprostinil. Pfizer is entitled to these royalties for a period of ten years from the date of the first commercial sale of any product containing treprostinil. Our royalty obligation to Pfizer ends during the second quarter of 2012, but we do not anticipate any immediate impact on our aggregate Remodulin royalty rate, given that the Glaxo license contains royalty offsetting provisions, the effect of which is a corresponding increase in the Glaxo royalty rate once the Pfizer royalty obligation expires. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Supernus Pharmaceuticals,&#160;Inc. </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In June 2006, we entered into an exclusive license agreement with Supernus Pharmaceuticals,&#160;Inc. (Supernus) for the use of certain technologies developed by Supernus in our sustained release oral treprostinil product. The agreement requires us to make milestone payments to Supernus in connection with the development of oral treprostinil and its commercial launch. Additionally, we will pay a royalty to Supernus based on net worldwide sales of the initial product. Royalties will be paid for approximately twelve years commencing with the first product sale subject to adjustments. Additional milestone and royalty payments may be due for the development and commercialization of other products using the technology granted under this license. In December 2011, we filed a new drug application for oral treprostinil with the FDA.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Eli Lilly and Company </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In November 2008, we acquired from Eli Lilly and Company (Lilly) exclusive rights to develop, market, promote and commercialize Adcirca for the treatment of pulmonary hypertension in the United States and Puerto Rico. In exchange for these license rights, we agreed to pay Lilly, among other fees, royalties of 5&#160;percent of our net sales of Adcirca as a pass through of Lilly's third-party royalty obligations for as long as Lilly is required to make such royalty payments. Pursuant to the terms of our license arrangement, Lilly manufactures and distributes Adcirca for us via its wholesaler network in the same manner that it distributes its own pharmaceutical products. We purchase Adcirca from Lilly at a fixed manufacturing cost, which is subject to adjustment by Lilly from time to time. The terms of this licensing arrangement will continue generally until the later of (1)&#160;the expiration or lapse of the last to expire claim within a Lilly patent covering commercialization of Adcirca, or (2)&#160;expiration of any government conferred exclusivity rights to Adcirca. In addition, at Lilly's discretion the license agreement may be terminated in the event that we undergo a change in control. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Toray Industries,&#160;Inc. </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In June 2000, we entered into an agreement with Toray to obtain exclusive rights to develop and market beraprost, a chemically stable oral prostacyclin analogue, in a sustained release formulation in the United States and Canada for the treatment of all cardiovascular indications. In March 2007, we amended the agreement to expand our rights to commercialize a modified release formulation of beraprost (beraprost-MR). As part of the March 2007 amendment, we issued 400,000 shares of our common stock to Toray with certain put rights, under which Toray may request at its discretion that we repurchase these shares at a price of $27.21 per share. Accordingly, we classified the then fair value of the stock within temporary equity on our consolidated balance sheets. In the event that Toray requests that we repurchase these shares, we will reclassify the repurchase value of the stock as a liability until settlement. The March 2007 amendment also provided for certain milestone payments during the development period and upon receipt of regulatory approval in the United States or the European Union. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In July 2011, we entered into an exclusive license agreement with Toray Industries,&#160;Inc. (Toray) to amend and replace our existing March 2007 license agreement. Terms of the July 2011 license agreement did not materially change from the previous license agreement and license agreement supplements except for a reduction in royalty rates. In exchange for the reduction in royalty rates, we agreed to pay Toray $50.0&#160;million in equal, non-refundable payments over the five-year period ending in 2015. Since these payments are non-refundable and have no contingencies attached to them, we recognized an obligation and a corresponding charge to research and development expenses of $46.3&#160;million, which represents the present value of the related payments discounted by our estimated current cost of debt. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Other </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are party to various other license agreements relating to therapies under development. These license agreements require us to make payments based on a percentage of sales, if we are successful in commercially developing these therapies, and may require other payments upon the achievement of certain milestones. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>15. Related Party Transaction </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In September 2002, we entered into a technical services agreement for certain telemedicine technology development services for Medicomp,&#160;Inc. with Kurzweil Technologies,&#160;Inc. (KTI), a company controlled by Raymond Kurzweil, a non-independent member of our Board of Directors. Pursuant to this agreement, we agreed to pay KTI a five percent royalty on certain sales of products reasonably attributed to and dependent upon the technology developed by KTI. For the years ended December&#160;31, 2011, 2010 and 2009, we incurred royalties to KTI of $80,000, $355,000 and none, respectively. Upon closing of the sale of Medicomp,&#160;Inc. on March&#160;31, 2011 (see </font><font size="2"><i>Note&#160;18&#8212;Sale of Medicomp,&#160;Inc.)</i></font><font size="2">, further royalty obligations under this agreement were terminated. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2007, we entered into another technical services agreement with KTI. Pursuant to this agreement, we pay KTI monthly consulting fees of up to $12,000 plus all necessary, reasonable and direct out-of-pocket expenses incurred in connection with the performance of related services. In addition, we agreed to pay KTI up to a five percent royalty on sales of certain products reasonably attributed to and dependent upon certain technology developed by KTI. We incurred expenses of $156,000, $144,000 and $172,000, for the years ended December&#160;31, 2011, 2010 and 2009, respectively, under this agreement. As of December&#160;31, 2011 and 2010, we owed KTI $24,000 and $97,000, respectively under this agreement. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In October 2011, we amended the May 2007 technical services agreement such that, effective January&#160;1, 2012, we will pay KTI monthly consulting fees of up to $6,000 plus all necessary, reasonable and direct out-of-pocket expenses. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>16. Distribution Agreements </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>U.S.-Based Specialty Pharmaceutical Distributors </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are party to separate distribution agreements for Remodulin and Tyvaso with each of our U.S.-based specialty pharmaceutical distributors. The distribution agreements are similar to one another, and generally have one-year terms that renew automatically for additional one-year periods, unless terminated earlier. The agreements contain contractual responsibilities relating to ordering specifications, inventory requirements and exchange rights. These agreements require our distributors to perform certain services on a fee-for-service basis. If any of our distribution agreements expire or terminate, we may be required under certain circumstances to repurchase any unsold inventory held by our distributors. None of our current distribution agreements grant our distributors the distribution rights for oral treprostinil. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Mochida Pharmaceutical&#160;Co.,&#160;Ltd. </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In March 2007, we entered into an exclusive agreement with Mochida Pharmaceutical&#160;Co.,&#160;Ltd. (Mochida) to distribute subcutaneous and intravenous Remodulin in Japan. Mochida is responsible, with our assistance, for obtaining Japanese marketing authorization for Remodulin, including conducting necessary studies. We supply the drug used in these studies at no charge to Mochida. Commercial activities in Japan are not expected to begin until 2014. Upon receipt of marketing authorization and pricing approval, Mochida will purchase Remodulin from us at an agreed-upon transfer price. To date, we have received $8.0&#160;million in related payments from Mochida pursuant to the distribution agreement. The distribution agreement includes $4.0&#160;million in future milestone payments upon the filing a New Drug Application in Japan and receipt of marketing approval in Japan. We recognize revenue ratably from the period related fees are realizable through the expected date of regulatory approval. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Lee's Pharmaceutical (HK) Limited </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In June 2010, we entered into an exclusive agreement with Lee's Pharmaceutical (HK) Limited (Lee's Pharma) to distribute subcutaneous and intravenous Remodulin in China. Lee's Pharma is also responsible, with our assistance, for obtaining marketing authorization for Remodulin in China, including conducting necessary studies. We supply the drug used in these studies at no charge to Lee's Pharma. Commercial activities in China are not expected to begin before late 2012, and could begin later depending on the outcome of the ongoing review of our regulatory filing, which was filed in September 2011. Upon receipt of marketing authorization and pricing approval, Lee's Pharma will purchase Remodulin from us at an agreed-upon transfer price. Under our agreement, Lee's Pharma is required to make distributor rights payments to us on specified dates and upon the receipt of marketing approval. We recognize revenue ratably from the period related fees are realizable through the expected date of regulatory approval. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>17. Acquisitions </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Revivicor,&#160;Inc. </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On July&#160;11, 2011, we acquired 100&#160;percent of the outstanding stock of Revivicor,&#160;Inc. (Revivicor), a company focused on developing genetic biotechnology platforms to provide alternative tissue sources for treatment of human degenerative disease. We acquired Revivicor to pursue early stage development of products to treat end-stage lung disease through tissue and organ transplantation. The acquisition date fair value of the consideration consisted of $4.2&#160;million in cash and $3.4&#160;million in contingent consideration. Pursuant to the terms of the acquisition, contingent consideration consists of up to $25.0&#160;million upon the achievement of specific developmental and regulatory milestones. We estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model (DCF). Significant inputs to the DCF model included a present value factor equivalent to Revivicor's estimated borrowing rate and the anticipated amounts and timing of cash flows. Accordingly, the fair value of the contingent consideration has been estimated using significant unobservable inputs, which are classified as Level&#160;3 inputs within the fair value hierarchy. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Acquisition date fair value of the assets acquired and liabilities assumed included the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>July&#160;11, 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tangible assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">592</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Identifiable intangible assets(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,100</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Goodwill(2)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,753</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total assets acquired</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10,445</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current liabilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,588</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Long-term liabilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,227</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total liabilities assumed</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,815</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Consists of contract-based intangible assets which consisted of a license agreement. Contract-based intangible assets will be amortized over an estimated economic life of twenty years which corresponds to the period expected cash flows are anticipated to be received under the license agreement. <br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Goodwill is not deductible for tax purposes. </font></dd></dl></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Tyvaso Inhalation System </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In September 2009 we acquired all of the assets, properties and rights used in the Tyvaso Inhalation System from NEBU-TEC Med Products Eike Kern&#160;GmbH (NEBU-TEC). The acquisition date fair value of the consideration transferred included $6.8&#160;million in cash and $4.8&#160;million in contingent consideration, of which $9.8&#160;million was allocated to identifiable intangible assets and $1.3&#160;million to goodwill. Pursuant to the terms of the acquisition, we agreed to pay NEBU-TEC up to &#8364;10.0&#160;million in contingent consideration in specified increments if the number of patients using the Tyvaso Inhalation System meets or exceeds certain thresholds measured at designated intervals. Provisions of the acquisition also included an option to purchase the assets associated with NEBU-TEC's next generation nebulizer, the SIM-Neb. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On December&#160;31, 2011, we exercised our option to acquire all of the assets, properties and rights associated with the development of the SIM-Neb in order to obtain control over the development and future production of the nebulizer which would be included in the Tyvaso Inhalation System in the event that we receive regulatory approval for its use. We believe that the assets, properties and rights acquired contain the necessary inputs, processes and outputs to be accounted for as a business combination. The acquisition-date fair value of the consideration transferred included $439,000 in cash and $2.5&#160;million in contingent consideration. Pursuant to the terms of the acquisition agreement, we agreed to pay NEBU-TEC up to &#8364;4.0&#160;million in milestone payments contingent upon receiving regulatory approvals for the SIM-Neb. In addition, we may pay NEBU-TEC up to &#8364;10.0&#160;million in specified increments if the number of commercial patients using the SIM-Neb exceeds certain thresholds at designated intervals. We measured the fair value of the contingent consideration using a probability weighted discounted cash flow model which considered, among other factors, the likelihood of the SIM-Neb receiving regulatory approvals, our estimate of patients on therapy, and the possible impact of future new therapies. The acquisition-date fair values of assets acquired included tangible assets of $439,000 and goodwill of $2.9&#160;million. </font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>18. Sale of Medicomp,&#160;Inc. </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On March&#160;31, 2011, we sold 100&#160;percent of the outstanding stock of Medicomp,&#160;Inc. (Medicomp), our wholly-owned telemedicine subsidiary, to a group of private investors. At closing, we received 42,004 shares of United Therapeutics' common stock held by the investors, with an aggregate value of $2.8&#160;million, and a $12.1&#160;million, ten-year promissory note bearing interest at 5.0&#160;percent per annum. Immediately after closing the sale, we purchased a 19.9&#160;percent ownership interest in Medicomp in exchange for $1.0&#160;million in cash and an approximately $2.0&#160;million reduction in the face value of the promissory note. The carrying value of our investment in Medicomp was based on the consideration Medicomp received, which we believe approximated the fair value of our non-controlling interest. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;With the termination of our development of and commercialization efforts relating to an arrhythmia detection application in June 2011, we do not expect to generate further direct continuing cash flows from telemedicine-related activities. As such, we met the criteria for reporting discontinued operations during the one-year assessment period, which began on March&#160;31, 2011. Accordingly, we have included the operating results of Medicomp, including the gain recognized on its disposal, within discontinued operations on our consolidated statements of operations for years ended December&#160;31, 2011, 2010 and 2009. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We sold the following assets and liabilities of Medicomp as of the closing date (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="73"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>March&#160;31, 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cash</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,221</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accounts receivable and inventory</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,028</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,262</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equipment and other assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,089</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total assets</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,600</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other current liabilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,433</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Medicomp's revenues and loss before income tax reported in discontinued operations for the years ended December&#160;31, 2011, 2010 and 2009 are presented below (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Revenues</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,107</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10,932</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10,968</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income (loss) before income tax</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">935</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(7,313</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">144</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>19. Segment Information </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Prior to June&#160;30, 2011, we operated in two business segments: pharmaceutical and telemedicine. With the sale of our telemedicine subsidiary, Medicomp, in March 2011 and the subsequent discontinuation of our remaining telemedicine-related activities in June 2011, we no longer have a telemedicine segment. In light of these developments, we have presented the results of operations relating to Medicomp within discontinued operations on our consolidated statements of operations for the years ended December&#160;31, 2011, 2010 and 2009. Refer to Note&#160;18&#8212;</font><font size="2"><i>Sale of Medicomp, Inc</i></font><font size="2">. above for further details. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As doctors and patients have become increasingly familiar with Tyvaso and Adcirca since these products received regulatory approval in 2009 and we have become more familiar with the market for these products, we use revenue, cost of revenue and gross profit data as a primary measure of performance for each of our three commercial products. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Revenues, cost of revenues and gross profit for each of our commercial products for the years ended December&#160;31, 2011, 2010 and 2009 are presented below (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Remodulin </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Tyvaso </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Adcirca </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" nowrap="nowrap"> <p style="MARGIN-LEFT: 0pt; FONT-FAMILY: times">&#160;</p> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 1%; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, 2011<br /> <!-- COMMAND=ADD_SCROPPEDRULE --></b></font></div></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><font size="2">Revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">430,132</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">240,382</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">70,580</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">741,094</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cost of revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">52,329</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">31,934</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,641</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">88,904</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross profit</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">377,803</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">208,448</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">65,939</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">652,190</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" nowrap="nowrap"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 0pt; FONT-FAMILY: times">&#160;</p> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 1%; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, 2010<br /> <!-- COMMAND=ADD_SCROPPEDRULE --></b></font></div></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><font size="2">Revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">403,598</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">151,797</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">36,307</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">591,702</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cost of revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">35,115</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">30,131</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,428</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">67,674</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross profit</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">368,483</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">121,666</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">33,879</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">524,028</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" nowrap="nowrap"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 0pt; FONT-FAMILY: times">&#160;</p> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 1%; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, 2009<br /> <!-- COMMAND=ADD_SCROPPEDRULE --></b></font></div></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="1">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><font size="2">Revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">331,579</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">20,268</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,789</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">357,636</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cost of revenues</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">35,119</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,318</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">424</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">40,861</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross profit</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">296,460</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">14,950</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,365</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">316,775</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Geographic revenues are determined based on the country in which our customers (distributors) are located. Net revenues from external customers by geographic area are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 88pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,88pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">676,967</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">535,813</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">317,971</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Rest-of-World(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">66,216</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">57,086</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">40,909</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">743,183</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">592,899</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">358,880</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Sales primarily to customers in countries located in Europe. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For the years ended December&#160;31, 2011, 2010 and 2009, sales to Accredo Health Group,&#160;Inc. comprised 61%, 65% and 71%, respectively, of total consolidated net revenues. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Long-lived assets (property, plant and equipment) located by geographic area are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 88pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,88pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">345,153</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">284,591</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">281,330</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Rest-of-World(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,893</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,453</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">22,529</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">366,046</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">306,044</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">303,859</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Long-lived assets consisted of facilities acquired that are primarily located in the United Kingdom. </font></dd></dl></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>20. Quarterly Financial Information (Unaudited) </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Summarized quarterly financial information for each of the years ended December&#160;31, 2011 and 2010 are as follows (in thousands, except per share amounts): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="64"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="67"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Quarter Ended </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>December&#160;31,<br /> 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>September&#160;30,<br /> 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>June&#160;30,<br /> 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>March&#160;31,<br /> 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net sales</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">195,178</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">201,742</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">183,751</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">162,512</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross profit</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">168,983</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">178,344</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">162,384</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">142,479</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">43,189</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">84,398</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,891</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,390</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per share&#8212;basic</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.79</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.45</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.27</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.28</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per share&#8212;diluted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.77</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.38</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.18</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.26</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;<br /></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="64"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="67"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Quarter Ended </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>December&#160;31,<br /> 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>September&#160;30,<br /> 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>June&#160;30,<br /> 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>March&#160;31,<br /> 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net sales</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">163,689</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">168,575</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">134,721</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">125,914</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Gross profit</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">144,861</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">148,081</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">119,178</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">111,909</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,544</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">39,736</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">37,707</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">18,929</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per share&#8212;basic</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.17</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.70</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.67</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.35</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per share&#8212;diluted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.15</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.66</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.62</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.32</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> UNITED THERAPEUTICS Corp 0001082554 10-K 2011-12-31 false --12-31 Yes Large Accelerated Filer 2011 FY Yes No 53626744 308202000 155000 170000 308187000 276118000 113000 442000 275789000 584320000 268000 612000 583976000 282005000 52000 152000 281905000 225394000 144000 68000 225470000 507399000 196000 220000 507375000 132478000 240803000 343517000 152844000 152844000 152000 152000 107883000 107883000 68000 68000 260727000 220000 170018000 149383000 170018000 149383000 319401000 170000 442000 170000 442000 612000 240803000 343517000 584320000 240884000 343092000 583976000 8000000 382000 73287000 583976000 292500000 7973000 7973000 382000 657263000 7973000 300473000 373000 91579000 421721000 421721000 507375000 1894000 1894000 373000 598954000 421721000 1894000 423615000 -5871000 6000 -1575000 1361000 7973000 -1575000 5602000 586000 1776000 2939000 4341000 57227000 8549000 3514000 three-year four-year tenth anniversary of the date of grant 125600000 79900000 9000000 2000000 0.380 3.9 0.070 0.468 4.5 0.067 0.473 5.0 0.054 7380480 7795000 1619131 878601 326010 3728762 3455570 39.91 45.90 64.46 29.78 45.85 36.10 53.82 7.6 7.2 8.5 56124000 47421000 8056000 27.80 26.23 29.12 27106000 34209000 61315000 22687000 38628000 2336000 42791000 47926000 90717000 33565000 57152000 3002000 -8190000 -8023000 -16387000 -6058000 -10329000 -203000 28700000 32900000 8200000 1.00 42004 2800000 12100000 10 0.05 0.199 1000000 2000000 1 1221000 1028000 4262000 7089000 13600000 1433000 10968000 144000 10932000 -7313000 3107000 935000 430132000 52329000 377803000 240382000 31934000 208448000 70580000 4641000 65939000 741094000 88904000 652190000 403598000 35115000 368483000 151797000 30131000 121666000 36307000 2428000 33879000 524028000 345153000 20893000 366046000 284591000 21453000 281330000 22529000 303859000 168983000 178344000 162384000 142479000 144861000 148081000 119178000 111909000 2783978000 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times" align="center"><font size="2"><b>United Therapeutics Corporation<br /> Schedule&#160;II&#8212;Valuation and Qualifying Accounts<br /> Years Ended December&#160;31, 2011, 2010, and 2009<br /> (In thousands) <br /></b></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="54"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="53"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Valuation Allowance on Deferred Tax Assets </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance at<br /> Beginning<br /> of Year </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Additions<br /> Charged to<br /> Expense </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Deductions </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance at<br /> End of Year </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,021</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(563</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,458</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,186</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(165</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,021</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2009</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,822</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">100</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,736</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,186</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;<br /></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="54"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="53"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Reserve for Inventory Obsolescence </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance at<br /> Beginning<br /> of Year </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Additions<br /> Charged to<br /> Expense </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Deductions </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance at<br /> End of Year </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,862</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,979</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">960</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,801</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,271</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,676</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(85</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,862</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Year Ended December&#160;31, 2009</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">411</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,222</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(362</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,271</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> 600000 111206000 19318000 217243000 -5290000 144000 276000 722293000 -5913000 -67395000 -93927000 555334000 567000 798897000 -4314000 -67395000 -74746000 653009000 600000 928690000 -9175000 -67399000 31170000 615000 992718000 -10885000 -282998000 249038000 2802000 2802000 2802000 -642000 -642000 -642000 44000 44000 44000 134000 134000 134000 4776000 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>2. Summary of Significant Accounting Policies </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Basis of Presentation and Principles of Consolidation </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The accompanying consolidated financial statements of United Therapeutics and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The operating results of Medicomp,&#160;Inc. for each of the three years in the three-year period ended December&#160;31, 2011 have been reclassified and presented within discontinued operations on our consolidated statements of operations. This change in presentation had no impact on net income as previously reported. We did not recast our consolidated balance sheet at December&#160;31, 2010 or our consolidated statements of stockholders' equity or cash flows for years ended December&#160;31, 2010 and 2009 to reflect the classification of Medicomp,&#160;Inc. as a discontinued operation as the impact is not significant to those statements (refer to Note&#160;18&#8212;</font><font size="2"><i>Sale of Medicomp,&#160;Inc.</i></font><font size="2">). </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Use of Estimates </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The preparation of the consolidated financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on assumptions regarding historical experience, currently available information and anticipated developments that we believe are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Our significant accounting policies that require use of subjective and/or complex judgment and estimates impact the following financial statement areas: revenue recognition, share-based compensation, marketable investments, fair value measurements (including those relating to our acquisitions), income taxes, goodwill and other intangible assets, and obligations related to our Supplemental Executive Retirement Plan. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Fair Value of Financial Instruments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The carrying amounts of cash and cash equivalents, accounts receivables, accounts payable, and accrued expenses approximate fair value because of their short maturities. The fair values of our marketable investments and 1.0% Convertible Senior Notes due September&#160;15, 2016 (2016 Convertible Notes) are reported in Notes&#160;4</font><font size="2"><i>&#8212;Marketable Investments</i></font><font size="2"> and 5</font><font size="2"><i>&#8212;Fair Value Measurements</i></font><font size="2">, respectively. The recorded value of our $70.0&#160;million mortgage loan approximates its fair value as it bears a variable rate of interest that we believe approximates the market rate of interest for debt with similar credit risk profiles, terms and maturities. Refer to Note&#160;8&#8212;</font><font size="2"><i>Debt&#8212;Mortgage Financing&#8212;Wells Fargo</i></font><font size="2">. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Fair Value Measurements </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Fair value is a market-based measurement, not an entity-specific measurement. The objective of a fair value measurement is to estimate the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Such transactions to sell an asset or transfer a liability are assumed to occur in the principal market for that asset or liability, or in the absence of the principal market, the most advantageous market for the asset or liability. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Assets and liabilities subject to fair value measurement disclosures are required to be classified according to a three-level fair value hierarchy with respect to the inputs (or assumptions) used to determine fair value. Observable inputs such as unadjusted quoted market prices for identical assets or liabilities are given the highest priority within the hierarchy (Level&#160;1). When observable inputs are unavailable, the use of unobservable inputs is permitted&#8212;i.e.,&#160;inputs that a reporting entity believes market participants would use in pricing that are developed based on the best information available. Unobservable inputs are given the lowest priority within the hierarchy (Level&#160;3). The level in which an asset or liability is disclosed within the fair value hierarchy is based on the lowest level input that is significant to the related fair value measurement in its entirety. The guidance under the fair value measurement framework applies to other existing accounting guidance in the Financial Accounting Standard Board (FASB) codification that requires or permits fair value measurements. Refer to related disclosures at Note&#160;5&#8212;</font><font size="2"><i>Fair Value Measurements</i></font><font size="2"> to these consolidated financial statements. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Cash Equivalents </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Cash equivalents consist of highly liquid investments with maturities of three months or less from the date of acquisition and include money market funds, commercial paper, and certificates of deposit. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Marketable Investments </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Substantially all of our marketable investments are debt securities that we classify as held-to-maturity because of our positive intent and ability to hold the securities until maturity. Held-to-maturity securities are classified as either current or non-current on our consolidated balance sheet based on their contractual maturity dates and recorded at amortized cost, adjusted for the amortization of discounts or premiums. Related discounts and premiums are amortized over the term of these securities as an adjustment to yield using the effective interest method. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We monitor our investment portfolio for impairment quarterly or more frequently if circumstances warrant. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, we record an impairment charge within earnings attributable to the estimated credit loss. In determining whether a decline in the value of an investment is other-than-temporary, we evaluate currently available factors that may include, among others: (1)&#160;general market conditions, (2)&#160;the duration and extent to which fair value has been less than the carrying value, (3)&#160;the investment issuer's financial condition and business outlook, and (4)&#160;our assessment as to whether it is more likely than not that we will be required to sell a security prior to recovery of its amortized cost basis. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Trade Receivables </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Trade receivables consist of short-term amounts due from customers and are stated at the amount we expect to collect. We establish an allowance for doubtful accounts, if any, based on our assessment of the collectability of specific customer accounts. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Inventories </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Inventories are stated at the lower of cost (first-in, first-out method) or market (current replacement cost) and consist of the following, net of reserves (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Pharmaceutical Products:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Raw materials</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,171</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,788</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Work in progress</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,222</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">18,598</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Finished goods</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">22,588</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,098</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Delivery pumps, supplies and equipment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,036</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total inventories</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45,981</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">35,520</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Goodwill and Other Intangible Assets </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The carrying amount of goodwill and indefinite-lived intangible assets are not amortized but subject to annual impairment testing. We evaluate goodwill and indefinite-live intangible assets for impairment during the fourth quarter of each year, or more frequently if impairment indicators exist. In determining whether goodwill is impaired, we compare the estimated fair value of the reporting unit to which goodwill has been assigned to its carrying value (Step 1 of the goodwill impairment test). If the carrying amount of a reporting unit exceeds its fair value, then the amount of an impairment loss, if any, is measured as the excess of the carrying amount of goodwill over its implied fair value (Step 2 of the goodwill impairment test). </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In February 2011, we entered into an agreement to sell our wholly-owned subsidiary, Medicomp,&#160;Inc. (Medicomp). Based on the estimated fair value of the purchase consideration, we wrote off the carrying value of Medicomp's goodwill at December&#160;31, 2010 and recognized a related impairment charge of $6.2&#160;million, which has been included within the results of discontinued operations on our consolidated statement of operations for the year ended December&#160;31, 2010. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. Impairment losses are recognized to the extent the undiscounted expected future cash flows associated with the asset are less than its carrying amount. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Goodwill and other intangible assets comprise the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 62%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"130%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="130%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>As of December&#160;31, 2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>As of December&#160;31, 2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Accumulated<br /> Amortization </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Net </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Gross </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Accumulated<br /> Amortization </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Net </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Goodwill(1)(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8,123</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8,123</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,487</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,487</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other intangible assets(1):</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Technology, patents and tradenames</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,766</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,999</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,767</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8,991</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,368</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,623</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Customer relationships and non-compete agreements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,653</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,658</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,995</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,762</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,011</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,751</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Contract-based(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8,350</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(148</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8,202</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">25,892</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,805</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">22,087</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">16,240</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,379</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9,861</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Includes foreign currency translation adjustments. <br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Refer to </font><font size="2"><i>Note&#160;17&#8212;Acquisitions</i></font><font size="2">. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are amortizing other intangible assets over an estimated weighted average life of 12.1&#160;years. Related amortization expense for the years ended December&#160;31, 2011, 2010 and 2009, was $1.7&#160;million, $1.6&#160;million and $717,000, respectively. As of December&#160;31, 2011, aggregate amortization expense relating to intangible assets for each of the five succeeding years and thereafter is estimated as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 88pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,88pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,834</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,812</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,804</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,556</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,060</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Thereafter</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,898</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,964</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Property, Plant and Equipment </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Property, plant and equipment is recorded at cost and depreciated over its estimated useful life using the straight-line method. The estimated useful lives of property, plant and equipment by major category are as follows: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 0%; WIDTH: 100%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left" width="202"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Buildings</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">39 Years</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Building improvements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">10-39 Years</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="top"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Furniture, equipment and vehicles</font></p></td> <td style="FONT-FAMILY: times" valign="top"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">3-15 Years</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Leasehold improvements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Remaining lease term, or the estimated useful life of the improvement, whichever is shorter</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Property, plant and equipment consists of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>As of December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Land</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">21,723</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">20,236</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Buildings, building improvements and leasehold improvements</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">249,289</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">239,473</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Buildings under construction</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">72,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,241</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Furniture, equipment and vehicles</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">75,801</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">77,287</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">419,324</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">344,237</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less&#8212;accumulated depreciation</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(53,278</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(38,193</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Property, plant and equipment, net</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">366,046</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">306,044</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Depreciation expense for the years ended December&#160;31, 2011, 2010 and 2009 was $18.2&#160;million, $17.6&#160;million and $10.7&#160;million, respectively. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Buildings under construction at December&#160;31, 2011 and 2010 consists of direct costs relating to our construction projects, including capitalized interest. We expect to complete the expansion of our corporate headquarters located in Maryland in the first quarter of 2012 and our North Carolina facility in mid-2012. At December&#160;31, 2011 and 2010, we capitalized interest of $842,000 and $103,000, respectively, relating to these construction projects. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Treasury Stock </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Treasury stock is recorded at cost, including commissions and fees. The cost of treasury shares sold is determined using the first-in, first-out method. Related gains and losses on sales of treasury stock are recognized as adjustments to stockholders' equity. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Revenue Recognition </i></b></font></p> <p style="FONT-FAMILY: times"><font size="2"><i>Remodulin and Tyvaso </i></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We sell both Remodulin and Tyvaso to our specialty pharmaceutical distributors under similar contractual arrangements. Sales of Remodulin and Tyvaso are recognized when title and risk of ownership pass to our distributors upon satisfactory delivery&#8212;</font><font size="2"><i>i.e.,</i></font><font size="2">&#160;when all of our performance obligations under these distributor arrangements have been satisfied. We record sales of Remodulin and Tyvaso net of various product sales allowances in the period that associated revenues are recognized. These sales allowances include estimated rebates, prompt payment discounts and service fees to our distributors. Calculating these sales allowances involves the use of significant estimates and judgments and information from external sources. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We derive our provisions for rebates from an analysis of historical levels of rebates to both state Medicaid agencies and third-party payers by product, relative to sales of each product. In formulating our estimates, we also consider the impact of anticipated changes in product sales trends and government rebate programs, particularly as they relate to eligibility requirements and/or rebate pricing. Since rebate eligibility and pricing requirements can differ for Remodulin and Tyvaso, we analyze rebate data separately for each of these products. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We estimate prompt pay discounts based on observed payment behavior. Our distributors have routinely taken advantage of these discounts and we expect them to continue to do so. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We pay our distributors for contractual services rendered and accrue for related fees based on contracted rates applied to the estimated units of service provided by distributors for a given period. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our distributors do not possess return rights; however, we provide exchange rights in the event that product is damaged during shipment or expires. Exchanges for damaged product are highly infrequent. In the event that Remodulin or Tyvaso has been damaged during shipment and we have been promptly notified as required under our distributor arrangements, we do not recognize revenue on that shipment until damaged product has been replaced. Replacement of damaged product generally occurs within several days after we are notified of the damage. Furthermore, the number of product exchanges due to expiration has been minimal because we sell Remodulin and Tyvaso with a remaining shelf life in excess of one year and our distributors typically carry a 30- to 60-day supply of our products at any given time. In addition, we closely track inventory levels in the distribution channels and we do not require, nor do we provide incentives for our distributors to assume, inventory levels of Remodulin or Tyvaso beyond what would be considered reasonable and customary in the ordinary course of business. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The financial effects of exchange rights for Remodulin have been immaterial and we expect the volume of exchanges to be consistent with historical levels. Specifically, Remodulin exchanges have comprised substantially less than one percent of the volume of vials that we sell. Because historical and anticipated future exchanges of Remodulin have been and are expected to be immaterial, we do not record a reserve for estimated exchange rights in the period of sale. Furthermore, because Tyvaso is distributed in the same manner and under similar contractual arrangements as Remodulin and the level of product exchanges for Tyvaso has been less than that of Remodulin, we expect that exchanges of Tyvaso will continue to be less than or comparable to exchanges for Remodulin. Accordingly, we have not recognized a reserve for anticipated future exchanges of Tyvaso. Lastly, we closely monitor exchange data for both of these therapies to ensure that our assumptions continue to be reasonable, appropriate and current. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><i>Adcirca </i></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Adcirca is manufactured for us by Lilly and distributed through Lilly's pharmaceutical wholesaler network. Specifically, Lilly handles all of the administrative functions associated with the sale of Adcirca on our behalf, including the receipt and processing of customer purchase orders, shipment to customers, and invoicing and collection of customer payments. In addition, sales terms for Adcirca include return rights that extend throughout the distribution channel. We recognize sales of Adcirca on a gross basis (net of allowances) upon delivery to customers due to the following factors: (1)&#160;we are responsible for the acceptability of the product purchased by wholesalers; (2)&#160;we bear all inventory risk, as title and risk of loss pass to us at the shipping point from Lilly's manufacturing facility; (3)&#160;we assume credit risk if Lilly is unable to collect amounts due from customers; and (4)&#160;we assume the risk and cost of a product recall, if required. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recognize sales of Adcirca net of: (1)&#160;estimated rebates (including discounts required under Medicare Part&#160;D); (2)&#160;prompt pay discounts; (3)&#160;allowances for product returns; and (4)&#160;wholesaler fees. We estimate our liability for rebates based on an analysis of historical levels of rebates to both Medicaid and commercial third-party payers. In addition, we determine our obligation for prescription drug discounts required for Medicare Part&#160;D patients within the coverage gap based on estimations of the number of Medicare Part&#160;D patients and the period such patients will remain within the coverage gap. We base our estimates for prompt pay discounts on observed customer payment behavior and expectations regarding the future utilization of such discounts. We derive estimates relating to the allowance for returns from published industry data specific to specialty pharmaceuticals and will continue to do so until we have sufficient historical data on which to base our allowance. In addition, we compare patient prescription data for Adcirca to sales of Adcirca on a quarterly basis to ensure a reasonable relationship between prescription and sales trends. To date, we have not identified any unusual patterns in the volume of prescriptions relative to sales that would warrant reconsideration of, or adjustment to, the methodology we currently employ to estimate our allowance for returns. Lastly, wholesaler fees are based on contractual percentages of sales to wholesalers. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Research and Development </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Research and development costs are expensed as incurred except for refundable payments made in advance of services to be provided to us. Related expenses consist of internal labor and overhead, costs to acquire pharmaceutical products and product rights for development, materials used in clinical trials and amounts paid to third parties for services and materials relating to drug development and clinical trials. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recognize the following as research and development expense in the period related costs are incurred: </font></p> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Costs associated with in-house or contracted production activities prior to receiving FDA approval for such facilities, or for major unproven changes to our production processes; </font><font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Costs incurred in licensing the rights to technologies in the research and development stage that have no alternative future uses; and </font><font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Up-front payments made in connection with arrangements to obtain license and distribution rights to pharmaceutical product candidates prior to the regulatory approval, absent any alternative future uses. </font></dd></dl></li></ul> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Share-Based Compensation </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Share-based awards that require cash settlement upon exercise, such as those granted under our Share Tracking Award Plans, are classified as a liability. Accordingly, the fair value of related cash settled awards is re-measured at each reporting date until awards are exercised or are otherwise no longer outstanding. Related changes in the fair value of outstanding cash-settled awards at each reporting date are recognized as adjustments to share-based compensation expense. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Generally, the fair value of a stock option grant is measured on its grant date and related compensation expense is recognized ratably over the requisite service period. Compensation expense is recognized in its entirety based on the grant-date fair value for stock option awards that vest immediately upon issuance. Compensation expense is accrued for performance-based stock option grants when we determine it is probable that the performance criteria will be met. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Income Taxes </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Income taxes are accounted for in accordance with the asset and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some or all of the deferred tax assets will not be realized. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial statement recognition of a tax position taken or expected to be taken in a tax return is determined based on a more likely than not threshold of that position being sustained. If the tax position meets this threshold, the benefit to be recognized is measured as the largest amount that is more than 50&#160;percent likely to be realized upon ultimate settlement. It is our policy to record interest and penalties related to uncertain tax positions as a component of income tax expense. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Earnings (Loss) per Share </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period, plus the potential dilutive effect of other securities if such securities were converted or exercised. During periods in which we incur net losses, both basic and diluted loss per share is calculated by dividing the net loss by the weighted average shares outstanding. Potentially dilutive securities are excluded from the calculation because their effect would be anti-dilutive. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Concentrations of Credit Risk, Products, Revenues and Customers </i></b></font></p> <p style="FONT-FAMILY: times"><font size="2"><i>Concentration of credit risk </i></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial instruments that are exposed to credit risk consist of cash, money market funds, commercial paper, marketable investments, and trade receivables. We maintain our cash and money market funds with financial institutions that are federally insured. While balances deposited in these institutions often exceed Federal Deposit Insurance Corporation limits, we have not experienced any losses on related accounts to date. Furthermore, we limit our risk exposure by maintaining funds in financial institutions that we believe are creditworthy and financially sound. Our investments in commercial paper and marketable debt investments have been issued by federally sponsored agencies and corporate entities with high credit ratings. We mitigate the risks associated with holding these types of securities by investing in highly-rated securities with relatively short maturities that we believe do not subject us to undue investment risk. At any given time, our trade receivables are concentrated among a small number of principal customers. If any of these financial institutions, issuers or customers fail to perform their obligations under the terms of these financial instruments, our maximum exposure to potential losses would equal amounts reported on our consolidated balance sheets. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><i>Concentration of products, revenues and customers </i></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;During the years ended December&#160;31, 2011, 2010 and 2009, net sales of Remodulin accounted for 58%, 68% and 92%, respectively, of our total net revenues. Net sales of Remodulin in the United States to our three distributors comprised 49%, 59% and 81%, respectively, of our total net revenues. In addition, these three U.S.-based distributors are our sole customers for Tyvaso. Net sales of Tyvaso during the years ended December&#160;31, 2011, 2010 and 2009 comprised 32%, 26% and 6% of our net revenues. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At December&#160;31, 2011 and 2010, 68% and 77%, respectively, of our accounts receivable were due from our three U.S.-based distributors. While we rely on our distributors to market Remodulin and Tyvaso, there are several other qualified distributors that could replace any one of our current distributors should the need arise. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;During the years ended December&#160;31, 2011, 2010 and 2009, we derived 61%, 65% and 71% of our total net product revenues from one customer. Estimated net revenues from that customer were as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accredo Health Group,&#160;Inc.&#160;</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">455,504</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">387,251</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">253,314</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>10. Stockholders' Equity </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Equity Incentive Plan </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We maintain an equity incentive plan (EIP) under which we may grant stock options. The EIP provides for the issuance of up to 29.9&#160;million shares of our common stock. As of December&#160;31, 2011, there were 11.1&#160;million shares remaining for issuance under the EIP, of which approximately 11.0&#160;million were reserved for issuance to our Chief Executive Officer. Options granted under the EIP are nontransferable, contain a maximum contractual term of ten years and typically vest in equal annual increments over a maximum period of three years, except for awards to our CEO, which vest immediately upon grant in accordance with the terms of her employment agreement. The exercise price of related stock-option awards can be no less than the fair market value of our common stock on the date of grant. Historically, we have issued new shares of our common stock upon the exercise of options. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Employee Stock Options </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We estimate the fair value of stock options using the Black-Scholes-Merton valuation model. Option valuation models, including Black-Scholes-Merton, require the input of highly subjective assumptions that can materially impact the estimation of fair value and related compensation expense. These assumptions include the expected volatility of our common stock, risk-free interest rate, the expected term of stock option awards, expected forfeiture rate and the expected dividend yield. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A description of the key inputs used in estimating the fair value of stock options is provided below: </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected volatility</i></font><font size="2">&#8212;Volatility is a measure of the amount the price of our common stock has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. We use historical volatility based on weekly price observations of our common stock during the period immediately preceding a stock option grant that is equal to the expected term of the grant (up to a maximum of five years). We believe volatility in the price of our common stock as measured over the preceding five years provides a reliable projection of future long-term volatility. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Risk-free interest rate</i></font><font size="2">&#8212;The risk-free interest rate is the average interest rate consistent with the yield available on a U.S. Treasury note with a term equal to the expected term of a stock option grant. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected term</i></font><font size="2">&#8212;The expected term reflects an estimation of the time period we expect an option grant to remain outstanding. We use the simplified method in developing an estimate of the expected term. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected forfeiture rate</i></font><font size="2">&#8212;The expected forfeiture rate is the estimated percentage of options granted that are expected to be forfeited or canceled on an annual basis prior to becoming fully vested. We derive our estimate based on historical forfeiture experience for similar classes of employees. </font></p> <p style="FONT-FAMILY: times"><font size="2"><i>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Expected dividend yield</i></font><font size="2">&#8212;We do not pay dividends on our common stock and do not expect to do so in the future. Therefore, the dividend yield is assumed to be zero. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We did not grant any stock options during the year ended December&#160;31, 2011. The following weighted-average assumptions were used in estimating the fair value of stock options granted to employees: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="20"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected volatility</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45.4</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">47.6</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Risk-free interest rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.1</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.6</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected term of options (in years)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.1</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.1</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeiture rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Expected dividend yield</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.0</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A summary of the status and activity of employee stock options is presented below: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="55"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="47"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="47"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Options </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Exercise<br /> Price </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Term<br /> (Years) </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Aggregate<br /> Intrinsic<br /> Value<br /> (in 000s) </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at January&#160;1, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,925,968</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">35.64</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(823,522</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">29.12</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(179,069</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">28.86</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,923,377</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">36.98</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.8</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">62,880</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exercisable at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,923,377</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">36.98</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.8</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">62,880</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The weighted average fair value of employee stock options granted during the years ended December&#160;31, 2011, 2010 and 2009, was none, $26.14 and $22.21, respectively. The total fair value of vested employee options was $1.6&#160;million, $29.0&#160;million and $42.7&#160;million, for the years ended December&#160;31, 2011, 2010 and 2009, respectively. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total share-based compensation expense relating to employee stock options for the years ended December&#160;31, 2011, 2010 and 2009, is as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="34"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Research and development</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">196</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,087</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9,188</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Selling, general and administrative</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">315</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">19,265</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">29,930</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation expense before taxes</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">22,352</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">39,118</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Related income tax benefit</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(189</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(8,226</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(14,474</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation expense, net of taxes</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">322</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">14,126</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">24,644</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Share-based compensation capitalized as part of inventory</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">290</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">972</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2011, all employee stock options were fully vested; consequently, there were no amounts of unrecognized compensation cost remaining. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Employee and non-employee stock option exercise data is summarized below (dollars in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="55"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="55"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Number of options exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">837,690</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,335,114</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,358,067</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cash received from options exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">24,398</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">85,427</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">32,611</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total intrinsic value of options exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">30,644</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">102,905</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">29,060</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax benefits realized from options exercised</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,347</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">23,826</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,406</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Earnings per Share </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The components of basic and diluted earnings per share are as follows (in thousands, except per share amounts): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Numerator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income from continuing operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">217,243</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">111,206</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">19,318</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income (loss) from discontinued operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">625</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,290</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">144</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">217,868</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">105,916</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">19,462</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Denominator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Weighted average outstanding shares&#8212;basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">57,163</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">56,142</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">53,314</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Effect of dilutive securities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Convertible Senior Notes</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">569</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,131</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">399</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Warrants</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">263</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Stock options(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,400</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,243</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2,420</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Weighted average shares&#8212;diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">59,395</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">59,516</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">56,133</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Earnings per common share:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Continuing operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3.80</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1.98</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.36</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Discontinued operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.01</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.01</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 40pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per basic common share</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1.89</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.37</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Continuing operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3.66</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1.87</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.34</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Discontinued operations</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.01</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.01</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 40pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income per diluted common share</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3.67</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1.78</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.35</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Stock options and warrants excluded from calculation(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">16,299</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13,532</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13,432</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Calculated using the treasury stock method. <br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Certain stock options and warrants were excluded from the computation of diluted earnings per share because their impact would be antidilutive. </font></dd></dl></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Shareholder Rights Plan </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In June 2008, we entered into an Amended and Restated Rights Agreement with The Bank of New York as Rights Agent (the Plan), which amended and restated our original Rights Agreement dated December&#160;17, 2000. The Plan, as amended and restated, extended the expiration date of the Preferred Share Purchase Rights (Rights) from December&#160;29, 2010 to June&#160;26, 2018, and increased the purchase price of each Right from $64.75 to $400.00, respectively. Each Right entitles holders to purchase one one-thousandth of a share of our Series&#160;A Junior Participating Preferred Stock. Rights&#160;are exercisable only upon our acquisition by another company, or commencement of a tender offer that would result in ownership of 15&#160;percent or more of the outstanding shares of our voting stock by a person or group (as defined under the Plan) without our prior express written consent. As of December&#160;31, 2011, we have not issued any shares of our Series&#160;A Preferred Stock. </font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Share Repurchase </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On October&#160;3, 2011, our Board of Directors approved a share repurchase program authorizing up to $300.0&#160;million in aggregate repurchases of our common stock, from time-to-time at our discretion, over a two-year period ending on October&#160;3, 2013 (Repurchase Program). In connection with the Repurchase Program, we paid $212.0&#160;million for the cost of an accelerated share repurchase agreement (ASR) entered into with DB London. Under the ASR, we will repurchase a variable number of our shares subject to upper and lower stock price limits that establish the minimum and maximum number of shares that can be repurchased. The final number of shares to be repurchased under the ASR will be determined based on the average of the daily volume weighted average price of our common stock over a specified period ending on the contract termination date. The ASR is scheduled to terminate during the second quarter of 2012; however, DB London can accelerate termination of the agreement at its option. Pursuant to the terms of the ASR, on October&#160;17, 2011, DB London delivered to us approximately 4.7&#160;million shares of our common stock, representing the minimum number of shares we are entitled to receive under the ASR. Upon settlement of the ASR, we may receive additional shares of our common stock. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We accounted for the ASR as two transactions: (1)&#160;an initial share repurchase and (2)&#160;a forward contract. Accordingly, we allocated approximately $186.0&#160;million of the cost of the ASR to the shares of our common stock initially delivered by DB London and $26.0&#160;million to the forward contract based on their estimated fair values. Since the forward contract met the criteria to be accounted for as equity, its fair value has been included within additional paid-in capital and will not be subsequently re-measured throughout the term of the ASR.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p></td></tr></table> <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>13. Employee Benefit Plans </b></font></p> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Supplemental Executive Retirement Plan </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We maintain the United Therapeutics Corporation Supplemental Executive Retirement Plan (SERP) to provide retirement benefits to certain senior members of our management team. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Participants who retire at age 60 or older are eligible to receive monthly payments based on an average of their total gross base salary over the last 36&#160;months of active employment, subject to certain adjustments. Related benefit payments commence on the first day of the sixth month after retirement and will continue through the remainder of the participant's life. Alternatively, participants can elect to receive a lump sum distribution equal to the present value of the estimated monthly payments that would have been received upon retirement. Participants who terminate employment for any reason other than death, disability, or change in control prior to age 60 will not be entitled to any benefits under the SERP. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To help fund our obligations under the SERP, we maintain the United Therapeutics Corporation Supplemental Executive Retirement Plan Rabbi Trust Document (Rabbi Trust). Participants of the SERP will have no preferred claim on, nor any beneficial ownership interest in, any assets of the Rabbi Trust. The balance in the Rabbi Trust was $5.1&#160;million as of December&#160;31, 2011 and 2010. Investments held in the rabbi trust are included under restricted marketable investments and cash on our consolidated balance sheets. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recognize the unfunded balance of the SERP as a liability on our consolidated balance sheets. Since we do not fund the SERP, the liability is equal to the projected benefit obligation as measured at the end of each fiscal year. Expenses related to the SERP are capitalized as part of inventory, or reported within selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A reconciliation of the beginning and ending balances of the projected benefit obligation is presented below (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Projected benefit obligation at January&#160;1, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">26,427</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Service cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,255</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,688</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,356</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">883</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Plan amendments</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,597</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,452</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Actuarial (gain) loss</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(683</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,902</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Projected benefit obligation at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">32,952</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">26,427</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Fair value of plan assets at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unfunded at December&#160;31, 2011(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">32,952</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">26,427</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font> </dt> <dd style="FONT-FAMILY: times"><font size="2">Included within other non-current liabilities on our consolidated balance sheets. </font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The accumulated benefit obligation for the SERP, a measure that does not consider future increases in participant salaries, was $20.8&#160;million and $17.1&#160;million at December&#160;31, 2011 and 2010, respectively. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Future estimated benefit payments, based on current assumptions, including election of lump-sum distributions and expected future service, are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 88pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Year Ended December&#160;31, <!-- COMMAND=ADD_SCROPPEDRULE,88pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,142</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2017-2021</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,004</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">25,146</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following weighted-average assumptions were used to measure the SERP obligation: </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="20"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="26"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Discount Rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4.49</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4.80</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Salary Increases</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The components of net periodic pension cost recognized on our consolidated statement of operations consist of the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Service cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,255</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,688</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,645</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,356</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">883</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">558</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization of prior service cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">773</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">370</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">146</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization of net actuarial loss</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">91</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">118</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,475</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,059</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,349</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Amounts relating to the SERP that have been recognized in other comprehensive income are as follows (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="34"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="44"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net unrecognized actuarial (gain) loss</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(773</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,784</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,126</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net unrecognized prior service cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">824</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,082</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(146</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">51</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,866</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,980</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(44</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,513</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(733</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total, net of tax</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,353</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,247</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The table below presents amounts relating to the SERP included in accumulated other comprehensive loss that have not yet been recognized as a component of net periodic pension cost on our consolidated statements of operations (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="44"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Year Ended December&#160;31, </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2009 </b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net unrecognized actuarial loss</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,295</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,068</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,284</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net unrecognized prior service cost</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">7,352</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,528</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,445</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10,647</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10,596</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,729</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,936</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,894</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,379</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total, net of tax</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,711</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,702</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,350</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Estimated amounts included in accumulated other comprehensive income as of December&#160;31, 2011 that are expected to be recognized as components of net periodic pension cost on our statement of operations for the year ended December&#160;31, 2012 comprise the following (in thousands): </font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="30"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization of prior service cost</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">827</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization of net actuarial (gain) loss</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">826</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <ul> <li style="list-style: none"> <p style="FONT-FAMILY: times"><font size="2"><b><i>Employee Retirement Plan </i></b></font></p></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We maintain a Section&#160;401(k) Salary Reduction Plan which is open to all eligible full-time employees. Under the 401(k) Plan, eligible employees can make pre-tax contributions up to statutory limits. Currently, we make discretionary matching contributions to the 401(k) Plan equal to 40&#160;percent of a participant's elected salary deferral. Matching contributions vest immediately for participants who have been employed for three years; otherwise, matching contributions vest annually, in one-third increments over a three-year period until the three-year employment requirement has been met. Expenses related to the 401(k) Plan were $1.7&#160;million, $1.4&#160;million and $847,000 for the years ended December&#160;31, 2011, 2010 and 2009, respectively. </font></p></td></tr></table> 618000 948488000 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>3. Recently Issued Accounting Standards </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In September 2011, the FASB issued Accounting Standards Update (ASU) No.&#160;2011-08, </font><font size="2"><i>Intangibles&#8212;Goodwill and Other (Topic 350)&#8212;Testing Goodwill for Impairment</i></font><font size="2"> (ASU&#160;2011-08). ASU&#160;2011-08 gives reporting entities the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the "more likely than not" threshold is not met, then the two-step impairment test would not be required. ASU&#160;2011-08 also includes examples of factors that entities should consider when performing qualitative assessments that supersede previous examples included under Accounting Standards Codification Topic 350 of circumstances entities should consider when testing goodwill for impairment between annual tests. ASU&#160;2011-08 will be effective for annual impairment tests performed for fiscal years beginning after December&#160;15, 2011. We do not expect the adoption of ASU&#160;2011-08 to have any impact on our consolidated financial statements. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In June 2011, the FASB issued ASU No.&#160;2011-05, </font><font size="2"><i>Comprehensive Income (Topic 220)&#8212;Presentation of Comprehensive Income</i></font><font size="2"> (ASU&#160;2011-05). ASU&#160;2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. Instead, ASU&#160;2011-05 requires entities to report all non-owner changes in stockholders' equity in either a single continuous statement of comprehensive income, or in two separate, but consecutive statements. ASU&#160;2011-05 does not change the items that must be reported in other comprehensive income, or when an item must be reclassified to net income. In December 2011, the FASB issued ASU&#160;2011-12, </font><font size="2"><i>Comprehensive Income (Topic 220):Presentation of Comprehensive Income&#8212;Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No.&#160;2011-05</i></font><font size="2"> (ASU&#160;2011-12). ASU&#160;2011-12 defers indefinitely provisions contained in ASU&#160;2011-05 that revise existing presentation requirements for reclassification adjustments from comprehensive income as the FASB deliberates this issue at a future date. During the deferral period, reporting entities will continue to follow existing guidance prior to ASU&#160;2011-05 under ASC Topic 220, </font><font size="2"><i>Comprehensive Income</i></font><font size="2">, with respect to the disclosure of reclassifications adjustments. Both ASU&#160;2011-12 and ASU&#160;2011-05 are effective for fiscal years, and interim periods within those years, beginning after December&#160;15, 2011 and ASU&#160;2011-05 requires retrospective application. Other than the presentational changes to our basic consolidated financial statements that will be required under ASU&#160;2011-05, the adoption of ASU&#160;2011-05 is not expected to have any impact on our consolidated financial statements. </font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2011, the FASB issued ASU&#160;2011-04, </font><font size="2">