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Derivative Contracts
 9 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE CONTRACTS
DERIVATIVE CONTRACTS
We enter into foreign currency forward exchange contracts to cover the risk of exposure to exchange rate differences arising from inventory purchases on letters of credit. Under these forward contracts, for any rate above or below the fixed rate, we receive or pay the difference between the spot rate and the fixed rate for the given amount at the settlement date.
The following table summarizes the fair values and the presentation of our derivative financial instruments in the Condensed Consolidated Balance Sheets:
(In thousands)
Balance Sheet Component
 
September 30,
2013
 
December 31,
2012
Derivative financial instruments:
 
 
 
 
 
Pharmsynthez Note Receivable and
     Purchase Option
Prepaid expenses and other current assets
 
$
6,755

 
$
—

Neovasc common stock options/warrants
Investments, net
 
$
1,618

 
$
1,872

Embedded conversion option
3.00% convertible senior notes, net of discount
     and estimated fair value of embedded
     derivatives
 
$
99,823

 
$
—

Forward contracts (1)
Current portion of lines of credit and notes
      payable
 
$
3,899

 
$
1,294

(1)
The effect on loss in the forward contracts is recorded in Accrued expenses. The effect on income in the forward contracts is recorded in Prepaid expenses and other current assets.
To qualify the derivative instrument as a hedge, we are required to meet strict hedge effectiveness and contemporaneous documentation requirements at the initiation of the hedge and assess the hedge effectiveness on an ongoing basis over the life of the hedge. At September 30, 2013 and December 31, 2012, our derivative financial instruments do not meet the documentation requirements to be designated as hedges. Accordingly, we recognize the changes in Fair value changes of derivative instruments, net in our Condensed Consolidated Statements of Operations. The following table summarizes the (losses) and gains recorded during the three and nine months ended September 30, 2013 and 2012:
 
Three months ended September 30,
 
Nine months ended September 30,
(In thousands)
2013
 
2012
 
2013
 
2012
Derivative gain (loss):
 
 
 
 
 
 
 
Pharmsynthez Note Receivable and Purchase Option
$
(147
)
 
$
—

 
$
2,452

 
$
—

Neovasc common stock options/warrants and BZNE Note
     conversion feature
(545
)
 
201

 
700

 
1,368

Notes
(26,943
)
 
—

 
(41,818
)
 
—

Forward contracts
(158
)
 
(32
)
 
(25
)
 
(59
)
Total
$
(27,793
)
 
$
169

 
$
(38,691
)
 
$
1,309


The outstanding forward contracts at September 30, 2013 and December 31, 2012, have been recorded at fair value, and their maturity details are as follows:
(In thousands)
Days until maturity
 
Contract value
 
Fair value at
 September 30, 2013
 
Effect on income (loss)
0 to 30
 
$
1,133

 
$
1,139

 
$
6

31 to 60
 
1,058

 
1,039

 
(19
)
61 to 90
 
945

 
939

 
(6
)
91 to 120
 
272

 
271

 
(1
)
121 to 180
 
516

 
511

 
(5
)
More than 180
 
—

 
—

 
—

Total
 
$
3,924

 
$
3,899

 
$
(25
)
(In thousands)
Days until maturity
 
Contract value
 
Fair value at
 December 31, 2012
 
Effect on income (loss)
0 to 30
 
$
—

 
$
—

 
$
—

31 to 60
 
581

 
577

 
(4
)
61 to 90
 
341

 
339

 
(2
)
91 to 120
 
212

 
210

 
(2
)
121 to 180
 
170

 
168

 
(2
)
More than 180
 
—

 
—

 
—

Total
 
$
1,304

 
$
1,294

 
$
(10
)