MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2014

MARKETABLE SECURITIES

Summary of securities classified as cash and cash equivalents and available-for-sale marketable securities

Securities classified as cash and cash equivalents and available-for-sale marketable securities as of December 31, 2014 and 2013 are summarized below (in thousands).

December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents:
Cash	$	22,452	$	—	$	—		$	22,452
Money market funds		179,923		—		—			179,923
Corporate debt securities		286,292		3		(2	)		286,293
Total cash and cash equivalents	$	488,667	$	3	$	(2	)	$	488,668
Available-for-sale securities:
Total maturing within 1 year and included in marketable securities:
Corporate debt securities	$	70,777		1		(5	)	$	70,773
Total maturing between 1 and 2 years and included in marketable securities:
Corporate debt securities		6,974		—		(13	)		6,961
Total available-for-sale securities	$	77,751	$	1	$	(18	)	$	77,734
Total cash, cash equivalents and marketable securities	$	566,418	$	4	$	(20	)	$	566,402

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents:
Cash	$	26,728	$	—	$	—		$	26,728
Money market funds		217,946		—		—			217,946
Total cash and cash equivalents	$	244,674	$	—	$	—		$	244,674
Available-for-sale securities:
Total maturing within 1 year and included in marketable securities:
Corporate debt securities	$	12,440	$	8	$	(2	)	$	12,446
Government agency debt securities		14,814		3		—			14,817
Total maturing between 1 and 2 years and included in marketable securities:
Corporate debt securities		4,075		5		—			4,080
Total available-for-sale securities	$	31,329	$	16	$	(2	)	$	31,343
Total cash, cash equivalents and marketable securities	$	276,003	$	16	$	(2	)	$	276,017

Schedule of the gross unrealized losses and fair value of investments

At December 31, 2014, the Company had 45 securities in an unrealized loss position. The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 (in thousands):

	Less than 12 months					12 months or greater				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate debt securities	$	80,854	$	(20	)	$	—	$	—	$	80,854	$	(20	)
Total available-for-sale	$	80,854	$	(20	)	$	—	$	—	$	80,854	$	(20	)

Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis

The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (in thousands):

	Level 1		Level 2		Level 3		Total
Money market funds	$	179,923	$	—	$	—	$	179,923
Commercial Paper		—		253,837		—		253,837
Corporate debt securities		110,190		—		—		110,190
Total	$	290,113	$	253,837	$	—	$	543,950
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	1,800	$	1,800
Contingent consideration—Lazanda		—		—		11,209		11,209
Contingent consideration—CAMBIA		—		—		1,243		1,243
Unfavorable contract assumed		—		—		3,343		3,343
	$	—	$	—	$	17,595	$	17,595

The following table represents the Company's fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2013 (in thousands):

	Level 1		Level 2		Level 3		Total
Money market funds	$	217,946	$	—	$	—	$	217,946
Corporate debt securities		—		16,526		—		16,526
Government agency debt securities		—		14,817		—		14,817
Total	$	217,946	$	31,343	$	—	$	249,289
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	1,638	$	1,638
Contingent consideration—Lazanda		—		—		8,616		8,616
Contingent consideration—CAMBIA		—		—		1,010		1,010
Unfavorable contract assumed		—		—		3,540		3,540
	$	—	$	—	$	14,804	$	14,804

Summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs

The table below provides a summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2014 (in thousands):

	Balance at December 31, 2013		Changes in fair value recorded in interest expense		Changes in fair value recorded in selling, general and administrative expense			Balance at December 31, 2014
Liabilities:
Contingent consideration obligations—Zipsor®	$	1,638	$	162	$	—		$	1,800
Contingent consideration obligations—Lazanda®		8,616		1,533		1,060			11,209
Contingent consideration obligations—CAMBIA®		1,010		233		—			1,243
Unfavorable contract assumed		3,540		445		(642	)		3,343
Total	$	14,804	$	2,373	$	418		$	17,595