XML 45 R34.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022 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
		September 30, 2023			(Level 1)			(Level 2)			(Level 3)
Marketable securities ⁽¹⁾		$	73		$	73		$	—		$	—
Interest rate contract asset, current ⁽²⁾		$	2,320		$	—		$	2,320		$	—
Foreign currency contract assets, current and long-term ⁽³⁾		$	6,035		$	—		$	6,035		$	—
Foreign currency contract liabilities, current and long-term ⁽⁴⁾		$	(2,980)		$	—		$	(2,980)		$	—
Contingent consideration liabilities		$	(4,022)		$	—		$	—		$	(4,022)


					Fair Value Measurements Using
		Total Fair			Quoted prices in			Significant other			Significant
		Value at			active markets			observable inputs			unobservable inputs
		December 31, 2022			(Level 1)			(Level 2)			(Level 3)
Marketable securities ⁽¹⁾		$	138		$	138		$	—			—
Interest rate contract asset, long-term ⁽²⁾		$	3,444		$	—		$	3,444		$	—
Foreign currency contract assets, current and long-term ⁽³⁾		$	4,783		$	—		$	4,783		$	—
Foreign currency contract liabilities, current and long-term ⁽⁴⁾		$	(3,986)		$	—		$	(3,986)		$	—
Contingent consideration liabilities		$	(18,073)		$	—		$	—		$	(18,073)

(1)	Our marketable securities, which consist entirely of available-for-sale equity securities, are valued using market prices in active markets. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets.

(2)	The fair value of the interest rate contract is determined using Level 2 fair value inputs and is reported within prepaid expenses and other current assets as of September 30, 2023 and other long-term assets as of December 31, 2022 in the consolidated balance sheets.

(3)

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.

(4)

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, 2023 and 2022 consisted of the following (in thousands):


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022
Beginning balance		$	3,581		$	17,426		$	18,073		$	48,234
Contingent consideration expense			563			915			2,177			4,702
Contingent payments made			(122)			(91)			(16,228)			(34,676)
Effect of foreign exchange			—			—			—			(10)
Ending balance		$	4,022		$	18,250		$	4,022		$	18,250

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, 2023 and December 31, 2022 (amounts in thousands):


		Fair value at
		September 30,			Valuation						Weighted
Contingent consideration liability		2023			technique		Unobservable inputs		Range		Average⁽¹⁾
Revenue-based royalty payments contingent liability		$	3,534		Discounted cash flow		Discount rate		12% - 16%		14.9%
							Projected year of payments		2023-2034		2028

Revenue milestones contingent liability		$	88		Monte Carlo simulation		Discount rate		13.0%
							Projected year of payments		2023-2039		2039

Regulatory approval contingent liability		$	400		Scenario-based method		Discount rate		5.7%
							Probability of milestone payment		50.0%
							Projected year of payment		2023-2030		2030


		Fair value at
		December 31,			Valuation						Weighted
Contingent consideration liability		2022			technique		Unobservable inputs		Range		Average⁽¹⁾
Revenue-based royalty payments contingent liability		$	2,097		Discounted cash flow		Discount rate		14% - 17%		15.7%
							Projected year of payments		2023-2034		2026

Revenue milestones contingent liability		$	13,064		Monte Carlo simulation		Discount rate		5.1% - 14.0%		5.2%
							Projected year of payments		2023-2033		2023

Regulatory approval contingent liability		$	2,912		Scenario-based method		Discount rate		5.7%
							Probability of milestone payment		90%
							Projected year of payment		2023-2030		2024

(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.

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, 2023 and 2022 (in thousands):


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022
Beginning balance		$	296		$	192		$	281		$	199
Provision for credit loss expense			32			(6)			47			(13)
Ending balance		$	328		$	186		$	328		$	186