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Financial Instruments and Concentration of Credit Risk (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value

The following tables provide information about our assets and liabilities as at December 31, 2013 and 2012 that are measured at fair value on a recurring basis:

 

                                                                               
       As at December 31, 2013  
(In thousands of U.S. dollars)      Level 1        Level 2        Level 3        Total  
Assets:                    
Cash and cash equivalents      $ 118,521         $ —           $ —           $ 118,521   
Accounts receivable – Laser Earn-Out Payment(2)        —             —             4,000           4,000   
Contingent consideration(1)        —             —             36,582           36,582   
                                             
Total      $ 118,521         $ —           $ 40,582         $ 159,103   
   
                                             

 

                                                                               
       As at December 31, 2012  
(In thousands of U.S. dollars)      Level 1        Level 2        Level 3        Total  
Assets:                    
Cash and cash equivalents      $ 307,384         $ —           $ —           $ 307,384   
Restricted cash        7,500           —             —             7,500   
Contingent consideration(1)        —             —             76,409           76,409   
                                             
Total      $ 314,884         $ —           $ 76,409         $ 391,293   
   
                                             

 

(1)

To estimate the fair value of contingent consideration we use a discounted cash flow model based on estimated timing and amount of future cash flows.

 

 

 

(2) 

In 2013, the estimated $4.0 million fair value of the Laser Earn-Out Payment was reclassified from contingent consideration to accounts receivable. For the year ended December 31, 2012, the fair value of the Laser Earn-Out Payment was determined by discounting the expected future cash flows at a cost of capital rate of 3.5%. For additional discussion, refer to Note 10 – Contingent Consideration.
Reconciliation of Contingent Consideration Assets Measured and Recorded at Fair Value

The following table represents a reconciliation of our contingent consideration assets measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):

 

                                                           
       Level 3  
(In thousands of U.S. dollars)      Related to
Sale of
QLT USA		        Related to
Sale of
Visudyne		        Total  
Balance at January 1, 2012      $ 99,947         $ —           $ 99,947   
Transfers / Additions to Level 3        —             5,364           5,364   
Settlements        (37,117 )         —             (37,117 ) 
Fair value change in contingent consideration        8,365           (150 )         8,215   
                                  
Balance at December 31, 2012        71,195           5,214           76,409   
Transfers / Additions to Level 3        —             —             —     
Transfer to Accounts Receivable        —             (3,956 )         (3,956 ) 
Settlements        (38,693 )         —             (38,693 ) 
Fair value change in contingent consideration        4,080           (1,258 )         2,822   
                                  
Balance at December 31, 2013      $ 36,582         $ —           $ 36,582 (1) 
   
                                  

 

(1)

Comprised of $36.6 million as current portion of contingent consideration and nil as the long-term portion of contingent consideration on the Consolidated Balance Sheet.