Dispositions (Tables)

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Major Classes of Assets Sold and Gain Recognized

The following table presents the consideration received, major classes of assets sold and the gain recognized on the sale of the Non-Core ACC Products:

	(in thousands)
Sale price:
Cash	$	263,807
Contingent purchase price from sale of business	65,700
Total sale price	329,507
Assets:
Inventory	2,184
Intangibles	5,210
Goodwill	33,812
Total assets sold	41,206
Gain on sale of business	$	288,301

The following table presents key financial results of the Hemostasis business included in “Income (loss) from discontinued operations, net of tax” for years ended 2016, 2015 and 2014. The cash flows are those expected to be generated by the market participants, discounted using a risk adjusted rate.

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Net product revenues	$	1,275		$	65,754		$	64,718
Operating expenses:
Cost of product revenue	1,424			75,889			54,300
Research and development	90			7,568			19,669
Selling, general and administrative	542			560			27,210
Impairment	—			133,266			—
Total operating expenses	2,056			217,283			101,179
Income (loss) from operations	(781		)	(151,529		)	(36,461		)
Gain from sale of business	1,004			—			—
Other expense, net	(39		)	(745		)	(596		)
Income (loss) from discontinued operations before income taxes	184			(152,274		)	(37,057		)
Benefit for income taxes	—			(21,448		)	(4,528		)
Income (loss) from discontinued operations, net of tax	$	184		$	(130,826	)	$	(32,529	)

Cumulative translation adjustment (“CTA”) gains or losses of foreign subsidiaries related to divested businesses are reclassified into income once the liquidation of the respective foreign subsidiaries is substantially complete. At the completion of the sale of the Hemostasis Business, the Company reclassified $9.6 million, net of tax, of CTA gains from accumulated comprehensive loss to the Company’s results of discontinued operations. Of this amount, $8.4 million was included in the impairment loss recorded to reduce the Hemostasis Business disposal group’s carrying value to its estimated fair value, less costs to sell as of December 31, 2015 and $1.2 million was included in “Gain from sale of business” for the year ended December 31, 2016.

Cost of product revenue for the three months ended September 30, 2015 included a charge of $25.8 million to reduce the carrying value of the product rights associated with PreveLeak to their estimated fair value as a result of a reduction in expected future cash flows.

The following table presents the major classes of assets and liabilities at December 31, 2015 related to the Hemostasis Business which were reclassified as held for sale:

	December 31,
	2015
	(In thousands)
Assets:
Inventory	$	53,765
Prepaid expenses and other current assets	1,153
Fixed assets, net	1,913
Intangibles, net	374,779
Allowance for reduction of assets of business held for sale	(108,773		)
Total assets held for sale	$	322,837
Liabilities:
Contingent purchase price – current	$	28,600
Deferred tax liability	38,915
Total liabilities held for sale	$	67,515

The significant cash flow items from discontinued operations for years ended 2016, 2015 and 2014 were as follows:

	Year Ended December 31,
	2016			2015		2014
	(In thousands)
Depreciation from discontinued operations	$	—		$	371	$	142
Amortization from discontinued operations	—			42,278		20,293
Gain on sale of business	(1,004		)	—		—
Asset impairment charges	—			25,800		—
Reserve for excess or obsolete inventory	—			876		—
Change in contingent consideration obligation	—			8,743		7,400
Proceeds from sale of businesses	174,068			—		—
Capital expenditures	—			738		1,178