Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2016 |
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| Fair Value Disclosures [Abstract] |
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| 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 September 30, 2016 |
(In thousands) |
Amortized
Cost
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Gross
unrealized
gains in
Accumulated
OCI
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Gross
unrealized
losses in
Accumulated
OCI
|
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Fair
value
|
Common stock investments, available for sale |
$ |
4,194 |
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|
$ |
1,573 |
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|
$ |
— |
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|
$ |
5,767 |
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Total assets |
$ |
4,194 |
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|
$ |
1,573 |
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|
$ |
— |
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|
$ |
5,767 |
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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 |
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|
$ |
904 |
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|
$ |
(267 |
) |
|
$ |
3,615 |
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Total assets |
$ |
2,978 |
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|
$ |
904 |
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|
$ |
(267 |
) |
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$ |
3,615 |
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| 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 September 30, 2016 |
(In thousands) |
Quoted
prices in
active
markets for
identical
assets
(Level 1)
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|
Significant
other
observable
inputs
(Level 2)
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|
Significant
unobservable
inputs
(Level 3)
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Total |
Assets: |
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Money market funds |
$ |
12,312 |
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|
$ |
— |
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$ |
— |
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$ |
12,312 |
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Common stock investments, available for sale |
5,767 |
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|
— |
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— |
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|
5,767 |
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Common stock options/warrants |
— |
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|
2,113 |
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— |
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|
2,113 |
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Total assets |
$ |
18,079 |
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$ |
2,113 |
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$ |
— |
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$ |
20,192 |
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Liabilities: |
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Embedded conversion option |
$ |
— |
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$ |
— |
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|
$ |
24,798 |
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$ |
24,798 |
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Forward contracts |
— |
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|
100 |
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|
— |
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|
100 |
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Contingent consideration |
— |
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— |
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43,743 |
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43,743 |
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Total liabilities |
$ |
— |
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$ |
100 |
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$ |
68,541 |
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$ |
68,641 |
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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)
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Total |
Assets: |
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Money market funds |
$ |
84,421 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
84,421 |
|
Common stock investments, available for sale |
3,615 |
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|
— |
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— |
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|
3,615 |
|
Common stock options/warrants |
— |
|
|
5,338 |
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|
— |
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|
5,338 |
|
Forward contracts |
— |
|
|
9 |
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— |
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|
9 |
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Total assets |
$ |
88,036 |
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$ |
5,347 |
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$ |
— |
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$ |
93,383 |
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Liabilities: |
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Embedded conversion option |
$ |
— |
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$ |
— |
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$ |
23,737 |
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$ |
23,737 |
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Contingent consideration |
— |
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|
— |
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|
54,422 |
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|
54,422 |
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Total liabilities |
$ |
— |
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$ |
— |
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|
$ |
78,159 |
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$ |
78,159 |
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| 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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September 30, 2016 |
(In thousands) |
Carrying
Value
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Total
Fair Value
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Level 1 |
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Level 2 |
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Level 3 |
2033 Senior Notes |
$ |
27,054 |
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$ |
27,408 |
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$ |
— |
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$ |
— |
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|
$ |
27,408 |
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| Reconciliation of the Beginning and Ending Balances of Level 3 Assets and Liabilities |
The following table reconciles the beginning and ending balances of our Level 3 assets and liabilities as of September 30, 2016:
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September 30, 2016 |
(In thousands) |
Contingent
consideration
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Embedded
conversion
option
|
Balance at December 31, 2015 |
$ |
54,422 |
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$ |
23,737 |
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Total losses for the period: |
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Included in results of operations |
15,604 |
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|
1,061 |
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Foreign currency impact |
16 |
|
|
— |
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Payments |
(26,299 |
) |
|
— |
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Balance at September 30, 2016 |
$ |
43,743 |
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|
$ |
24,798 |
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