Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v2.4.0.8
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2013
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 December 31, 2013
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
3,376

 
$
2,698

 
$

 
$

 
$
6,074

Common stock options/warrants
925

 
1,041

 

 
4,022

 
5,988

Total assets
$
4,301

 
$
3,739

 
$

 
$
4,022

 
$
12,062

 
As of December 31, 2012
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
2,051

 
$
6,185

 
$

 
$

 
$
8,236

BZNE Note and conversion feature
1,700

 
53

 

 
287

 
2,040

Common stock options
925

 
293

 

 
176

 
1,394

Common stock warrants
659

 
194

 

 
(375
)
 
478

Total assets
$
5,335

 
$
6,725

 
$

 
$
88

 
$
12,148

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 December 31, 2013
(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
$
168,418

 
$

 
$

 
$
168,418

Certificates of deposit

 
827

 

 
827

Pharmsynthez Notes Receivable & Purchase Option

 
6,151

 

 
6,151

Common stock investments, available for sale
6,074

 

 

 
6,074

Common stock options/warrants

 
5,988

 

 
5,988

Forward contracts

 
49

 

 
49

Total assets
$
174,492

 
$
13,015

 
$

 
$
187,507

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option

 

 
101,087

 
101,087

Deferred acquisition payments, net of discount

 

 
5,465

 
5,465

Contingent consideration:
 
 
 
 
 
 
 
CURNA

 

 
573

 
573

OPKO Diagnostics

 

 
13,776

 
13,776

FineTech

 

 
3,124

 
3,124

Cytochroma

 

 
53,092

 
53,092

Farmadiet

 

 
1,043

 
1,043

Total liabilities
$

 
$

 
$
178,160

 
$
178,160

 
Fair value measurements as of December 31, 2012
(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
$
18,716

 
$

 
$

 
$
18,716

Certificates of deposit

 
820

 

 
820

Common stock investments, available for sale
8,236

 

 

 
8,236

BZNE Note and conversation feature

 

 
2,040

 
2,040

Neovasc common stock options

 
1,394

 

 
1,394

Neovasc common stock warrants

 
478

 

 
478

Total assets
$
26,952

 
$
2,692

 
$
2,040

 
$
31,684

Liabilities:
 
 
 
 
 
 
 
Forward contracts
$

 
$
10

 
$

 
$
10

Deferred acquisition payments, net of discount

 

 
10,103

 
10,103

Contingent consideration:
 
 
 
 
 
 
 
CURNA

 

 
510

 
510

OPKO Diagnostics

 

 
12,974

 
12,974

FineTech

 

 
5,262

 
5,262

Farmadiet

 

 
1,310

 
1,310

Total liabilities
$

 
$
10

 
$
30,159

 
$
30,169

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.
 
December 31, 2013
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
2033 Senior Notes
$
110,825

 
$
116,993

 
$

 
$

 
$
116,993

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 December 31, 2013 and 2012:
 
December 31, 2013
(In thousands)
BZNE Note
and
conversion
feature
 
Contingent
consideration
 
Deferred
acquisition
payments, net
of discount
 
Embedded
conversion
option
Balance at December 31, 2012
$
2,040

 
$
20,056

 
$
10,103

 
$

Additions

 
47,710

 

 
59,204

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

 
6,947

 
829

 
43,082

Foreign currency remeasurement
 
 
31

 
 
 
 
Conversion
(2,040
)
 

 

 
(1,199
)
Payments

 
(3,124
)
 
(5,448
)
 

Balance at December 31, 2013
$

 
$
71,620

 
$
5,484

 
$
101,087

 
December 31, 2012
(In thousands)
BZNE Note
and
conversion
feature
 
Contingent
consideration
 
Deferred
acquisition
payments, net
of discount
Balance at December 31, 2011
$

 
$
18,002

 
$

Additions
1,700

 
1,234

 
9,673

Total losses (gains) for the period:
 
 
 
 
 
Included in results of operations
1,563

 
820

 
430

Included in Other comprehensive loss
53

 

 

Transfer out to equity method investment
(1,276
)
 

 

Balance at December 31, 2012
$
2,040

 
$
20,056

 
$
10,103