Derivative Contracts

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE CONTRACTS

DERIVATIVE CONTRACTS

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	June 30, 2015		December 31, 2014
Derivative financial instruments:
Common Stock options/warrants	Investments, net	$	9,969	$	6,314
Embedded conversion option	2033 Senior Notes, net of discount and estimated fair value of embedded derivatives	$	73,551	$	65,947
Forward contracts	Unrealized gains on forward contracts are recorded in Prepaid expenses and other current assets. Unrealized losses on forward contracts are recorded in Accrued expenses.	$	115	$	36

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.

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 June 30, 2015 and December 31, 2014, our derivative financial instruments do not meet the documentation requirements to be designated as hedges. Accordingly, we recognize the changes in Fair value of derivative instruments, net in our Condensed Consolidated Statements of Operations. The following table summarizes the losses and gains recorded for the three and six months ended June 30, 2015 and 2014:

	Three months ended June 30,						Six months ended June 30,
(In thousands)	2015			2014			2015			2014
Derivative gain (loss):
Common Stock options/warrants (1)	$	(2,446	)	$	(860	)	$	1,425		$	(263	)
2033 Senior Notes	(14,220		)	11,882			(67,950		)	770
Forward contracts	110			(55		)	181			87
Total	$	(16,556	)	$	10,967		$	(66,344	)	$	594

⁽¹⁾  Amount for 2014 includes the Pharmsynthez Note Receivable and the Purchase Option.

The outstanding forward contracts at June 30, 2015 and December 31, 2014, have been recorded at fair value, and their maturity details are as follows:

(In thousands) Days until maturity	Contract value		Fair value at  June 30, 2015		Effect on income (loss)
0 to 30	$	1,414	$	1,466	$	52
31 to 60	324		336		12
61 to 90	939		981		42
91 to 120	180		188		8
More than 120	31		32		1
Total	$	2,888	$	3,003	$	115

(In thousands) Days until maturity	Contract value		Fair value at  December 31, 2014		Effect on income (loss)
0 to 30	$	750	$	780	$	30
31 to 60	90		93		3
61 to 90	—		—		—
91 to 120	68		71		3
121 to 180	—		—		—
More than 180	—		—		—
Total	$	908	$	944	$	36