Fair Value Measurements (Tables)
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3 Months Ended |
Mar. 31, 2021 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
Our financial assets and (liabilities) carried at fair value and measured on a recurring basis as of March 31, 2021 and December 31, 2020 consisted of the following (in thousands): | | | | | | | | | | | | | | | | | | Fair Value Measurements Using | | | Total Fair | | Quoted prices in | | Significant other | | Significant | | | Value at | | active markets | | observable inputs | | unobservable inputs | | | March 31, 2021 | | (Level 1) | | (Level 2) | | (Level 3) | Interest rate contract liabilities, current and long-term (1) | | $ | (3,204) | | $ | — | | $ | (3,204) | | $ | — | Foreign currency contract assets, current and long-term (2) | | $ | 3,744 | | $ | — | | $ | 3,744 | | $ | — | Foreign currency contract liabilities, current and long-term (3) | | $ | (5,807) | | $ | — | | $ | (5,807) | | $ | — | Contingent consideration liabilities | | $ | (55,754) | | $ | — | | $ | — | | $ | (55,754) |
| | | | | | | | | | | | | | | | | | Fair Value Measurements Using | | | Total Fair | | Quoted prices in | | Significant other | | Significant | | | Value at | | active markets | | observable inputs | | unobservable inputs | | | December 31, 2020 | | (Level 1) | | (Level 2) | | (Level 3) | Interest rate contract liabilities, current and long-term (1) | | $ | (4,358) | | $ | — | | $ | (4,358) | | $ | — | Foreign currency contract assets, current and long-term (2) | | $ | 3,078 | | $ | — | | $ | 3,078 | | $ | — | Foreign currency contract liabilities, current and long-term (3) | | $ | (8,267) | | $ | — | | $ | (8,267) | | $ | — | Contingent consideration liabilities | | $ | (55,750) | | $ | — | | $ | — | | $ | (55,750) |
| (1) | The fair value of the interest rate contracts is determined using Level 2 fair value inputs and is recorded as accrued expenses or other long-term obligations in the consolidated balance sheets. |
| (2) | The fair value of the foreign currency contract assets (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as prepaid expenses and other current assets or other long-term assets in the consolidated balance sheets. |
| (3) | The fair value of the foreign currency contract liabilities (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as accrued expenses or other long-term obligations in the consolidated balance sheets. |
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| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
Changes in the fair value of our contingent consideration liabilities during the three-month periods ended March 31, 2021 and 2020 consisted of the following (in thousands): | | | | | | | | | Three Months Ended | | | March 31, | | | 2021 | | 2020 | Beginning balance | | $ | 55,750 | | $ | 76,709 | Contingent consideration expense | | | 402 | | | 4,897 | Contingent payments made | | | (403) | | | (12,754) | Effect of foreign exchange | | | 5 | | | 17 | Ending balance | | $ | 55,754 | | $ | 68,869 |
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| Fair Value Inputs, Liabilities, Quantitative Information |
The recurring Level 3 measurement of our contingent consideration liabilities included the following significant unobservable inputs at March 31, 2021 and December 31, 2020 (amounts in thousands): | | | | | | | | | | | | | | Fair value at | | | | | | | | | | | March 31, | | Valuation | | | | | | Weighted | Contingent consideration liability | | 2021 | | technique | | Unobservable inputs | | Range | | Average(1) | Revenue-based royalty payments contingent liability | | $ | 4,047 | | Discounted cash flow | | Discount rate | | 12% - 16% | | 15.4% | | | | | | | | Projected year of payments | | 2021-2034 | | 2026 | | | | | | | | | | | | | Revenue milestones contingent liability | | $ | 46,807 | | Monte Carlo simulation | | Discount rate | | 10% - 14% | | 10.4% | | | | | | | | Projected year of payments | | 2021-2030 | | 2022 | | | | | | | | | | | | | Regulatory approval contingent liability | | $ | 4,900 | | Scenario-based method | | Discount rate | | 1% | | | | | | | | | | Probability of milestone payment | | 100% | | | | | | | | | | Projected year of payment | | 2021-2024 | | 2022 |
| | | | | | | | | | | | | | Fair value at | | | | | | | | | | | December 31, | | Valuation | | | | | | Weighted | Contingent consideration liability | | 2020 | | technique | | Unobservable inputs | | Range | | Average(1) | Revenue-based royalty payments contingent liability | | $ | 4,545 | | Discounted cash flow | | Discount rate | | 12% - 15% | | 13.5% | | | | | | | | Projected year of payments | | 2021-2034 | | 2026 | | | | | | | | | | | | | Revenue milestones contingent liability | | $ | 46,305 | | Monte Carlo simulation | | Discount rate | | 7.5% - 12% | | 9.0% | | | | | | | | Projected year of payments | | 2021-2030 | | 2022 | | | | | | | | | | | | | Regulatory approval contingent liability | | $ | 4,900 | | Scenario-based method | | Discount rate | | 1% | | | | | | | | | | Probability of milestone payment | | 100% | | | | | | | | | | Projected year of payment | | 2021-2024 | | 2022 |
| (1) | Unobservable inputs were weighted by the relative fair value of the instruments. No weighted average is reported for contingent consideration liabilities without a range of unobservable inputs. |
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| Schedule of Rollforward of Allowance for Credit Losses |
The table below presents a rollforward of the allowance for current expected credit losses on our notes receivable for the three month periods ended March 31, 2021 and 2020, respectively (in thousands): | | | | | | | | | Three Months Ended | | | March 31, | | | 2021 | | 2020 | Beginning balance | | $ | 730 | | $ | — | Cumulative effect adjustment upon adoption of ASU 2016-13, Credit Losses | | | — | | | 575 | Provision for credit loss expense | | | 202 | | | 95 | Ending balance | | $ | 932 | | $ | 670 |
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