Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis

The following tables provide information regarding our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018:

	Basis of fair value measurement
	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Investments in marketable securities	$	10,926	$	10,926	$	—	$	—
Derivative assets	36,492		—		36,492		—
Derivative liabilities	1,387		—		1,387		—
Contingent consideration liabilities	219,908		—		—		219,908

	Basis of fair value measurement
	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Investments in marketable securities	$	8,671	$	8,671	$	—	$	—
Derivative assets	16,050		—		16,050		—
Derivative liabilities	8,581		—		8,581		—
Contingent consideration liabilities	304,248		—		—		304,248

Schedule of Valuation Techniques

The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of contingent consideration.

Contingent Consideration Liability	Valuation Technique	Unobservable Input	Range
Milestone-based payment
	Discounted cash flow	Discount rate	2.8% - 3.3%
		Projected year of payment	2020 - 2023
Revenue-based
	Monte Carlo simulation	Revenue volatility	19.0% - 23.5%
		Risk free rate	Cost of debt structure
		Projected year of payment	2020 - 2022
	Discounted cash flow	Discount rate	10%
		Projected year of payment	2020 - 2029

Reconciliation of Changes in Level 3 Financial Liabilities Measured at Fair Value on Recurring Basis

The following table provides information regarding changes in our contingent consideration liabilities for the years ended December 31, 2019 and 2018:

	2019		2018
	(Dollars in thousands)
Beginning balance – January 1	$	304,248	$	272,136
Initial estimate upon acquisition	—		54,696
Payments (1)	(138,171)		(75,335)
Revaluations	53,915		52,977
Translation adjustment	(84)		(226)
Ending balance – December 31	$	219,908	$	304,248

(1) Consists mainly of a $106.8 million payment associated with our acquisition of NeoTract and resulting from the achievement of a revenue-based goal for the period from January 1, 2018 to December 31, 2018 and $30.0 million of payments associated with our acquisition of Essential Medical and resulting from achievement of a regulatory goal.