Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.3.1.900
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 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 December 31, 2015
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Fair
value
Common stock investments, available for sale
$
2,978

 
$
904

 
$
(267
)
 
$
3,615

Total assets
$
2,978

 
$
904

 
$
(267
)
 
$
3,615

 
As of December 31, 2014
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Fair
value
Common stock investments, available for sale
$
10,038

 
$
293

 
$
(4,573
)
 
$
5,758

Total assets
$
10,038

 
$
293

 
$
(4,573
)
 
$
5,758

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, 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
$
84,421

 
$

 
$

 
$
84,421

Common stock investments, available for sale
3,615

 

 

 
3,615

Common stock options/warrants

 
5,338

 

 
5,338

Forward contracts

 
9

 

 
9

Total assets
$
88,036

 
$
5,347

 
$

 
$
93,383

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option
$

 
$

 
$
23,737

 
$
23,737

Contingent consideration:
 
 
 
 
 
 
 
CURNA

 

 
411

 
411

OPKO Diagnostics

 

 
12,141

 
12,141

OPKO Renal

 

 
41,400

 
41,400

OPKO Health Europe

 

 
470

 
470

Total liabilities
$

 
$

 
$
78,159

 
$
78,159

 
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 carrying amount and estimated fair value of our 2033 Senior Notes without the embedded conversion option, as well as the applicable fair value hierarchy tiers, are contained in the table below. 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, 2015
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
2033 Senior Notes
$
25,675

 
$
24,647

 
$

 
$

 
$
24,647


There have been no transfers between Level 1 and Level 2 and no transfers to or from Level 3 of the fair value hierarchy.
 
December 31, 2014
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
2033 Senior Notes
$
65,507

 
$
63,062

 
$

 
$

 
$
63,062

Reconciliation of 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, 2015 and 2014:
 
December 31, 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
5,050

 
36,587

Foreign currency impact
(269
)
 

Payments
(21,926
)
 

Conversion

 
(78,797
)
Balance at December 31, 2015
$
54,422

 
$
23,737

 
December 31, 2014
(In thousands)
Contingent
consideration
 
Deferred
acquisition
payments, net
of discount
 
Embedded
conversion
option
Balance at December 31, 2013
$
71,620

 
$
5,465

 
$
101,087

Total losses (gains) for the period:
 
 
 
 
 
Included in results of operations
24,446

 
(735
)
 
12,213

Foreign currency impact
(130
)
 

 

Payments
(24,369
)
 
(4,730
)
 

Conversion

 

 
(47,353
)
Balance at December 31, 2014
$
71,567

 
$

 
$
65,947