Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2022 |
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| Fair Value Disclosures [Abstract] |
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| 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, 2022 and December 31, 2021 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, 2022 | | (Level 1) | | (Level 2) | | (Level 3) | Interest rate contract asset, long-term (1) | | $ | 3,439 | | $ | — | | $ | 3,439 | | $ | — | Foreign currency contract assets, current and long-term (2) | | $ | 9,870 | | $ | — | | $ | 9,870 | | $ | — | Foreign currency contract liabilities, current and long-term (3) | | $ | (2,833) | | $ | — | | $ | (2,833) | | $ | — | Contingent consideration liabilities | | $ | (18,250) | | $ | — | | $ | — | | $ | (18,250) |
| | | | | | | | | | | | | | | | | | Fair Value Measurements Using | | | Total Fair | | Quoted prices in | | Significant other | | Significant | | | Value at | | active markets | | observable inputs | | unobservable inputs | | | December 31, 2021 | | (Level 1) | | (Level 2) | | (Level 3) | Interest rate contract liability, long-term (1) | | $ | (1,447) | | $ | — | | $ | (1,447) | | $ | — | Foreign currency contract assets, current and long-term (2) | | $ | 2,241 | | $ | — | | $ | 2,241 | | $ | — | Foreign currency contract liabilities, current and long-term (3) | | $ | (3,646) | | $ | — | | $ | (3,646) | | $ | — | Contingent consideration liabilities | | $ | (48,234) | | $ | — | | $ | — | | $ | (48,234) |
| (1) | The fair value of the interest rate contract is determined using Level 2 fair value inputs and is reported with 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. |
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| 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, 2022 and 2021 consisted of the following (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2022 | | 2021 | | 2022 | | 2021 | Beginning balance | | $ | 17,426 | | $ | 57,477 | | $ | 48,234 | | $ | 55,750 | Contingent consideration expense | | | 915 | | | 1,115 | | | 4,702 | | | 3,322 | Contingent payments made | | | (91) | | | (10,090) | | | (34,676) | | | (10,579) | Effect of foreign exchange | | | — | | | (19) | | | (10) | | | (10) | Ending balance | | $ | 18,250 | | $ | 48,483 | | $ | 18,250 | | $ | 48,483 |
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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, 2022 and December 31, 2021 (amounts in thousands): | | | | | | | | | | | | | | Fair value at | | | | | | | | | | | September 30, | | Valuation | | | | | | Weighted | Contingent consideration liability | | 2022 | | technique | | Unobservable inputs | | Range | | Average(1) | Revenue-based royalty payments contingent liability | | $ | 2,322 | | Discounted cash flow | | Discount rate | | 14% - 17% | | 15.9% | | | | | | | | Projected year of payments | | 2022-2034 | | 2026 | | | | | | | | | | | | | Revenue milestones contingent liability | | $ | 12,551 | | Monte Carlo simulation | | Discount rate | | 7.5% - 14% | | 7.6% | | | | | | | | Projected year of payments | | 2022-2032 | | 2023 | | | | | | | | | | | | | Regulatory approval contingent liability | | $ | 3,377 | | Scenario-based method | | Discount rate | | 5.7% | | | | | | | | | | Probability of milestone payment | | 80% | | | | | | | | | | Projected year of payment | | 2024-2025 | | 2025 |
| | | | | | | | | | | | | | Fair value at | | | | | | | | | | | December 31, | | Valuation | | | | | | Weighted | Contingent consideration liability | | 2021 | | technique | | Unobservable inputs | | Range | | Average(1) | Revenue-based royalty payments contingent liability | | $ | 2,870 | | Discounted cash flow | | Discount rate | | 13% - 16% | | 14.7% | | | | | | | | Projected year of payments | | 2022-2034 | | 2026 | | | | | | | | | | | | | Revenue milestones contingent liability | | $ | 41,671 | | Monte Carlo simulation | | Discount rate | | 7.5% - 12.5% | | 8.2% | | | | | | | | Projected year of payments | | 2022-2031 | | 2022 | | | | | | | | | | | | | Regulatory approval contingent liability | | $ | 3,693 | | Scenario-based method | | Discount rate | | 2.6% | | | | | | | | | | Probability of milestone payment | | 80% | | | | | | | | | | Projected year of payment | | 2024-2025 | | 2025 |
| (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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| 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, 2022 and 2021 (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2022 | | 2021 | | 2022 | | 2021 | Beginning balance | | $ | 192 | | $ | 1,107 | | $ | 199 | | $ | 730 | Provision for credit loss expense | | | (6) | | | 113 | | | (13) | | | 490 | Ending balance | | $ | 186 | | $ | 1,220 | | $ | 186 | | $ | 1,220 |
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