Fair value measurement (Tables)

3 Months Ended

Mar. 29, 2020

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 March 29, 2020 and December 31, 2019:

	Total carrying value at March 29, 2020		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
	(Dollars in thousands)
Investments in marketable securities	$	9,020	$	9,020	$	—	$	—
Derivative assets	75,937		—		75,937		—
Derivative liabilities	7,410		—		7,410		—
Contingent consideration liabilities	32,737		—		—		32,737

	Total carrying value at December 31, 2019		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (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

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 (Weighted average)
Milestone-based payments
	Discounted cash flow	Discount rate	6.2% - 6.3% (6.3%)
		Projected year of payment	2021 - 2023
Revenue-based payments
	Monte Carlo simulation	Revenue volatility	19.1% - 23.4% (20.4%)
		Risk free rate	Cost of debt structure
		Projected year of payment	2020 - 2022
	Discounted cash flow	Discount rate	10.0%
		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 the contingent consideration liabilities during the three months ended March 29, 2020:

	Contingent consideration
	(Dollars in thousands)
Balance - December 31, 2019	$	219,908
Payments (1)	(140,652)
Revaluations (2)	(46,502)
Translation adjustment	(17)
Balance - March 29, 2020	$	32,737

(1) Consists mainly of a $140.6 million payment associated with our acquisition of NeoTract, Inc. resulting from the achievement of a revenue-based goal for the period from January 1, 2019 to December 31, 2019.

(2) The decrease, which is included within selling, general and administrative expenses, is mainly due to adverse financial projections resulting from the COVID-19 pandemic.