Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.5.0.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2016
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, 2016
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Fair
value
Common stock investments, available for sale
$
4,194

 
$
1,573

 
$

 
$
5,767

Total assets
$
4,194

 
$
1,573

 
$

 
$
5,767

 
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

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, 2016
(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
$
12,312

 
$

 
$

 
$
12,312

Common stock investments, available for sale
5,767

 

 

 
5,767

Common stock options/warrants

 
2,113

 

 
2,113

Total assets
$
18,079

 
$
2,113

 
$

 
$
20,192

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option
$

 
$

 
$
24,798

 
$
24,798

Forward contracts

 
100

 

 
100

Contingent consideration

 

 
43,743

 
43,743

Total liabilities
$

 
$
100

 
$
68,541

 
$
68,641

 
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

 

 
54,422

 
54,422

Total liabilities
$

 
$

 
$
78,159

 
$
78,159

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.
 
September 30, 2016
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
2033 Senior Notes
$
27,054

 
$
27,408

 
$

 
$

 
$
27,408

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:
 
September 30, 2016
(In thousands)
Contingent
consideration
 
Embedded
conversion
option
Balance at December 31, 2015
$
54,422

 
$
23,737

Total losses for the period:
 
 
 
Included in results of operations
15,604

 
1,061

Foreign currency impact
16

 

Payments
(26,299
)
 

Balance at September 30, 2016
$
43,743

 
$
24,798