Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.3.0.814
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Summary of investments classified as available for sale, and carried at fair value
A summary of our investments classified as available for sale and carried at fair value, is as follows:
 
As of September 30, 2015
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Realized
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
11,479

 
$
715

 
$
(7,596
)
 
$
(1,442
)
 
$
3,156

Common stock options/warrants
3,925

 

 

 
1,618

 
5,543

Total assets
$
15,404

 
$
715

 
$
(7,596
)
 
$
176

 
$
8,699

 
As of December 31, 2014
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Realized
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
11,479

 
$
293

 
$
(4,573
)
 
$
(1,441
)
 
$
5,758

Common stock options/warrants
1,425

 
216

 

 
4,673

 
6,314

Total assets
$
12,904

 
$
509

 
$
(4,573
)
 
$
3,232

 
$
12,072

Financial assets and liabilities measured at fair value on a recurring basis
Our financial assets and liabilities measured at fair value on a recurring basis are as follows:
 
Fair value measurements as of September 30, 2015
(In thousands)
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
$
99,394

 
$

 
$

 
$
99,394

Common stock investments, available for sale
3,156

 

 

 
3,156

Common stock options/warrants

 
5,543

 

 
5,543

Forward contracts

 
65

 

 
65

Total assets
$
102,550

 
$
5,608

 
$

 
$
108,158

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option
$

 
$

 
$
18,968

 
$
18,968

Contingent consideration:
 
 
 
 
 
 
 
CURNA

 

 
450

 
450

OPKO Diagnostics

 

 
14,170

 
14,170

OPKO Renal

 

 
40,760

 
40,760

OPKO Health Europe

 

 
477

 
477

Total liabilities
$

 
$

 
$
74,825

 
$
74,825

 
Fair value measurements as of December 31, 2014
(In thousands)
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
$
71,286

 
$

 
$

 
$
71,286

Common stock investments, available for sale
5,758

 

 

 
5,758

Common stock options/warrants

 
6,314

 

 
6,314

Forward contracts

 
36

 

 
36

Total assets
$
77,044

 
$
6,350

 
$

 
$
83,394

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option
$

 
$

 
$
65,947

 
$
65,947

Contingent consideration:
 
 
 
 
 
 
 
CURNA

 

 
440

 
440

OPKO Diagnostics

 

 
13,578

 
13,578

OPKO Renal

 

 
55,780

 
55,780

OPKO Health Europe

 

 
1,769

 
1,769

Total liabilities
$

 
$

 
$
137,514

 
$
137,514

The carrying amount and estimated fair value of our long-term debt
The fair value of the 2033 Senior Notes is determined using a binomial lattice approach in order to estimate the fair value of the embedded derivative in the 2033 Senior Notes. Refer to Note 6.
 
September 30, 2015
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
2033 Senior Notes
$
25,238

 
$
22,430

 
$

 
$

 
$
22,430

Reconcile the beginning and ending balances of Level 3 assets and liabilities
The following tables reconcile the beginning and ending balances of our Level 3 assets and liabilities as of September 30, 2015:
 
September 30, 2015
(In thousands)
Contingent
consideration
 
Embedded
conversion
option
Balance at December 31, 2014
$
71,567

 
$
65,947

Total losses (gains) for the period:
 
 
 
Included in results of operations
6,471

 
31,818

Foreign currency impact
(255
)
 

Payments
(21,926
)
 

Conversion

 
(78,797
)
Balance at September 30, 2015
$
55,857

 
$
18,968