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:
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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 |
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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:
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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: |
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|
|
|
|
|
|
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: |
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|
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|
|
Embedded conversion option |
$ |
— |
|
|
$ |
— |
|
|
$ |
23,737 |
|
|
$ |
23,737 |
|
Contingent consideration: |
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|
CURNA |
— |
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|
— |
|
|
411 |
|
|
411 |
|
OPKO Diagnostics |
— |
|
|
— |
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|
12,141 |
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|
12,141 |
|
OPKO Renal |
— |
|
|
— |
|
|
41,400 |
|
|
41,400 |
|
OPKO Health Europe |
— |
|
|
— |
|
|
470 |
|
|
470 |
|
Total liabilities |
$ |
— |
|
|
$ |
— |
|
|
$ |
78,159 |
|
|
$ |
78,159 |
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|
|
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: |
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|
|
|
|
|
Embedded conversion option |
$ |
— |
|
|
$ |
— |
|
|
$ |
65,947 |
|
|
$ |
65,947 |
|
Contingent consideration: |
|
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|
|
|
|
|
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.
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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.
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|
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:
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|
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 |
|
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|
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|
|
|
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|
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|
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 |
|
|