Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Financial assets and liabilities measured at fair value on recurring basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:
December 31, 2016	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	$	26,210	$	—	$	—	$	26,210
Time deposits	—		100,000		—		100,000
Equity securities	2,267		—		—		2,267
Total	$	28,477	$	100,000	$	—	$	128,477
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	109,373	$	109,373
Acquisition-related contingent consideration—long-term	—		—		152,740		152,740
Total	$	—	$	—	$	262,113	$	262,113

At December 31, 2016, money market funds include $26.2 million in Qualified Settlement Funds to be disbursed to mesh-related product liability claimants. See Note 14. Commitments and Contingencies for further discussion of our product liability cases.

	Fair Value Measurements at Reporting Date using:
December 31, 2015	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	$	51,145	$	—	$	—	$	51,145
Equity securities	3,889		—		—		3,889
Total	$	55,034	$	—	$	—	$	55,034
Liabilities:
Acquisition-related contingent consideration—short-term	$	—	$	—	$	65,265	$	65,265
Acquisition-related contingent consideration—long-term	—		—		78,237		78,237
Total	$	—	$	—	$	143,502	$	143,502

Changes to liability for acquisition-related contingent consideration

The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 (in thousands):

	2016			2015
Beginning of period	$	143,502		$	46,005
Amounts acquired	146,866			214,435
Amounts settled	(55,896		)	(37,583		)
Transfers (in) and/or out of Level 3	—			—
Measurement period adjustments	3,700			(13,434		)
Changes in fair value recorded in earnings	23,823			(65,640		)
Effect of currency translation	118			(281		)
End of period	$	262,113		$	143,502

The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the year ended December 31, 2016 by acquisition (in thousands):

	Balance as of December 31, 2015		Acquisitions		Fair Value Adjustments and Accretion			Payments and Other			Balance as of December 31, 2016
Qualitest acquisition	$	1,137	$	—	$	(1,137	)	$	—		$	—
Sumavel acquisition	631		—		(631		)	—			—
Auxilium acquisition	26,435		—		8,952			(14,290		)	21,097
Lehigh Valley Technologies, Inc. acquisitions	97,003		—		30,676			(31,679		)	96,000
Voltaren Gel® acquisition	—		146,055		(18,807		)	(8,853		)	118,395
Other	18,296		4,511		4,770			(956		)	26,621
Total	$	143,502	$	150,566	$	23,823		$	(55,778	)	$	262,113

The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the year ended December 31, 2015 by acquisition (in thousands):

	Balance as of December 31, 2014		Acquisitions			Fair Value Adjustments and Accretion			Payments and Other			Balance as of December 31, 2015
Qualitest acquisition	$	10,305	$	—		$	(4,168	)	$	(5,000	)	$	1,137
Sumavel acquisition	4,700		—			(4,069		)	—			631
Auxilium acquisition	—		98,179			(62,370		)	(9,374		)	26,435
Lehigh Valley Technologies, Inc. acquisitions	—		88,200			31,071			(22,268		)	97,003
Natesto™	31,000		(4,313		)	(26,687		)	—			—
Other	—		18,935			583			(1,222		)	18,296
Total	$	46,005	$	201,001		$	(65,640	)	$	(37,864	)	$	143,502

Summary of available-for-sale securities

The following is a summary of available-for-sale securities held by the Company at December 31, 2016 and 2015 (in thousands):

	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
December 31, 2016
Money market funds	$	26,210	$	—	$	—	$	26,210
Total included in cash and cash equivalents	$	—	$	—	$	—	$	—
Total included in restricted cash and cash equivalents	$	26,210	$	—	$	—	$	26,210
Equity securities	$	—	$	—	$	—	$	—
Total other short-term available-for-sale securities	$	—	$	—	$	—	$	—
Equity securities	$	1,766	$	501	$	—	$	2,267
Long-term available-for-sale securities	$	1,766	$	501	$	—	$	2,267

	Available-for-sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
December 31, 2015
Money market funds	$	51,145	$	—	$	—	$	51,145
Total included in cash and cash equivalents	$	3	$	—	$	—	$	3
Total included in restricted cash and cash equivalents	$	51,142	$	—	$	—	$	51,142
Equity securities	$	24	$	10	$	—	$	34
Total other short-term available-for-sale securities	$	24	$	10	$	—	$	34
Equity securities	$	1,766	$	2,089	$	—	$	3,855
Long-term available-for-sale securities	$	1,766	$	2,089	$	—	$	3,855

Summary of nonrecurring fair value measurements

The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2016 were as follows (in thousands):

	Fair Value Measurements at Reporting Date using:						Total Expense for the Year Ended December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Certain Astora property, plant and equipment (Note 3)	$	—	$	—	$	—	$	(5,041	)
Certain U.S. Generics Pharmaceuticals property, plant and equipment	—		—		11,360		(13,679		)
Certain U.S. Branded Pharmaceuticals intangible assets (Note 10)	—		—		4,621		(110,430		)
Certain U.S. Generic Pharmaceuticals intangible assets (Note 10)	—		—		872,474		(676,776		)
Certain International Pharmaceuticals intangible assets (Note 10)	—		—		139,313		(301,698		)
Certain Astora intangible assets (Note 3)	—		—		—		(16,287		)
Generics reporting unit goodwill (Note 10)	—		—		3,531,301		(2,342,549		)
Paladin reporting unit goodwill (Note 10)	—		—		170,572		(272,578		)
Somar reporting unit goodwill (Note 10)	—		—		24,044		(33,000		)
Litha reporting unit goodwill (Note 10)	—		—		—		(26,343		)
Other asset impairment charges	—		—		—		(4,112		)
Total	$	—	$	—	$	4,753,685	$	(3,802,493	)

The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2015 were as follows (in thousands):

	Fair Value Measurements at Measurement Date using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Expense for the Year Ended December 31, 2015
Assets:
Auxilium leasehold improvements (Note 4)	$	—	$	—	$	—	$	(7,000	)
Litha equity investment	—		—		10,469		(18,869		)
Certain U.S. Branded Pharmaceuticals intangible assets (Note 10)	—		—		48,266		(175,031		)
Certain U.S. Generic Pharmaceuticals intangible assets (Note 10)	—		—		38,005		(181,000		)
Certain International Pharmaceuticals intangible assets (Note 10)	—		—		3,838		(14,579		)
UEO reporting unit goodwill (Note 10)	—		—		240,994		(673,500		)
Paladin reporting unit goodwill (Note 10)	—		—		436,919		(85,780		)
Total	$	—	$	—	$	778,491	$	(1,155,759	)
Liabilities:
Minimum Voltaren® Gel royalties due to Novartis	—		—		15,000		—
Total	$	—	$	—	$	15,000	$	—