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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of December 31, 2018 and 2017, consisted of the following (in thousands):
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
unobservable inputs
Description
 
December 31, 2018
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate contracts (1)
 
$
5,772

 
$

 
$
5,772

 
$

Foreign currency contract assets, current and long-term (2)
 
$
1,578

 
$

 
$
1,578

 
$

Foreign currency contract liabilities, current and long-term (3)
 
$
(1,608
)
 
$

 
$
(1,608
)
 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
unobservable inputs
Description
 
December 31, 2017
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate contracts (1)
 
$
5,749

 
$

 
$
5,749

 
$

Foreign currency contract assets, current and long-term (2)
 
$
621

 
$

 
$
621

 
$

Foreign currency contract liabilities, current and long-term (3)
 
$
(1,391
)
 
$

 
$
(1,391
)
 
$



(1)    The fair value of the interest rate contracts is determined using Level 2 fair value inputs and is recorded as other long-term assets or other long-term obligations in the consolidated balance sheets.
(2)    The fair value of the foreign currency contract assets (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as prepaid and other assets or other long-term assets in the consolidated balance sheets.
(3)    The fair value of the foreign currency contract liabilities (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as accrued expenses or other long-term obligations in the consolidated balance sheets.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation Changes in the fair value of our contingent consideration liability during the years ended December 31, 2018 and 2017, consisted of the following (in thousands):
 
2018
 
2017
Beginning balance
$
10,956

 
$
683

Contingent consideration liability recorded as the result of acquisitions (see Note 3)
72,209

 
10,400

Fair value adjustments recorded to income during the period
(698
)
 
(66
)
Contingent payments made
(231
)
 
(61
)
Ending balance
$
82,236

 
$
10,956

Fair Value Inputs, Liabilities, Quantitative Information The recurring Level 3 measurement of our contingent consideration liability and contingent receivable includes the following significant unobservable inputs at December 31, 2018 and 2017 (amounts in thousands):
Contingent consideration asset or liability
 
Fair value at December 31, 2018
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based royalty
 
$
10,661

 
Discounted cash flow

 
Discount rate
 
9.9% - 25%
payments contingent liability
 
 
 
 
Projected year of payments
 
2018-2037
 
 
 
 
 
 
 
 
 
Supply chain milestone
 
$
13,593

 
Discounted cash flow

 
Discount rate
 
5.3%
contingent liability
 
 
 
 
Probability of milestone payment
 
95%
 
 
 
 
 
 
Projected year of payments
 
2019
 
 
 
 
 
 
 
 
 
Revenue milestones
 
$
57,982

 
Discounted cash flow

 
Discount rate
 
3.3% - 13%
contingent liability
 


 
 
Projected year of payments
 
2019-2023

 


 

 

 

Contingent receivable
 
$
607

 
Discounted cash flow

 
Discount rate
 
10%
asset
 


 
 
Probability of milestone payment
 
67%

 


 
 
 
Projected year of payments
 
2019
 
 
 
 
 
 
 
 
 
Contingent consideration asset or liability
 
Fair value at December 31, 2017
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based royalty
 
$
10,956

 
Discounted cash flow

 
Discount rate
 
9.9% - 15%
payments contingent liability
 
 
 
 
Projected year of payments
 
2017-2037
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent receivable
 
$
760

 
Discounted cash flow

 
Discount rate
 
10%
asset
 
 
 
 
Probability of milestone payment
 
75%
 
 
 
 
 
 
Projected year of payments
 
2018-2019