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FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities

The tables below present the fair value of these financial assets and liabilities determined using the following input levels.

 

 

 

Fair Value Measurements at December 31, 2017

 

 

 

Quoted Price in

Active Markets

For Identical

Assets

(Level 1)

 

 

Significant Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (including available-for-sale debt securities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market instruments

 

 

 

 

 

215,441

 

 

 

 

 

 

215,441

 

Corporate debt securities

 

 

 

 

 

3,096

 

 

 

 

 

 

3,096

 

Commercial paper

 

 

 

 

 

2,751

 

 

 

 

 

 

2,751

 

U.S. government agency securities

 

 

 

 

 

35,497

 

 

 

 

 

 

35,497

 

Foreign and other

 

 

 

 

 

990

 

 

 

 

 

 

990

 

Total cash and cash equivalents

 

 

 

 

 

257,775

 

 

 

 

 

 

257,775

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

406,188

 

 

 

 

 

 

406,188

 

Commercial paper

 

 

 

 

 

21,815

 

 

 

 

 

 

21,815

 

U.S. government agency securities

 

 

 

 

 

345,501

 

 

 

 

 

 

345,501

 

Foreign and other

 

 

 

 

 

24,436

 

 

 

 

 

 

24,436

 

Long-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

295,965

 

 

 

 

 

 

295,965

 

U.S. government agency securities

 

 

 

 

 

89,620

 

 

 

 

 

 

89,620

 

Foreign and other

 

 

 

 

 

200

 

 

 

 

 

 

200

 

Total available-for-sale debt securities

 

 

 

 

 

1,183,725

 

 

 

 

 

 

1,183,725

 

Other Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NQDC Plan assets

 

 

 

 

 

967

 

 

 

 

 

 

967

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

4,690

 

 

 

 

 

 

4,690

 

Restricted investments (2)

 

 

 

 

 

15,647

 

 

 

 

 

 

15,647

 

Total other current assets

 

 

 

 

 

21,304

 

 

 

 

 

 

21,304

 

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NQDC Plan assets

 

 

 

 

 

11,859

 

 

 

 

 

 

11,859

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

4,973

 

 

 

 

 

 

4,973

 

Total other assets

 

 

 

 

 

16,832

 

 

 

 

 

 

16,832

 

Total assets

 

$

 

 

$

1,479,636

 

 

$

 

 

$

1,479,636

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NQDC Plan liability

 

$

1,356

 

 

$

967

 

 

$

 

 

$

2,323

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

14,464

 

 

 

 

 

 

14,464

 

Contingent acquisition consideration payable

 

 

 

 

 

 

 

 

53,648

 

 

 

53,648

 

Total current liabilities

 

 

1,356

 

 

 

15,431

 

 

 

53,648

 

 

 

70,435

 

Other long-term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NQDC Plan liability

 

 

18,272

 

 

 

11,859

 

 

 

 

 

 

30,131

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

12,686

 

 

 

 

 

 

12,686

 

Contingent acquisition consideration payable

 

 

 

 

 

 

 

 

135,318

 

 

 

135,318

 

Total other long-term liabilities

 

 

18,272

 

 

 

24,545

 

 

 

135,318

 

 

 

178,135

 

Total liabilities

 

$

19,628

 

 

$

39,976

 

 

$

188,966

 

 

$

248,570

 

 

 

 

Fair Value Measurements at December 31, 2016

 

 

 

Quoted Price in

Active Markets

For Identical

Assets

(Level 1)

 

 

Significant Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents (including available-for-sale debt securities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market instruments

 

 

 

 

 

235,571

 

 

 

 

 

 

235,571

 

Corporate debt securities

 

 

 

 

 

8,593

 

 

 

 

 

 

8,593

 

U.S. government agency securities

 

 

 

 

 

6,000

 

 

 

 

 

 

6,000

 

Total cash and cash equivalents

 

 

 

 

 

250,164

 

 

 

 

 

 

250,164

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

 

 

 

2,800

 

 

 

 

 

 

2,800

 

Corporate debt securities

 

 

 

 

 

193,974

 

 

 

 

 

 

193,974

 

Commercial paper

 

 

 

 

 

16,075

 

 

 

 

 

 

16,075

 

U.S. government agency securities

 

 

 

 

 

168,498

 

 

 

 

 

 

168,498

 

Long-term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

 

 

 

437,150

 

 

 

 

 

 

437,150

 

U.S. government agency securities

 

 

 

 

 

135,427

 

 

 

 

 

 

135,427

 

Foreign and other

 

 

 

 

 

134

 

 

 

 

 

 

134

 

Total available-for-sale debt securities

 

 

 

 

 

954,058

 

 

 

 

 

 

954,058

 

Other Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonqualified Deferred Compensation Plan assets

 

 

 

 

 

163

 

 

 

 

 

 

163

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

14,012

 

 

 

 

 

 

14,012

 

Restricted investments (2)

 

 

 

 

 

3,754

 

 

 

 

 

 

3,754

 

Total other current assets

 

 

 

 

 

17,929

 

 

 

 

 

 

17,929

 

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonqualified Deferred Compensation Plan assets

 

 

 

 

 

9,121

 

 

 

 

 

 

9,121

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

8,194

 

 

 

 

 

 

8,194

 

Strategic investment (3)

 

 

4,064

 

 

 

 

 

 

 

 

 

4,064

 

Total other assets

 

 

4,064

 

 

 

17,315

 

 

 

 

 

 

21,379

 

Total assets

 

$

4,064

 

 

$

1,239,466

 

 

$

 

 

$

1,243,530

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonqualified Deferred Compensation Plan

   liability

 

$

2,073

 

 

$

163

 

 

$

 

 

$

2,236

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

5,201

 

 

 

 

 

 

5,201

 

Contingent acquisition consideration payable

 

 

 

 

 

 

 

 

46,327

 

 

 

46,327

 

Total current liabilities

 

 

2,073

 

 

 

5,364

 

 

 

46,327

 

 

 

53,764

 

Other long-term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonqualified Deferred Compensation Plan

   liability

 

 

17,303

 

 

 

9,121

 

 

 

 

 

 

26,424

 

Forward foreign currency exchange contract (1)

 

 

 

 

 

2,342

 

 

 

 

 

 

2,342

 

Contingent acquisition consideration payable

 

 

 

 

 

 

 

 

115,310

 

 

 

115,310

 

Total other long-term liabilities

 

 

17,303

 

 

 

11,463

 

 

 

115,310

 

 

 

144,076

 

Total liabilities

 

$

19,376

 

 

$

16,827

 

 

$

161,637

 

 

$

197,840

 

 

(1)

See Note 11 to these Consolidated Financial Statements for further information regarding the derivative instruments.

(2)

The restricted investments as of December 31, 2017 and 2016 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements.

(3)

The Company had investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments and included in Other Assets on the Company’s Balance Sheets. As of December 31, 2017, all holdings in the Company’s strategic investments have been liquidated.

Liabilities Measured at Fair Value Using Level 3 Inputs

 

Contingent acquisition consideration payable at December 31, 2016

 

$

161,637

 

Milestone payments to former Huxley Pharmaceuticals, Inc. shareholders

 

 

(3,500

)

Reversal of contingent liability related to revised estimate of Firdapse FDA

  acceptance and approval milestones

 

 

(4,245

)

Changes in the fair value of other contingent acquisition consideration payable

 

 

14,587

 

Foreign exchange remeasurement of Euro denominated contingent

  acquisition consideration payable

 

 

20,487

 

Contingent acquisition consideration payable at December 31, 2017

 

$

188,966