Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2019 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of cash and cash equivalents |
The following table presents current and noncurrent restricted cash and cash equivalent balances at June 30, 2019 and December 31, 2018 (in thousands): | | | | | | | | | | June 30, 2019 | | December 31, 2018 | Restricted cash and cash equivalents—current portion (1) | $ | 307,587 |
| | $ | 305,368 |
| Restricted cash and cash equivalents—noncurrent portion (2) | 22,357 |
| | 22,356 |
| Restricted cash and cash equivalents—total (3) | $ | 329,944 |
| | $ | 327,724 |
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__________ | | (1) | These amounts are reported in our Condensed Consolidated Balance Sheets as Restricted cash and cash equivalents. |
| | (2) | These amounts are reported in our Condensed Consolidated Balance Sheets as Other assets. |
(3) Approximately $306.4 million and $299.7 million of our restricted cash and cash equivalents are held in qualified settlement funds (QSFs) for mesh-related matters at June 30, 2019 and December 31, 2018, respectively. The remaining amount of restricted cash and cash equivalents at June 30, 2019 primarily relates to other litigation-related matters. See Note 13. Commitments and Contingencies for further information.
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| Restrictions on cash and cash equivalents |
The following table presents current and noncurrent restricted cash and cash equivalent balances at June 30, 2019 and December 31, 2018 (in thousands): | | | | | | | | | | June 30, 2019 | | December 31, 2018 | Restricted cash and cash equivalents—current portion (1) | $ | 307,587 |
| | $ | 305,368 |
| Restricted cash and cash equivalents—noncurrent portion (2) | 22,357 |
| | 22,356 |
| Restricted cash and cash equivalents—total (3) | $ | 329,944 |
| | $ | 327,724 |
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__________ | | (1) | These amounts are reported in our Condensed Consolidated Balance Sheets as Restricted cash and cash equivalents. |
| | (2) | These amounts are reported in our Condensed Consolidated Balance Sheets as Other assets. |
(3) Approximately $306.4 million and $299.7 million of our restricted cash and cash equivalents are held in qualified settlement funds (QSFs) for mesh-related matters at June 30, 2019 and December 31, 2018, respectively. The remaining amount of restricted cash and cash equivalents at June 30, 2019 primarily relates to other litigation-related matters. See Note 13. Commitments and Contingencies for further information.
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| 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 June 30, 2019 and December 31, 2018 were as follows (in thousands): | | | | | | | | | | | | | | | | | | Fair Value Measurements at June 30, 2019 using: | | 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 | $ | 308,208 |
| | $ | — |
| | $ | — |
| | $ | 308,208 |
| Liabilities: | | | | | | | | Acquisition-related contingent consideration—current | $ | — |
| | $ | — |
| | $ | 20,412 |
| | $ | 20,412 |
| Acquisition-related contingent consideration—noncurrent | $ | — |
| | $ | — |
| | $ | 32,518 |
| | $ | 32,518 |
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| | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2018 using: | | 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 | $ | 137,215 |
| | $ | — |
| | $ | — |
| | $ | 137,215 |
| Liabilities: | | | | | | | | Acquisition-related contingent consideration—current | $ | — |
| | $ | — |
| | $ | 36,514 |
| | $ | 36,514 |
| Acquisition-related contingent consideration—noncurrent | $ | — |
| | $ | — |
| | $ | 80,189 |
| | $ | 80,189 |
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| Changes to liability for acquisition-related contingent consideration |
The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), for the three and six months ended June 30, 2019 and 2018 (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2019 | | 2018 | | 2019 | | 2018 | Beginning of period | $ | 67,842 |
| | $ | 169,287 |
| | $ | 116,703 |
| | $ | 190,442 |
| Amounts settled | (9,574 | ) | | (20,967 | ) | | (21,165 | ) | | (48,734 | ) | Changes in fair value recorded in earnings | (5,507 | ) | | 4,127 |
| | (43,008 | ) | | 10,962 |
| Effect of currency translation | 169 |
| | (349 | ) | | 400 |
| | (572 | ) | End of period | $ | 52,930 |
| | $ | 152,098 |
| | $ | 52,930 |
| | $ | 152,098 |
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The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the six months ended June 30, 2019 by acquisition (in thousands): | | | | | | | | | | | | | | | | | | Balance as of December 31, 2018 | | Changes in Fair Value Recorded in Earnings | | Amounts Settled and Other | | Balance as of June 30, 2019 | Auxilium acquisition | $ | 14,157 |
| | $ | 730 |
| | $ | (388 | ) | | $ | 14,499 |
| Lehigh Valley Technologies, Inc. acquisitions | 34,700 |
| | (4,531 | ) | | (10,069 | ) | | 20,100 |
| VOLTAREN® Gel acquisition (1) | 56,240 |
| | (39,023 | ) | | (10,038 | ) | | 7,179 |
| Other | 11,606 |
| | (184 | ) | | (270 | ) | | 11,152 |
| Total | $ | 116,703 |
| | $ | (43,008 | ) | | $ | (20,765 | ) | | $ | 52,930 |
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__________ (1) The change in fair value recorded in earnings includes the impact of certain competitive events occurring during the six months ended June 30, 2019.
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| Summary of nonrecurring fair value measurements |
The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2019 were as follows (in thousands): | | | | | | | | | | | | | | | | | | Fair Value Measurements during the Six Months Ended June 30, 2019 (1) using: | | Total Expense for the Six Months Ended June 30, 2019 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Assets: | | | | | | | | Intangible assets, excluding goodwill (Note 9) | $ | — |
| | $ | — |
| | $ | 41,839 |
| | $ | (100,399 | ) | Certain property, plant and equipment | — |
| | — |
| | — |
| | (2,379 | ) | Total | $ | — |
| | $ | — |
| | $ | 41,839 |
| | $ | (102,778 | ) |
__________ (1) The fair value amounts are presented as of the date of the fair value measurement as these assets are not measured at fair value on a recurring basis. Such measurements generally occur in connection with our quarter-end financial reporting close procedures.
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