Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of cash and cash equivalents

The following table presents current and noncurrent restricted cash and cash equivalent balances at September 30, 2020 and December 31, 2019 (in thousands):

	Condensed Consolidated Balance Sheets Line Items	September 30, 2020		December 31, 2019
Restricted cash and cash equivalents—current	Restricted cash and cash equivalents	$	162,648	$	247,457
Restricted cash and cash equivalents—noncurrent	Other assets	18,400		18,400
Total restricted cash and cash equivalents		$	181,048	$	265,857

The restricted cash and cash equivalents amounts primarily relate to litigation-related matters, including approximately $136.3 million and $242.8 million held in Qualified Settlement Funds (QSFs) for mesh-related matters at September 30, 2020 and December 31, 2019, respectively. See Note 13. Commitments and Contingencies for further information about mesh-related and other litigation-related matters. Additionally, at September 30, 2020, approximately $25.0 million of restricted cash and cash equivalents related to certain insurance-related matters.

Restrictions on cash and cash equivalents

The following table presents current and noncurrent restricted cash and cash equivalent balances at September 30, 2020 and December 31, 2019 (in thousands):

	Condensed Consolidated Balance Sheets Line Items	September 30, 2020		December 31, 2019
Restricted cash and cash equivalents—current	Restricted cash and cash equivalents	$	162,648	$	247,457
Restricted cash and cash equivalents—noncurrent	Other assets	18,400		18,400
Total restricted cash and cash equivalents		$	181,048	$	265,857

The restricted cash and cash equivalents amounts primarily relate to litigation-related matters, including approximately $136.3 million and $242.8 million held in Qualified Settlement Funds (QSFs) for mesh-related matters at September 30, 2020 and December 31, 2019, respectively. See Note 13. Commitments and Contingencies for further information about mesh-related and other litigation-related matters. Additionally, at September 30, 2020, approximately $25.0 million of restricted cash and cash equivalents related to certain insurance-related matters.

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 September 30, 2020 and December 31, 2019 were as follows (in thousands):

	Fair Value Measurements at September 30, 2020 using:
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Money market funds	$	628,875	$	—	$	—	$	628,875
Liabilities:
Acquisition-related contingent consideration—current	$	—	$	—	$	9,665	$	9,665
Acquisition-related contingent consideration—noncurrent	$	—	$	—	$	28,044	$	28,044

	Fair Value Measurements at December 31, 2019 using:
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Money market funds	$	427,033	$	—	$	—	$	427,033
Liabilities:
Acquisition-related contingent consideration—current	$	—	$	—	$	6,534	$	6,534
Acquisition-related contingent consideration—noncurrent	$	—	$	—	$	23,123	$	23,123

Changes to liability for acquisition-related contingent consideration

The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning of period	$	42,057	$	52,930	$	29,657	$	116,703
Amounts settled	(3,103)		(9,376)		(8,785)		(30,541)
Changes in fair value recorded in earnings	(1,407)		16,025		17,100		(26,983)
Effect of currency translation	162		(85)		(263)		315
End of period	$	37,709	$	59,494	$	37,709	$	59,494

The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the nine months ended September 30, 2020 by acquisition (in thousands):

	Balance as of December 31, 2019		Changes in Fair Value Recorded in Earnings		Amounts Settled and Other		Balance as of September 30, 2020
Auxilium acquisition	$	13,207	$	4,223	$	(1,644)	$	15,786
Lehigh Valley Technologies, Inc. acquisitions	6,800		11,950		(5,250)		13,500
Other	9,650		927		(2,154)		8,423
Total	$	29,657	$	17,100	$	(9,048)	$	37,709

Summary of nonrecurring fair value measurements

The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2020 were as follows (in thousands):

	Fair Value Measurements during the Nine Months Ended September 30, 2020 (1) using:						Total Expense for the Nine Months Ended September 30, 2020
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Intangible assets, excluding goodwill (2)	$	—	$	—	$	24,377	$	(65,771)
Certain property, plant and equipment	—		—		—		(1,248)
Operating lease right-of-use assets	—		—		—		(6,392)
Total	$	—	$	—	$	24,377	$	(73,411)

__________

(1)The fair value amounts are presented as of the date of the fair value measurement as these assets are not measured at fair value on a recurring basis. Such measurements generally occur in connection with our quarter-end financial reporting close procedures.

(2)These fair value measurements were determined using risk-adjusted discount rates ranging from approximately 10.0% to 15.0% (weighted average rate of approximately 12.2%, weighted based on relative fair value). The Company also performed fair value measurements in connection with its goodwill impairment tests. Refer to Note 9. Goodwill and Other Intangibles for additional information on goodwill and other intangible asset impairment tests, including information about the valuation methodologies utilized.