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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Our financial assets and (liabilities) carried at fair value and measured on a recurring basis as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands):

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Fair Value Measurements Using

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Total Fair

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Quoted prices in

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Significant other

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Significant

​

​

Value at

​

active markets

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observable inputs

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unobservable inputs

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September 30, 2020

    

(Level 1)

    

(Level 2)

    

(Level 3)

Interest rate contract liabilities, current and long-term (1)

​

$

(4,915)

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$

—

​

$

(4,915)

​

$

—

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

​

$

2,325

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$

—

​

$

2,325

​

$

—

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

​

$

(4,219)

​

$

—

​

$

(4,219)

​

$

—

Contingent consideration liabilities

​

$

(64,665)

​

$

—

​

$

—

​

$

(64,665)

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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​

​

Fair Value Measurements Using

​

​

Total Fair

​

Quoted prices in

​

Significant other

​

Significant

​

​

Value at

​

active markets

​

observable inputs

​

unobservable inputs

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December 31, 2019

    

(Level 1)

    

(Level 2)

    

(Level 3)

Interest rate contract asset, long-term (1)

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$

1,192

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$

—

​

$

1,192

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$

—

Interest rate contract liability, long-term (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 prepaid expenses and other current assets, other long-term assets, accrued expenses, 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 Changes in the fair value of our contingent consideration liabilities during the three and nine-month periods ended September 30, 2020 and 2019 consisted of the following (in thousands):

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Three Months Ended

    

Nine Months Ended

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September 30, 

    

September 30, 

​

    

2020

    

2019

    

2020

    

2019

Beginning balance

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$

69,100

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$

93,204

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$

76,709

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$

82,236

Contingent consideration liability recorded as the result of acquisitions

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—

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1,203

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—

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9,583

Contingent consideration expense (benefit)

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(4,356)

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273

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884

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3,473

Contingent payments made

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(130)

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(15,072)

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(12,991)

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(15,684)

Effect of foreign exchange

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51

​

​

—

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​

63

​

​

—

Ending balance

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$

64,665

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$

79,608

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$

64,665

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$

79,608

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​

​

​

​

​

​

​

​

​

​

​

Fair Value Inputs, Liabilities, Quantitative Information

The recurring Level 3 measurement of our contingent consideration liabilities included the following significant unobservable inputs at September 30, 2020 and December 31, 2019 (amounts in thousands):

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Fair value at

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​

​

​

​

​

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​

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September 30, 

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Valuation

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​

​

​

​

​

Contingent consideration liability

    

2020

    

technique

    

Unobservable inputs

    

Range

    

Weighted Average(1)

Revenue-based royalty payments contingent liability

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$

4,804

 

Discounted cash flow

 

Discount rate

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13% - 20%

 

13.6%

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​

 

  

 

​

 

Projected year of payments

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2020-2034

 

2025

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​

​

​

​

​

​

​

​

​

​

​

Revenue milestones contingent liability

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$

55,561

 

Monte Carlo simulation

 

Discount rate

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11% - 14%

 

12.4%

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​

 

  

 

​

 

Projected year of payments

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2020-2023

 

2022

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​

​

​

​

​

​

​

​

​

​

​

Regulatory approval contingent liability

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$

4,300

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Scenario-based method

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Discount rate

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2.7%

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​

​

​

​

​

​

​

​

Probability of milestone payment

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90%

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​

​

​

​

​

​

​

​

Projected year of payment

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2021-2022

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2022

(1) Unobservable inputs were weighted by the relative fair value of the instruments. No weighted average is reported for contingent consideration liabilities without a range of unobservable inputs.

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Fair value at

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​

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December 31, 

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Valuation

​

​

​

​

Contingent consideration liability

    

2019

    

technique

    

Unobservable inputs

    

Range

Revenue-based royalty payments contingent liability

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$

7,710

 

Discounted cash flow

 

Discount rate

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13% - 24%

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​

 

  

 

​

 

Projected year of payments

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2020-2034

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​

​

​

​

​

​

​

​

​

Revenue milestones contingent liability

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$

66,114

 

Monte Carlo simulation

 

Discount rate

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9% - 13.5%

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​

 

  

 

​

 

Projected year of payments

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2020-2023

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​

​

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​

​

​

​

​

​

Regulatory approval contingent liability

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$

2,885

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Scenario-based method

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Discount rate

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2.4%

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Probability of milestone payment

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65%

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​

​

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Projected year of payment

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2022

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​

​

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​

Schedule of Rollforward of Allowance for Credit Losses The table below presents a rollforward of the allowance for current expected credit losses on our notes receivable for the three and nine-month periods ended September 30, 2020 (in thousands):

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Three Months Ended

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Nine Months Ended

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​

September 30, 2020

    

September 30, 2020

Beginning balance

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$

757

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$

—

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

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—

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575

Provision for credit loss expense

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​

46

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​

228

Ending balance

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$

803

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$

803