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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2013	Jan. 31, 2014	Jun. 30, 2013
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	QUESTCOR PHARMACEUTICALS INC
Entity Central Index Key	0000891288
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		60,583,618
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1,756,532,593

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 175,840	$ 80,608
Short-term investments	69,166	74,705
Total cash, cash equivalents and short-term investments	245,006	155,313
Accounts receivable, net of allowances for doubtful accounts of $475 and $0 at December 31, 2013 and December 31, 2012, respectively	87,069	61,417
Inventories, net of allowances of $1,329 and $52 at December 31, 2013 and December 31, 2012, respectively	16,368	9,909
Restricted cash - current portion	25,000	0
Prepaid expenses and other current assets	7,124	4,900
Deferred tax assets	16,209	5,737
Total current assets	396,776	237,276
Property and equipment, net	31,733	2,073
Purchased technology, net	0	1,493
Goodwill	20,464	0
In process R&D asset	191,451	0
Intangibles and other non current assets	30,131	0
Restricted cash	50,000	0
Deposits and other assets	389	70
Deferred tax assets	15,410	11,519
Total assets	736,354	252,431
Current liabilities:
Accounts payable	14,302	13,069
Accrued compensation	16,489	21,300
Sales-related reserves	35,370	37,376
Accrued royalties	35,163	9,802
Dividend payable	18,093	0
Current portion of contingent consideration	4,238	0
Current portion of in process R&D liability	25,000	0
Income taxes payable	3,693	7,360
Current portion of long-term debt	1,665	0
Other accrued liabilities	7,159	1,492
Total current liabilities	161,172	90,399
Long-term debt, less current portion	13,998	0
Contingent consideration	33,224	0
In process R&D liability	115,066	0
Non current deferred tax liability	10,569	0
Other non current liabilities	2,961	203
Total liabilities	336,990	90,602
Commitments and contingencies (see Note 7)
Shareholders’ equity:
Preferred stock, no par value, 5,334,285 shares authorized; none outstanding	0	0
Common stock, no par value, 105,000,000 shares authorized, 60,137,758 and 58,544,206 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively	30,386	15,938
Retained earnings	372,231	145,851
Accumulated other comprehensive income (loss)	(3,253)	40
Total shareholders’ equity	399,364	161,829
Total liabilities and shareholders’ equity	$ 736,354	$ 252,431

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 475	$ 0
Inventory, allowances	$ 1,329	$ 52
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	105,000,000	105,000,000
Common stock, shares issued	60,137,758	58,544,206
Common stock, shares outstanding	60,137,758	58,544,206
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	5,334,285	5,334,285
Preferred stock, shares outstanding	0	0

Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues
Pharmaceutical net sales	$ 761,347	$ 509,292	$ 218,169
Contract manufacturing net sales	37,582	0	0
Total net sales	798,929	509,292	218,169
Cost of sales (exclusive of amortization of purchased technology and IPR&D asset)	74,365	28,555	12,459
Gross profit	724,564	480,737	205,710
Operating expenses:
Selling and marketing	152,856	114,139	56,728
General and administrative	56,408	33,596	17,743
Research and development	59,730	34,269	16,778
Depreciation and amortization	4,055	1,219	1,044
Change in fair value of contingent consideration	10,958	0	0
Impairment of goodwill and intangibles			299
Total operating expenses	284,726	184,210	92,592
Income from operations	439,838	296,527	113,118
Interest and other (expense) income, net	250	703	627
Foreign currency transaction loss	(548)	0	0
Income before income taxes	439,540	297,230	113,745
Income tax expense	146,931	99,555	34,154
Net income	292,609	197,675	79,591
Change in unrealized gains or losses on available-for-sale securities, net of related tax effects.	(35)	76	(59)
Change foreign currency translation adjustments.	(3,258)	0	0
Comprehensive Income	$ 289,316	$ 197,751	$ 79,532
Net income per share applicable to common shareholders:
Basic (in dollars per share)	$ 4.99	$ 3.28	$ 1.27
Diluted (in dollars per share)	$ 4.76	$ 3.14	$ 1.21
Shares used in computing net income per share applicable to common shareholders:
Basic (in shares)	58,616	60,243	62,498
Diluted (in shares)	61,447	63,045	66,010
Dividends declared per common share	$ 1.10	$ 0.40	$ 0

Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Gain (Loss)	Total Shareholders’ Equity
Balances at Dec. 31, 2010		$ 74,809	$ 45,295	$ 23	$ 120,127
Balances, shares at Dec. 31, 2010		62,418,464
Stock compensation for equity incentives and restricted common stock granted to consultants and employees		$ 7,326	0	0	7,326
Stock compensation for equity incentives and restricted common stock granted to consultants and employees, shares		31,762
Issuance of common stock pursuant to employee stock purchase plan		$ 1,358	0	0	1,358
Issuance of common stock pursuant to employee stock purchase plan, shares	90,650	90,650
Issuance of common stock upon exercise of stock options		$ 5,224	0	0	5,224
Issuance of common stock upon exercise of stock options, shares		1,991,857
Repurchase of common stock		$ (11,453)	0	0	(11,453)
Repurchase of common stock, shares		(884,300)
Cancellation of shares related to tax liability		$ 0	0	0	0
Cancellation of shares related to tax liability, shares		(2,652)
Income tax benefit realized from share-based compensation plans		$ 17,712	0	0	17,712
Comprehensive income:
Net unrealized gain (loss) on investments	$ (59)	0	0	(59)	(59)
Foreign currency translation adjustment	0
Net income	$ 79,591	0	79,591	0	79,591
Balances at Dec. 31, 2011		$ 94,976	124,886	(36)	219,826
Balances, shares at Dec. 31, 2011		63,645,781
Stock compensation for equity incentives and restricted common stock granted to consultants and employees		$ 15,792	0	0	15,792
Stock compensation for equity incentives and restricted common stock granted to consultants and employees, shares		752,771
Issuance of common stock pursuant to employee stock purchase plan		$ 2,660	0	0	2,660
Issuance of common stock pursuant to employee stock purchase plan, shares	92,030	92,030
Issuance of common stock upon exercise of stock options		$ 3,675	0	0	3,675
Issuance of common stock upon exercise of stock options, shares		819,085
Repurchase of common stock		$ (108,653)	(153,177)	0	(261,830)
Repurchase of common stock, shares		(6,759,861)
Dividends Paid			(23,533)		(23,533)
Cancellation of shares related to tax liability		$ 0	0	0	0
Cancellation of shares related to tax liability, shares		(5,600)
Income tax benefit realized from share-based compensation plans		$ 7,488	0	0	7,488
Comprehensive income:
Net unrealized gain (loss) on investments	$ 76	0	0	76	76
Foreign currency translation adjustment	0
Net income	197,675	0	197,675	0	197,675
Balances at Dec. 31, 2012	$ 161,829	$ 15,938	145,851	40	161,829
Balances, shares at Dec. 31, 2012	58,544,206	58,544,206
Stock compensation for equity incentives and restricted common stock granted to consultants and employees		$ 28,753	0	0	28,753
Stock compensation for equity incentives and restricted common stock granted to consultants and employees, shares		789,381
Issuance of common stock pursuant to employee stock purchase plan		$ 4,054	0	0	4,054
Issuance of common stock pursuant to employee stock purchase plan, shares	137,472	137,472
Issuance of common stock upon exercise of stock options		$ 15,989	0	0	15,989
Issuance of common stock upon exercise of stock options, shares	1,692,920	1,692,920
Repurchase of common stock		$ (53,054)	0	0	(53,054)
Repurchase of common stock, shares		(960,000)
Dividends Paid			(66,229)		(66,229)
Cancellation of shares related to tax liability		$ (4,103)	0	0	(4,103)
Cancellation of shares related to tax liability, shares		(66,221)
Income tax benefit realized from share-based compensation plans		$ 22,809	0	0	22,809
Comprehensive income:
Net unrealized gain (loss) on investments	$ (35)	0	0	(35)	(35)
Foreign currency translation adjustment	(3,258)	0	0	(3,258)	(3,258)
Net income	292,609	0	292,609	0	292,609
Balances at Dec. 31, 2013	$ 399,364	$ 30,386	$ 372,231	$ (3,253)	$ 399,364
Balances, shares at Dec. 31, 2013	60,137,758	60,137,758

Consolidated Statements Of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements Of Cash Flows $ in Thousands	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Cash Flows From Operating Activities
Net income	$ 292,609	$ 197,675	$ 79,591
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	28,753	15,792	7,326
Deferred income taxes	(14,849)	241	(4,896)
Amortization of investments	412	1,330	1,250
Depreciation and amortization	14,172	1,219	1,044
Impairment of goodwill and intangibles	719	987	299
Loss on disposal of property and equipment	95	72	11
Changes in fair value of contingent consideration	6,429	0	0
Imputed interest for contingent consideration and in-process R&D	4,529	0	0
Other compensation expense	1,892	0	0
Changes in operating assets and liabilities:
Accounts receivable	(19,155)	(33,616)	(16,673)
Inventories	4,577	(4,683)	(1,500)
Prepaid income taxes	0	6,940	(3,408)
Prepaid expenses and other current assets	(1,335)	(1,509)	(1,527)
Accounts payable	(589)	7,566	1,634
Accrued compensation	(4,811)	9,710	7,432
Accrued royalties	25,361	5,463	3,030
Sales-related reserves	(2,006)	3,257	12,608
Income taxes payable	(3,667)	7,360	0
Other accrued liabilities	3,307	1,317	(504)
Other non-current liabilities	1,335	(84)	(118)
Net cash provided by operating activities	337,778	219,037	85,599
Cash Flows From Investing Activities
Purchase of short-term investments	(120,645)	(145,384)	(162,301)
Proceeds from the sale and maturities of short-term investments	125,737	191,105	112,636
Purchase of property, equipment and leasehold improvements	(3,536)	(1,065)	(1,823)
Restricted cash associated with the acquisition of Synacthen	(75,000)	0	0
Acquisition of BioVectra, net of cash acquired	(46,692)	0	0
Acquisition of Synacthen	(60,000)	0	0
Proceeds from sale of Doral	700	0	0
Changes in deposits and other assets	2,119	(14)	9
Net cash (used in) / provided by investing activities	(177,317)	44,642	(51,479)
Cash Flows From Financing Activities
Repayment of funded long-term debt	(1,219)	0	0
Repayment of other long-term debt	(491)	0	0
Income tax benefit realized from share-based compensation plans	22,809	7,488	17,712
Issuance of common stock, net	15,940	6,335	6,582
Dividends paid	(48,136)	(23,533)	0
Repurchase of common stock	(53,054)	(261,830)	(11,453)
Net cash (used in) / provided by financing activities	(64,151)	(271,540)	12,841
Impact of exchange rate on cash flows	(1,078)	0	0
Increase (decrease) in cash and cash equivalents	95,232	(7,861)	46,961
Cash and cash equivalents at beginning of year	80,608	88,469	41,508
Cash and cash equivalents at end of year	175,840	80,608	88,469
Supplemental disclosures of Cash Flow Information:
Cash paid for interest	704	23	16
Cash paid for income taxes	141,515	77,556	25,278
Dividend payable	18,093	11,691	0
Supplemental disclosure of non-cash investing and financing activities:
Capital lease obligation	0	$ 31	$ 34
Incremental fair value of assets acquired, net	80,698
Incremental fair value of assets acquired, net	(30,383)
Fair value of assets acquired	50,315
Foreign currency transaction loss	488
Total cash paid for acquisition of BioVectra	$ 50,803

Organization And Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies

The Company

Questcor is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. We also supply specialty contract manufacturing services to the global pharmaceutical and biotechnology industry through our wholly-owned subsidiary, BioVectra Inc. Our primary product is H.P. Acthar^® Gel (repository corticotropin injection), or Acthar, an injectable drug that is approved by the U.S. Food and Drug Administration, or FDA, for the treatment of 19 indications. Of these 19 FDA approved indications, for the year ended December 31, 2013, we generated substantially all of our net sales from the following indications:

•

Nephrotic Syndrome (NS): Acthar is indicated “to induce a diuresis or a remission of proteinuria in the nephrotic syndrome without uremia of the idiopathic type or that due to lupus erythematosus.” According to the National Kidney Foundation, nephrotic syndrome can result from several idiopathic type kidney disorders, including idiopathic membranous nephropathy, focal segmental glomerulosclerosis, IgA nephropathy and minimal change disease. Nephrotic syndrome can also occur due to lupus erythematosus. In this Form 10-K, the terms “nephrotic syndrome” and “NS” refer only to the proteinuria in nephrotic syndrome conditions that are covered by the Acthar label of approved indications.

•

Rheumatology Related Conditions: Acthar is approved for the following rheumatology related conditions: (i) Collagen Diseases: Acthar is indicated "during an exacerbation or as maintenance therapy in selected cases of systemic lupus erythematosus, systemic dermatomyositis (polymyositis)" and (ii) Rheumatic Disorders: Acthar is indicated as "adjunctive therapy for short-term administration (to tide the patient over an acute episode or exacerbation) in: Psoriatic arthritis, Rheumatoid arthritis, including juvenile rheumatoid arthritis (selected cases may require low-dose maintenance therapy), and Ankylosing spondylitis."


•	Multiple Sclerosis (MS): Acthar is indicated “for the treatment of acute exacerbations of multiple sclerosis in adults. Controlled clinical trials have shown H.P. Acthar Gel to be effective in speeding the resolution of acute exacerbations of multiple sclerosis. However, there is no evidence that it affects the ultimate outcome or natural history of the disease.”


•	Infantile Spasms (IS): Acthar is indicated “as monotherapy for the treatment of infantile spasms in infants and children under 2 years of age.”

We continue to explore additional markets for other on-label indications. For example, in 2013 we initiated a pilot commercialization effort for Acthar for the treatment of respiratory manifestations of symptomatic sarcoidosis. In addition, we are exploring the possibility of pursuing FDA approval for indications not currently on the Acthar label that are related to the treatment of other serious, difficult-to-treat autoimmune and inflammatory disorders having high unmet medical need.

In order to improve outcomes for patients with difficult-to-treat autoimmune and inflammatory disorders, we are expanding our research to better understand the mechanism(s) of action of Acthar as well as the pharmacology of Acthar across and within each indication. We are also conducting studies to expand our understanding of why Acthar acts differently than steroids and potentially other melanocortin peptides.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

The financial statements of our subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using period-end exchange rates for assets and liabilities, historical exchange rates for shareholders' equity and weighted average exchange rates for operating results. Translation gains and losses are included in accumulated other comprehensive income in shareholders' equity. Foreign currency transaction gains and losses are included in the results of operations in our Consolidated Statements of Income and Comprehensive Income.

Use of Estimates

The preparation of financial statements in conformity with GAAP, requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Our significant estimates include our estimates for sales-related reserves, valuation and impairment of intangibles and goodwill, deferred tax assets and tax liabilities, share-based compensation and estimating the fair value of our contingent consideration in conjunction with the acquisition of both BioVectra and Synacthen, among others.

Reclassifications

Certain comparative prior year amounts in the Consolidated Financial Statements and accompanying notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net income.

Fair Value of Financial Instruments

Our financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, dividends payable, accrued liabilities, current and long-term debt and derivatives (primarily associated with the contingent consideration in conjunction with the acquisition of Synacthen). We believe that the fair value of these financial instruments approximate the reported carrying amounts.

Cash Equivalents and Short-Term Investments

We consider highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. We classify available-for-sale debt instruments with maturities at the date of purchase greater than three months as short-term investments.

We carry available-for-sale securities at fair value, with the unrealized gains and losses, if any, reported in a separate component of shareholders’ equity. If we deem the decline in value to be other-than-temporary and we intend to sell such securities before their full cost can be recovered, we write down such securities to fair value and we charge the loss to net realized losses on investments. We use significant judgment in the determination of when an other-than-temporary decline in value has occurred. We evaluate our investment securities for other-than-temporary declines based on quantitative and qualitative factors. As of December 31, 2013 none of our investments had an other-than-temporary decline in valuation, and no other-than-temporary losses were recognized during the years ended December 31, 2013, 2012 and 2011. We base the cost of securities sold on the specific identification method. We include realized gains and losses, if any, in the accompanying Consolidated Statements of Income and Comprehensive Income, in Interest and other (expense) income, net.

Concentration of Risk

Financial instruments that subject us to a significant concentration of credit risk principally consist of cash and cash equivalents, short-term investments and accounts receivable. We invest our cash in high credit quality government and corporate debt instruments and believe the financial risks associated with these instruments are minimal.

Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Beginning January 1, 2013, all of our non-interest bearing cash balances were insured up to $250,000 per depositor at each financial institution.

We extend credit to our specialty distributor, which accounts for approximately 95% of our gross product sales and 92% of our accounts receivable. We have not experienced material credit losses on our customer accounts.

The relative share of our accounts receivable and gross product sales are as follows:



	Years Ended December 31,
% of Accounts Receivable	2013		2012
Specialty distributor	92	%	100	%
Other customers	8	%	—	%
	100	%	100	%



	Years Ended December 31,
% of Gross Product Sales	2013		2012		2011
Specialty distributor	95	%	100	%	100	%
Other customers	5	%	—	%	—	%
	100	%	100	%	100	%

Inventories

We state inventories, net of allowances, at the lower of cost or market value. For our Acthar product, cost is determined by the first-in, first-out method. For our production materials and supplies, work-in-process and finished goods at our contract manufacturer, cost is determined on an average cost basis.

We review inventory periodically for slow-moving or obsolete status. We adjust our inventory if we do not expect to recover the cost of inventory. We would record a reserve to adjust inventory to its net realizable value when any of the following occur: (i) a product is close to expiration and we do not expect it to be sold, (ii) a product has reached its expiration date or (iii) we do not expect a product to be saleable. In determining the reserves for these products, we consider factors such as the amount of inventory on hand and its remaining shelf life, and current and expected market conditions, including management forecasts and levels of competition. We have evaluated the current level of inventory considering historical trends and other factors, and based on our evaluation, have recorded adjustments to reflect inventory at its net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to assess the future demand for our products in order to categorize the status of such inventory items as slow-moving, obsolete or in excess-of-need. These future estimates are subject to the ongoing accuracy of our forecasts of market conditions, industry trends, competition and other factors. Differences between our estimated reserves and actual inventory adjustments have been immaterial, and we account for such adjustments in the current period as a change in estimate.

Property and Equipment

We record property and equipment at cost. We depreciate equipment and furniture using the straight-line method over their estimated useful lives (generally three to seven years) and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. We amortize equipment acquired under capital leases over the estimated useful life of the assets and include such amortization in depreciation expense.

Goodwill and Intangible Assets

We determine the estimated fair values of goodwill and intangible assets with definite and/or indefinite lives based on valuations performed at the time of their acquisition in accordance with FASB ASC 350. Such valuations utilize forecasted financial information. In addition, certain amounts paid to third parties, such as our In Process R&D asset related to the acquisition of Synacthen, are capitalized and included in intangible assets on the accompanying consolidated balance sheets.

Goodwill and indefinite-lived intangibles are tested for impairment annually and in interim periods if certain events occur indicating the fair value may be below its carrying value using a two-step process. The first step is to identify a potential impairment, and the second step measures the amount of the impairment loss, if any. Goodwill is impaired if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. We performed our annual goodwill and indefinite-lived impairment assessment as of December 31, 2013, noting no impairment.

Definite lived intangibles are amortized on an accelerated or straight-line basis over their estimated useful life. This determination is made based on the specific asset and the timing of recoverability from expected future cash flows.

We review the carrying value of our definite-lived intangibles and long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable. These assets are impaired when undiscounted expected future cash flows are less than the carrying value. Our judgments related to the expected useful lives of definite-lived intangibles and long-lived assets and our ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as ongoing maintenance and improvements of the assets, changes in economic conditions, our ability to successfully launch products, and changes in operating performance. In addition, we regularly evaluate our long-lived assets and may accelerate depreciation over the revised useful life if the asset has limited future value. During the years ended December 31, 2013, 2012 and 2011, we recorded impairment charges for purchased technology and goodwill of $0.7 million, $1.0 million and $0.3 million, respectively.

As this process involves management making certain estimates and because these estimates form the basis of the determination of whether or not an impairment charge should be recorded, these estimates are considered to be critical accounting estimates. We will continue to assess the carrying value of our goodwill, intangible assets and long-lived assets in accordance with applicable accounting guidance.

Income Taxes

We account for income taxes under the provisions of Accounting Standards Codification 740, “Income Taxes”, or ASC 740. We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes.

As part of the process of preparing our consolidated financial statements, we are required to estimate income taxes in each of the jurisdictions in which we operate. This process involves estimating our tax exposure under the most current tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets.

We regularly assess the likelihood that we will be able to recover our deferred tax assets, which is ultimately dependent on us generating future taxable income. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not considered “more likely than not” that we will recover our deferred tax assets, we will increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. Changes in the valuation allowance based on our assessment will result in an income tax benefit if the valuation allowance is decreased and an income tax expense if the valuation allowance is increased.

As of December 31, 2013, we have recorded a liability for unrecognized tax benefits of $1.3 million related to various federal and state income tax matters. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. As of December 31, 2013 and 2012, our accrual for interest and penalties on any unrecognized tax benefits was $78,000 and $106,000, respectively. We expect unrecognized tax benefits to decrease by approximately $0.5 million over the next 12 months as a result of the settlement of an IRS examination.

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification 605, “Revenue Recognition-Products,” or ASC 605. Pursuant to ASC 605, we recognize revenue when we have persuasive evidence that an arrangement, agreement or contract exists, when each of the following three criteria are satisfied: (i) title for our product and risk of loss have passed to our customer, (ii) the price we charge for our product is fixed or is readily determinable, and (iii) we are reasonably assured of collecting the amounts owed under the resulting receivable. We do not require collateral from our customers.

In the U.S., our exclusive customer for Acthar is a specialty distributor. For our sales to this specialty distributor, a sale of Acthar occurs when the specialty distributor accepts a shipment of Acthar based on its order of Acthar from our exclusive agent for commercial shipment of Acthar to the specialty distributor. We sell Acthar at a discount from our list price to the specialty distributor, which then sells Acthar primarily to approximately 12 specialty pharmacy companies and many hospitals.

We provide free vials of Acthar, to support a patient assistance program administered by a third party administrator. We do not recognize any revenue or net sales from this program.

Separately, we make charitable contributions, in dollars, to independent third-party charitable organizations which administer co-pay assistance programs.

International sales of our products are immaterial.

Net Sales

The following table sets forth our net sales for the years ended December 31, 2013, 2012 and 2011, respectively (in thousands):



	Years Ended December 31,
	2013		2012		2011
Total pharmaceutical gross sales	$	825,710	$	582,097	$	268,827
Sales reserves	64,363		72,805		50,658
Total pharmaceutical net sales	761,347		509,292		218,169
Total contract manufacturing net sales	37,582		—		—
Total net sales	$	798,929	$	509,292	$	218,169

We record net sales after establishing reserves for the following:


i.	Medicaid rebates;


ii.	TRICARE retail program rebates;


iii.	Medicare Part D Coverage Gap Discount Program rebates;


iv.	Chargebacks due to other government programs;


v.	Questcor-sponsored co-pay assistance programs;


vi.	Exchanges, which have historically been immaterial; and


vii.	Other deductions such as payment discounts.

We currently provide our products to Medicaid participants under an agreement with CMS. Under this agreement, states are eligible to receive rebates from us for Medicaid patients in accordance with CMS regulations. States have historically provided us with rebate invoices for their Medicaid Fee for Service reimbursements between 60 and 90 days after the end of the calendar quarter in which our products were provided. Certain states are taking longer to submit complete rebate invoices for the Medicaid Managed Care utilization that became rebate eligible on March 23, 2010, as a result of the enactment of the Health Care Reform Acts.

Significant judgment is inherent in the selection of assumptions and the interpretation of historical experience as well as the identification of external and internal factors affecting the determination of our reserves for Medicaid rebates and other government program rebates and chargebacks. We believe that the assumptions used to determine these sales reserves are reasonable considering known facts and circumstances. However, our Medicaid rebates and other government program rebates and chargebacks could materially differ from our reserve amounts because of unanticipated changes in prescription trends or patterns in the states' submissions of Medicaid claims, adjustments to the amount of product in the distribution channel, or if our estimates of the number of Medicaid patients with IS, MS, NS and rheumatology related-conditions are incorrect. We have greater visibility on the future submission of Medicaid claims and the amount of product in the distribution channel for Acthar distributed to certain specialty pharmacies than we have with respect to Acthar distributed through other specialty pharmacies. If actual Medicaid rebates, or other government program rebates and chargebacks are materially different from our estimates, we would account for such differences as a change in estimate in the period in which they become known. If actual future payments for such reserves exceed the estimates we made at the time of sale, our consolidated financial position, results of operations and cash flows may be negatively impacted.

The following table summarizes the activity in the account for sales-related reserves for Medicaid rebates (in thousands):



	Years Ended December 31,
	2013			2012			2011
Balance at January 1	$	33,921		$	29,874		$	17,384
Actual Medicaid rebate payments for sales made in prior year	(22,891		)	(18,449		)	(9,104		)
Actual Medicaid rebate payments for sales made in current year	(19,333		)	(35,709		)	(24,887		)
Current Medicaid rebate provision for sales made in prior year	11,500			1,153			8
Current Medicaid rebate provision for sales made in current year	27,784			57,052			46,473
Balance at December 31	$	30,981		$	33,921		$	29,874

Total Sales-related Reserves

At December 31, 2013 and 2012 sales-related reserves included in the accompanying Consolidated Balance Sheets were as follows (in thousands):



	Years Ended December 31,
	2013		2012
Medicaid rebates	$	30,981	$	33,921
Other rebates, chargebacks and discounts	4,389		3,455
Total	$	35,370	$	37,376

Product Exchanges

Acthar has a shelf life of 18 months from the date of manufacture. We authorize Acthar exchanges for expiring and expired product in accordance with our stated return policy, which allows the specialty distributor we work with to return product within one month of its expiration date and for a period up to three months after such product has reached its expiration date. Product exchanges have been insignificant since we began utilizing the services of a specialty distributor to distribute Acthar.

Share-Based Compensation

We recognize compensation expense for all share-based awards made to employees and directors. The fair value of share-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over either (1) the requisite service period or (2) the performance period.

Since share-based compensation is recognized only for those awards that are ultimately expected to vest, we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates will be revised, if necessary, in future periods if actual forfeitures differ from estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs.

We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option behaviors. We estimate the expected term based on the contractual term of the awards and employees' exercise and expected post-vesting termination behavior.

We use the intrinsic method to account for restricted stock awards. The restricted stock awards are valued based on the closing stock price on the date of grant and amortized ratably over the life of the award.

Additionally, we are required to disclose in our consolidated statements of cash flows the income tax effects resulting from share-based payment arrangements. We adopted the simplified method to calculate the beginning balance of the additional paid-in capital, or APIC, pool of excess tax benefits, and to determine the subsequent effect on the APIC pool and consolidated statements of cash flows of the tax effects of employee share-based compensation awards.

At December 31, 2013, there was $25.8 million of total unrecognized compensation cost related to unvested restricted stock awards and restricted stock units and $20.4 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a remaining weighted average vesting period of approximately 2.2 years.

Our share-based compensation plans are discussed further in Note 6. Preferred Stock and Shareholders’ Equity.

Stock Repurchases

We account for common stock repurchases by charging the cost of shares acquired to the common stock account in the Consolidated Statements of Shareholders’ Equity.

Net Income Per Share

Basic net income per share applicable to common shareholders is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalents shares, such as stock options and restricted stock outstanding during the period. Diluted earnings for our common shareholders per common stock considers the impact of potentially dilutive securities and excludes the impact of potential common shares related to our stock options and restricted stock in periods in which the option exercise or conversion price is greater than the average market price of our common stock during the period.

The following table presents the amounts used in computing basic and diluted net income per share applicable to common shareholders for the years ended December 31, 2013, 2012 and 2011 and the effect of dilutive potential common shares on the number of shares used in computing dilutive net income per share applicable to common shareholders. Diluted potential common shares resulting from the assumed exercise of outstanding stock options and restricted stock are determined based on the treasury stock method (in thousands, except per share amounts).



	Years Ended December 31,
	2013		2012		2011
Net income applicable to common shareholders	$	292,609	$	197,675	$	79,591
Shares used in computing net income per share applicable to common shareholders:
Basic	58,616		60,243		62,498
Effect of dilutive potential common shares:
Stock options	2,375		2,744		3,497
Restricted stock	456		58		15
Diluted	61,447		63,045		66,010
Net income per share applicable to common shareholders:
Basic	$	4.99	$	3.28	$	1.27
Diluted	$	4.76	$	3.14	$	1.21

The following table presents the amounts excluded from the computation of diluted net income per share applicable to common shareholders for the years ended December 31, 2013, 2012 and 2011, as the inclusion of these securities would have been anti-dilutive (in thousands):



	Years Ended December 31,
	2013	2012	2011
Stock options	448	1,189	82
Restricted stock awards	30	—	—

Basic and diluted net income per share also takes into consideration the two-class method. Under the two-class method, undistributed net income is allocated to common stock and unvested participating securities based on their respective rights to share in dividends. We have determined that restricted stock awards represent participating securities and, therefore, require the use of the two-class method for the calculation of basic and diluted earnings per share. During the year ended December 31, 2013, we issued restricted stock units to certain employees under our 2006 Equity Incentive Plan. Because the holders of the restricted stock units will only receive dividends on restricted stock units that have vested prior to the Company declaring dividends, we have determined that the restricted stock units are non-participating securities and will not be included in our two-class method calculation.

The following table sets forth the calculation of unallocated undistributed earnings, both basic and diluted, using the two-class method for amounts attributable to our common stock and our restricted stock awards (in thousands):



	Years Ended December 31,
	2013		2012		2011
Net income applicable to common shareholders	$	292,609	$	197,675	$	79,591
Less: Dividends	66,229		23,682		—
Undistributed earnings	$	226,380	$	173,993	$	79,591

Common stock undistributed earnings	$	221,278	$	173,325	$	79,591
Unvested restricted stock award undistributed earnings	5,102		668		—
Total undistributed earnings	$	226,380	$	173,993	$	79,591

Segment Information

We have historically operated in one business segment. On January 18, 2013, we acquired 100% of the issued and outstanding shares of BioVectra Inc. We now manage our operations through two operating segments that are defined by our separate companies - Questcor Pharmaceuticals, Inc. and BioVectra. Each segment is operated as an independent business under its own management team, and has responsibility for its commercial activities, operations, and research and development activities related to its products. We intend to have BioVectra continue to operate independently under its existing management team for the foreseeable future.

Questcor Pharmaceuticals is headquartered in Anaheim, California, and is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. Questcor Pharmaceuticals' primary product is Acthar. Questcor Pharmaceuticals currently generates substantially all of its net sales from the use of Acthar in connection with the following: the treatment of proteinuria in idiopathic types of nephrotic syndrome, the treatment of acute exacerbations of multiple sclerosis in adults, the treatment of certain rheumatology-related conditions, and the treatment of infantile spasms in infants and children under two years of age.

BioVectra is located in Prince Edward Island, Canada, operating from three facilities. BioVectra is a supplier of contract manufacturing services to the global pharmaceutical and biotechnology industry. BioVectra manufactures active pharmaceutical ingredients (API's), chemical intermediates, and bioprocessing reagents, and is our manufacturing partner for the API in our H.P. Acthar® Gel (repository corticotropin injection). BioVectra is proficient in synthetic organic chemistry, natural extraction of bioactive compounds, PEGylation and conjugation chemistry, and fermentation of chemical and biologic molecules.

Segment results for net sales are presented in the same manner as we present our operations internally to make operating decisions and assess performance. Net income, which includes the negative impact of purchase price adjustments related to our January 18, 2013 acquisition of BioVectra, is the primary responsibility of segment operating management and therefore all activities remain in the segment in which incurred for performance assessment by our chief operating decision maker.

Financial Information by Operating Segment. For the years ended December 31, 2013, 2012 and 2011, information regarding our net sales and net income for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra			Intersegment Eliminations			Consolidated
Net Sales
For the year ended December 31, 2013	$	761,347	$	39,944		$	(2,362	)	$	798,929
For the year ended December 31, 2012	$	509,292	$	—		$	—		$	509,292
For the year ended December 31, 2011	$	218,169	$	—		$	—		$	218,169
Net Income
For the year ended December 31, 2013	$	293,999	$	(158	)	$	(1,232	)	$	292,609
For the year ended December 31, 2012	$	197,675	$	—		$	—		$	197,675
For the year ended December 31, 2011	$	79,591	$	—		$	—		$	79,591

As of December 31, 2013, 2012 and 2011, information regarding total assets for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra		Intersegment Eliminations			Consolidated
Total Assets
December 31, 2013	$	711,507	$	108,510	$	(83,663	)	$	736,354
December 31, 2012	$	252,431	$	—	$	—		$	252,431
December 31, 2011	$	275,808	$	—	$	—		$	275,808

As of December 31, 2013, 2012 and 2011, information regarding capital expenditures for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra		Intersegment Eliminations		Consolidated
Capital expenditures
December 31, 2013	$	1,100	$	2,426	$	10	$	3,536
December 31, 2012	$	1,065	$	—	$	—	$	1,065
December 31, 2011	$	1,823	$	—	$	—	$	1,823

Geographic Information: The Company's geographic information for net sales to unaffiliated customers is shown below. The basis for determining net sales is the geographic location of the customer (in thousands):



	December 31,
	2013		2012		2011
Net Sales
North America (1)	$	778,859	$	509,292	$	218,169
Europe	13,780		—		—
Asia	6,248		—		—
Other	42		—		—
Total net sales	$	798,929	$	509,292	$	218,169

(1) Predominately located in the United States and Canada.

Subsequent Events

We evaluated subsequent events that have occurred after December 31, 2013, and through the issuance date, and determined that there were no events or transactions occurring during this reporting period that require recognition or disclosure in our consolidated financial statements.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that are adopted by the Company as of the specified effective date. We did not adopt any new accounting pronouncements during the year ended December 31, 2013 that had a material effect on our financial position or results of operations.

Acquisitions

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Acquisitions

Acquisition of Synacthen

On June 11, 2013, the Effective Date, we acquired from Novartis AG and Novartis Pharma AG, collectively Novartis, a license to develop, market, manufacture, distribute, sell and commercialize Synacthen and Synacthen Depot for all uses in humans in the United States. Subject to certain conditions and limitations in the License Agreement, the license is exclusive, perpetual and irrevocable. Synacthen is a synthetic melanocortin agonist approved in various countries outside of the United States for certain autoimmune and inflammatory conditions. We have implemented a research and development program for Synacthen and intend to seek FDA approval. Synacthen has never been developed or approved for patients in the United States.

Subject to certain closing conditions, we also will acquire from Novartis a license and certain assets to develop, market, manufacture, distribute, sell and commercialize Synacthen and Synacthen Depot in certain countries outside the U.S. for all uses in humans. Subject to certain conditions and limitations, these rights and assets are exclusive, perpetual and irrevocable.

Under the terms of the transaction agreements, we paid Novartis an upfront consideration of $60 million. We will also be making annual cash payments of $25 million on each of the first, second and third anniversaries of the Effective Date, a potential additional annual cash payment on each anniversary subsequent to the third anniversary until we obtain the first approval of the FDA related to the products, or the FDA Approval, and a milestone payment upon our receipt of the FDA Approval. If we successfully obtain the FDA Approval, we will pay an annual royalty to Novartis based on a percentage of the net sales of the product in the U.S. market until the maximum payment is met. The first three annual payments aggregating to $75 million are secured by a letter of credit and classified as restricted cash on the Condensed Consolidated Balance Sheets. In no event will the total payments related to this transaction exceed $300 million.

As of December 31, 2013, we recorded an asset (because it was determined that the intangible asset has alternative future use) related to the acquisition of Synacthen of $191.5 million and a corresponding liability of $140.1 million. The asset and liability (which was determined to be a derivative) were originally valued using a weighted discounted probability model. The asset is considered to be definite-lived and is amortized over its useful life to research and development expense. The liability is reviewed each reporting period for any changes in the probability assumptions and for changes due to the passage of time.

Acquisition of BioVectra Inc.

On January 18, 2013, we completed our acquisition of BioVectra Inc. BioVectra is located in Prince Edward Island, Canada, and is a supplier of specialty contract manufacturing services to the global pharmaceutical and biotechnology industry. BioVectra manufactures active pharmaceutical ingredients, or API, chemical intermediates, and bioprocessing reagents. BioVectra has been our manufacturing partner for the API in Acthar since April, 2003.

We acquired 100% of the issued and outstanding shares of BioVectra for $50.3 million utilizing cash on hand. The former shareholders of BioVectra could receive additional cash consideration of up to C$50.0 million based on BioVectra's financial results over the next three years. Contingent consideration in conjunction with the acquisition of BioVectra of $30.4 million was recorded on our Consolidated Balance Sheet at the acquisition date. Any differences between our estimate and actual payments or subsequent adjustments are recorded in operating expenses. In 2013, BioVectra met its performance milestones for the year and earned an additional C$5.0 million in consideration.

As of December 31, 2013, due to the financial performance in 2013 and the updated financial projections for 2014 and 2015 for BioVectra, we recorded a change in fair value associated with the contingent consideration. As of December 31, 2013, the estimated value of the contingent consideration of $37.5 million has been recorded as a liability in our condensed consolidated balance sheets ($4.2 million has been recorded as the current portion of the contingent consideration).

For the year ended December 31, 2013, we recorded $0.3 million of acquisition-related expenses associated with the BioVectra acquisition within general and administrative expenses in our Condensed Consolidated Statements of Income and Comprehensive Income.

The acquisition was recorded by allocating the estimated value of consideration paid by us for the BioVectra acquisition to the assets acquired including intangible assets, and liabilities assumed, based on their estimated fair values at the acquisition date in accordance with the acquisition method of accounting. After assigning the fair value of all assets and liabilities identified, including all identified intangibles, there was excess purchase consideration transferred over the fair value of net assets acquired, resulting in the recognition of goodwill. The transaction resulted in goodwill due to assembled workforce, manufacturing exclusivity, and other synergies. Goodwill recorded in the transaction is not deductible for tax purposes. We have finalized the amounts shown below.

The following table reflects the fair value of consideration transferred at the acquisition date (in thousands):



Allocation of Purchase Price:
Current assets excluding inventory	$	11,691
Inventory	11,774
Property and equipment	35,221
Other non-current assets	1,708
Current deferred tax asset	141
Intangibles	35,581
Goodwill	21,914
Current liabilities	(6,451		)
Non-current liabilities, excluding long-term debt	(1,994		)
Non-current deferred tax liability	(12,012		)
Long-term debt	(16,875		)
Total net assets acquired	$	80,698

Cash consideration paid to BioVectra shareholders	$	50,315
Estimated fair value of contingent consideration	30,383
Total purchase consideration	$	80,698

The following unaudited pro forma financial information for the years ended December 31, 2013 and 2012 presents the combined results of operations of Questcor and the BioVectra acquisition described above, as if the acquisition had occurred as of January 1 of the year prior to acquisition. The unaudited pro forma financial information is not intended to represent or be indicative of the Company's consolidated results of operations or financial condition that would have been reported had this acquisition been completed as of the beginning of the periods presented and should not be taken as indicative of the Company's future consolidated results of operations or financial condition. Pro forma adjustments are tax-effected at the applicable statutory tax rates.



	Year Ended December 31,
	2013		2012
Net sales	$	800,788	$	537,511
Net income	$	301,837	$	193,389

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

+ Details

Balance Sheet Details

12 Months Ended

Dec. 31, 2013

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

Inventories

We state inventories, net of allowances, at the lower of cost (first-in, first-to-expire) or market. For our production materials and supplies, work-in-process and finished goods at our contract manufacturer, cost is determined on an average cost basis. Inventories, net of allowances, at December 31, 2013 and 2012 consist of the following (in thousands):



	Years Ended December 31,
	2013			2012
Raw materials	$	9,835		$	9,271
Work-in-process	2,194			—
Intermediates	1,572			—
Finished goods	4,096			690
	17,697			9,961
Less: Reserve for obsolescence	(1,329		)	(52		)
	$	16,368		$	9,909

Included in inventories at December 31, 2013 is $6.7 million held at BioVectra, in Canada.

Property and Equipment

Equipment, building, land and leasehold improvements and related accumulated depreciation and amortization are as follows (in thousands):



	Years Ended December 31,
	2013			2012
Equipment (including manufacturing, laboratory and office)	$	26,237		$	3,466
Building	12,015			—
Land and land improvements	406			—
Leasehold improvements	1,446			1,349
	40,104			4,815
Less accumulated depreciation and amortization	(8,371		)	(2,742		)
	$	31,733		$	2,073

Total depreciation and amortization expense amounted to $5.9 million, $0.9 million and $0.7 million for the years ended December 31, 2013, 2012 and 2011 respectively. The increase in depreciation and amortization expense was due to the increase in property, plant and equipment as a result of our acquisition of BioVectra on January 18, 2013. We depreciate our property and equipment and amortize our leasehold improvements using the straight-line method of depreciation. Included in property, plant and equipment at December 31, 2013 is $29.4 million held at BioVectra, in Canada. Included in depreciation and amortization expense for the year ended December 31, 2013 is $5.1 million for assets held at BioVectra, in Canada.

Long-term Debt

Funded long-term debt

Our subsidiary, BioVectra, has a supply agreement with a customer to supply a pharmaceutical product for a period of 10 years ending in June 2023. Per the supply agreement, BioVectra financed and constructed a facility for the manufacture of the pharmaceutical product to be supplied under the agreement. BioVectra entered into a term loan agreement to finance C$14.8 million of the construction costs of the facility. The term loan has an interest rate of 4%, is due in full by February 2022 and is secured by certain of our BioVectra assets. Under the supply agreement, the customer agreed to reimburse BioVectra (such reimbursement is recorded to net sales) for the quarterly financing payments of C$450,743 during the term of the loan.



	December 31, 2013
4% Term Loan, due February 2022, payable in quarterly installments of C$450,743 including principal and interest	$	12,090
Less: Current Portion	1,221
Funded long-term debt, less current portion	$	10,869

Long-term debt

Our subsidiary, BioVectra, has a 2.85% term loan. The loan is payable monthly and is due April 2016. The loan is secured with BioVectra accounts receivable and inventory.



	December 31, 2013
2.85% Term Loan, due April 2016, payable in monthly installments of C$48,170 including principal and interest	$	3,573
Less: Current Portion	444
Long-term debt, less current portion	$	3,129

Debt maturity schedule



2014	$	1,665
2015	1,727
2016	3,994
2017	1,375
2018	1,431
Thereafter	5,471
Total	$	15,663

Short-Term Investments And Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Short-Term Investments And Fair Value Measurements [Abstract]

Short-Term Investments and Fair Value Measurements

A summary of cash equivalents and short-term investments, classified as available-for-sale, and carried at fair value is as follows (in thousands):



December 31, 2013	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Estimated Fair Value
Cash equivalents	$	13,351	$	—	$	—		$	13,351
Short-term investments:
Corporate bonds	$	45,190	$	11	$	(14	)	$	45,187
U.S. Government-sponsored enterprises	14,539		3		(4		)	14,538
Municipal bonds	9,438		4		(1		)	9,441
	$	69,167	$	18	$	(19	)	$	69,166
December 31, 2012
Cash equivalents	$	7,740	$	—	$	—		$	7,740
Short-term investments:
Certificates of deposit	$	720	$	2	$	—		$	722
Corporate Bonds	47,857		29		(8		)	47,878
Government-sponsored enterprises	24,699		13		—			24,712
Municipal bonds	1,395		1		(3		)	1,393
	$	74,671	$	45	$	(11	)	$	74,705

Cash proceeds from the sale of our short-term investments are generally reinvested; however, during 2013, we used some of the proceeds to acquire both BioVectra and Synacthen. Cash proceeds are being reinvested since the acquisitions.

The amortized cost and fair value of available-for-sale securities at December 31, 2013, by contractual maturity, are as follows (in thousands):



	Amortized Cost		Estimated Fair Value
Due in one year or less	$	31,717	$	31,721
Due after one through two years	37,450		37,445
Total available-for-sale securities	$	69,167	$	69,166

As of December 31, 2013, the average contractual maturity of our short-term investments was approximately 13 months.

As of December 31, 2013, we had the following available-for-sale securities that were in an unrealized loss position but were not deemed to be other-than-temporarily impaired (in thousands):



	Less Than 12 Months					12 Months or Greater
	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Corporate bonds	$	(4	)	$	9,809	$	(10	)	$	8,932
U.S. Government-sponsored enterprises	—			—		(4		)	9,033
Municipal bonds	—			1,336		(1		)	1,473
Total	$	(4	)	$	11,145	$	(15	)	$	19,438

The gross unrealized losses reported above for December 31, 2013 were caused by general fluctuations in market interest rates from the respective purchase date of these securities through December 31, 2013. No significant facts or circumstances have occurred to indicate that these unrealized losses are related to any deterioration in the creditworthiness of the issuers of the marketable securities we own. Based on our review of these securities, including our assessment of the duration and severity of the related unrealized losses, we have not recorded any other-than-temporary impairments on these investments.

Fair Value Measurements

We account for fair value measurements under Accounting Standards Codification 820 “Fair Value Measurements and Disclosures,” or ASC 820, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:


•	Level 1 – Quoted prices in active markets for identical assets or liabilities.


•	Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.


•	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

We have segregated all assets and liabilities measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. As of December 31, 2013 and 2012, assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):



		Basis of Fair Value Measurements
		Balance at
Balance Sheet Classification		December 31, 2013		Level 1		Level 2		Level 3
Cash and cash equivalents	Cash and cash equivalents	$	13,351	$	5,260	$	8,091	$	—
Short-term investments	Corporate bonds	45,187		—		45,187		—
Short-term investments	Government-sponsored enterprises	14,538		—		14,538		—
Short-term investments	Municipal bonds	9,441		—		9,441		—
	Total assets	$	82,517	$	5,260	$	77,257	$	—

Current liabilities	Current portion of contingent consideration in conjunction with acquisition of BioVectra	$	4,238	$	—	$	—	$	4,238
Current liabilities	Current portion of contingent consideration in conjunction with acquisition of Synacthen	25,000		—		—		25,000
Non-current liabilities	Contingent consideration in conjunction with acquisition of BioVectra	33,224		—		—		33,224
Non-current liabilities	Contingent consideration in conjunction with acquisition of Synacthen	115,066		—		—		115,066
	Total liabilities	$	177,528	$	—	$	—	$	177,528

		December 31, 2012		Level 1		Level 2		Level 3
Cash and cash equivalents	Cash and cash equivalents	$	7,740	$	7,242	$	498	$	—
Short-term investments	Certificates of deposit	722		—		722		—
Short-term investments	Corporate bonds	47,878		—		47,878		—
Short-term investments	Government-sponsored enterprises	24,712		—		24,712		—
Short-term investments	Municipal bonds	1,393		—		1,393		—
	Total assets	$	82,445	$	7,242	$	75,203	$	—

The fair value of contingent consideration in conjunction with both the acquisition of BioVectra and Synacthen were determined to be Level 3 under the fair value hierarchy. The following table presents the fair value, valuation technique and related unobservable input for the Level 3 measurements:



	Fair Value		Valuation Technique	Unobservable Input	Rate
Contingent consideration in conjunction with the acquisition of Bio Vectra estimate	$	37,462	Probability weighted discounted future cash flows	Discount rate	5%
Contingent consideration in conjunction with the acquisition of Synacthen estimate	$	140,066	Probability weighted discounted future cash flows	Discount rate	5%

Investment securities are exposed to various risk factors, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in these risk factors in the near term could have an adverse material impact on our results of operations or shareholders’ equity.

The following table represents a roll forward of the fair value of Level 3 instruments, comprised solely of the contingent consideration, including the current portion of the contingent consideration:



	December 31, 2013
Balance at beginning of period	$	—
Amounts acquired or issued	167,046
Change due to compensation expense	1,893
Change due to time value of money	4,528
Change due to foreign currency translation adjustment	(2,368		)
Changes in fair value	6,429
Balance at end of period	$	177,528

If inputs in our fair value models were to change, resulting in a change in our contingent consideration, we believe such change could result in a material change in our financial position.

Certain assets and liabilities are measured at fair value on a nonrecurring basis. In other words, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). At March 31, 2013, we had determined that the portion of the value of our purchased technology associated with our prior acquisition of Doral was impaired. This determination was based on a signed purchase agreement dated April 30, 2013 for the disposition of Doral. Based on the agreement, we did not recover and therefore wrote off $0.7 million as of March 31, 2013. During the year ended December 31, 2013, we sold the asset for $0.7 million, the residual net book value.

Goodwill, Intangibles and Purchased Technology

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangibles and Purchased Technology

Goodwill and intangibles acquired in conjunction with the acquisition of BioVectra, consists of the following (in thousands):



	December 31, 2013
Acquired intangibles	$	33,186
Less accumulated amortization	(3,055		)
Acquired intangibles, net	$	30,131
Goodwill	$	20,464

The following table summarizes the changes in the carrying amount of goodwill (in thousands):



Balance at December 31, 2012	$	—
Goodwill resulting from the acquisition of BioVectra	21,914
Currency translation	(1,450		)
Balance at December 31, 2013	$	20,464

The following table provides a rollforward of goodwill by country (in thousands):



	December 31, 2012		Additions from Purchase Accounting		Currency Translation			December 31, 2013
United States	$	—	$	—	$	—		$	—
Canada	—		21,914		(1,450		)	20,464
Total	$	—	$	21,914	$	(1,450	)	$	20,464

The following table provides a rollforward of the intangibles (in thousands):



	December 31, 2013
	Gross Book Value		Accumulated Amortization			Currency Translation			Net Book Value
Trademark	$	8,151	$	—		$	(577	)	$	7,574
Patent	58		(15		)	(3		)	$	40
Contracted customer relationships	17,208		(1,578		)	(1,154		)	$	14,476
Non-contracted customer relationships	10,164		(1,462		)	(661		)	$	8,041
Total acquired intangibles	$	35,581	$	(3,055	)	$	(2,395	)	$	30,131

The following table summarizes the changes in the carrying amount of intangibles (in thousands):



Balance at December 31, 2012	$	—
Intangibles resulting from the acquisition of BioVectra	35,581
Amortization expense	(3,055		)
Currency translation	(2,395		)
Balance at December 31, 2013	$	30,131

Amortization expense for BioVectra's intangibles totaled $3.1 million for the year ended December 31, 2013. The estimated annual amortization expense for intangible assets is approximately $3.2 million in 2014, $3.2 million in 2015, $3.1 million in 2016, $2.8 million in 2017, $2.6 million in 2018 and $7.5 million thereafter. Amortizable intangible assets are amortized over 8 to 10 years (9 years average). Customer relationships are amortized on an accelerated basis over their useful lives.

Intangibles acquired in conjunction with the acquisition of Synacthen, consists of the following (in thousands):



	December 31, 2013			December 31, 2012
In process R&D asset	$	196,663		$	—
Less accumulated amortization	(5,212		)	—
In process R&D asset, net	$	191,451		$	—

Amortization expense for the intangible acquired in conjunction with the acquisition of Synacthen totaled $5.2 million for the year ended December 31, 2013. The estimated annual amortization expense for the intangible asset is approximately $9.8 million in 2014, $9.8 million in 2015, $9.8 million in 2016, $9.8 million in 2017, $9.8 million in 2018 and $142.4 million thereafter. The in process R&D asset will be amortized over 20 years. We believe that this is the appropriate period because of the anticipated 7-8 years of development and the anticipated 11-12 years of patent exclusivity available thereafter.

Purchased technology consisted of our acquisition costs for Doral. Amortization expense for purchased technology totaled $0.8 million (which included an impairment charge of $0.7 million), $1.3 million (which included an impairment charge of $1.0 million), and $0.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. During the year ended December 31, 2013, we sold the asset for $0.7 million, the residual net book value.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Preferred Stock And Shareholders' Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Preferred Stock and Shareholders' Equity

Preferred Stock and Shareholders’ Equity

Preferred Stock

At December 31, 2013 and 2012, we had 5,334,285 shares of Preferred Stock authorized, no par value, and no shares of Preferred Stock were issued and outstanding.

Common Stock

The holders of outstanding shares of our common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Board of Directors out of assets legally available therefore, subject to the payment of preferential and participating dividends with respect to any preferred stock that may be outstanding. In the event of our liquidation, dissolution and winding-up of our business, the holders of our outstanding common stock are entitled to share ratably in all assets available for distribution after payment of all our liabilities, subject to the rights of any outstanding shares of preferred stock. The holders of our common stock are entitled to one vote per share.

On February 29, 2008, our Board of Directors approved a stock repurchase plan that provides for the repurchase of up to 7 million shares of our common stock. Stock repurchases under this plan may be made through either open market or privately negotiated transactions in accordance with all applicable laws, rules and regulations. On May 29, 2009 and May 10, 2012, our Board of Directors increased the stock repurchase plan authorization by an additional 6.5 million shares and 5 million shares, respectively. On September 28, 2012, our Board of Directors increased the remaining shares authorized under the stock repurchase plan to 7 million shares.

During the year ended December 31, 2012, we used $261.8 million of our cash to repurchase 6,759,861 shares of our common stock. During the year ended December 31, 2013, we used $53.1 million of our cash to repurchase 960,000 shares of our common stock. Under this share repurchase plan, we have repurchased a total of 17.0 million shares of our common stock for $363.0 million through December 31, 2013, at an average price of $21.40 per share. As of December 31, 2013, there are approximately 5.3 million shares authorized remaining under our stock repurchase plan. Additionally, we have repurchased 6.2 million shares outside of the approved share repurchase plan, for $30.3 million at an average purchase price of $4.93 per share. Total shares repurchased were 23.1 million for $393.3 million at an average price of $17.01 per share.

Employee Stock Purchase Plan

Our 2003 Employee Stock Purchase Plan, or ESPP, provides our employees the opportunity to purchase our common stock through accumulated payroll deductions. The ESPP was originally adopted by the Board of Directors on January 24, 2003 and approved by our shareholders on May 12, 2003. The ESPP was amended by the Board of Directors on February 27, 2006 and was approved by our shareholders on May 18, 2006.

Currently the ESPP has 3,500,000 shares available for issuance, including shares previously issued. In April 2008, our Board further amended the ESPP to reduce the maximum offering period under the ESPP from 27 months to 6 months and to no longer allow employees the ability to increase their payroll contributions to the ESPP during an offering period.

The purpose of the ESPP is to provide all of our employees with an opportunity to purchase our common stock through accumulated payroll deductions. Any person who is employed by us on the offering date, for at least 20 hours per week and more than five months in any calendar year, is eligible to participate in the ESPP. Under the ESPP, eligible employees could have up to 15% of their earnings withheld, subject to certain maximums, to be used to purchase shares of our common stock. Generally, the purchase price per share at which shares are sold under the ESPP is the lower of 85% of the fair market value of a share of our common stock on the first day of each offering period or 85% of the fair market value of a share of our common stock on the last day of each three month purchase period. During the years ended December 31, 2013, 2012 and 2011, 137,472, 92,030 and 90,650 shares, respectively, had been issued to participants.

ESPP activity during 2013 was as follows:



	Number of Shares		Weighted- Average Fair Value
Available at December 31, 2012	682,080
Purchases	(137,472	)	$	29.49
Shares added to the Plan	—
Available at December 31, 2013	544,608

We use the Black-Scholes option–pricing model to estimate the fair value of the option element related to employees’ purchases under the ESPP included in the total share-based compensation expense recorded for the years ended December 31, 2013, 2012 and 2011. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as similar assumptions used to value our stock-based awards.


•	Volatility is based on the historical volatility of our common stock;


•	Interest rate is based on the U.S. Treasury yield;


•	Expected term represents the life of the option element; and


•	Expected dividend yield is based on anticipated future dividends.



	Years Ended December 31,
	2013		2012		2011
Weighted average volatility	52	%	110	%	53	%
Risk-free interest rate	0.1	%	0.1	%	0.1	%
Expected term (in years)	0.25		0.25		0.25
Expected dividend yield	2.4	%	1.4	%	—	%

Stock Compensation Plans

Stock Options

We have options outstanding to purchase shares of our common stock under the following plans:


•	2006 Equity Incentive Award Plan that provides for the grant of equity incentives to employees, members of our Board of Directors, and consultants;


•	1992 Employee Stock Option Plan that provided for the grant of stock options to employees, members of our Board of Directors, and consultants; and


•	2004 Non-Employee Directors’ Equity Incentive Plan that provides for the grant of equity incentives to non-employee members of our Board of Directors.

In May 2006, our shareholders approved the adoption of the 2006 Equity Incentive Award Plan. Upon the adoption of the 2006 Equity Incentive Award Plan, we ceased grants under our 1992 Employee Stock Option Plan. The 2006 Equity Incentive Award Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock grants, unrestricted stock grants, stock appreciation rights, restricted stock units and dividend equivalents. Equity incentives under the 2006 Equity Incentive Award Plan and the 1992 Employee Stock Option Plan generally include four year vesting periods, an exercise price that equals the fair market value of our common stock on the date of grant, and maximum terms of ten years. Restricted stock awards entitle the recipient to full dividend and voting rights. Non-vested shares are restricted as to disposition and subject to forfeiture under certain circumstances. In May 2011, the shareholders approved an amendment to the 2006 Equity Incentive Award Plan to increase the number of shares of common stock authorized for issuance by 3,500,000 shares. The aggregate number of shares of common stock authorized for issuance under the 2006 Equity Incentive Award Plan is 9,750,000 shares.

Our 2004 Non-Employee Directors’ Equity Incentive Plan provides for the granting of 25,000 stock options to purchase common stock upon appointment as a non-employee director and 15,000 stock options each January thereafter for continuing service upon reappointment. Such stock option grants vest over four years. In addition, 10,000 stock options are granted to members of one or more committees of the Board of Directors and an additional 7,500 stock options to the chairs of one or more committees. Such stock option grants are fully vested at the time of grant. As originally approved by shareholders, such option grants had an option exercise price equal to 85% of the fair market value on the date of grant. However, in May 2004, our Board of Directors approved an amendment to the 2004 Non-Employee Directors’ Equity Incentive Plan to provide that all option grants be made at an exercise price equal to 100% of the fair market value of our common stock on the date of grant. The maximum term of the stock options granted is 10 years. Under the terms of the 2004 Non- Employee Directors’ Equity Incentive Plan, 1,250,000 shares of our common stock were authorized for grant. In May 2011, with the amendment of the 2006 Equity Incentive Award Plan, we ceased grants under our 2004 Non-Employee Directors' Equity Incentive Plan. All future grants to non-employee directors will be issued under the 2006 Equity Incentive Award Plan out of authorized shares.

During the years ended December 31, 2013, 2012 and 2011, we granted options, including performance-based options, to employees and non-employee directors to purchase approximately 426,896, 2,154,909, and 1,734,100 shares of our common stock, respectively, under the 2006 Equity Incentive Award Plan.

As of December 31, 2013, a total of 2,570,483 shares of common stock were reserved for issuance under both the 2006 Equity Incentive Award Plan and the 2004 Non-Employee Directors’ Equity Incentive Plan. A summary of our stock option activity and related information during 2012 follows:



	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
					(In years)
Outstanding at December 31, 2012	6,446,618		$	16.52
Granted	426,896		35.66
Exercised	(1,692,920	)	9.44
Forfeited or expired	(118,489	)	30.16
Outstanding at December 31, 2013	5,062,105		$	20.18	6.98	$	173,920,567
Options vested and expected to vest at December 31, 2013	4,993,859		$	19.99	6.96	$	172,493,803
Exercisable at December 31, 2013	3,442,547		$	15.02	6.38	$	135,750,172

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the stock options at December 31, 2013 for those stock options for which the quoted market price was in excess of the exercise price (“in-the-money options”). The total intrinsic value of stock options exercised was $74.9 million, $29.9 million and $57.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. Cash received for the exercise of options was $16.0 million for the year ended December 31, 2013.

Restricted Stock Awards

During the years ended December 31, 2013, 2012 and 2011, we granted a total of 829,899, 777,524, and 31,762 shares of restricted common stock (including performance-based awards granted in 2013), respectively, to employees under the 2006 Equity Incentive Award Plan. Restrictions on these shares will expire and related charges are being amortized as earned over the vesting period of four years. During the first and second quarter of 2013, we issued 207,250 shares of performance-based restricted stock awards. These performance-based restricted stock awards include a one-time performance achievement and vest according to the degree at which the performance milestone is achieved. At December 31, 2013, we determined achievement of the milestone was reasonably probable and estimable at a level equal to one-third the value and, therefore, recorded an appropriate amount of stock-based compensation expense associated with such grants.

We base the amount of unearned compensation recorded on the market value of the shares on the date of issuance. Expenses related to the vesting of restricted stock were $14.6 million (which includes $1.6 million related to the performance-based awards), $1.8 million and $163,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Total fair value of awards vested were $12.7 million, $0.7 million and $115,000 for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, there was approximately $25.2 million of unamortized compensation cost related to restricted stock awards, which we expect to recognize ratably over the vesting period of four years.

Restricted stock activity during 2013 was as follows:



	Number of Shares		Weighted- Average Fair Value
Non-vested shares at December 31, 2012	789,479		$	26.42
Granted	829,899		$	34.14
Released	(205,181	)	$	26.50
Forfeited or expired	(51,033	)	$	28.34
Non-vested shares at December 31, 2013	1,363,164		$	30.99

Restricted Stock Units

During the year ended December 31, 2013, we granted a total of 10,515 shares of restricted share units to certain employees under the 2006 Equity Incentive Award Plan. We did not grant any restricted stock units during the years ended December 31, 2012 and 2011. Restrictions on these shares will expire and related charges are being amortized as earned over the vesting period of four years.

Expense related to the vesting of restricted stock units was $9,000 for the year ended December 31, 2013. No expense was recorded for the years ended December 31, 2012 and 2011. At December 31, 2013, there was approximately $0.5 million of unamortized compensation cost related to restricted stock units, which we expect to recognize ratably over the vesting period of four years.

Restricted stock unit activity during 2013 was as follows:



	Number of Shares	Weighted- Average Fair Value		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2012	—	$	—
Granted	10,515	$	51.69
Released	—	$	—
Forfeited or expired	—	$	—
Outstanding at December 31, 2013	10,515	$	—	2.17	$	572,541.75
Vested and expected to vest at December 31, 2013	9,622	$	—	2.12	$	523,915.46
Exercisable at December 31, 2013	—	$	—	0	$	—

Fair Value of Stock-Based Awards

The weighted average fair value of equity instruments granted during 2013, 2012 and 2011 was as follows:



	Weighted Average Fair Value
	2013		2012		2011
Stock options	$	35.66	$	36.16	$	16.89
ESPP Purchases	$	29.49	$	28.91	$	14.98
Restricted Stock Awards	$	34.14	$	26.86	$	27.28
Restricted Stock Units	$	51.69	$	—	$	—

We use the Black-Scholes option–pricing model to estimate the fair value of stock-based awards. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option exercise behaviors.

•

Volatility is based on the historical volatility of our common stock. During 2010, we reviewed our methodology for calculating volatility and, in doing so we shortened the look-back period to represent the time period following the implementation of our Acthar-centric pricing strategy in late 2007. This resulted in a lower volatility that, we believe, is a better representation of our current market condition.


•	Interest rate is based on the U.S. Treasury yield.


•	Expected term was based on the historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and the expectations of future employee behavior.


•	Expected dividend yield is based on future anticipated dividend rates.

The total number of stock option awards expected to vest is adjusted by estimated forfeiture rates. The weighted average assumptions used for the years ended December 31, 2013, 2012 and 2011 and the resulting estimates of weighted average fair value per share of options granted during those periods are as follows:



	Years Ended December 31,
	2013		2012		2011
Volatility	71	%	72	%	61	%
Interest rate	0.4-0.8		0.3-0.5		0.5-2.4
Forfeiture rate	4.05	%	4.99	%	7.61	%
Expected term (in years)	3.6		3.6		3.4
Expected dividend yield	2.6	%	3.2	%	—	%

Share-based compensation expense related to employees and non-employee members of the Board of Directors has been included in the accompanying Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011 as follows (in thousands):



	Years Ended December 31,
	2013		2012		2011
Selling and marketing	$	10,897	$	5,360	$	4,236
General and administrative	12,302		7,467		1,884
Research and development	5,554		2,965		1,206
Total share-based compensation expense	$	28,753	$	15,792	$	7,326

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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+ Details

Indemnifications, Commitments And Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Indemnifications, Commitments and Contingencies

Indemnifications

As permitted under California law and in accordance with our Bylaws, we indemnify our officers and directors and certain of our employees for certain events or occurrences while the officer, director or employee is or was serving at our request in such capacity. The potential future indemnification limit is to the fullest extent permissible under California law; however, we have a director and officer insurance policy that limits our exposure and may enable us to recover a portion of any future amounts paid. We believe the fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2013 and 2012.

Employment Agreements

We have entered into employment and severance agreements with our corporate officers that provide for, among other things, base compensation and/or other benefits in certain circumstances in the event of termination or a change in control. In addition, certain of the agreements provide for the accelerated vesting of outstanding unvested stock options upon a change in control.

Leases

We lease office facilities under various operating lease agreements, with remaining terms that extend to 2018. We have also entered into automobile and office equipment leases, with remaining terms that extend to 2017. As of December 31, 2013, we have made approximately $77,000 in cash deposits related to operating leases. Provisions of the facilities leases provide for abatement of rent during certain periods and escalating rent payments during the term. Rent expense is recognized on a straight-line basis over the term of the lease. Accordingly, rent expense recognized in excess of rent paid is reflected as deferred rent. Rent expense on the facilities and equipment during 2013, 2012 and 2011 was $1.2 million, $1.0 million and $1.0 million, respectively.

Future annual minimum payments under operating leases are as follows (in thousands):




Years Ending December 31,
2014	$	5,651
2015	4,173
2016	2,123
2017	1,085
2018	291
Thereafter	331
Total	$	13,654

As of December 31, 2013 we leased space in three buildings with lease terms expiring in 2014, 2017 and 2018. We leased land for our BioVectra operations with a lease term expiring in 2051, subject to 10 year revaluation clause based upon comparable land values at the date of revaluation. We have also entered into various office equipment leases and automobile leases, the terms of which are typically three years. Annual rent expense for all of our facilities, equipment and automobile leases for the year ended December 31, 2013 was approximately $4.0 million.

For our U.S. operations, we lease space primarily in these locations:


•	We lease 30,000 square feet of laboratory and office space in Hayward, California under a master lease that expires in May 2018. This facility is occupied by our Commercial Development, Sales and Marketing, Medical Affairs, Contract Manufacturing, Quality Control and Quality Assurance departments.


•	We lease 15,600 square feet of office space in Ellicott City, Maryland under a lease agreement that expires in October 2017. This facility is occupied by our Product Development and Regulatory Affairs departments.


•	We lease 7,900 square feet of office space in Anaheim, California under a lease agreement that expires in October 2014. This facility is occupied by our Executive, Finance and Administration departments, and serves as our corporate headquarters.

Legal Proceedings

We operate in a highly regulated industry. We are subject to the regulatory authority of the Securities and Exchange Commission, or SEC, the FDA and numerous other federal and state governmental agencies including state attorney general offices, which have become more active in investigating the business practices of pharmaceutical companies.

Glenridge Litigation

In June 2011, Glenridge Pharmaceuticals LLC, or Glenridge, filed a lawsuit against us in the Superior Court of California, Santa Clara County, alleging that we had underpaid royalties to Glenridge, in connection with the timing of the impact of various offsets in the calculation of net sales. In August 2012, we filed a separate lawsuit against the three principals of Glenridge, as well as Glenridge, challenging the enforceability of our agreement with Glenridge. Our lawsuit alleges that Kenneth Greathouse breached his fiduciary duties to the Company and that his partners at Glenridge aided and abetted his breach. In August 2013, the two lawsuits were consolidated into one case in the Superior Court of California, Santa Clara County. We have filed a motion for summary adjudication which seeks to have our agreement with Glenridge declared unenforceable. The motion is based on laws that govern self-dealing transactions. A hearing on this motion is currently scheduled on March 6, 2014.

USAO Investigation

On September 21, 2012, we became aware of an investigation by the United States Attorney's Office, or the USAO, for the Eastern District of Pennsylvania regarding our promotional practices. Following our September 24, 2012 announcement of this investigation, we received a subpoena from the USAO for information relating to our promotional practices. We have been informed by the USAO for the Eastern District of Pennsylvania that the USAO for the Southern District of New York and the SEC are also participating in the investigation to review our promotional practices and related matters. We continue to cooperate with the USAO and the SEC with regard to this investigation.

Putative Class Action Securities Litigation

On September 26, 2012, a putative class action lawsuit was filed against us and certain of our officers and directors in the United States District Court for the Central District of California, captioned John K. Norton v. Questcor Pharmaceuticals, et al., No. SACv12-1623 DMG (FMOx). The complaint purports to be brought on behalf of shareholders who purchased our common stock between April 26, 2011 and September 21, 2012. The complaint generally asserts that we and certain of our officers and directors violated sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, by making allegedly false and/or misleading statements concerning the clinical evidence to support the use of Acthar for indications other than infantile spasms, the promotion of the sale and use of Acthar in the treatment of MS and nephrotic syndrome, reimbursement for Acthar from third-party insurers, and our outlook and potential market growth for Acthar. The complaint seeks damages in an unspecified amount and equitable relief against the defendants. This lawsuit has been consolidated with four subsequently-filed actions asserting similar claims under the caption: In re Questcor Securities Litigation, No. CV 12-01623 DMG (FMOx). On October 1, 2013, the District Court granted in part and denied in part our motion to dismiss the consolidated amended complaint. On October 29, 2013, we filed an answer to the consolidated amended complaint.

Federal Shareholder Derivative Litigation

On October 4, 2012, another alleged shareholder filed a derivative lawsuit in the United States District Court for the Central District of California captioned Gerald Easton v. Don M. Bailey, et al., No. SACV12-01716 DOC (JPRx). The suit asserts claims substantially identical to those asserted in the do Valle derivative action described below against the same defendants. This lawsuit has been consolidated with five subsequently-filed actions asserting similar claims under the caption: In re Questcor Shareholder Derivative Litigation, CV 12-01716 DMG (FMOx). Following the resolution of the motion to dismiss in the consolidated putative securities class action, the court issued an order staying the federal derivative action until the earlier of: (a) sixty (60) days after the resolution of any motion for summary judgment filed in the putative class action lawsuit, (b) sixty (60) days after the deadline to file a motion for summary judgment in the putative class action lawsuit, if none is filed, or (c) the execution of any settlement agreement (including any partial settlement agreement) to resolve the putative class action lawsuit.

State Shareholder Derivative Litigation

On October 2, 2012, an alleged shareholder filed a derivative lawsuit purportedly on behalf of the Company against certain of our officers and directors in the Superior Court of the State of California, Orange County, captioned Monika do Valle v. Virgil D. Thompson, et al., No. 30-2012-00602258-CU-SL-CXC. The complaint asserts claims for breach of fiduciary duty, abuse of control, mismanagement and waste of corporate assets arising from substantially similar allegations as those contained in the putative securities class action described above, as well as from allegations relating to sales of our common stock by the defendants and repurchases of our common stock. The complaint seeks an unspecified sum of damages and equitable relief. On October 24, 2012, another alleged shareholder filed a derivative lawsuit purportedly on behalf of the Company against certain of our officers and directors in the Superior Court of the State of California, Orange County, captioned Jones v. Bailey, et al., Case No. 30-2012-00608001-CU-MC-CXC. The suit asserts claims substantially identical to those asserted in the do Valle derivative action. On February 19, 2013, the court issued an order staying the state derivative actions until the putative federal securities class action and federal derivative actions are resolved.

Put Options Securities Action

In March 2013, individual traders of put options filed a securities complaint in the United States District Court for the Central District of California captioned David Taban, et al. v. Questcor Pharmaceuticals, Inc., No. SACV13-0425. The complaint generally asserts claims against us and certain of our officers and directors for violations of the Exchange Act and for state law fraud and fraudulent concealment based on allegations similar to those asserted in the putative securities class action described above. The complaint seeks compensatory damages in an amount equal to $5 million and punitive damages of an unspecified amount. Following the resolution of the motion to dismiss in the consolidated putative securities class action, the court issued an order staying this action until the earlier of: (a) sixty (60) days after the resolution of any motion for summary judgment filed in the putative class action lawsuit, (b) sixty (60) days after the deadline to file a motion for summary judgment in the putative class action lawsuit, if none is filed, or (c) the execution of any settlement agreement (including any partial settlement agreement) to resolve the putative class action lawsuit.

Retrophin Litigation

In January 2014, Retrophin Inc. filed a lawsuit against us in the United States District Court for the Central District of California, alleging a variety of federal and state antitrust violations based on our acquisition from Novartis of certain rights to develop, market, manufacture, distribute, sell and commercialize Synacthen. Our response to the complaint is due on or before March 6, 2014.

Conclusion

We believe that the probability of unfavorable outcome or loss related to these matters and an estimate of the amount or range of loss, if any, from an unfavorable outcome are not determinable at this time. We believe we have meritorious legal positions and will continue to represent our interests vigorously in these matters. However, responding to government investigations, defending any claims raised, and any resulting fines, restitution, damages and penalties, settlement payments or administrative actions, as well as any related actions brought by shareholders or other third parties, could have a material impact on our reputation, business and financial condition and divert the attention of our management from operating our business.

Commitments

During the year ended December 31, 2011, we entered into an agreement with a third party vendor to provide potency and toxicity testing on Acthar prior to releasing the product for commercial distribution. Beginning on January 1, 2012, the agreement provides for a maximum number of tests to be performed each year. Tests performed in excess of the maximum are to be paid on a per test basis. We have been in compliance with the terms of our agreement with this third party vendor.

We have an agreement with BioVectra (our wholly-owned subsidiary, which eliminates upon consolidation) to produce the API used in Acthar. The agreement requires the production of a minimum number of kilograms of the Acthar API during the term. The agreement terminated on December 31, 2007 and was extended in January 2008 through December 2010. During the fiscal year ended December 31, 2010, we entered into a new agreement with BioVectra, which terminates 12 months after written notice by either party. Under the terms of the new agreement, we are obligated to purchase a minimum amount of Acthar API and will not purchase in excess of a certain amount of Acthar API per year. We have been in compliance with the terms of our agreement with BioVectra.

On January 18, 2013, we completed our acquisition of BioVectra Inc. We acquired 100% of the issued and outstanding shares of BioVectra for $50.3 million utilizing cash on hand. The former shareholders of BioVectra could receive additional cash consideration of up to C$50.0 million based on BioVectra's financial results over the next three years. As of December 31, 2013, the estimated value of the contingent consideration of $37.5 million has been recorded as a liability in our condensed consolidated balance sheets ($4.2 million has been recorded as the current portion of the contingent consideration). In 2013, BioVectra met its performance milestone for the year and earned an additional C$5.0 million in consideration.

On June 11, 2013, the Effective Date, we acquired from Novartis a license to develop, market, manufacture, distribute, sell and commercialize Synacthen and Synacthen Depot for all uses in humans in the United States. Under the terms of the transaction agreements, we paid Novartis an upfront consideration of $60 million. We will also be making annual cash payments of $25 million on each of the first, second and third anniversaries of the Effective Date, a potential additional annual cash payment on each anniversary subsequent to the third anniversary until we obtain the first approval of the FDA related to the products, or the FDA Approval, and a milestone payment upon our receipt of the FDA Approval. If we successfully obtain the FDA Approval, we will pay an annual royalty to Novartis based on a percentage of the net sales of the product in the U.S. market until the maximum payment is met. The first three annual payments aggregating to $75 million are secured by a letter of credit and classified as restricted cash on the Condensed Consolidated Balance Sheets. In no event will the total payments related to this transaction exceed $300 million. As of December 31, 2013, we recorded an asset (because it was determined that the intangible asset has alternative future use) related to the acquisition of Synacthen of $191.5 million and a corresponding liability of $140.1 million. The asset and liability (which was determined to be a derivative) were originally valued using a weighted discounted probability model. The asset is considered to be definite-lived and is amortized over its useful life to research and development expense. The liability is reviewed each reporting period for any changes in the probability assumptions and for changes due to the passage of time.

We pay an annual royalty to the prior owner of Acthar equal to 1% of net sales in excess of $10 million. We also incur quarterly payments to Glenridge Pharmaceuticals, LLC under a purported Royalty Agreement and Release equal to three percent 3% of net sales. See above under "Litigation." Royalty expense for the years ended December 31, 2013, 2012 and 2011 was $30.4 million, $20.2 million and $8.5 million, respectively, which is included in Cost of Sales in the accompanying Consolidated Statements of Income and Comprehensive Income.

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income before income taxes is attributed to the following geographic locations for the years ended December 31, 2013, 2012 and 2011 (in thousands):



	Years Ended December 31,
	2013			2012		2011
Federal	$	449,285		$	297,230	$	113,745
Foreign	(9,745		)	—		—
Income before income taxes	$	439,540		$	297,230	$	113,745

The Company’s foreign earnings attributable to its foreign operating entities will be permanently reinvested in such foreign jurisdictions and, therefore, no deferred tax liabilities for U.S. income taxes on undistributed earnings are recorded. The determination of the unrecognized deferred tax liability for the temporary differences related to these undistributed earnings is not practicable. At December 31, 2013, the undistributed earnings amount to $1.0 million. In addition, the Company has a provincial tax holiday in Canada that expires on April 1, 2017.

The components of the income tax expense are as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
Current:
Federal	$	158,914		$	97,267		$	38,575
State	1,615			2,047			475
Foreign	1,251			—			—
	161,780			99,314			39,050
Deferred:
Federal	(13,026		)	344			(4,782		)
State	(64		)	(103		)	(114		)
Foreign	(1,759		)	—			—
	(14,849		)	241			(4,896		)
Total income tax expense	$	146,931		$	99,555		$	34,154

A reconciliation between the U.S. statutory tax rate and our effective tax rate is as follows:



	Years Ended December 31,
	2013		2012		2011
Tax at U.S. statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net	0.4	%	0.7	%	0.2	%
Change in valuation allowance	—	%	—	%	—	%
Orphan drug tax credit	—	%	—	%	(2.1	)%
Foreign rate differential	0.7	%	—	%	—	%
Other	(2.7	)%	(2.2	)%	(3.1	)%
Effective tax rate	33.4	%	33.5	%	30.0	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amount used for income tax purposes, as well as net operating loss and tax credit carryforwards. Significant components of our deferred tax assets and liabilities are as follows (in thousands):



	Years Ended December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	1,879		$	2,117
Research and development credits	68			92
Sales-related reserves	4,656			5,803
Stock-based compensation	12,575			8,006
Intangible asset	1,121			—
Other, net	12,240			2,219
Total deferred tax assets	32,539			18,237
Valuation allowance	(920		)	(981		)
	31,619			17,256
Deferred tax liabilities:
Capital assets	(10,569		)	$	—
Net deferred taxes	$	21,050		$	17,256

We recognize valuation allowances on deferred tax assets reported if, based on the weight of the evidence, we believe that it is “more likely than not” that some or all of our deferred tax assets will not be realized. We evaluate deferred tax assets quarterly to assess the likelihood of realization, which is ultimately dependent upon our generating future taxable income. Our valuation allowance decreased $61,000 in 2013 and increased $36,000 in 2012 . This allowance was associated with our California net operating losses and research and development tax credits which we do not anticipate to fully utilize and therefore have established a valuation allowance on those deferred tax assets.

At December 31, 2013, we had federal and state net operating loss carryforwards of $2.9 million and $15.3 million, respectively, and California research and development tax credits of $0.1 million, respectively. All federal net operating loss carryforwards are subject to annual limitations as a result of federal ownership change limitations, and will be available from 2013 through 2018, under those limitations. In addition, as of December 31, 2013, the 1994 - 2011 tax years remain subject to examination in the U.S. and various state tax jurisdictions due to net operating losses that are being carried forward. The Company is currently undergoing a Federal exam, however the Company does not believe that such exam will have a material adverse effect on the consolidated financial statements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Years Ended December 31,
	2013			2012
Balance at beginning of year	$	1,223		$	1,274
Increase / (decrease) of unrecognized tax benefits taken in prior years	377			(437		)
Increase of unrecognized tax benefits related to current year	(319		)	386
Balance at end of year	$	1,281		$	1,223

The unrecognized tax benefits, if recognized in full, would reduce our income tax expense by $1.3 million. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. As of December 31, 2013 and 2012, our accrual for interest and penalties on any unrecognized tax benefits was $78,000 and $106,000, respectively. We expect unrecognized tax benefits to decrease by approximately $0.5 million over the next 12 months as a result of the settlement of an IRS examination.

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Dec. 31, 2013
Postemployment Benefits [Abstract]
Defined Contribution Plan	Defined Contribution Plan We have a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended, covering substantially all full-time U.S. employees. Participating employees may contribute up to 60% of their eligible compensation up to the annual Internal Revenue Service contribution limit. This plan allows for discretionary contributions by us. Employer matching contributions for the years ended December 31, 2013, 2012 and 2011 were $1.5 million, $1.0 million and $0.3 million, respectively.

Quarterly Results Of Operations

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations

Quarterly Results of Operations (unaudited)

The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the period ended December 31, 2013. We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period (in thousands, except earnings per share).

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



	Quarter Ended
	12/31/2013		9/30/2013		6/30/2013		3/31/2013
Net sales	$	242,881	$	236,346	$	184,573	$	135,129
Cost of sales	20,921		20,034		17,221		16,189
Income tax expense	48,839		45,668		33,969		18,455
Net income	89,981		94,441		69,123		39,064
Comprehensive income	88,430		95,372		67,644		37,870
Net income per share applicable to common shareholders (1):
Basic	$	1.51	$	1.60	$	1.17	$	0.68
Diluted	$	1.44	$	1.52	$	1.12	$	0.65
Dividend declared per common share	$	0.60	$	—	$	0.25	$	0.25

	Quarter Ended
	12/31/2012		9/30/2012		6/30/2012		3/31/2012
Net sales	$	160,533	$	140,339	$	112,452	$	95,968
Cost of sales	9,157		7,499		6,379		5,520
Income tax expense	32,987		27,836		19,724		19,008
Net income	61,940		55,687		41,505		38,543
Comprehensive income	61,926		55,700		41,491		38,634
Net income per share applicable to common shareholders (1):
Basic	$	1.07	$	0.95	$	0.68	$	0.61
Diluted	$	1.03	$	0.91	$	0.65	$	0.58
Dividend declared per common share	$	0.20	$	0.20	$	—	$	—



(1	)	Due to the use of the weighted average shares outstanding for each quarter for computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.

Schedule II Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

FINANCIAL STATEMENT SCHEDULES (ITEM 15(a)(2))

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2013, 2012 and 2011



	Balance at Beginning of Period		Additions/ (Deductions) Charged to Income		Deductions and Write-Offs		Balance at End of Period
	(In thousands)
Reserves for uncollectible accounts
December 31, 2013	$	—	$	475	$	—	$	475
December 31, 2012	$	—	$	—	$	—	$	—
December 31, 2011	$	25	$	—	$	25	$	—

Reserves for obsolete and excess inventories
December 31, 2013	$	52	$	1,329	$	52	$	1,329
December 31, 2012	$	—	$	52	$	—	$	52
December 31, 2011	$	158	$	—	$	158	$	—

Sales-related reserves
December 31, 2013	$	37,376	$	52,129	$	54,135	$	35,370
December 31, 2012	$	34,119	$	64,707	$	61,450	$	37,376
December 31, 2011	$	21,511	$	50,658	$	38,050	$	34,119

All other financial statement schedules are omitted because the information described therein is not applicable, not required or is furnished in the financial statements or notes thereto.

Organization And Summary Of Significant Accounting Policies (Policy)	12 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The financial statements of our subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars using period-end exchange rates for assets and liabilities, historical exchange rates for shareholders' equity and weighted average exchange rates for operating results. Translation gains and losses are included in accumulated other comprehensive income in shareholders' equity. Foreign currency transaction gains and losses are included in the results of operations in our Consolidated Statements of Income and Comprehensive Income.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP, requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Our significant estimates include our estimates for sales-related reserves, valuation and impairment of intangibles and goodwill, deferred tax assets and tax liabilities, share-based compensation and estimating the fair value of our contingent consideration in conjunction with the acquisition of both BioVectra and Synacthen, among others.
Reclassifications	Reclassifications Certain comparative prior year amounts in the Consolidated Financial Statements and accompanying notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, dividends payable, accrued liabilities, current and long-term debt and derivatives (primarily associated with the contingent consideration in conjunction with the acquisition of Synacthen). We believe that the fair value of these financial instruments approximate the reported carrying amounts.
Cash Equivalents and Short-Term Investments	Cash Equivalents and Short-Term Investments We consider highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. We classify available-for-sale debt instruments with maturities at the date of purchase greater than three months as short-term investments. We carry available-for-sale securities at fair value, with the unrealized gains and losses, if any, reported in a separate component of shareholders’ equity. If we deem the decline in value to be other-than-temporary and we intend to sell such securities before their full cost can be recovered, we write down such securities to fair value and we charge the loss to net realized losses on investments. We use significant judgment in the determination of when an other-than-temporary decline in value has occurred. We evaluate our investment securities for other-than-temporary declines based on quantitative and qualitative factors. As of December 31, 2013 none of our investments had an other-than-temporary decline in valuation, and no other-than-temporary losses were recognized during the years ended December 31, 2013, 2012 and 2011. We base the cost of securities sold on the specific identification method. We include realized gains and losses, if any, in the accompanying Consolidated Statements of Income and Comprehensive Income, in Interest and other (expense) income, net.
Concentration of Risk	Concentration of Risk Financial instruments that subject us to a significant concentration of credit risk principally consist of cash and cash equivalents, short-term investments and accounts receivable. We invest our cash in high credit quality government and corporate debt instruments and believe the financial risks associated with these instruments are minimal. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Beginning January 1, 2013, all of our non-interest bearing cash balances were insured up to $250,000 per depositor at each financial institution. We extend credit to our specialty distributor, which accounts for approximately 95% of our gross product sales and 92% of our accounts receivable. We have not experienced material credit losses on our customer accounts.
Inventories	Inventories We state inventories, net of allowances, at the lower of cost or market value. For our Acthar product, cost is determined by the first-in, first-out method. For our production materials and supplies, work-in-process and finished goods at our contract manufacturer, cost is determined on an average cost basis. We review inventory periodically for slow-moving or obsolete status. We adjust our inventory if we do not expect to recover the cost of inventory. We would record a reserve to adjust inventory to its net realizable value when any of the following occur: (i) a product is close to expiration and we do not expect it to be sold, (ii) a product has reached its expiration date or (iii) we do not expect a product to be saleable. In determining the reserves for these products, we consider factors such as the amount of inventory on hand and its remaining shelf life, and current and expected market conditions, including management forecasts and levels of competition. We have evaluated the current level of inventory considering historical trends and other factors, and based on our evaluation, have recorded adjustments to reflect inventory at its net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to assess the future demand for our products in order to categorize the status of such inventory items as slow-moving, obsolete or in excess-of-need. These future estimates are subject to the ongoing accuracy of our forecasts of market conditions, industry trends, competition and other factors. Differences between our estimated reserves and actual inventory adjustments have been immaterial, and we account for such adjustments in the current period as a change in estimate.
Property and Equipment	Property and Equipment We record property and equipment at cost. We depreciate equipment and furniture using the straight-line method over their estimated useful lives (generally three to seven years) and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. We amortize equipment acquired under capital leases over the estimated useful life of the assets and include such amortization in depreciation expense.
Goodwill and Intangible Assets	Goodwill and Intangible Assets We determine the estimated fair values of goodwill and intangible assets with definite and/or indefinite lives based on valuations performed at the time of their acquisition in accordance with FASB ASC 350. Such valuations utilize forecasted financial information. In addition, certain amounts paid to third parties, such as our In Process R&D asset related to the acquisition of Synacthen, are capitalized and included in intangible assets on the accompanying consolidated balance sheets. Goodwill and indefinite-lived intangibles are tested for impairment annually and in interim periods if certain events occur indicating the fair value may be below its carrying value using a two-step process. The first step is to identify a potential impairment, and the second step measures the amount of the impairment loss, if any. Goodwill is impaired if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. We performed our annual goodwill and indefinite-lived impairment assessment as of December 31, 2013, noting no impairment. Definite lived intangibles are amortized on an accelerated or straight-line basis over their estimated useful life. This determination is made based on the specific asset and the timing of recoverability from expected future cash flows. We review the carrying value of our definite-lived intangibles and long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable. These assets are impaired when undiscounted expected future cash flows are less than the carrying value. Our judgments related to the expected useful lives of definite-lived intangibles and long-lived assets and our ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as ongoing maintenance and improvements of the assets, changes in economic conditions, our ability to successfully launch products, and changes in operating performance. In addition, we regularly evaluate our long-lived assets and may accelerate depreciation over the revised useful life if the asset has limited future value. During the years ended December 31, 2013, 2012 and 2011, we recorded impairment charges for purchased technology and goodwill of $0.7 million, $1.0 million and $0.3 million, respectively. As this process involves management making certain estimates and because these estimates form the basis of the determination of whether or not an impairment charge should be recorded, these estimates are considered to be critical accounting estimates. We will continue to assess the carrying value of our goodwill, intangible assets and long-lived assets in accordance with applicable accounting guidance.
Income Taxes	Income Taxes We account for income taxes under the provisions of Accounting Standards Codification 740, “Income Taxes”, or ASC 740. We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing our consolidated financial statements, we are required to estimate income taxes in each of the jurisdictions in which we operate. This process involves estimating our tax exposure under the most current tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. We regularly assess the likelihood that we will be able to recover our deferred tax assets, which is ultimately dependent on us generating future taxable income. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not considered “more likely than not” that we will recover our deferred tax assets, we will increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. Changes in the valuation allowance based on our assessment will result in an income tax benefit if the valuation allowance is decreased and an income tax expense if the valuation allowance is increased.
Revenue Recognition	Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification 605, “Revenue Recognition-Products,” or ASC 605. Pursuant to ASC 605, we recognize revenue when we have persuasive evidence that an arrangement, agreement or contract exists, when each of the following three criteria are satisfied: (i) title for our product and risk of loss have passed to our customer, (ii) the price we charge for our product is fixed or is readily determinable, and (iii) we are reasonably assured of collecting the amounts owed under the resulting receivable. We do not require collateral from our customers.
Product Exchanges	Product Exchanges Acthar has a shelf life of 18 months from the date of manufacture. We authorize Acthar exchanges for expiring and expired product in accordance with our stated return policy, which allows the specialty distributor we work with to return product within one month of its expiration date and for a period up to three months after such product has reached its expiration date.
Share-Based Compensation	Share-Based Compensation We recognize compensation expense for all share-based awards made to employees and directors. The fair value of share-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over either (1) the requisite service period or (2) the performance period. Since share-based compensation is recognized only for those awards that are ultimately expected to vest, we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates will be revised, if necessary, in future periods if actual forfeitures differ from estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs. We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option behaviors. We estimate the expected term based on the contractual term of the awards and employees' exercise and expected post-vesting termination behavior. We use the intrinsic method to account for restricted stock awards. The restricted stock awards are valued based on the closing stock price on the date of grant and amortized ratably over the life of the award. Additionally, we are required to disclose in our consolidated statements of cash flows the income tax effects resulting from share-based payment arrangements. We adopted the simplified method to calculate the beginning balance of the additional paid-in capital, or APIC, pool of excess tax benefits, and to determine the subsequent effect on the APIC pool and consolidated statements of cash flows of the tax effects of employee share-based compensation awards.
Stock Repurchases	Stock Repurchases We account for common stock repurchases by charging the cost of shares acquired to the common stock account in the Consolidated Statements of Shareholders’ Equity.
Net Income Per Share	Net Income Per Share Basic net income per share applicable to common shareholders is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalents shares, such as stock options and restricted stock outstanding during the period. Diluted earnings for our common shareholders per common stock considers the impact of potentially dilutive securities and excludes the impact of potential common shares related to our stock options and restricted stock in periods in which the option exercise or conversion price is greater than the average market price of our common stock during the period.
Segment Information	Segment Information We have historically operated in one business segment. On January 18, 2013, we acquired 100% of the issued and outstanding shares of BioVectra Inc. We now manage our operations through two operating segments that are defined by our separate companies - Questcor Pharmaceuticals, Inc. and BioVectra. Each segment is operated as an independent business under its own management team, and has responsibility for its commercial activities, operations, and research and development activities related to its products. We intend to have BioVectra continue to operate independently under its existing management team for the foreseeable future. Questcor Pharmaceuticals is headquartered in Anaheim, California, and is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. Questcor Pharmaceuticals' primary product is Acthar. Questcor Pharmaceuticals currently generates substantially all of its net sales from the use of Acthar in connection with the following: the treatment of proteinuria in idiopathic types of nephrotic syndrome, the treatment of acute exacerbations of multiple sclerosis in adults, the treatment of certain rheumatology-related conditions, and the treatment of infantile spasms in infants and children under two years of age. BioVectra is located in Prince Edward Island, Canada, operating from three facilities. BioVectra is a supplier of contract manufacturing services to the global pharmaceutical and biotechnology industry. BioVectra manufactures active pharmaceutical ingredients (API's), chemical intermediates, and bioprocessing reagents, and is our manufacturing partner for the API in our H.P. Acthar® Gel (repository corticotropin injection). BioVectra is proficient in synthetic organic chemistry, natural extraction of bioactive compounds, PEGylation and conjugation chemistry, and fermentation of chemical and biologic molecules. Segment results for net sales are presented in the same manner as we present our operations internally to make operating decisions and assess performance. Net income, which includes the negative impact of purchase price adjustments related to our January 18, 2013 acquisition of BioVectra, is the primary responsibility of segment operating management and therefore all activities remain in the segment in which incurred for performance assessment by our chief operating decision maker.
Subsequent Events	Subsequent Events We evaluated subsequent events that have occurred after December 31, 2013, and through the issuance date, and determined that there were no events or transactions occurring during this reporting period that require recognition or disclosure in our consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that are adopted by the Company as of the specified effective date.

Organization And Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Relative share of accounts receivable

The relative share of our accounts receivable and gross product sales are as follows:



	Years Ended December 31,
% of Accounts Receivable	2013		2012
Specialty distributor	92	%	100	%
Other customers	8	%	—	%
	100	%	100	%

Relative share of gross product sales



	Years Ended December 31,
% of Gross Product Sales	2013		2012		2011
Specialty distributor	95	%	100	%	100	%
Other customers	5	%	—	%	—	%
	100	%	100	%	100	%

Net sales

The following table sets forth our net sales for the years ended December 31, 2013, 2012 and 2011, respectively (in thousands):



	Years Ended December 31,
	2013		2012		2011
Total pharmaceutical gross sales	$	825,710	$	582,097	$	268,827
Sales reserves	64,363		72,805		50,658
Total pharmaceutical net sales	761,347		509,292		218,169
Total contract manufacturing net sales	37,582		—		—
Total net sales	$	798,929	$	509,292	$	218,169

Sales-related reserves

The following table summarizes the activity in the account for sales-related reserves for Medicaid rebates (in thousands):



	Years Ended December 31,
	2013			2012			2011
Balance at January 1	$	33,921		$	29,874		$	17,384
Actual Medicaid rebate payments for sales made in prior year	(22,891		)	(18,449		)	(9,104		)
Actual Medicaid rebate payments for sales made in current year	(19,333		)	(35,709		)	(24,887		)
Current Medicaid rebate provision for sales made in prior year	11,500			1,153			8
Current Medicaid rebate provision for sales made in current year	27,784			57,052			46,473
Balance at December 31	$	30,981		$	33,921		$	29,874

Total Sales-related Reserves

At December 31, 2013 and 2012 sales-related reserves included in the accompanying Consolidated Balance Sheets were as follows (in thousands):



	Years Ended December 31,
	2013		2012
Medicaid rebates	$	30,981	$	33,921
Other rebates, chargebacks and discounts	4,389		3,455
Total	$	35,370	$	37,376

Net income per share, basic and diluted

Diluted potential common shares resulting from the assumed exercise of outstanding stock options and restricted stock are determined based on the treasury stock method (in thousands, except per share amounts).



	Years Ended December 31,
	2013		2012		2011
Net income applicable to common shareholders	$	292,609	$	197,675	$	79,591
Shares used in computing net income per share applicable to common shareholders:
Basic	58,616		60,243		62,498
Effect of dilutive potential common shares:
Stock options	2,375		2,744		3,497
Restricted stock	456		58		15
Diluted	61,447		63,045		66,010
Net income per share applicable to common shareholders:
Basic	$	4.99	$	3.28	$	1.27
Diluted	$	4.76	$	3.14	$	1.21

Amounts excluded from the computation of diluted net income per share applicable to common shareholder



	Years Ended December 31,
	2013	2012	2011
Stock options	448	1,189	82
Restricted stock awards	30	—	—

Schedule of earnings per share



	Years Ended December 31,
	2013		2012		2011
Net income applicable to common shareholders	$	292,609	$	197,675	$	79,591
Less: Dividends	66,229		23,682		—
Undistributed earnings	$	226,380	$	173,993	$	79,591

Common stock undistributed earnings	$	221,278	$	173,325	$	79,591
Unvested restricted stock award undistributed earnings	5,102		668		—
Total undistributed earnings	$	226,380	$	173,993	$	79,591

Schedule of segment reporting information, by segment

For the years ended December 31, 2013, 2012 and 2011, information regarding our net sales and net income for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra			Intersegment Eliminations			Consolidated
Net Sales
For the year ended December 31, 2013	$	761,347	$	39,944		$	(2,362	)	$	798,929
For the year ended December 31, 2012	$	509,292	$	—		$	—		$	509,292
For the year ended December 31, 2011	$	218,169	$	—		$	—		$	218,169
Net Income
For the year ended December 31, 2013	$	293,999	$	(158	)	$	(1,232	)	$	292,609
For the year ended December 31, 2012	$	197,675	$	—		$	—		$	197,675
For the year ended December 31, 2011	$	79,591	$	—		$	—		$	79,591

Reconciliation of assets from segment to consolidated

As of December 31, 2013, 2012 and 2011, information regarding total assets for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra		Intersegment Eliminations			Consolidated
Total Assets
December 31, 2013	$	711,507	$	108,510	$	(83,663	)	$	736,354
December 31, 2012	$	252,431	$	—	$	—		$	252,431
December 31, 2011	$	275,808	$	—	$	—		$	275,808

Schedule of capital expenditures by operating segment

As of December 31, 2013, 2012 and 2011, information regarding capital expenditures for our operating segments is as follows (in millions):



	Questcor Pharmaceuticals		BioVectra		Intersegment Eliminations		Consolidated
Capital expenditures
December 31, 2013	$	1,100	$	2,426	$	10	$	3,536
December 31, 2012	$	1,065	$	—	$	—	$	1,065
December 31, 2011	$	1,823	$	—	$	—	$	1,823

Schedule of net sales by geographic location

The basis for determining net sales is the geographic location of the customer (in thousands):



	December 31,
	2013		2012		2011
Net Sales
North America (1)	$	778,859	$	509,292	$	218,169
Europe	13,780		—		—
Asia	6,248		—		—
Other	42		—		—
Total net sales	$	798,929	$	509,292	$	218,169

(1) Predominately located in the United States and Canada.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table reflects the fair value of consideration transferred at the acquisition date (in thousands):



Allocation of Purchase Price:
Current assets excluding inventory	$	11,691
Inventory	11,774
Property and equipment	35,221
Other non-current assets	1,708
Current deferred tax asset	141
Intangibles	35,581
Goodwill	21,914
Current liabilities	(6,451		)
Non-current liabilities, excluding long-term debt	(1,994		)
Non-current deferred tax liability	(12,012		)
Long-term debt	(16,875		)
Total net assets acquired	$	80,698

Cash consideration paid to BioVectra shareholders	$	50,315
Estimated fair value of contingent consideration	30,383
Total purchase consideration	$	80,698

Business Acquisition, Pro Forma Information

Pro forma adjustments are tax-effected at the applicable statutory tax rates.



	Year Ended December 31,
	2013		2012
Net sales	$	800,788	$	537,511
Net income	$	301,837	$	193,389

Balance Sheet Details (Tables)

12 Months Ended

Dec. 31, 2013

Balance Sheet Related Disclosures [Abstract]

Inventories, net of allowances



	Years Ended December 31,
	2013			2012
Raw materials	$	9,835		$	9,271
Work-in-process	2,194			—
Intermediates	1,572			—
Finished goods	4,096			690
	17,697			9,961
Less: Reserve for obsolescence	(1,329		)	(52		)
	$	16,368		$	9,909

Property and Equipment

Equipment, building, land and leasehold improvements and related accumulated depreciation and amortization are as follows (in thousands):



	Years Ended December 31,
	2013			2012
Equipment (including manufacturing, laboratory and office)	$	26,237		$	3,466
Building	12,015			—
Land and land improvements	406			—
Leasehold improvements	1,446			1,349
	40,104			4,815
Less accumulated depreciation and amortization	(8,371		)	(2,742		)
	$	31,733		$	2,073

Schedule of Long-term Debt Instruments

The term loan has an interest rate of 4%, is due in full by February 2022 and is secured by certain of our BioVectra assets. Under the supply agreement, the customer agreed to reimburse BioVectra (such reimbursement is recorded to net sales) for the quarterly financing payments of C$450,743 during the term of the loan.



	December 31, 2013
4% Term Loan, due February 2022, payable in quarterly installments of C$450,743 including principal and interest	$	12,090
Less: Current Portion	1,221
Funded long-term debt, less current portion	$	10,869

Long-term debt

Our subsidiary, BioVectra, has a 2.85% term loan. The loan is payable monthly and is due April 2016. The loan is secured with BioVectra accounts receivable and inventory.



	December 31, 2013
2.85% Term Loan, due April 2016, payable in monthly installments of C$48,170 including principal and interest	$	3,573
Less: Current Portion	444
Long-term debt, less current portion	$	3,129

Schedule of Maturities of Debt

Debt maturity schedule



2014	$	1,665
2015	1,727
2016	3,994
2017	1,375
2018	1,431
Thereafter	5,471
Total	$	15,663

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Short-Term Investments And Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Short-Term Investments And Fair Value Measurements [Abstract]

Summary of cash equivalents and short-term investments

A summary of cash equivalents and short-term investments, classified as available-for-sale, and carried at fair value is as follows (in thousands):



December 31, 2013	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Estimated Fair Value
Cash equivalents	$	13,351	$	—	$	—		$	13,351
Short-term investments:
Corporate bonds	$	45,190	$	11	$	(14	)	$	45,187
U.S. Government-sponsored enterprises	14,539		3		(4		)	14,538
Municipal bonds	9,438		4		(1		)	9,441
	$	69,167	$	18	$	(19	)	$	69,166
December 31, 2012
Cash equivalents	$	7,740	$	—	$	—		$	7,740
Short-term investments:
Certificates of deposit	$	720	$	2	$	—		$	722
Corporate Bonds	47,857		29		(8		)	47,878
Government-sponsored enterprises	24,699		13		—			24,712
Municipal bonds	1,395		1		(3		)	1,393
	$	74,671	$	45	$	(11	)	$	74,705

Amortized cost and fair value of available-for-sale securities

The amortized cost and fair value of available-for-sale securities at December 31, 2013, by contractual maturity, are as follows (in thousands):



	Amortized Cost		Estimated Fair Value
Due in one year or less	$	31,717	$	31,721
Due after one through two years	37,450		37,445
Total available-for-sale securities	$	69,167	$	69,166

Available-for-sale securities in an unrealized loss position, not deemed to be other-than-temporarily impaired

As of December 31, 2013, we had the following available-for-sale securities that were in an unrealized loss position but were not deemed to be other-than-temporarily impaired (in thousands):



	Less Than 12 Months					12 Months or Greater
	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Corporate bonds	$	(4	)	$	9,809	$	(10	)	$	8,932
U.S. Government-sponsored enterprises	—			—		(4		)	9,033
Municipal bonds	—			1,336		(1		)	1,473
Total	$	(4	)	$	11,145	$	(15	)	$	19,438

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of December 31, 2013 and 2012, assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):



		Basis of Fair Value Measurements
		Balance at
Balance Sheet Classification		December 31, 2013		Level 1		Level 2		Level 3
Cash and cash equivalents	Cash and cash equivalents	$	13,351	$	5,260	$	8,091	$	—
Short-term investments	Corporate bonds	45,187		—		45,187		—
Short-term investments	Government-sponsored enterprises	14,538		—		14,538		—
Short-term investments	Municipal bonds	9,441		—		9,441		—
	Total assets	$	82,517	$	5,260	$	77,257	$	—

Current liabilities	Current portion of contingent consideration in conjunction with acquisition of BioVectra	$	4,238	$	—	$	—	$	4,238
Current liabilities	Current portion of contingent consideration in conjunction with acquisition of Synacthen	25,000		—		—		25,000
Non-current liabilities	Contingent consideration in conjunction with acquisition of BioVectra	33,224		—		—		33,224
Non-current liabilities	Contingent consideration in conjunction with acquisition of Synacthen	115,066		—		—		115,066
	Total liabilities	$	177,528	$	—	$	—	$	177,528

		December 31, 2012		Level 1		Level 2		Level 3
Cash and cash equivalents	Cash and cash equivalents	$	7,740	$	7,242	$	498	$	—
Short-term investments	Certificates of deposit	722		—		722		—
Short-term investments	Corporate bonds	47,878		—		47,878		—
Short-term investments	Government-sponsored enterprises	24,712		—		24,712		—
Short-term investments	Municipal bonds	1,393		—		1,393		—
	Total assets	$	82,445	$	7,242	$	75,203	$	—

Fair Value Inputs, Liabilities, Quantitative Information

The following table presents the fair value, valuation technique and related unobservable input for the Level 3 measurements:



	Fair Value		Valuation Technique	Unobservable Input	Rate
Contingent consideration in conjunction with the acquisition of Bio Vectra estimate	$	37,462	Probability weighted discounted future cash flows	Discount rate	5%
Contingent consideration in conjunction with the acquisition of Synacthen estimate	$	140,066	Probability weighted discounted future cash flows	Discount rate	5%

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation



	December 31, 2013
Balance at beginning of period	$	—
Amounts acquired or issued	167,046
Change due to compensation expense	1,893
Change due to time value of money	4,528
Change due to foreign currency translation adjustment	(2,368		)
Changes in fair value	6,429
Balance at end of period	$	177,528

Goodwill, Intangibles and Purchased Technology (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill Acquired with the Acquisition of BioVectra

Goodwill and intangibles acquired in conjunction with the acquisition of BioVectra, consists of the following (in thousands):



	December 31, 2013
Acquired intangibles	$	33,186
Less accumulated amortization	(3,055		)
Acquired intangibles, net	$	30,131
Goodwill	$	20,464

Goodwill

The following table summarizes the changes in the carrying amount of goodwill (in thousands):



Balance at December 31, 2012	$	—
Goodwill resulting from the acquisition of BioVectra	21,914
Currency translation	(1,450		)
Balance at December 31, 2013	$	20,464

The following table provides a rollforward of goodwill by country (in thousands):



	December 31, 2012		Additions from Purchase Accounting		Currency Translation			December 31, 2013
United States	$	—	$	—	$	—		$	—
Canada	—		21,914		(1,450		)	20,464
Total	$	—	$	21,914	$	(1,450	)	$	20,464

Rollforward of intangibles

The following table provides a rollforward of the intangibles (in thousands):



	December 31, 2013
	Gross Book Value		Accumulated Amortization			Currency Translation			Net Book Value
Trademark	$	8,151	$	—		$	(577	)	$	7,574
Patent	58		(15		)	(3		)	$	40
Contracted customer relationships	17,208		(1,578		)	(1,154		)	$	14,476
Non-contracted customer relationships	10,164		(1,462		)	(661		)	$	8,041
Total acquired intangibles	$	35,581	$	(3,055	)	$	(2,395	)	$	30,131

Changes in Intangibles

The following table summarizes the changes in the carrying amount of intangibles (in thousands):



Balance at December 31, 2012	$	—
Intangibles resulting from the acquisition of BioVectra	35,581
Amortization expense	(3,055		)
Currency translation	(2,395		)
Balance at December 31, 2013	$	30,131

Schedule of Finite-Lived Intangible Assets

Intangibles acquired in conjunction with the acquisition of Synacthen, consists of the following (in thousands):



	December 31, 2013			December 31, 2012
In process R&D asset	$	196,663		$	—
Less accumulated amortization	(5,212		)	—
In process R&D asset, net	$	191,451		$	—

Preferred Stock And Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Employee stock purchase plan activity

ESPP activity during 2013 was as follows:



	Number of Shares		Weighted- Average Fair Value
Available at December 31, 2012	682,080
Purchases	(137,472	)	$	29.49
Shares added to the Plan	—
Available at December 31, 2013	544,608

Schedule of Valuation Assumptions



	Years Ended December 31,
	2013		2012		2011
Weighted average volatility	52	%	110	%	53	%
Risk-free interest rate	0.1	%	0.1	%	0.1	%
Expected term (in years)	0.25		0.25		0.25
Expected dividend yield	2.4	%	1.4	%	—	%

Summary of stock option activity

A summary of our stock option activity and related information during 2012 follows:



	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
					(In years)
Outstanding at December 31, 2012	6,446,618		$	16.52
Granted	426,896		35.66
Exercised	(1,692,920	)	9.44
Forfeited or expired	(118,489	)	30.16
Outstanding at December 31, 2013	5,062,105		$	20.18	6.98	$	173,920,567
Options vested and expected to vest at December 31, 2013	4,993,859		$	19.99	6.96	$	172,493,803
Exercisable at December 31, 2013	3,442,547		$	15.02	6.38	$	135,750,172

Restricted stock activity

Restricted stock activity during 2013 was as follows:



	Number of Shares		Weighted- Average Fair Value
Non-vested shares at December 31, 2012	789,479		$	26.42
Granted	829,899		$	34.14
Released	(205,181	)	$	26.50
Forfeited or expired	(51,033	)	$	28.34
Non-vested shares at December 31, 2013	1,363,164		$	30.99

Schedule of Restricted Stock Activity

Restricted stock unit activity during 2013 was as follows:



	Number of Shares	Weighted- Average Fair Value		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2012	—	$	—
Granted	10,515	$	51.69
Released	—	$	—
Forfeited or expired	—	$	—
Outstanding at December 31, 2013	10,515	$	—	2.17	$	572,541.75
Vested and expected to vest at December 31, 2013	9,622	$	—	2.12	$	523,915.46
Exercisable at December 31, 2013	—	$	—	0	$	—

Weighted average fair value of equity instruments

The weighted average fair value of equity instruments granted during 2013, 2012 and 2011 was as follows:



	Weighted Average Fair Value
	2013		2012		2011
Stock options	$	35.66	$	36.16	$	16.89
ESPP Purchases	$	29.49	$	28.91	$	14.98
Restricted Stock Awards	$	34.14	$	26.86	$	27.28
Restricted Stock Units	$	51.69	$	—	$	—

Stock option valuation assumption

The weighted average assumptions used for the years ended December 31, 2013, 2012 and 2011 and the resulting estimates of weighted average fair value per share of options granted during those periods are as follows:



	Years Ended December 31,
	2013		2012		2011
Volatility	71	%	72	%	61	%
Interest rate	0.4-0.8		0.3-0.5		0.5-2.4
Forfeiture rate	4.05	%	4.99	%	7.61	%
Expected term (in years)	3.6		3.6		3.4
Expected dividend yield	2.6	%	3.2	%	—	%

Share-based compensation expense



	Years Ended December 31,
	2013		2012		2011
Selling and marketing	$	10,897	$	5,360	$	4,236
General and administrative	12,302		7,467		1,884
Research and development	5,554		2,965		1,206
Total share-based compensation expense	$	28,753	$	15,792	$	7,326

Indemnifications, Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Future annual minimum payments under operating leases

Future annual minimum payments under operating leases are as follows (in thousands):




Years Ending December 31,
2014	$	5,651
2015	4,173
2016	2,123
2017	1,085
2018	291
Thereafter	331
Total	$	13,654

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax

Income before income taxes is attributed to the following geographic locations for the years ended December 31, 2013, 2012 and 2011 (in thousands):



	Years Ended December 31,
	2013			2012		2011
Federal	$	449,285		$	297,230	$	113,745
Foreign	(9,745		)	—		—
Income before income taxes	$	439,540		$	297,230	$	113,745

Components of the income tax expense

The components of the income tax expense are as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
Current:
Federal	$	158,914		$	97,267		$	38,575
State	1,615			2,047			475
Foreign	1,251			—			—
	161,780			99,314			39,050
Deferred:
Federal	(13,026		)	344			(4,782		)
State	(64		)	(103		)	(114		)
Foreign	(1,759		)	—			—
	(14,849		)	241			(4,896		)
Total income tax expense	$	146,931		$	99,555		$	34,154

Reconciliation between U.S. statutory tax rate and effective tax rate

A reconciliation between the U.S. statutory tax rate and our effective tax rate is as follows:



	Years Ended December 31,
	2013		2012		2011
Tax at U.S. statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net	0.4	%	0.7	%	0.2	%
Change in valuation allowance	—	%	—	%	—	%
Orphan drug tax credit	—	%	—	%	(2.1	)%
Foreign rate differential	0.7	%	—	%	—	%
Other	(2.7	)%	(2.2	)%	(3.1	)%
Effective tax rate	33.4	%	33.5	%	30.0	%

Significant components of deferred tax assets



	Years Ended December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	1,879		$	2,117
Research and development credits	68			92
Sales-related reserves	4,656			5,803
Stock-based compensation	12,575			8,006
Intangible asset	1,121			—
Other, net	12,240			2,219
Total deferred tax assets	32,539			18,237
Valuation allowance	(920		)	(981		)
	31,619			17,256
Deferred tax liabilities:
Capital assets	(10,569		)	$	—
Net deferred taxes	$	21,050		$	17,256

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	Years Ended December 31,
	2013			2012
Balance at beginning of year	$	1,223		$	1,274
Increase / (decrease) of unrecognized tax benefits taken in prior years	377			(437		)
Increase of unrecognized tax benefits related to current year	(319		)	386
Balance at end of year	$	1,281		$	1,223

Quarterly Results Of Operations (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



	Quarter Ended
	12/31/2013		9/30/2013		6/30/2013		3/31/2013
Net sales	$	242,881	$	236,346	$	184,573	$	135,129
Cost of sales	20,921		20,034		17,221		16,189
Income tax expense	48,839		45,668		33,969		18,455
Net income	89,981		94,441		69,123		39,064
Comprehensive income	88,430		95,372		67,644		37,870
Net income per share applicable to common shareholders (1):
Basic	$	1.51	$	1.60	$	1.17	$	0.68
Diluted	$	1.44	$	1.52	$	1.12	$	0.65
Dividend declared per common share	$	0.60	$	—	$	0.25	$	0.25

	Quarter Ended
	12/31/2012		9/30/2012		6/30/2012		3/31/2012
Net sales	$	160,533	$	140,339	$	112,452	$	95,968
Cost of sales	9,157		7,499		6,379		5,520
Income tax expense	32,987		27,836		19,724		19,008
Net income	61,940		55,687		41,505		38,543
Comprehensive income	61,926		55,700		41,491		38,634
Net income per share applicable to common shareholders (1):
Basic	$	1.07	$	0.95	$	0.68	$	0.61
Diluted	$	1.03	$	0.91	$	0.65	$	0.58
Dividend declared per common share	$	0.20	$	0.20	$	—	$	—



(1	)	Due to the use of the weighted average shares outstanding for each quarter for computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.

Organization And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2013 USD ($)	Dec. 31, 2013 USD ($) indication pharmacy	Dec. 31, 2011 USD ($)	Dec. 31, 2012 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of indications that are approved for treatment \| indication		19
Impairment of goodwill and intangibles	$ 700		$ 299
Deferred tax liability not recognized		$ 1,281	$ 1,274	$ 1,223
Unrecognized tax benefits, income tax penalties and interest accrued		78		$ 106
Unrecognized tax benefits, expected decrease as a result of settlement with IRS		$ 500
Number of specialty pharmacies that distribute \| pharmacy		12
Unrecognized compensation cost, unvested stock options		$ 20,400
Weighted average vesting period, years		2 years 2 months 1 day
Restricted Stock and Restricted Stock Units [Member] \| 2006 Equity Incentive Award Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Unrecognized compensation cost		$ 25,800
Acthar [Member]
Summary Of Significant Accounting Policies [Line Items]
Maximum treatment age of infantile spasms		2 years
Shelf life from the date of manufacture		18 months
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Days after quarter, rebate invoices received		90 days
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Days after quarter, rebate invoices received		60 days

Organization And Summary Of Significant Accounting Policies (Concentration Risk) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Insurance coverage per depositor on all non-interest bearing cash balances	$ 250,000
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Credit to customer as a percentage	100.00%	100.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Specialty distributor
Concentration Risk [Line Items]
Credit to customer as a percentage	92.00%	100.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Other customers
Concentration Risk [Line Items]
Credit to customer as a percentage	8.00%	0.00%
Sales [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Credit to customer as a percentage	100.00%	100.00%	100.00%
Sales [Member] \| Customer Concentration Risk [Member] \| Specialty distributor
Concentration Risk [Line Items]
Credit to customer as a percentage	95.00%	100.00%	100.00%
Sales [Member] \| Customer Concentration Risk [Member] \| Other customers
Concentration Risk [Line Items]
Credit to customer as a percentage	5.00%	0.00%	0.00%

Organization And Summary Of Significant Accounting Policies (Net Sales) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Total pharmaceutical gross sales									$ 825,710	$ 582,097	$ 268,827
Sales reserves									64,363	72,805	50,658
Pharmaceutical net sales									761,347	509,292	218,169
Contract manufacturing net sales									37,582	0	0
Total net sales	$ 242,881	$ 236,346	$ 184,573	$ 135,129	$ 160,533	$ 140,339	$ 112,452	$ 95,968	$ 798,929	$ 509,292	$ 218,169

Organization And Summary Of Significant Accounting Policies (Sales-Related Reserves) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Sales-Related Reserves [Line Items]
Sales-related reserves	$ 35,370	$ 37,376
Medicaid [Member]
Sales-Related Reserves [Line Items]
Beginning balance	33,921	29,874	$ 17,384
Actual Medicaid rebate payments for sales made in prior year	(22,891)	(18,449)	(9,104)
Actual Medicaid rebate payments for sales made in current year	(19,333)	(35,709)	(24,887)
Current Medicaid rebate provision for sales made in prior year	11,500	1,153	8
Current Medicaid rebate provision for sales made in current year	27,784	57,052	46,473
Ending balance	30,981	33,921	$ 29,874
Sales-related reserves	30,981	33,921
Other rebates, chargebacks and discounts
Sales-Related Reserves [Line Items]
Sales-related reserves	$ 4,389	$ 3,455

Organization And Summary Of Significant Accounting Policies (Net Income Per Share, Basic And Diluted) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Net income applicable to common shareholders

$ 89,981

$ 94,441

$ 69,123

$ 39,064

$ 61,940

$ 55,687

$ 41,505

$ 38,543

$ 292,609

$ 197,675

$ 79,591

Basic shares used in computing net income per share applicable to common shareholders

58,616

60,243

62,498

Effect of dilutive potential common shares, stock options shares used in computing net income per share applicable to common shareholders

2,375

2,744

3,497

Effect of dilutive potential common shares, restricted stock shares used in computing net income per share applicable to common shareholders

456

Diluted shares used in computing net income per share applicable to common shareholders

61,447

63,045

66,010

Earnings per share basic, applicable to common shareholders

$ 1.51

^[1]

$ 1.60

^[1]

$ 1.17

^[1]

$ 0.68

^[1]

$ 1.07

^[1]

$ 0.95

^[1]

$ 0.68

^[1]

$ 0.61

^[1]

$ 4.99

$ 3.28

$ 1.27

Earnings per share diluted, applicable to common shareholders

$ 1.44

^[1]

$ 1.52

^[1]

$ 1.12

^[1]

$ 0.65

^[1]

$ 1.03

^[1]

$ 0.91

^[1]

$ 0.65

^[1]

$ 0.58

^[1]

$ 4.76

$ 3.14

$ 1.21

[1]	Due to the use of the weighted average shares outstanding for each quarter for computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Organization And Summary Of Significant Accounting Policies (Antidilutive Securities) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net income per share	448	1,189	82
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net income per share	30	0	0

Organization And Summary Of Significant Accounting Policies (Unallocated Undistributed Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 89,981	$ 94,441	$ 69,123	$ 39,064	$ 61,940	$ 55,687	$ 41,505	$ 38,543	$ 292,609	$ 197,675	$ 79,591
Less: Dividends									66,229	23,682	0
Undistributed earnings									226,380	173,993	79,591
Common stock undistributed earnings									221,278	173,325	79,591
Unvested restricted stock award undistributed earnings									5,102	668	0
Total undistributed earnings									$ 226,380	$ 173,993	$ 79,591

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Organization And Summary Of Significant Accounting Policies (Segment Reporting) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Jan. 18, 2013

Segment Reporting Information [Line Items]

Total net sales

$ 242,881

$ 236,346

$ 184,573

$ 135,129

$ 160,533

$ 140,339

$ 112,452

$ 95,968

$ 798,929

$ 509,292

$ 218,169

Net income

89,981

$ 94,441

$ 69,123

$ 39,064

61,940

$ 55,687

$ 41,505

$ 38,543

292,609

197,675

79,591

Assets

736,354

252,431

736,354

252,431

275,808

Capital expenditures

3,536

1,065

1,823

North America [Member]

Segment Reporting Information [Line Items]

Total net sales

^[1]

778,859

509,292

218,169

Europe [Member]

Segment Reporting Information [Line Items]

Total net sales

13,780

Asia [Member]

Segment Reporting Information [Line Items]

Total net sales

6,248

Other Geographical Region [Member]

Segment Reporting Information [Line Items]

Total net sales

Questcor [Member]

Segment Reporting Information [Line Items]

Total net sales

761,347

509,292

218,169

Net income

293,999

197,675

79,591

Assets

711,507

252,431

711,507

252,431

275,808

Capital expenditures

1,100

1,065

1,823

BioVectra [Member]

Segment Reporting Information [Line Items]

39,944

(158)

108,510

2,426

Intersegment Eliminations [Member]

Segment Reporting Information [Line Items]

Total net sales

(2,362)

Net income

(1,232)

Assets

$ (83,663)

$ 0

(83,663)

Capital expenditures

$ 10

$ 0

BioVectra [Member]

Segment Reporting Information [Line Items]

Percentage of voting interest acquired

100.00%

[1]	Predominately located in the United States and Canada.

Acquisitions (Synacthen) (Details) - USD ($) $ in Thousands	Jun. 11, 2013	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Acquired intangibles, net		$ 30,131	$ 0
Synacthen [Member]
Business Acquisition [Line Items]
Upfront consideration paid	$ 60,000
Annual cash payments	25,000
Annual payments secured by a letter of credit	75,000
Acquired intangibles, net		191,500
Contingent consideration estimate		$ 140,100
Synacthen [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Total payment	$ 300,000

Acquisitions (BioVectra) (Details) $ in Thousands, $ in Millions		12 Months Ended
	Jan. 18, 2013 USD ($)	Dec. 31, 2013 CAD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jan. 18, 2013 CAD ($)
Business Acquisition [Line Items]
Total cash paid for acquisition of BioVectra			$ 50,803
Estimated fair value of contingent consideration			30,383
Changes in fair value of contingent consideration			6,429	$ 0	$ 0
Current portion of contingent consideration			4,238	$ 0
BioVectra [Member]
Business Acquisition [Line Items]
Percentage of voting interest acquired						100.00%
Total cash paid for acquisition of BioVectra	$ 50,315
Maximum additional cash consideration			37,500			$ 50.0
Number of years financial results are based on	3 years
Estimated fair value of contingent consideration	$ 30,383
Changes in fair value of contingent consideration		$ 5.0
Current portion of contingent consideration			4,200
Acquisition-related expenses			$ 300

Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 18, 2013	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Goodwill		$ 20,464	$ 0
Total cash paid for acquisition of BioVectra		50,803
Estimated fair value of contingent consideration		30,383
BioVectra [Member]
Business Acquisition [Line Items]
Current assets excluding inventory	$ 11,691
Inventory	11,774
Property and equipment	35,221
Other non-current assets	1,708
Current deferred tax asset	141
Intangibles	35,581
Goodwill	21,914	$ 20,464
Current liabilities	(6,451)
Non-current liabilities, excluding long-term debt	(1,994)
Non-current deferred tax liability	(12,012)
Long-term debt	(16,875)
Total net assets acquired	80,698
Total cash paid for acquisition of BioVectra	50,315
Estimated fair value of contingent consideration	30,383
Total purchase consideration	$ 80,698

Acquisitions (Pro Forma Financial Information) (Details) - BioVectra [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Net sales	$ 800,788	$ 537,511
Net income	$ 301,837	$ 193,389

Balance Sheet Details (Inventories, Net Of Allowances) (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Inventory [Line Items]
Raw materials	$ 9,835	$ 9,271
Work-in-process	2,194	0
Intermediates	1,572	0
Finished goods	4,096	690
Inventory, Gross	17,697	9,961
Less: Reserve for obsolescence	(1,329)	(52)
Total inventory	16,368	$ 9,909
BioVectra [Member]
Inventory [Line Items]
Total inventory	$ 6,700

Balance Sheet Details (Property And Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property and equipment	$ 40,104	$ 4,815
Less accumulated depreciation and amortization	(8,371)	(2,742)
Total	31,733	2,073
Total depreciation and amortization expense	5,900	900	$ 700
Equipment (including manufacturing, laboratory and office)
Property and equipment	26,237	3,466
Building
Property and equipment	12,015	0
Land and land improvements
Property and equipment	406	0
Leasehold improvements
Property and equipment	1,446	$ 1,349
BioVectra [Member]
Property and equipment	29,400
Total depreciation and amortization expense	$ 5,100

Balance Sheet Details (Long-term Debt) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 CAD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Debt Instrument [Line Items]
Period to supply pharmaceutical product	10 years
Estimated facility construction cost	$ 14,800,000
Funded long-term debt		$ 15,663
Current portion of long-term debt		1,665	$ 0
Long-term debt, less current portion		13,998	$ 0
Debt maturities
2014		1,665
2015		1,727
2016		3,994
2017		1,375
2018		1,431
Thereafter		5,471
Long-term debt		$ 15,663
Term Loan [Member] \| Term Loan Due February 2022
Debt Instrument [Line Items]
Interest rate	4.00%	4.00%
Installments	$ 450,743
Funded long-term debt		$ 12,090
Current portion of long-term debt		1,221
Long-term debt, less current portion		10,869
Debt maturities
Long-term debt		$ 12,090
Term Loan [Member] \| Term Loan Due April 2016
Debt Instrument [Line Items]
Interest rate	2.85%	2.85%
Installments	$ 48,170
Funded long-term debt		$ 3,573
Current portion of long-term debt		444
Long-term debt, less current portion		3,129
Debt maturities
Long-term debt		$ 3,573

Short-Term Investments And Fair Value Measurements (Summary Of Cash Equivalents And Short-Term Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 69,167	$ 74,671
Gross Unrealized Gain	18	45
Gross Unrealized (Loss)	(19)	(11)
Estimated Fair Value	69,166	74,705
Cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,351	7,740
Gross Unrealized Gain	0	0
Gross Unrealized (Loss)	0	0
Estimated Fair Value	13,351	7,740
Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		720
Gross Unrealized Gain		2
Gross Unrealized (Loss)		0
Estimated Fair Value		722
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	45,190	47,857
Gross Unrealized Gain	11	29
Gross Unrealized (Loss)	(14)	(8)
Estimated Fair Value	45,187	47,878
U.S. Government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,539	24,699
Gross Unrealized Gain	3	13
Gross Unrealized (Loss)	(4)	0
Estimated Fair Value	14,538	24,712
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	9,438	1,395
Gross Unrealized Gain	4	1
Gross Unrealized (Loss)	(1)	(3)
Estimated Fair Value	$ 9,441	$ 1,393

Short-Term Investments And Fair Value Measurements (Amortized Cost And Fair Value Of Available-For-Sale Securities) (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Short-Term Investments And Fair Value Measurements [Abstract]
Due in one year or less, Amortized Cost	$ 31,717
Due after one through two years, Amortized Cost	37,450
Total available-for-sale securities, Amortized Cost	69,167
Due in one year or less, Estimated Fair Value	31,721
Due after one through two years, Estimated Fair Value	37,445
Total available-for-sale securities, Estimated Fair Value	$ 69,166
Average contractual maturity of short term investments, in months	13 months

Short-Term Investments And Fair Value Measurements (Available-For-Sale Securities In An Unrealized Loss Position, Not Deemed To Be Other-Than-Temporarily Impaired) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	$ (4)
Estimated Fair Value, Less Than 12 Months	11,145
Gross Unrealized Losses, 12 Months or Greater	(15)
Estimated Fair Value, 12 Months or Greater	19,438
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	(4)
Estimated Fair Value, Less Than 12 Months	9,809
Gross Unrealized Losses, 12 Months or Greater	(10)
Estimated Fair Value, 12 Months or Greater	8,932
U.S. Government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	0
Estimated Fair Value, Less Than 12 Months	0
Gross Unrealized Losses, 12 Months or Greater	(4)
Estimated Fair Value, 12 Months or Greater	9,033
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses, Less Than 12 Months	0
Estimated Fair Value, Less Than 12 Months	1,336
Gross Unrealized Losses, 12 Months or Greater	(1)
Estimated Fair Value, 12 Months or Greater	$ 1,473

Short-Term Investments And Fair Value Measurements (Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 82,517	$ 82,445
Liabilities		177,528
Fair Value of Level 3 Instruments [Roll Forward]
Impairment of goodwill and intangibles	$ 700			$ 299
Agreed upon purchase price for the Purchased Technology		700
BioVectra [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		4,238
Contingent consideration in conjunction with acquisition		33,224
Synacthen [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		25,000
Contingent consideration in conjunction with acquisition		115,066
Fair Value Inputs [Abstract]
Contingent consideration estimate		140,100
Income Approach Valuation Technique [Member] \| BioVectra [Member]
Fair Value Inputs [Abstract]
Contingent consideration estimate		$ 37,462
Discount rate		5.00%
Income Approach Valuation Technique [Member] \| Synacthen [Member]
Fair Value Inputs [Abstract]
Contingent consideration estimate		$ 140,066
Discount rate		5.00%
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 5,260	7,242
Liabilities		0
Level 1 \| BioVectra [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		0
Contingent consideration in conjunction with acquisition		0
Level 1 \| Synacthen [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		0
Contingent consideration in conjunction with acquisition		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		77,257	75,203
Liabilities		0
Level 2 \| BioVectra [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		0
Contingent consideration in conjunction with acquisition		0
Level 2 \| Synacthen [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		0
Contingent consideration in conjunction with acquisition		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Liabilities		177,528
Fair Value of Level 3 Instruments [Roll Forward]
Balance at beginning of period		0
Amounts acquired or issued		167,046
Change due to compensation expense		1,893
Change due to time value of money		4,528
Change due to foreign currency translation adjustment		(2,368)
Changes in fair value		6,429
Balance at end of period		177,528	0
Level 3 \| BioVectra [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		4,238
Contingent consideration in conjunction with acquisition		33,224
Level 3 \| Synacthen [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of contingent consideration in conjunction with acquisition		25,000
Contingent consideration in conjunction with acquisition		115,066
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		13,351	7,740
Cash and cash equivalents \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		5,260	7,242
Cash and cash equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		8,091	498
Cash and cash equivalents \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			722
Certificates of deposit \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0
Certificates of deposit \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			722
Certificates of deposit \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		45,187	47,878
Corporate bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		45,187	47,878
Corporate bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14,538	24,712
Government-sponsored enterprises \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Government-sponsored enterprises \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14,538	24,712
Government-sponsored enterprises \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		9,441	1,393
Municipal bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Municipal bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		9,441	1,393
Municipal bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 0	$ 0

Goodwill, Intangibles and Purchased Technology (Goodwill and Intangibles) (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Jan. 18, 2013	Dec. 31, 2012
Schedule of Intangible Assets, Including Goodwill [Line Items]
Acquired intangibles	$ 35,581
Accumulated Amortization	(3,055)
Acquired intangibles, net	30,131		$ 0
Goodwill	20,464		$ 0
BioVectra [Member]
Schedule of Intangible Assets, Including Goodwill [Line Items]
Acquired intangibles	33,186
Accumulated Amortization	(3,055)
Acquired intangibles, net	30,131
Goodwill	$ 20,464	$ 21,914

Goodwill, Intangibles and Purchased Technology (Goodwill) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 0
Additions from Purchase Accounting	21,914
Currency translation	(1,450)
Ending balance	20,464
United States [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions from Purchase Accounting	0
Currency translation	0
Ending balance	0
Canada [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions from Purchase Accounting	21,914
Currency translation	(1,450)
Ending balance	20,464
BioVectra [Member]
Goodwill [Roll Forward]
Ending balance	$ 20,464

Goodwill, Intangibles and Purchased Technology (Intangible Assets) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					$ 35,581
Accumulated Amortization					(3,055)
Currency Translation					(2,395)
Intangibles and other non current assets		$ 0	$ 0		30,131	$ 0
Intangibles [Roll Forward]
Beginning balance		0
Amortization expense		(3,055)
Currency translation		(2,395)
Ending balance		30,131	0
Amortization expense		3,055
Impairment of goodwill and intangibles	$ 700			$ 299
Agreed upon purchase price for the Purchased Technology					700
BioVectra [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					33,186
Accumulated Amortization					(3,055)
Intangibles and other non current assets		30,131			30,131
Intangibles [Roll Forward]
Intangibles resulting from the acquisition of BioVectra		35,581
Amortization expense		(3,100)
Ending balance		30,131
Amortization expense in 2014					3,200
Amortization expense in 2015					3,200
Amortization expense in 2016					3,100
Amortization expense in 2017					2,800
Amortization expense in 2018					2,600
Amortization expense thereafter					7,500
Amortization expense		$ 3,100
BioVectra [Member] \| Minimum [Member]
Intangibles [Roll Forward]
Life of amortizable intangible asset		8 years
BioVectra [Member] \| Maximum [Member]
Intangibles [Roll Forward]
Life of amortizable intangible asset		10 years
BioVectra [Member] \| Weighted Average [Member]
Intangibles [Roll Forward]
Life of amortizable intangible asset		9 years
Synacthen [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles and other non current assets		$ 191,500			191,500
Intangibles [Roll Forward]
Ending balance		191,500
Doral [Member]
Intangibles [Roll Forward]
Amortization expense		(800)	(1,300)	(300)
Amortization expense		800	1,300	$ 300
Impairment of goodwill and intangibles		719	987
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					8,151
Accumulated Amortization					0
Currency Translation					(577)
Intangibles and other non current assets		7,574			7,574
Intangibles [Roll Forward]
Ending balance		7,574
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					58
Accumulated Amortization					(15)
Currency Translation					(3)
Intangibles and other non current assets		40			40
Intangibles [Roll Forward]
Ending balance		40
Contracted Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					17,208
Accumulated Amortization					(1,578)
Currency Translation					(1,154)
Intangibles and other non current assets		14,476			14,476
Intangibles [Roll Forward]
Ending balance		14,476
Non-Contracted Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					10,164
Accumulated Amortization					(1,462)
Currency Translation					(661)
Intangibles and other non current assets		8,041			8,041
Intangibles [Roll Forward]
Ending balance		8,041
In Process R&D [Member] \| Synacthen [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Book Value					196,663	0
Accumulated Amortization					(5,212)	0
Intangibles and other non current assets		191,451	0		191,451	$ 0
Intangibles [Roll Forward]
Beginning balance		0
Amortization expense		(5,200)
Ending balance		$ 191,451	$ 0
Life of amortizable intangible asset		20 years
Amortization expense in 2014					9,800
Amortization expense in 2015					9,800
Amortization expense in 2016					9,800
Amortization expense in 2017					9,800
Amortization expense in 2018					9,800
Amortization expense thereafter					$ 142,400
Amortization expense		$ 5,200
In Process R&D [Member] \| Synacthen [Member] \| Minimum [Member]
Intangibles [Roll Forward]
Years in development		7 years
Years of patent exclusivity		11 years
In Process R&D [Member] \| Synacthen [Member] \| Maximum [Member]
Intangibles [Roll Forward]
Years in development		8 years
Years of patent exclusivity		12 years

Preferred Stock And Shareholders' Equity (Narrative) (Details) - USD ($)	1 Months Ended		6 Months Ended	12 Months Ended			70 Months Ended
	May 31, 2011	Apr. 30, 2008	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Sep. 28, 2012	May 10, 2012	May 29, 2009	Feb. 29, 2008	May 31, 2004
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares authorized				5,334,285	5,334,285		5,334,285
Stock repurchase program, number of shares authorized to be repurchased								7,000,000	5,000,000	6,500,000	7,000,000
Stock repurchased during period, value				$ 393,300,000
Stock repurchased during period, shares				23,100,000
Stock acquired, average cost per share				$ 17.01
Stock repurchase program, remaining number of shares authorized to be repurchased				5,292,793			5,292,793
Employee stock purchase plan, shares available for issuance, including previously issued				3,500,000			3,500,000
Employee stock purchase plan, eligibility requirements, hours worked per week minimum				20 hours
Employee Stock Purchase Plan, eligibility requirements, months worked per calendar year minimum				5 months
Employee stock purchase plan, maximum earnings withheld				15.00%			15.00%
Employee stock purchase plan, purchase price per share, percentage of fair market value				85.00%			85.00%
Issuance of common stock pursuant to employee stock purchase plan, shares				(137,472)	(92,030)	(90,650)
Shares of common stock reserved for issuance				2,570,483			2,570,483
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value				$ 74,900,000	$ 29,900,000	$ 57,500,000
Unrecognized compensation cost, unvested stock options				$ 20,400,000			$ 20,400,000
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition in years				2 years 2 months 1 day
Previous [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan, maximum offering period in months		27 months
As Amended [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan, maximum offering period in months		6 months
2006 Equity Incentive Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years				4 years
Expiration period, years				10 years
Stock options, increase of shares of common stock authorized for issuance	3,500,000
Share-based compensation arrangement by share-based payment award, number of shares authorized				9,750,000			9,750,000
2004 Non-Employee Directors' Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years				4 years
Expiration period, years				10 years
Stock options granted following appointment as a Non-Employee Director				25,000			25,000
Stock options granted for continued service upon reappointment annually				15,000			15,000
Stock options granted to members of one or more committees of the board of directors				10,000			10,000
Stock options granted to chairs of one or more committees				7,500			7,500
Common stock, shares authorized for grant				1,250,000			1,250,000
2004 Non-Employee Directors' Equity Incentive Plan [Member] \| Previous [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option grant, exercise price, percentage of fair market value												85.00%
2004 Non-Employee Directors' Equity Incentive Plan [Member] \| As Amended [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option grant, exercise price, percentage of fair market value												100.00%
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				829,899
Restricted Stock Awards [Member] \| 2006 Equity Incentive Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years				4 years
Shares granted				829,899	777,524	31,762
Expense related to the vesting of stock				$ 14,600,000	$ 1,800,000	$ 163,000
Awards vested, total fair value				12,700,000	700,000	115,000
Unrecognized compensation cost				25,200,000			$ 25,200,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, share based compensation			207,250
Performance Shares [Member] \| 2006 Equity Incentive Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense related to the vesting of stock				$ 1,600,000
Restricted Stock Units [Member] \| 2006 Equity Incentive Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years				4 years
Granted				10,515
Expense related to the vesting of stock				$ 9,000	$ 0	$ 0
Unrecognized compensation cost				500,000			500,000
Restricted Stock and Restricted Stock Units [Member] \| 2006 Equity Incentive Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 25,800,000			25,800,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock pursuant to employee stock purchase plan, shares				(137,472)	(92,030)	(90,650)
Issuance of common stock upon exercise of stock options				$ 15,989,000	$ 3,675,000	$ 5,224,000
Stock Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased during period, value				$ 53,100,000	$ 261,800,000		$ 363,000,000
Stock repurchased during period, shares				960,000	6,759,861		16,961,661
Stock acquired, average cost per share							$ 21.40
Outside Of Stock Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased during period, value				$ 30,300,000
Stock repurchased during period, shares				6,200,000
Stock acquired, average cost per share				$ 4.93

Preferred Stock And Shareholders' Equity (Employee Stock Purchase Plan Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Stock Purchase Plan Activity [Roll Forward]
Available at beginning of period	682,080
Purchases	(137,472)	(92,030)	(90,650)
Shares added to the Plan	0
Available at end of period	544,608	682,080
Purchases, Weighted-Average Fair Value	$ 29.49

Preferred Stock And Shareholders' Equity (Valuation Assumptions) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Stock Purchase Plan [Member]
Weighted average volatility	52.00%	110.00%	53.00%
Risk-free interest rate	0.065%	0.09%	0.076%
Expected term (in years)	3 months	3 months	3 months
Expected dividend yield	2.40%	1.40%	0.00%
Stock Options [Member]
Volatility	71.00%	72.00%	61.00%
Forfeiture rate	4.05%	4.99%	7.61%
Expected term (in years)	3 years 7 months 6 days	3 years 7 months 2 days	3 years 4 months 24 days
Expected dividend yield	2.60%	3.20%	0.00%
Stock Options [Member] \| Minimum [Member]
Risk-free interest rate	0.40%	0.30%	0.50%
Stock Options [Member] \| Maximum [Member]
Risk-free interest rate	0.80%	0.50%	2.40%

Preferred Stock And Shareholders' Equity (Summary Of Stock Option Activity) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	6,446,618
Granted	426,896
Exercised	(1,692,920)
Forfeited or expired	(118,489)
Outstanding at end of period	5,062,105	6,446,618
Options vested and expected to vest at end of period	4,993,859
Exercisable at end of period	3,442,547
Outstanding beginning of period, Weighted-Average Exercise Price	$ 16.52
Granted, weighted-average exercise price	35.66	$ 36.16	$ 16.89
Exercised, weighted-average exercise price	9.44
Forfeited or expired, weighted-average exercise price	30.16
Outstanding end of period, weighted-average exercise price	20.18	$ 16.52
Options vested and expected to vest at end of period, weighted-average exercise price	19.99
Exercisable at end of period, weighted-average exercise price	$ 15.02
Outstanding at end of period, weighted-average remaining contractual term, years	6 years 11 months 23 days
Options vested and expected to vest at end of period, weighted-average remaining contractual term, years	6 years 11 months 16 days
Exercisable at end of period, weighted-average remaining contractual term, years	6 years 4 months 17 days
Outstanding at end of period, aggregate intrinsic value	$ 173,920,567
Options vested and expected to vest at end of period, aggregate intrinsic value	172,493,803
Exercisable at end of period, aggregate intrinsic value	$ 135,750,172
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	0
Granted	10,515
Exercised	0
Forfeited or expired	0
Outstanding at end of period	10,515	0
Options vested and expected to vest at end of period	9,622
Exercisable at end of period	0
Outstanding beginning of period, Weighted-Average Exercise Price	$ 0.00
Granted, weighted-average exercise price	51.69
Exercised, weighted-average exercise price	0.00
Forfeited or expired, weighted-average exercise price	0.00
Outstanding end of period, weighted-average exercise price	0.00	$ 0.00
Options vested and expected to vest at end of period, weighted-average exercise price	0.00
Exercisable at end of period, weighted-average exercise price	$ 0.00
Outstanding at end of period, weighted-average remaining contractual term, years	2 years 2 months 1 day
Options vested and expected to vest at end of period, weighted-average remaining contractual term, years	2 years 1 month 13 days
Exercisable at end of period, weighted-average remaining contractual term, years	0 years
Outstanding at end of period, aggregate intrinsic value	$ 572,541.75
Options vested and expected to vest at end of period, aggregate intrinsic value	523,915.46
Exercisable at end of period, aggregate intrinsic value	$ 0.00

Preferred Stock And Shareholders' Equity (Restricted Stock Activity) (Details) - Restricted Stock Awards [Member] - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested shares at beginning of period	789,479
Granted	829,899
Vested	(205,181)
Forfeited or expired	(51,033)
Non-vested shares at end of period	1,363,164	789,479
Non-vested shares at beginning of period, Weighted-Average Fair Value	$ 26.42
Granted, Weighted-Average Fair Value	34.14	$ 26.86	$ 27.28
Vested, Weighted-Average Fair Value	26.50
Forfeited or expired, Weighted-Average Fair Value	28.34
Non-vested shares at end of period, Weighted-Average Fair Value	$ 30.99	$ 26.42

Preferred Stock And Shareholders' Equity (Weighted Average Fair Value Of Equity Instruments) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options	$ 35.66	$ 36.16	$ 16.89
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards other than options	29.49	28.91	14.98
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards other than options	34.14	26.86	27.28
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options	51.69
Awards other than options	$ 51.69	$ 0.00	$ 0.00

Preferred Stock And Shareholders' Equity (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based compensation expense	$ 28,753	$ 15,792	$ 7,326
Selling and marketing
Share-based compensation expense	10,897	5,360	4,236
General and administrative
Share-based compensation expense	12,302	7,467	1,884
Research and development
Share-based compensation expense	$ 5,554	$ 2,965	$ 1,206

Indemnifications, Commitments And Contingencies (Narrative) (Details) $ in Thousands			1 Months Ended			12 Months Ended
	Jun. 11, 2013 USD ($)	Oct. 04, 2012 lawsuit	Mar. 31, 2013 USD ($)	Sep. 26, 2012 lawsuit	Jun. 30, 2011 principal	Dec. 31, 2013 USD ($) ft² building	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Other Commitments [Line Items]
Deposit Assets						$ 77
Rent expense for facilities and equipment						$ 1,200	$ 1,000	$ 1,000
Buildings leased \| building						3
Lease revaluation term						10 years
Typical lease terms for office equipment and automobile leases, years						3 years
Rent expense for facilities, equipment and automobiles						$ 4,000
Period to supply pharmaceutical product						10 years
Total cash paid for acquisition of BioVectra						$ 50,803
Current portion of contingent consideration						4,238	0
Changes in fair value of contingent consideration						6,429	0	0
Acquired intangibles, net						30,131	0
Royalty expense						$ 30,400	$ 20,200	$ 8,500
Prior Owner of Acthar [Member]
Other Commitments [Line Items]
Annual royalty, based on net sales, percentage						1.00%
Minimum level of net sales needed for royalty payments						$ 10,000
Glenridge Pharmaceuticals, LLC [Member]
Other Commitments [Line Items]
Number of defendants \| principal					3
Quarterly royalty, based on net sales, percentage						3.00%
BioVectra [Member]
Other Commitments [Line Items]
Period to supply pharmaceutical product						12 months
Synacthen [Member]
Other Commitments [Line Items]
Upfront consideration paid	$ 60,000
Annual cash payments	25,000
Annual payments secured by a letter of credit	75,000
Acquired intangibles, net						$ 191,500
Contingent consideration estimate						$ 140,100
Synacthen [Member] \| Maximum [Member]
Other Commitments [Line Items]
Total payment	$ 300,000
In re Questcor Securities Litigation [Member]
Other Commitments [Line Items]
Number of plaintiffs \| lawsuit				4
In re Questcor Shareholder Derivative Litigation [Member]
Other Commitments [Line Items]
Number of plaintiffs \| lawsuit		5
David Taban, et al. v. Questcor Pharmaceuticals, Inc [Member]
Other Commitments [Line Items]
Damages sought			$ 5,000
Hayward, California [Member]
Other Commitments [Line Items]
Size of space (square feet) \| ft²						30,000
Ellicott City, Maryland [Member]
Other Commitments [Line Items]
Size of space (square feet) \| ft²						15,600
Anaheim, California [Member]
Other Commitments [Line Items]
Size of space (square feet) \| ft²						7,900

Indemnifications, Commitments And Contingencies (Future Minimum Payments) (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases due 2014	$ 5,651
Operating Leases due 2015	4,173
Operating Leases due 2016	2,123
Operating Leases due 2017	1,085
Operating Leases due 2018	291
Thereafter	331
Total	$ 13,654

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Undistributed earnings	$ 1,000
Deferred tax liability not recognized	1,281	$ 1,223	$ 1,274
Increase (decrease) in valuation allowance	(61)	36
Research and development credits	68	92
Unrecognized tax benefits, income tax penalties and interest accrued	78	$ 106
Unrecognized tax benefits, expected decrease as a result of settlement with IRS	500
Federal [Member]
Operating loss carryforwards	2,900
State [Member]
Operating loss carryforwards	15,300
California [Member]
Research and development credits	$ 100

Income Taxes (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Federal	$ 449,285	$ 297,230	$ 113,745
Foreign	(9,745)	0	0
Income before income taxes	$ 439,540	$ 297,230	$ 113,745

Income Taxes (Components Of the Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Current federal income tax expense (benefit)									$ 158,914	$ 97,267	$ 38,575
Current state income tax expense (benefit)									1,615	2,047	475
Current foreign tax expense (benefit)									1,251	0	0
Current income tax expense (benefit), total									161,780	99,314	39,050
Deferred federal income tax expense (benefit)									(13,026)	344	(4,782)
Deferred state income tax expense (benefit)									(64)	(103)	(114)
Deferred foreign income tax expense (benefit)									(1,759)	0	0
Deferred income tax expense (benefit), total									(14,849)	241	(4,896)
Total income tax expense	$ 48,839	$ 45,668	$ 33,969	$ 18,455	$ 32,987	$ 27,836	$ 19,724	$ 19,008	$ 146,931	$ 99,555	$ 34,154

Income Taxes (Reconciliation Tax Rate ) (Details)	12 Months Ended
Income Taxes (Reconciliation Tax Rate ) (Details)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Tax at U.S. statutory rate	35.00%	35.00%	35.00%
State income taxes, net	0.40%	0.70%	0.20%
Change in valuation allowance	0.00%	0.00%	0.00%
Orphan drug tax credit	0.00%	0.00%	(2.10%)
Foreign rate differential	0.70%	0.00%	0.00%
Other	(2.70%)	(2.20%)	(3.10%)
Effective tax rate	33.40%	33.50%	30.00%

Income Taxes (Significant Components Of Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Net operating loss carryforwards	$ 1,879	$ 2,117
Research and development credits	68	92
Sales-related reserves	4,656	5,803
Stock-based compensation	12,575	8,006
Intangible asset	1,121	0
Other, net	12,240	2,219
Total deferred tax assets	32,539	18,237
Valuation allowance	(920)	(981)
Net deferred tax assets	31,619	17,256
Deferred tax liabilities:
Capital assets	(10,569)	0
Net deferred taxes	$ 21,050	$ 17,256

Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 1,223	$ 1,274
Increase / (decrease) of unrecognized tax benefits taken in prior years	377	(437)
Increase of unrecognized tax benefits related to current year	(319)	386
Balance at end of year	$ 1,281	$ 1,223

Defined Contribution Plan (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Postemployment Benefits [Abstract]
Maximum percentage of eligible compensation allowed for participating employees to contribute to their defined-contribution savings plan	60.00%
Defined-contribution savings plan, employer matching contribution	$ 1.5	$ 1.0	$ 0.3

Quarterly Results Of Operations (Quarterly Financial Information ) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Quarterly Financial Information Disclosure [Abstract]

Total net sales

$ 242,881

$ 236,346

$ 184,573

$ 135,129

$ 160,533

$ 140,339

$ 112,452

$ 95,968

$ 798,929

$ 509,292

$ 218,169

Cost of sales (exclusive of amortization of purchased technology and IPR&D asset)

20,921

20,034

17,221

16,189

9,157

7,499

6,379

5,520

74,365

28,555

12,459

Income tax expense

48,839

45,668

33,969

18,455

32,987

27,836

19,724

19,008

146,931

99,555

34,154

Net income

89,981

94,441

69,123

39,064

61,940

55,687

41,505

38,543

292,609

197,675

79,591

Comprehensive Income

$ 88,430

$ 95,372

$ 67,644

$ 37,870

$ 61,926

$ 55,700

$ 41,491

$ 38,634

$ 289,316

$ 197,751

$ 79,532

Net income per share applicable to common shareholders:

Basic (in dollars per share)

$ 1.51

^[1]

$ 1.60

^[1]

$ 1.17

^[1]

$ 0.68

^[1]

$ 1.07

^[1]

$ 0.95

^[1]

$ 0.68

^[1]

$ 0.61

^[1]

$ 4.99

$ 3.28

$ 1.27

Diluted (in dollars per share)

1.44

^[1]

1.52

^[1]

1.12

^[1]

0.65

^[1]

1.03

^[1]

0.91

^[1]

0.65

^[1]

0.58

^[1]

4.76

3.14

1.21

Dividends declared per common share

$ 0.60

$ 0.00

$ 0.25

$ 0.2

$ 0

$ 1.10

$ 0.40

$ 0

[1]	Due to the use of the weighted average shares outstanding for each quarter for computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.

Schedule II Valuation And Qualifying Accounts (Valuation And Qualifying Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reserves for uncollectible accounts
Balance at Beginning of Period	$ 0	$ 0	$ 25
Additions/ (Deductions) Charged to Income	475	0	0
Deductions and Write-Offs	0	0	25
Balance at End of Period	475	0	0
Reserves for obsolete and excess inventories
Balance at Beginning of Period	52	0	158
Additions/ (Deductions) Charged to Income	1,329	52	0
Deductions and Write-Offs	52	0	158
Balance at End of Period	1,329	52	0
Sales-related reserves
Balance at Beginning of Period	37,376	34,119	21,511
Additions/ (Deductions) Charged to Income	52,129	64,707	50,658
Deductions and Write-Offs	54,135	61,450	38,050
Balance at End of Period	$ 35,370	$ 37,376	$ 34,119