FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of carrying amount and fair value of the long-term debt

The carrying values and fair values of the Company’s financial assets and liabilities at June 30, 2020 are as follows (in thousands):

	Carrying Value			Fair Value Measurements Using
				Level 1		Level 2		Level 3
Financial Assets:
Equity investment (3)	$	10,032		$	10,032	$	—	$	—
Financial Liabilities:
2.375% convertible senior notes due 2022 (1)	$	314,182	(2)	$	—	$	378,206	$	—
Acquisition-related contingent consideration (3)	$	20,830		$	—	$	—	$	20,830

(1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $52.47 per share on June 30, 2020 compared to a conversion price of $66.89 per share. Therefore, at June 30, 2020, the conversion price was above the stock price. The maximum conversion premium that could have been due on the 2022 Notes at June 30, 2020 was approximately 5.2 million shares of the Company’s common stock, which subsequently became 2.4 million shares after the July 2020 redemption of $185 million of aggregate principal 2022 Notes (see Note 17, Subsequent Events, for more information). These figures assume no increases in the conversion rate for certain corporate events.

(2) Reported at historical cost.

(3) Reported at fair value on a recurring basis.

Schedule of key assumptions used in the valuation of contingent consideration

The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:

Assumption	Ranges Utilized as of June 30, 2020
Discount rates	5.94% to 6.03%
Probabilities of payment for regulatory milestones	3% to 100%
Projected years of payment for regulatory and commercial milestones	2020 to 2023

Schedule of change in contingent consideration recorded at fair value using Level 3 measurements

The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):

	Contingent Consideration Fair Value
Balance at December 31, 2019	$	38,142
Fair value adjustments and accretion	(2,312)
Payments made	(15,000)
Balance at June 30, 2020	$	20,830

Schedule of short-term investments

The following summarizes the Company’s investments at June 30, 2020 and December 31, 2019 (in thousands):

June 30, 2020 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	61,567	$	471	$	—	$	62,038
Commercial paper	15,472		22		—		15,494
Corporate bonds	169,767		941		—		170,708
Subtotal	246,806		1,434		—		248,240
Long-term:
Corporate bonds	8,205		56		—		8,261
Subtotal	8,205		56		—		8,261
Total	$	255,011	$	1,490	$	—	$	256,501

December 31, 2019 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	43,166	$	54	$	—	$	43,220
Commercial paper	32,250		20		—		32,270
Corporate bonds	138,012		225		(5)		138,232
Subtotal	213,428		299		(5)		213,722
Long-term:
Asset-backed securities	28,064		10		(15)		28,059
Corporate bonds	36,706		37		(4)		36,739
Subtotal	64,770		47		(19)		64,798
Total	$	278,198	$	346	$	(24)	$	278,520