Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Financial assets and liabilities measured at fair value on recurring basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:
March 31, 2016	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	56,135	$	—	$	—	$	56,135
Equity securities	2,480		—		—		2,480
Total	$	58,615	$	—	$	—	$	58,615
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	48,045	$	48,045
Acquisition-related contingent consideration—long-term	—		—		76,466		76,466
Total	$	—	$	—	$	124,511	$	124,511

At March 31, 2016, money market funds include $56.1 million in Qualified Settlement Funds to be disbursed to mesh-related product liability claimants. See Note 12. Commitments and Contingencies for further discussion of our product liability cases.

	Fair Value Measurements at Reporting Date using:
December 31, 2015	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	51,145	$	—	$	—	$	51,145
Equity securities	3,889		—		—		3,889
Total	$	55,034	$	—	$	—	$	55,034
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	65,265	$	65,265
Acquisition-related contingent consideration—long-term	—		—		78,237		78,237
Total	$	—	$	—	$	143,502	$	143,502

Changes to liability for acquisition-related contingent consideration

The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the three months ended March 31, 2016 by acquisition (in thousands):

	Balance as of December 31, 2015		Acquisitions		Fair Value Adjustments and Accretion			Payments and Other			Balance as of March 31, 2016
Qualitest acquisition	$	1,137	$	—	$	(1,137	)	$	—		$	—
Sumavel acquisition	631		—		55			—			686
Auxilium acquisition	26,435		—		3,157			(3,081		)	26,511
Lehigh Valley Technologies, Inc. acquisitions	97,003		—		(12,710		)	(6,393		)	77,900
Other	18,296		—		1,118			—			19,414
Total	$	143,502	$	—	$	(9,517	)	$	(9,474	)	$	124,511

The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31,
	2016			2015
Beginning of period	$	143,502		$	46,005
Amounts acquired	—			148,100
Amounts settled	(9,474		)	(4,723		)
Transfers (in) and/or out of Level 3	—			—
Measurement period adjustments	—			(4,313		)
Changes in fair value recorded in earnings	(10,688		)	(808		)
Effect of currency translation	1,171			—
End of period	$	124,511		$	184,261

Summary of available-for-sale securities

The following is a summary of available-for-sale securities held by the Company at March 31, 2016 and December 31, 2015 (in thousands):

	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
March 31, 2016
Money market funds	$	56,135	$	—	$	—	$	56,135
Total included in cash and cash equivalents	$	—	$	—	$	—	$	—
Total included in restricted cash and cash equivalents	$	56,135	$	—	$	—	$	56,135
Equity securities	$	26	$	13	$	—	$	39
Total other short-term available-for-sale securities	$	26	$	13	$	—	$	39
Equity securities	$	1,766	$	675	$	—	$	2,441
Long-term available-for-sale securities	$	1,766	$	675	$	—	$	2,441

	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
December 31, 2015
Money market funds	$	51,145	$	—	$	—	$	51,145
Total included in cash and cash equivalents	$	3	$	—	$	—	$	3
Total included in restricted cash and cash equivalents	$	51,142	$	—	$	—	$	51,142
Equity securities	$	24	$	10	$	—	$	34
Total other short-term available-for-sale securities	$	24	$	10	$	—	$	34
Equity securities	$	1,766	$	2,089	$	—	$	3,855
Long-term available-for-sale securities	$	1,766	$	2,089	$	—	$	3,855

Summary of nonrecurring fair value measurements

The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2016 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:						Total Expense for the Three Months Ended March 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Certain Astora property, plant and equipment (Note 3)	$	—	$	—	$	—	$	(4,892	)
Certain U.S. Generic Pharmaceuticals intangible assets (Note 9)	—		—		45,522		(129,625		)
Certain Astora intangible assets (Note 3)	—		—		—		(16,287		)
Total	$	—	$	—	$	45,522	$	(150,804	)