Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2013
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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 as of June 30, 2013, classified as available for sale, and carried at fair value is as follows:
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As of June 30, 2013 |
(In thousands) |
Amortized
Cost
|
|
Gross
unrealized
gains in
Accumulated
OCI
|
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Gross
unrealized
losses in
Accumulated
OCI
|
|
Gain/(Loss)
in
Accumulated
Deficit
|
|
Fair
value
|
Common stock investments, available for sale |
$ |
1,376 |
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$ |
1,160 |
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$ |
— |
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$ |
— |
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$ |
2,536 |
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BZNE Note and conversion feature |
1,700 |
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|
53 |
|
|
— |
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|
287 |
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|
2,040 |
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Neovasc common stock options |
925 |
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|
715 |
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|
— |
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|
679 |
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2,319 |
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U.S. Treasury securities |
75,040 |
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— |
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(7 |
) |
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(7 |
) |
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75,026 |
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Total assets |
$ |
79,041 |
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$ |
1,928 |
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$ |
(7 |
) |
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$ |
959 |
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$ |
81,921 |
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A summary of our investments as of December 31, 2012, classified as available for sale, and carried at fair value is as follows:
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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 |
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|
$ |
6,185 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
8,236 |
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BZNE Note and conversion feature |
1,700 |
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53 |
|
|
— |
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|
287 |
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|
2,040 |
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Neovasc common stock options |
925 |
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|
293 |
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— |
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|
176 |
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1,394 |
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Neovasc common stock warrants |
659 |
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194 |
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— |
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(375 |
) |
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478 |
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Total assets |
$ |
5,335 |
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$ |
6,725 |
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$ |
— |
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$ |
88 |
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$ |
12,148 |
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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 June 30, 2013 |
(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 |
$ |
80,183 |
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$ |
— |
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$ |
— |
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$ |
80,183 |
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U.S. Treasury securities |
24,999 |
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|
50,027 |
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— |
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|
75,026 |
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Certificates of deposit |
— |
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|
827 |
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— |
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|
827 |
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Pharmsynthez Note Receivable and Purchase Option |
— |
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6,795 |
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— |
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6,795 |
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Forward contracts |
— |
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|
133 |
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— |
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133 |
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Common stock investments, available for sale |
2,536 |
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— |
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— |
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2,536 |
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BZNE Note and conversation feature |
— |
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— |
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2,040 |
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2,040 |
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Neovasc common stock options |
— |
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2,319 |
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— |
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2,319 |
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Total assets |
$ |
107,718 |
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$ |
60,101 |
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$ |
2,040 |
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$ |
169,859 |
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Liabilities: |
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Embedded conversion option |
$ |
— |
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$ |
— |
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$ |
74,079 |
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$ |
74,079 |
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Deferred acquisition payments, net of discount |
— |
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— |
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9,415 |
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9,415 |
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Contingent consideration: |
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CURNA |
— |
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— |
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549 |
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549 |
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OPKO Diagnostics |
— |
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— |
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14,512 |
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14,512 |
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FineTech |
— |
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— |
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2,763 |
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2,763 |
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Cytochroma |
— |
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— |
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49,784 |
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49,784 |
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Farmadiet |
— |
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— |
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1,298 |
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1,298 |
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Total liabilities |
$ |
— |
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$ |
— |
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$ |
152,400 |
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$ |
152,400 |
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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)
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Total |
Assets: |
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Money market funds |
$ |
18,716 |
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$ |
— |
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$ |
— |
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$ |
18,716 |
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Certificates of deposit |
— |
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|
820 |
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— |
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|
820 |
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Common stock investments, available for sale |
8,236 |
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— |
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— |
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8,236 |
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BZNE Note and conversation feature |
— |
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— |
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2,040 |
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2,040 |
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Neovasc common stock options |
— |
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1,394 |
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— |
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1,394 |
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Neovasc common stock warrants |
— |
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|
478 |
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— |
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|
478 |
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Total assets |
$ |
26,952 |
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$ |
2,692 |
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$ |
2,040 |
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$ |
31,684 |
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Liabilities: |
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Forward contracts |
$ |
— |
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$ |
10 |
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$ |
— |
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$ |
10 |
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Deferred acquisition payments, net of discount |
— |
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— |
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10,103 |
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10,103 |
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Contingent consideration: |
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CURNA |
— |
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— |
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510 |
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510 |
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OPKO Diagnostics |
— |
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— |
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12,974 |
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12,974 |
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FineTech |
— |
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— |
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5,262 |
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5,262 |
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Farmadiet |
— |
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— |
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1,310 |
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1,310 |
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Total liabilities |
$ |
— |
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$ |
10 |
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$ |
30,159 |
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$ |
30,169 |
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The carrying amount and estimated fair value of our long-term debt |
. The fair value of the Notes is determined using a binomial lattice approach in order to estimate the fair value of the embedded derivative in the Notes. Refer to Note 6.
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June 30, 2013 |
(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 |
Notes |
$ |
114,445 |
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$ |
115,402 |
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$ |
— |
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$ |
— |
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$ |
115,402 |
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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 June 30, 2013 and December 31, 2012:
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June 30, 2013 |
(In thousands) |
BZNE Note
and
conversion
feature
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Contingent
consideration
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Deferred
acquisition
payments, net
of discount
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Embedded
conversion
option
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Balance at December 31, 2012 |
$ |
2,040 |
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$ |
20,056 |
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$ |
10,103 |
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$ |
— |
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Additions |
— |
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47,710 |
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— |
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59,204 |
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Total losses (gains) for the period: |
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Included in results of operations |
— |
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3,901 |
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|
112 |
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14,875 |
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Payments |
— |
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(2,761 |
) |
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(800 |
) |
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— |
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Balance at June 30, 2013 |
$ |
2,040 |
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$ |
68,906 |
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$ |
9,415 |
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$ |
74,079 |
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December 31, 2012 |
(In thousands) |
BZNE Note
and
conversion
feature
|
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Contingent
consideration
|
|
Deferred
acquisition
payments, net
of discount
|
Balance at December 31, 2011 |
$ |
— |
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$ |
18,002 |
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$ |
— |
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Additions |
1,700 |
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|
1,234 |
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|
9,673 |
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Total losses (gains) for the period: |
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Included in results of operations |
1,563 |
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|
820 |
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|
430 |
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Included in Other comprehensive loss |
53 |
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|
— |
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|
— |
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Transfer out to equity method investment |
(1,276 |
) |
|
— |
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— |
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Balance at December 31, 2012 |
$ |
2,040 |
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$ |
20,056 |
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$ |
10,103 |
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