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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Restricted Cash and Cash Equivalents

The following table presents current and noncurrent restricted cash and cash equivalent balances at March 31, 2023 and December 31, 2022 (in thousands):


	Balance Sheet Line Items	March 31, 2023		December 31, 2022
Restricted cash and cash equivalents—current (1)	Restricted cash and cash equivalents	$	157,039	$	145,358
Restricted cash and cash equivalents—noncurrent (2)	Other assets	85,000		85,000
Total restricted cash and cash equivalents		$	242,039	$	230,358

__________

(1)Amounts at March 31, 2023 and December 31, 2022 include: (i) restricted cash and cash equivalents associated with litigation-related matters, including $50.5 million and $50.7 million, respectively, held in Qualified Settlement Funds (QSFs) for mesh- and/or opioid-related matters, and (ii) approximately $86.0 million of restricted cash and cash equivalents at both March 31, 2023 and December 31, 2022 related to certain insurance-related matters. See Note 15. Commitments and Contingencies for further information about litigation-related matters.

(2)The amounts at March 31, 2023 and December 31, 2022 relate to the TLC Agreement. See Note 11. License, Collaboration and Asset Acquisition Agreements for further information.

Schedule of 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 March 31, 2023 and December 31, 2022 were as follows (in thousands):


	Fair Value Measurements at March 31, 2023 using:
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Money market funds (1)	$	12,226	$	—	$	—	$	12,226
Liabilities:



Acquisition-related contingent consideration (2)	$	—	$	—	$	15,697	$	15,697


	Fair Value Measurements at December 31, 2022 using:
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Money market funds (1)	$	12,226	$	—	$	—	$	12,226
Liabilities:



Acquisition-related contingent consideration (2)	$	—	$	—	$	16,571	$	16,571

__________

(1)At both March 31, 2023 and December 31, 2022, money market funds include $12.2 million in QSFs. Amounts in QSFs are considered restricted cash equivalents. See Note 15. Commitments and Contingencies for further discussion of our litigation. At March 31, 2023 and December 31, 2022, the differences between the amortized cost and the fair value of our money market funds were not material, individually or in the aggregate.

(2)At March 31, 2023 and December 31, 2022, the balance of the Company’s liability for acquisition-related contingent consideration, which is governed by executory contracts and recorded at the expected amount of the total allowed claim, is classified within Liabilities subject to compromise in the Condensed Consolidated Balance Sheets.

Schedule of 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 months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
		2023		2022
Beginning of period		$	16,571	$	20,076
Amounts settled		(879)		(802)
Changes in fair value recorded in earnings		397		(1,377)
Effect of currency translation		(392)		79
End of period		$	15,697	$	17,976

The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the three months ended March 31, 2023 by acquisition (in thousands):


	Balance as of December 31, 2022		Changes in Fair Value Recorded in Earnings		Amounts Settled and Other		Balance as of March 31, 2023
Auxilium acquisition	$	10,618	$	182	$	—	$	10,800
Lehigh Valley Technologies, Inc. acquisitions	2,300		(28)		(672)		1,600

Other	3,653		243		(599)		3,297
Total	$	16,571	$	397	$	(1,271)	$	15,697