Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2016 and December 31, 2015 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:
September 30, 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	$	65,500	$	—	$	—	$	65,500
Time deposits	—		100,091		—		100,091
Equity securities	2,361		—		—		2,361
Total	$	67,861	$	100,091	$	—	$	167,952
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	108,778	$	108,778
Acquisition-related contingent consideration—long-term	—		—		177,019		177,019
Total	$	—	$	—	$	285,797	$	285,797

At September 30, 2016, money market funds include $40.5 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 nine months ended September 30, 2016 by acquisition (in thousands):

	Balance as of December 31, 2015		Acquisitions		Fair Value Adjustments and Accretion			Payments and Other			Balance as of September 30, 2016
Qualitest acquisition	$	1,137	$	—	$	(1,137	)	$	—		$	—
Sumavel acquisition	631		—		(631		)	—			—
Auxilium acquisition	26,435		—		2,203			(9,787		)	18,851
Lehigh Valley Technologies, Inc. acquisitions	97,003		—		24,686			(19,389		)	102,300
Voltaren Gel® acquisition	—		142,355		(2,905		)	—			139,450
Other	18,296		4,511		2,574			(185		)	25,196
Total	$	143,502	$	146,866	$	24,790		$	(29,361	)	$	285,797

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 and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Beginning of period	$	135,796		$	189,082		$	143,502		$	46,005
Amounts acquired	146,866			47,900			146,866			214,435
Amounts settled	(8,121		)	(13,094		)	(30,242		)	(21,668		)
Transfers (in) and/or out of Level 3	—			—			—			—
Measurement period adjustments	—			(78		)	—			(11,634		)
Changes in fair value recorded in earnings	11,585			(80,277		)	24,790			(83,605		)
Effect of currency translation	(329		)	(1,210		)	881			(1,210		)
End of period	$	285,797		$	142,323		$	285,797		$	142,323

Summary of available-for-sale securities

The following is a summary of available-for-sale securities held by the Company at September 30, 2016 and December 31, 2015 (in thousands):

	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
September 30, 2016
Money market funds	$	65,500	$	—	$	—	$	65,500
Total included in cash and cash equivalents	$	25,012	$	—	$	—	$	25,012
Total included in restricted cash and cash equivalents	$	40,488	$	—	$	—	$	40,488
Equity securities	$	—	$	—	$	—	$	—
Total other short-term available-for-sale securities	$	—	$	—	$	—	$	—
Equity securities	$	1,766	$	595	$	—	$	2,361
Long-term available-for-sale securities	$	1,766	$	595	$	—	$	2,361

	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 September 30, 2016 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:						Total Expense for the Nine Months Ended September 30, 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)	$	—	$	—	$	—	$	(5,041	)
Certain U.S. Generics Pharmaceuticals property, plant and equipment	—		—		649		(4,448		)
Certain U.S. Branded Pharmaceuticals intangible assets (NOTE 9)	—		—		—		(72,814		)
Certain U.S. Generic Pharmaceuticals intangible assets (NOTE 9)	—		—		45,966		(169,576		)
Certain International Pharmaceuticals intangible assets (NOTE 9)	—		—		5,324		(16,243		)
Certain Astora intangible assets (NOTE 3)	—		—		—		(16,287		)
Total	$	—	$	—	$	51,939	$	(284,409	)