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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair Value Measurements Using

Total Fair

Quoted prices in

Significant other

Significant

Value at

active markets

observable inputs

unobservable inputs

    

March 31, 2020

    

(Level 1)

    

(Level 2)

    

(Level 3)

Interest rate contracts (1)

$

(4,812)

$

$

(4,812)

$

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

$

5,681

$

$

5,681

$

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

$

(6,019)

$

$

(6,019)

$

Contingent consideration liabilities

$

(68,869)

$

$

$

(68,869)

Fair Value Measurements Using

Total Fair

Quoted prices in

Significant other

Significant

Value at

active markets

observable inputs

unobservable inputs

    

December 31, 2019

    

(Level 1)

    

(Level 2)

    

(Level 3)

Interest rate contract (1)

$

1,192

$

$

1,192

$

Interest rate contract (1)

$

(290)

$

$

(290)

$

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

$

2,447

$

$

2,447

$

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

$

(4,255)

$

$

(4,255)

$

Contingent consideration liabilities

$

(76,709)

$

$

$

(76,709)

(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 expenses and other current 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

    

Three Months Ended

    

March 31, 

    

2020

    

2019

Beginning balance

$

76,709

$

82,236

Contingent consideration expense (1)

 

4,897

 

775

Contingent payments made

 

(12,754)

 

(554)

Effect of foreign exchange

17

Ending balance

$

68,869

$

82,457

(1) There were no fair value adjustments recorded to OCI for the three months ended March 31, 2020

Fair Value Inputs, Liabilities, Quantitative Information

The recurring Level 3 measurement of our contingent consideration liabilities included the following significant unobservable inputs at March 31, 2020 and December 31, 2019 (amounts in thousands):

Fair value at

March 31, 

Valuation

Contingent consideration liability

    

2020

    

technique

    

Unobservable inputs

Range

    

Weighted Average(1)

Revenue-based royalty payments contingent liability

$

8,053

 

Discounted cash flow

 

Discount rate

12% - 24%

 

15.4%

 

  

 

 

Projected year of payments

2020-2034

 

2026

Revenue milestones contingent liability

$

58,116

 

Monte Carlo simulation

 

Discount rate

9% - 14.5%

 

10.9%

 

  

 

 

Projected year of payments

2020-2023

 

2022

Regulatory approval contingent liability

$

2,700

Scenario-based method

Discount rate

6.6%

Probability of milestone payment

65%

Projected year of payment

2022

(1) Unobservable inputs were weighted by the relative fair value of the instruments. No weighted average is reported for unobservable inputs related to a single financial asset or liability.

Fair value at

December 31, 

Valuation

Contingent consideration liability

    

2019

    

technique

    

Unobservable inputs

Range

Revenue-based royalty payments contingent liability

$

7,710

 

Discounted cash flow

 

Discount rate

13% - 24%

 

  

 

 

Projected year of payments

2020-2034

Revenue milestones contingent liability

$

66,114

 

Monte Carlo simulation

 

Discount rate

9% - 13.5%

 

  

 

 

Projected year of payments

2020-2023

Regulatory approval contingent liability

$

2,885

Scenario-based method

Discount rate

2.4%

Probability of milestone payment

65%

Projected year of payment

2022

Schedule of Rollforward of Allowance for Credit Losses

The table below presents a rollforward for the period ended March 31, 2020 of the allowance for current expected credit losses on our notes receivable (in thousands):

Three Months Ended

March 31, 2020

Beginning balance

$

Cumulative effect adjustment upon adoption of ASU 2016-13, Credit Losses

575

Provision for credit loss expense

95

Ending balance

$

670