Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 | |
DocumentAndEntityInformation [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PDL BIOPHARMA, INC. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 160,352,201 | ' |
Entity Public Float | ' | ' | $1,077,901,101 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000882104 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Royalties | $441,421 | $374,525 | $351,641 |
Licenses Revenue | 1,500 | 0 | 10,400 |
Total revenues | 442,921 | 374,525 | 362,041 |
Operating expenses | ' | ' | ' |
Cost of revenues (amortization of intangible asset) | 5,637 | 0 | 0 |
General and administrative | 29,755 | 25,469 | 18,338 |
Total operating expenses | 35,392 | 25,469 | 18,338 |
Operating income | 407,529 | 349,056 | 343,703 |
Non-operating expense, net | ' | ' | ' |
Loss on retirement or conversion of convertible notes | 0 | 0 | -766 |
Interest and other income, net | 19,218 | 7,113 | 593 |
Interest expense | -24,871 | -29,036 | -36,102 |
Total non-operating expense, net | -5,653 | -21,923 | -36,275 |
Income before income taxes | 401,876 | 327,133 | 307,428 |
Income tax expense | 137,346 | 115,464 | 108,039 |
Net income | $264,530 | $211,669 | $199,389 |
Net income per share | ' | ' | ' |
Basic (in Dollars per Share) | $1.89 | $1.52 | $1.43 |
Diluted (in Dollars per Share) | $1.66 | $1.45 | $1.15 |
Weighted average shares outstanding | ' | ' | ' |
Basic (in Shares) | 139,842 | 139,711 | 139,663 |
Diluted (in Shares) | 159,343 | 146,403 | 177,441 |
Cash dividends declared per common share (in Dollars per Share) | $0.60 | $0.60 | $0.60 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | $61,092 | $56,225 | $93,742 | $53,471 | $49,408 | $48,575 | $73,502 | $40,184 | $264,530 | $211,669 | $199,389 | |||
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unrealized gains (losses) on investments in available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 1,122 | [1] | -22 | [1] | 30 | [1] |
Unrealized gains (losses) on cash flow hedges | ' | ' | ' | ' | ' | ' | ' | ' | -922 | [2] | -3,181 | [2] | -5,134 | [2] |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 200 | -3,203 | -5,104 | |||
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $264,730 | $208,466 | $194,285 | |||
[1] | Net of tax of $604, ($12) and $16 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
[2] | Net of tax of ($496), ($1,713) and ($2,764) for the years ended December 31, 2013, 2012 and 2011, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Unrealized gains (losses) on available-for-sale securities, tax | $604 | ($12) | $16 |
Unrealized gains (losses) on cash flow hedges, tax | ($496) | ($1,713) | ($2,764) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $94,302 | $131,212 |
Restricted investment | 0 | 20,000 |
Short-term investments | 5,238 | 17,477 |
Receivables from licensees | 300 | 366 |
Deferred tax assets | 377 | 1,613 |
Notes receivable | 13 | 7,504 |
Prepaid and other current assets | 7,467 | 4,813 |
Total current assets | 107,697 | 182,985 |
Property and equipment, net | 41 | 59 |
Notes and other receivables, long-term | 193,840 | 85,704 |
Long-term deferred tax assets | 6,700 | 4,552 |
Other assets | 0 | 6,666 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 235,677 | 0 |
Total assets | 543,955 | 279,966 |
Current liabilities: | ' | ' |
Accounts payable | 287 | 1,074 |
Accrued liabilities | 11,857 | 9,400 |
Term loan payable | 74,397 | 0 |
Convertible Notes Payable, Current | 320,883 | 0 |
Total current liabilities | 407,424 | 10,474 |
Convertible notes payable | 0 | 309,952 |
Other long-term liabilities | 23,042 | 27,662 |
Total liabilities | 430,466 | 348,088 |
Commitments and contingencies (Note 12) | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 350,000 shares authorized; 139,935 and 139,816 shares issued and outstanding at December 31, 2013 and 2012, respectively | 1,399 | 1,398 |
Additional paid-in capital | -233,173 | -234,066 |
Accumulated other comprehensive loss | -4,888 | -5,088 |
Retained earnings | 350,151 | 169,634 |
Total stockholders' equity (deficit) | 113,489 | -68,122 |
Total liabilities and stockholders' equity (deficit) | $543,955 | $279,966 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock par value (in Dollars per Share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | ' | 0 |
Common stock par value (in Dollars per Share) | $0.01 | $0.01 |
Common stock, shares authorized (in Shares) | 350,000 | 250,000 |
Common stock, shares issued (in Shares) | 139,935 | 139,816 |
Common stock, shares outstanding (in Shares) | 139,935 | 139,816 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $264,530 | $211,669 | $199,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of convertible notes and term loan offering costs | 13,320 | 12,481 | 5,386 |
Amortization of Intangible Assets | 5,637 | 0 | 0 |
Amortization of non-recourse notes offering costs | 0 | 1,226 | 4,533 |
Other amortization, depreciation and accretion of embedded derivative | -404 | 946 | 1,405 |
Loss on retirement or conversion of convertible notes | 0 | 0 | 766 |
Hedge ineffectiveness on foreign exchange contracts | -11 | -257 | 0 |
Stock-based compensation expense | 872 | 937 | 387 |
Tax benefit (expense) from stock-based compensation arrangements | 0 | 0 | -120 |
Net excess tax benefit from stock-based compensation | -22 | -27 | 0 |
Deferred taxes | -999 | 11,338 | 31,217 |
Changes in assets and liabilities: | ' | ' | ' |
Receivables from licensees | 66 | 234 | -131 |
Prepaid and other current assets | 442 | 4,138 | -199 |
Accrued interest on notes receivable | -9,585 | -2,882 | 0 |
Other assets | 1,409 | -1,162 | -6,639 |
Accounts payable | -787 | 546 | -2,012 |
Accrued legal settlement | 0 | -27,500 | -37,500 |
Accrued liabilities | -1,447 | 62 | 239 |
Other long-term liabilities | -2,131 | -1,533 | -26,939 |
Net cash provided by operating activities | 270,890 | 210,216 | 169,782 |
Cash flows from investing activities | ' | ' | ' |
Purchases of investments | -9,875 | -29,898 | -74,744 |
Maturities of investments | 43,780 | 50,831 | 50,696 |
Purchase of intangible asset | -241,314 | 0 | 0 |
Issuance of notes receivable | -148,708 | -95,300 | 0 |
Repayment of notes receivable | 58,134 | 5,000 | 0 |
Acquisition of property and equipment | -2 | -51 | 0 |
Net cash provided by/(used in) investing activities | -297,985 | -69,418 | -24,048 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from term loan | 74,169 | 0 | 0 |
Retirement of convertible notes | 0 | 0 | -133,851 |
Repayment of non-recourse notes | 0 | -93,370 | -110,900 |
Payment of debt issuance costs | 0 | -845 | 0 |
Net proceeds from the issuance of convertible notes | 0 | 0 | 149,712 |
Purchased call options | 0 | 0 | -20,765 |
Proceeds from issuance of warrants | 0 | 0 | 10,868 |
Cash dividends paid | -84,006 | -83,942 | -83,828 |
Excess tax benefit from stock-based compensation | 22 | 27 | 0 |
Net cash used in financing activities | -9,815 | -178,130 | -188,764 |
Net increase/(decrease) in cash and cash equivalents | -36,910 | -37,332 | -43,030 |
Cash and cash equivalents at beginning of the period | 131,212 | 168,544 | 211,574 |
Cash and cash equivalents at end of period | 94,302 | 131,212 | 168,544 |
Supplemental cash flow information | ' | ' | ' |
Cash paid for income taxes | 139,000 | 99,000 | 83,000 |
Cash paid for interest | $10,997 | $15,754 | $25,627 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) Statement (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning Balance at Dec. 31, 2010 | ($324,182,000) | $1,396,000 | ($87,373,000) | ($241,424,000) | $3,219,000 | |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 139,640,152 | ' | ' | ' | |
Issuance of common stock under employee benefit plans (in Shares) | ' | 39,600 | ' | ' | ' | |
Issuance of common stock under employee benefit plans | -1,000 | -1,000 | ' | ' | ' | |
Issuance of convertible debt | 11,870,000 | ' | 11,870,000 | ' | ' | |
Purchase of purchased call options, net of tax | -13,522,000 | ' | -13,522,000 | ' | ' | |
Proceeds from the sale of warrants | 10,868,000 | ' | 10,868,000 | ' | ' | |
Stock-based compensation expense | 387,000 | ' | 387,000 | ' | ' | |
Tax benefit (expense) from employee stock options | -120,000 | ' | -120,000 | ' | ' | |
Dividends declared, APIC adjustment | -83,860,000 | ' | -83,860,000 | ' | ' | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | |
Net income | 199,389,000 | ' | ' | 199,389,000 | ' | |
Change in unrealized gains (losses) on available-for-sale securities, net of tax | 30,000 | [1] | ' | ' | ' | 30,000 |
Changes in unrealized gains and losses on cash flow hedges, net of tax | -5,134,000 | [2] | ' | ' | ' | -5,134,000 |
Total comprehensive income | 194,285,000 | ' | ' | ' | ' | |
Ending Balance at Dec. 31, 2011 | -204,273,000 | 1,397,000 | -161,750,000 | -42,035,000 | -1,885,000 | |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 139,679,752 | ' | ' | ' | |
Issuance of common stock under employee benefit plans (in Shares) | ' | 136,507 | ' | ' | ' | |
Issuance of common stock under employee benefit plans | 0 | -1,000 | -1,000 | ' | ' | |
Issuance of convertible debt | 10,692,000 | ' | 10,692,000 | ' | ' | |
Stock-based compensation expense | 937,000 | ' | 937,000 | ' | ' | |
Dividends declared, APIC adjustment | -83,944,000 | ' | -83,944,000 | ' | ' | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | |
Net income | 211,669,000 | ' | ' | 211,669,000 | ' | |
Change in unrealized gains (losses) on available-for-sale securities, net of tax | -22,000 | [1] | ' | ' | ' | -22,000 |
Changes in unrealized gains and losses on cash flow hedges, net of tax | -3,181,000 | [2] | ' | ' | ' | -3,181,000 |
Total comprehensive income | 208,466,000 | ' | ' | ' | ' | |
Ending Balance at Dec. 31, 2012 | -68,122,000 | 1,398,000 | -234,066,000 | 169,634,000 | -5,088,000 | |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 139,816,259 | ' | ' | ' | |
Issuance of common stock under employee benefit plans (in Shares) | ' | 118,310 | ' | ' | ' | |
Issuance of common stock under employee benefit plans | 0 | -1,000 | -1,000 | ' | ' | |
Stock-based compensation expense | 872,000 | ' | 872,000 | ' | ' | |
Tax benefit (expense) from employee stock options | 22,000 | ' | 22,000 | ' | ' | |
Dividends declared, Retained Earnings adjustment | -84,013,000 | ' | ' | -84,013,000 | ' | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | |
Net income | 264,530,000 | ' | ' | 264,530,000 | ' | |
Change in unrealized gains (losses) on available-for-sale securities, net of tax | 1,122,000 | [1] | ' | ' | ' | 1,122,000 |
Changes in unrealized gains and losses on cash flow hedges, net of tax | -922,000 | [2] | ' | ' | ' | -922,000 |
Total comprehensive income | 264,730,000 | ' | ' | ' | ' | |
Ending Balance at Dec. 31, 2013 | $113,489,000 | $1,399,000 | ($233,173,000) | $350,151,000 | ($4,888,000) | |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 139,934,569 | ' | ' | ' | |
[1] | Net of tax of $604, ($12) and $16 for the years ended DecemberB 31, 2013, 2012 and 2011, respectively. | |||||
[2] | Net of tax of ($496), ($1,713) and ($2,764) for the years ended DecemberB 31, 2013, 2012 and 2011, respectively. |
Organization_and_Business
Organization and Business | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||
1. Organization and Business | |||
PDL BioPharma manages a portfolio of patents and royalty assets, consisting primarily of its Queen et al. antibody humanization patents and license agreements with various biotechnology and pharmaceutical companies. PDL pioneered the humanization of monoclonal antibodies and, by doing so, enabled the discovery of a new generation of targeted treatments for cancer and immunologic diseases for which it receives significant royalty revenue. PDL is currently focused on intellectual property asset management, acquiring in new income generating assets and maximizing value for its shareholders. | |||
The company was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006. PDL was founded in 1986 and is headquartered in Incline Village, Nevada. | |||
In 2011, PDL initiated a strategy to bring in new income generating assets from the healthcare sector. To accomplish this goal, PDL seeks to provide non-dilutive growth capital and financing solutions to late stage public and private healthcare companies and offers immediate financial monetization of royalty streams to companies, academic institutions and inventors. PDL continues to pursue this strategic initiative for which it has already invested approximately $500 million to date. PDL is focused on the quality of the income generating assets and potential returns on investment. | |||
In the year ended December 31, 2013, we received Queen et al. patent royalties on sales of the eight humanized antibody products listed below, all of which are currently approved for use by the FDA and other regulatory agencies outside the United States. | |||
Licensee | Product Names | ||
Genentech | Avastin® | ||
Herceptin® | |||
Xolair® | |||
Lucentis® | |||
Perjeta® | |||
Kadcyla® | |||
Biogen Idec1 | Tysabri® | ||
Chugai | Actemra® | ||
____________________ | |||
1 In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan. | |||
We have also entered into licensing agreements under which we have licensed certain rights under our patents for development-stage products that have not yet reached commercialization including products that are currently in Phase 3 clinical trials. | |||
Until December 2008, our business included biotechnology operations which were focused on the discovery and development of novel antibodies which we spun off to Facet Biotech Corporation. In April 2010, Abbott Laboratories acquired Facet and later renamed the company Abbott Biotherapeutics Corp., and in January 2013, Abbott Biotherapeutics, Corp. was renamed AbbVie Biotherapeutics, Inc. and spun off from Abbott as a subsidiary of AbbVie Inc. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
2. Summary of Significant Accounting Policies | |||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and under the rules and regulations of the Securities and Exchange Commission. | |||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, QHP Royalty Sub LLC. All material intercompany balances and transactions are eliminated in consolidation. | |||
Management Estimates | |||
The preparation of financial statements in conformity with GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||
Segment Disclosures | |||
Our chief operating decision-maker consists of our executive management. Our chief operating decision-maker reviews our operating results and operating plans and makes resource allocation decisions on a company-wide basis; therefore, we operate as one segment. | |||
Cash Equivalents and Investments | |||
We consider all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and, by policy, limit the amount of credit exposure in any one financial instrument. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). See Note 5. | |||
Fair Value Measurements | |||
The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or we paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: | |||
Level 1 – based on quoted market prices in active markets for identical assets and liabilities; | |||
Level 2 – based on quoted market prices for similar assets and liabilities, using observable market based inputs or unobservable market based inputs corroborated by market data, and | |||
Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. | |||
We do not estimate the fair value of our royalty assets for financial statement reporting purposes. | |||
Notes and Other Long-Term Receivables | |||
Notes receivable and loans originated by us are initially recorded at the amount advanced to the borrower. Notes receivable and loan origination and commitment fees, net of certain origination costs, are recorded as an adjustment to the carrying value of the notes receivable and loans and are amortized over the term of the related financial asset using the effective interest rate method. Certain of our notes receivable and loans require the borrower to make variable payments which are dependent upon the borrower's sales of specific products. We have elected to use the prospective interest method to account for these notes receivable and loans subsequent to their initial recognition. Under this approach, we recognize the impact of any variations from the expected returns in the period when received. From time to time, we will re-evaluate the expected cash flows and may adjust the effective interest rate with effect prospective from the date of assessment, if the impact of such adjustment could be material to our financial statements. Determining the initial effective interest rates and subsequent re-assessment of the effective interest rates for notes receivable and loans with variable cash flows requires judgment and is based on significant assumptions related to estimates of the amounts and timing of future product sales by the borrowers. | |||
We evaluate the collectability of both interest and principal for each note receivable and loan to determine whether it is impaired. A note receivable or loan is considered to be impaired when, based on current information and events, we determine it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a note receivable or loan is considered to be impaired, the amount of loss is calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan's effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan is collateralized and we expect repayment to be provided solely by the collateral. Impairment assessments require significant judgments and are based on significant assumptions related to the borrower's credit risk, financial performance, expected sales, and fair value of the collateral. | |||
Intangible Assets | |||
Amortization of definite-lived intangible royalty assets is computed using a units of production method over the estimated useful lives of the assets. The related amortization is recognized as a cost of royalty revenues. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. | |||
Foreign Currency Hedging | |||
We enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes. | |||
We hedge certain Euro-denominated currency exposures related to our licensees’ product sales with Euro forward contracts. In general, these contracts are intended to offset the underlying Euro market risk in our royalty revenues. These contracts extend through the fourth quarter of 2014. We designate foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated sales as cash flow hedges. | |||
At the inception of the hedging relationship and on a quarterly basis, we assess hedge effectiveness. The fair value of the Euro contracts is estimated using pricing models with readily observable inputs from actively quoted markets and is disclosed on a gross basis. The aggregate unrealized gain or loss, net of tax, on the effective component of the hedge is recorded in stockholders’ equity (deficit) as accumulated other comprehensive income (loss). Gains or losses on cash flow hedges are recognized as an adjustment to royalty revenue in the same period that the hedged transaction impacts earnings as royalty revenue. Any gain or loss on the ineffective portions is reported in other income in the period the ineffectiveness occurs. | |||
During the third quarter of 2012, we de-designated and terminated a portion of our cash flow hedges. The gain realized was reclassified from other comprehensive income (loss) to other income in the third quarter. See Note 6 for additional information on our foreign currency hedge transactions. | |||
Revenue Recognition | |||
Licensed Royalty Revenues | |||
Under most of our patent license agreements, we receive royalty payments based upon our licensees’ net sales of covered products. Generally, under these agreements we receive royalty reports from our licensees approximately one quarter in arrears, that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the quarter reported to us by our licensees, that is, royalty revenues are generally recognized one quarter following the quarter in which sales by our licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from our licensees. | |||
We may also receive annual maintenance fees from licensees of our Queen et al. patents prior to patent expiry as well as periodic milestone payments. We have no performance obligations with respect to such fees. Maintenance fees are recognized as they are due and when payment is reasonably assured. Total annual milestone payments in each of the last several years have been less than 1% of total revenue. | |||
Acquired Royalty Revenues | |||
We receive royalty payments based upon Depomed's licensees’ net sales of covered products. Generally, under these agreement we receive royalty reports from Depomed approximately one month in arrears, that is, generally in the month after Depomed's licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the month reported to us by Depomed, that is, royalty revenues are generally recognized one month following the month in which sales by Depomed's licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from Depomed licensees. | |||
Comprehensive Income (Loss) | |||
Comprehensive income (loss) comprises net income adjusted for other comprehensive income (loss), using the specific identification method, which includes the changes in unrealized gains and losses on cash flow hedges and changes in unrealized gains and losses on our investments in available-for-sale securities, all net of tax, which are excluded from our net income. | |||
Property and Equipment | |||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight-line method over the following estimated useful lives: | |||
Leasehold improvements | Shorter of asset life or term of lease | ||
Computer and office equipment | 3 years | ||
Furniture and fixtures | 7 years |
Net_Income_per_Share
Net Income per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income per Share | ' | |||||||||||
3. Net Income per Share | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Numerator | ||||||||||||
Net income | $ | 264,530 | $ | 211,669 | $ | 199,389 | ||||||
Add back interest expense for convertible notes, net of estimated tax of $13,000, $25,000 and $3.0 million, for the years ended December 31, 2013, 2012 and 2011, respectively | 25 | 46 | 5,544 | |||||||||
Income used to compute net income per diluted share | $ | 264,555 | $ | 211,715 | $ | 204,933 | ||||||
Denominator | ||||||||||||
Total weighted-average shares used to compute net income per basic share | 139,842 | 139,711 | 139,663 | |||||||||
Effect of dilutive stock options | 83 | 95 | 13 | |||||||||
Restricted stock awards | 20 | 17 | 25 | |||||||||
Assumed conversion of Series 2012 notes | 12,373 | 4,944 | — | |||||||||
Assumed conversion of 2012 notes | — | — | 9,790 | |||||||||
Assumed conversion of February 2015 notes | 106 | 631 | 27,950 | |||||||||
Assumed conversion of May 2015 notes | 6,919 | 1,005 | — | |||||||||
Shares used to compute net income per diluted share | 159,343 | 146,403 | 177,441 | |||||||||
Net income per basic share | $ | 1.89 | $ | 1.52 | $ | 1.43 | ||||||
Net income per diluted share | $ | 1.66 | $ | 1.45 | $ | 1.15 | ||||||
We compute net income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net income per diluted share include shares that may be issued under our stock options and restricted stock awards, our Series 2012 Notes and our May 2015 Notes on a weighted average basis for the period that the notes were outstanding, including the effect of adding back interest expense and the underlying shares using the if converted method. In the first quarter of 2012, $179.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes, and in the third quarter of 2013, $1.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes, and the February 2015 Notes were retired. | ||||||||||||
In May 2011, we issued our May 2015 Notes, and in January and February 2012 we issued our Series 2012 Notes. The Series 2012 Notes and May 2015 Notes are net share settled, with the principal amount settled in cash and the excess settled in our common stock. The weighted-average share adjustments related to our Series 2012 Notes and May 2015 Notes include the shares issuable in respect of such excess. | ||||||||||||
We excluded from our calculations of net income per diluted share 21.1 million and 19.6 million shares for the years ended December 31, 2013 and 2012, respectively, for our warrants issued in 2011, because the exercise price of the warrants exceeded the average market price of our common stock and thus, for the periods presented, no stock was issuable upon conversion. These securities could be dilutive in future periods. Our purchased call options, issued in 2011, will always be anti-dilutive and therefore 24.8 million and 23.0 million shares were excluded from our calculations of net income per diluted share for the years ended December 31, 2013 and 2012, respectively, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 13. | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, we excluded approximately 115,000, 157,000 and 193,000 shares, respectively, underlying outstanding stock options, and for the years ended December 31, 2013, 2012 and 2011, we excluded approximately zero, 1,000, and zero shares, respectively, underlying restricted stock awards, calculated on a weighted average basis, from our net income per diluted share calculations because their effect was anti-dilutive. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||
4. Fair Value Measurements | |||||||||||||||||||||||||
The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The following table presents the fair value of our financial instruments measured at fair value on a recurring basis by level of input within the fair value hierarchy defined in Note 2: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 85,970 | $ | — | $ | 85,970 | $ | 121,095 | $ | — | $ | 121,095 | |||||||||||||
Certificates of deposit | — | — | — | — | 26,128 | 26,128 | |||||||||||||||||||
Corporate securities | — | 5,238 | 5,238 | — | — | — | |||||||||||||||||||
Corporate debt securities | — | — | — | — | 13,572 | 13,572 | |||||||||||||||||||
Total | $ | 85,970 | $ | 5,238 | $ | 91,208 | $ | 121,095 | $ | 39,700 | $ | 160,795 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 8,871 | $ | 8,871 | $ | — | $ | 7,581 | $ | 7,581 | |||||||||||||
The fair value of the certificates of deposit is determined using quoted market prices for similar instruments and non-binding market prices that are corroborated by observable market data. At December 31, 2012, the certificates of deposit include a $20 million certificate of deposit that was restricted as it was purchased to collateralize the line of credit for Merus Labs; see Note 7. | |||||||||||||||||||||||||
Corporate securities consist primarily of U.S. corporate equity holdings. The fair value of corporate securities is estimated using recently executed transactions or market quoted prices, where observable. Independent pricing sources are also used for valuation. | |||||||||||||||||||||||||
Corporate debt securities consisted primarily of U.S. corporate bonds. The fair value of corporate debt securities is estimated using recently executed transactions or market quoted prices, where observable. Independent pricing sources are also used for valuation. | |||||||||||||||||||||||||
The fair value of the foreign currency hedging contracts is estimated based on pricing models using readily observable inputs from actively quoted markets and are disclosed on a gross basis. | |||||||||||||||||||||||||
There have been no transfers between levels during the years ended December 31, 2013 and 2012. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer. | |||||||||||||||||||||||||
The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Carrying Value | Level 2 | Level 3 | Carrying Value | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Wellstat Diagnostics note receivable | $ | 47,694 | $ | — | $ | 46,042 | $ | 41,098 | $ | — | $ | 41,098 | |||||||||||||
Merus Labs note receivable | — | — | — | 30,000 | 30,000 | — | |||||||||||||||||||
AxoGen note receivable and embedded derivative | 26,544 | — | 25,785 | 22,110 | — | 22,110 | |||||||||||||||||||
Avinger note receivable | 20,250 | — | 19,061 | — | — | — | |||||||||||||||||||
LENSAR note receivable | 39,572 | — | 39,572 | — | — | — | |||||||||||||||||||
Durata note receivable | 24,995 | — | 24,995 | — | — | — | |||||||||||||||||||
Direct Flow Medical note receivable | 34,799 | — | 34,799 | — | — | — | |||||||||||||||||||
Total | $ | 193,854 | $ | — | $ | 190,254 | $ | 93,208 | $ | 30,000 | $ | 63,208 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Series 2012 Notes | $ | 172,630 | $ | 277,650 | $ | — | $ | 165,528 | $ | 227,187 | $ | — | |||||||||||||
May 2015 Notes | 148,253 | 212,304 | — | 143,433 | 182,031 | — | |||||||||||||||||||
February 2015 Notes | — | — | — | 991 | 1,269 | — | |||||||||||||||||||
Term loan | 74,397 | 75,000 | — | — | — | — | |||||||||||||||||||
Total | $ | 395,280 | $ | 564,954 | $ | — | $ | 309,952 | $ | 410,487 | $ | — | |||||||||||||
As of December 31, 2013, the estimated fair value of our Wellstat Diagnostic note receivable, AxoGen note receivable, Avinger note receivable, LENSAR note receivable, Durata note receivable and Direct Flow Medical note receivable, and as of December 31, 2012, the estimated fair value of our Axogen note receivable and Merus Labs note receivable were determined using one or more discounted cash flow models, incorporating expected payments and the interest rate extended on the notes receivable with fixed interest rates and incorporating expected payments for notes receivable with a variable rate of return. In some instances the carrying values of certain notes receivable exceed their estimated fair market values. This is generally the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. In all cases, the undiscounted expected future cash flows exceed the related carrying value. | |||||||||||||||||||||||||
When deemed necessary we engage a third party valuation expert to evaluate our investments and the related inputs needed for us to estimate the fair value of certain investments. We determined our notes receivable of our assets to be Level 3 assets as our valuations utilized significant unobservable inputs, including estimates of future revenues, discount rates, expectations about settlement, terminal values and required yield. To provide support for the estimated fair value measurements, we considered forward looking performance related to the investment and current measures associated with high yield indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in similar sectors. | |||||||||||||||||||||||||
The carrying value and estimated fair value of the AxoGen note receivable include the value of a change of control embedded derivative valued at $1.1 million and $0.6 million at December 31, 2013 and 2012, respectively. We utilized discounted cash flows and probability analysis to estimate the fair value of the embedded derivative. | |||||||||||||||||||||||||
On December 31, 2013, the estimated fair value of Wellstat was determined by using a discounted cash flow that was based upon expected income from estimated sales through December 31, 2016. Due to breach of the credit agreement as of December 31, 2012, as discussed in Note 7, we considered the estimated fair value of the collateral when estimating fair value of the note. The note is collateralized by all assets and equity interest in Wellstat Diagnostics. The estimated fair value of the collateral was determined by using a discounted cash flow analysis related to the underlying technology included in the collateral. The discounted cash flow was based upon expected income from sales of planned products over a period of 15 years. The terminal value was estimated using selected market multiples based on sales and EBITDA. | |||||||||||||||||||||||||
The fair values of our convertible notes were determined using quoted market pricing or dealer quotes. |
Cash_Equivalents_and_Investmen
Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||
Cash Equivalents and Investments | ' | ||||||||||||||||||||||||||||
5. Cash, Cash Equivalents and Investments | |||||||||||||||||||||||||||||
As of December 31, 2013, we had invested our excess cash balances primarily in money market funds, certificates of deposit, and a corporate security, and in 2012, money market funds, certificates of deposit, and corporate debt securities. Our securities are classified as available-for-sale and are carried at estimated fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss) in stockholders’ equity (deficit), net of estimated taxes. See Note 4 for fair value measurement information. The cost of securities sold is based on the specific identification method. To date, we have not experienced credit losses on investments in these instruments and we do not require collateral for our investment activities. | |||||||||||||||||||||||||||||
Summary of Cash and Available-For-Sale Securities | Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Restricted Investment | Short-Term Investments | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Cash | $ | 8,332 | $ | — | $ | — | $ | 8,332 | $ | 8,332 | $ | — | $ | — | |||||||||||||||
Money market funds | 85,970 | — | — | 85,970 | 85,970 | — | — | ||||||||||||||||||||||
Corporate securities | 3,500 | 1,738 | — | 5,238 | — | — | 5,238 | ||||||||||||||||||||||
Total | $ | 97,802 | $ | 1,738 | $ | — | $ | 99,540 | $ | 94,302 | $ | — | $ | 5,238 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Cash | $ | 7,894 | $ | — | $ | — | $ | 7,894 | $ | 7,894 | $ | — | $ | — | |||||||||||||||
Money market funds | 121,095 | — | — | 121,095 | 121,095 | — | — | ||||||||||||||||||||||
Certificates of deposit | 26,128 | — | — | 26,128 | 2,223 | 20,000 | 3,905 | ||||||||||||||||||||||
Corporate debt securities | 13,562 | 10 | — | 13,572 | — | — | 13,572 | ||||||||||||||||||||||
Total | $ | 168,679 | $ | 10 | $ | — | $ | 168,689 | $ | 131,212 | $ | 20,000 | $ | 17,477 | |||||||||||||||
We recognized approximately zero and $13,000, respectively, of gains on sales of available-for-sale securities in the years ended December 31, 2013 and 2012. We did not recognize any gains or losses on sales of available-for-sale securities during 2011. | |||||||||||||||||||||||||||||
Cash and Available-For-Sale Securities by Contractual Maturity | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||
Less than one year | $ | 97,802 | $ | 99,540 | $ | 168,679 | $ | 168,689 | |||||||||||||||||||||
Greater than one year but less than five years | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 97,802 | $ | 99,540 | $ | 168,679 | $ | 168,689 | |||||||||||||||||||||
The unrealized gain on investments included in other comprehensive income (loss), net of estimated taxes, was approximately $1,129,000 and $7,000 as of December 31, 2013 and 2012, respectively. |
Foreign_Currency_Hedging
Foreign Currency Hedging | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Foreign Currency Hedging | ' | ||||||||||||||||||||
6. Foreign Currency Hedging | |||||||||||||||||||||
We designate the foreign currency exchange contracts used to hedge our royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on our Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of December 31, 2013 and 2012, all outstanding Euro forward contracts and option contracts were classified as cash flow hedges. | |||||||||||||||||||||
In January 2012, we modified our existing Euro forward and option contracts related to our licensees’ sales through December 2012 into Euro forward contracts with more favorable rates. Additionally, we entered into a series of Euro forward contracts covering the quarters in which our licensees’ sales occur through December 2014. | |||||||||||||||||||||
During the third quarter of 2012, we reduced our forecasted exposure to the Euro for 2013 royalties. We de-designated and terminated certain forward contracts, due to our determination that certain cash flows under the de-designated contracts were not probable to occur, and recorded a gain of approximately $391,000 to interest and other income, net, which was reclassified from other comprehensive income (loss) net of tax effects. The termination of these contracts was effected through a reduction in the notional amount of the original hedge contracts. | |||||||||||||||||||||
The notional amounts, Euro exchange rates, fair values of our Euro forward contracts designated as cash flow hedges were as follows: | |||||||||||||||||||||
Euro Forward Contracts | December 31, 2013 | December 31, 2012 | |||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Currency | Settlement Price | Type | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||
($ per Euro) | |||||||||||||||||||||
Euro | 1.23 | Sell Euro | $ | — | $ | — | $ | 27,553 | $ | (2,036 | ) | ||||||||||
Euro | 1.24 | Sell Euro | 10,850 | (1,207 | ) | 10,850 | (726 | ) | |||||||||||||
Euro | 1.27 | Sell Euro | 44,450 | (3,760 | ) | 44,450 | (1,950 | ) | |||||||||||||
Euro | 1.281 | Sell Euro | 36,814 | (2,785 | ) | 36,814 | (1,331 | ) | |||||||||||||
Euro | 1.3 | Sell Euro | 19,500 | (1,119 | ) | 91,000 | (1,538 | ) | |||||||||||||
Total | $ | 111,614 | $ | (8,871 | ) | $ | 210,667 | $ | (7,581 | ) | |||||||||||
The location and fair values of our Euro contracts in our Consolidated Balance Sheets were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Cash Flow Hedge | Location | 2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Euro contracts | Accrued liabilities | $ | 7,355 | $ | 3,574 | ||||||||||||||||
Euro contracts | Other long-term liabilities | $ | 1,516 | $ | 4,007 | ||||||||||||||||
The effect of our derivative instruments in our Consolidated Statements of Income and our Consolidated Statements of Comprehensive Income were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net gain (loss) recognized in OCI, net of tax (1) | $ | (2,432 | ) | $ | (5,040 | ) | $ | (4,470 | ) | ||||||||||||
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax (2) | $ | (1,510 | ) | $ | (1,859 | ) | $ | 664 | |||||||||||||
Net gain (loss) recognized in interest and other income, net -- cash flow hedges (3) | $ | 11 | $ | (169 | ) | $ | (19 | ) | |||||||||||||
Net gain recognized in interest and other income, net -- non-designated contracts (4) | $ | — | $ | 391 | $ | — | |||||||||||||||
_________________________ | |||||||||||||||||||||
(1) Net change in the fair value of the effective portion of cash flow hedges classified in other comprehensive income (loss) (OCI) | |||||||||||||||||||||
(2) Effective portion classified as royalty revenue | |||||||||||||||||||||
(3) Ineffectiveness from excess hedge was approximately ($11), $8 and $19 for the years ended December 31, 2013, 2012 and 2011, respectively. Net loss from restructuring hedges was approximately zero, $161 and zero for the years ended December 31, 2013, 2012 and 2011, respectively | |||||||||||||||||||||
(4) Gain on de-designation classified as interest and other income, net | |||||||||||||||||||||
A loss of approximately $4.8 million, net of tax, is expected to be reclassified from other comprehensive income (loss) against earnings in the next 12 months. |
Notes_Receivable_and_Other_Lon
Notes Receivable and Other Long-term Receivables | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Notes and Other Long-term Receivables | ' |
Notes and Other Long-term Receivables | |
Notes and other long-term receivables included the following significant agreements: | |
Wellstat Diagnostics Note Receivable and Credit Agreement | |
In March 2012, the Company executed a $7.5 million two-year senior secured note receivable with the holders of the equity interests in Wellstat Diagnostics. In addition to bearing interest at 10% per annum, the note gave PDL certain rights to negotiate for certain future financing transactions. In August 2012, PDL and the borrowers amended the note receivable, providing a senior secured note receivable of $10.0 million, bearing interest at 12% per annum, to replace the original $7.5 million note. This $10.0 million note was repaid on November 2, 2012. | |
On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company is to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). The full amount available under this agreement was drawn by Wellstat Diagnostics in November 2012. In addition, PDL will receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics' products, if any, commencing upon the commercialization of its products. | |
In January 2013, the Company was informed that, as of November 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. PDL sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, PDL exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to PDL and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby PDL agreed to refrain from exercising additional remedies for 120 days while Wellstat Diagnostics raised funds to capitalize the business and the parties attempted to negotiate a revised credit agreement. PDL agreed to provide up to $7.9 million to Wellstat Diagnostics to fund the business for the 120-day forbearance period under the terms of the forbearance agreement. Following the conclusion of the June 28 forbearance period, the Company agreed to forbear in its exercise of remedies for additional periods of time to allow the owners and affiliates of Wellstat Diagnostics to complete a pending financing transaction. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. | |
On August 15, 2013, the owners and affiliates of Wellstat Diagnostics completed a financing transaction to fulfill its obligations under the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. | |
Except as otherwise described here, the material terms of the amended credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL will receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues upon successful commercialization. However, pursuant to the amended credit agreement: (i) the principal amount was reset to approximately $44.1 million which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics' obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics are required to contribute additional capital to Wellstat Diagnostics upon the sale, if any, of an affiliated entity. The restated credit agreement continues to have an ultimate maturity date of December 31, 2021 (but may mature earlier upon certain specified events). | |
When the principal amount was reset it resulted in a $2.5 million reduction of the carrying value of the note receivable which was recorded as a financing cost as a component of interest and other income, net. The new carrying value is lower as a function of the variable nature of the internal rate of return to be realized by the Company based on when the note is repaid. The internal rate of return calculation, although increased, was reset when the credit agreement was amended and restated. | |
Wellstat Diagnostics may prepay the amended credit agreement at a price that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company. In the event of a change of control, bankruptcy or certain other customary events of defaults, or Wellstat Diagnostics' failure to achieve a specified annual revenue threshold in 2017, Wellstat Diagnostics will be required to prepay the amended credit agreement at a price that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company. The amended credit agreement is secured by a pledge of all of the assets of Wellstat Diagnostics, a pledge of all of Wellstat Diagnostics’ equity interests by the holders thereof, and a second lien on the assets of the affiliates of Wellstat Diagnostics. | |
At December 31, 2013, and 2012, the carrying value of the note was included in non-current assets. | |
As of December 31, 2013, the Company determined that its interest in Wellstat Diagnostics represented a variable interest in a Variable Interest Entity since Wellstat Diagnostics' equity was not sufficient to finance its operations without amounts advanced to it under the Company's note and forbearance agreement. However, the Company does not have the power to direct the activities of Wellstat Diagnostics that most significantly impacts Wellstat Diagnostics's economic performance and is not the primary beneficiary of Wellstat Diagnostics; therefore, Wellstat Diagnostics is not subject to consolidation. | |
As of December 31, 2013, the carrying value of all amounts advanced to Wellstat Diagnostics was $47.7 million, which was recorded in notes receivable. As of December 31, 2013, the maximum loss exposure was $47.7 million. | |
Merus Labs Note Receivable and Credit Agreement | |
In July 2012, PDL loaned $35.0 million to Merus Labs in connection with its acquisition of a commercial-stage pharmaceutical product and related assets. In addition, PDL agreed to provide a $20.0 million letter of credit on behalf of Merus Labs for the seller of the assets to draw upon to satisfy the remaining $20.0 million purchase price obligation. The seller made this draw on the letter of credit in July 2013 and an additional loan to Merus Labs for $20.0 million was recorded for an aggregate of $55.0 million in total borrowings. | |
Outstanding borrowings under the July 2012 loan bore interest at the rate of 13.5% per annum and outstanding borrowings as a result of the draw on the letter of credit bore interest at the rate of 14.0% per annum. Merus Labs was required to make four periodic principal payments in respect of the July 2012 loan, with repayment of the remaining principal balance of all loans due on March 31, 2015. The borrowings were subject to mandatory prepayments upon certain asset dispositions or debt issuances as set forth in the credit agreement. Merus Labs made the first of these payments in December 2012 in the amount of $5.0 million, and made the second payment in June 2013 in the amount of $7.5 million. In September 2013, Merus Labs made two additional payments totaling $43.3 million, including the prepayment fee, in order to pay its remaining outstanding balance. | |
In September 2013, Merus Labs prepaid in full its obligations under the credit agreement , including accrued interest through the payment date and a prepayment fee of 1% of the aggregate principal amount outstanding at the time of repayment. There was no outstanding balance owed as of December 31, 2013. | |
AxoGen Royalty Agreement | |
In October 2012, PDL entered into the Royalty Agreement with AxoGen pursuant to which the Company will receive specified royalties on AxoGen’s net revenues (as defined in the Royalty Agreement) generated by the sale, distribution or other use of AxoGen’s products (assigned interests). The Royalty Agreement has an eight years term and provides PDL with royalties of 9.95% based on AxoGen net revenues, subject to agreed-upon guaranteed quarterly minimum payments of approximately $1.3 to $2.5 million beginning in the fourth quarter of 2014, and the right to require AxoGen to repurchase the Royalty Agreement at the end of the fourth year. AxoGen has been granted certain rights to call the contract in years five through eight. The total consideration PDL paid to AxoGen for the assigned interests was $20.8 million, including the termination of an interim funding of $1.8 million in August 2012. AxoGen was required to use a portion of the proceeds from the Royalty Agreement to pay the outstanding balance under its existing credit facility with a third party. The royalty rights are secured by the cash and accounts receivable of AxoGen. | |
Under the Royalty Agreement, beginning on October 1, 2016, or in the event of the occurrence of a material adverse event or AxoGen's bankruptcy or material breach of the Royalty Agreement, the Company may require AxoGen to repurchase the assigned interests at a price that, together with payments already made by AxoGen, would generate a specified internal rate of return to the Company. The Company has concluded that the repurchase option is an embedded derivative which should be bifurcated and separately accounted for at fair value. | |
In the event of a change of control, AxoGen must repurchase the assigned interests from the Company for a repurchase price equal to an amount that, together with payments already made by AxoGen, would generate a 32.5% internal rate of return to the Company. The Company has concluded that the change of control provision is an embedded derivative that should be bifurcated and separately recorded at its estimated fair value. The estimated fair value of the change of control provision was approximately $1.1 million and $0.6 million as of December 31, 2013, and December 31, 2012, respectively. The estimated fair value of this embedded derivative is included in the carrying value of the AxoGen Note Receivable. The Company recognized approximately $0.5 million related to the change in the estimated fair value of embedded derivative during the year ended December 31, 2013. | |
At any time after September 30, 2016, AxoGen, at its option, can repurchase the assigned interests under the Royalty Agreement for a price applicable in a change of control. | |
During the term of the Royalty Agreement, the Company is entitled to designate an individual to be a member of AxoGen's board of directors. The Company has exercised this right and on October 5, 2012, upon close of the transaction, the Company's President and Chief Executive Officer was elected to AxoGen's board of directors. | |
On August 14, 2013, PDL purchased 1,166,666 shares of AXGN at $3.00 per share, totaling $3.5 million. The shares are classified as available-for-sale and recorded as short term investments on the consolidated balance sheet. As of December 31, 2013, the shares were valued at $5.2 million, which results in an unrealized gain of $1.7 million and is recorded in other comprehensive income (loss). | |
Avinger Note Receivable and Royalty Agreement | |
On April 18, 2013, PDL entered into a credit agreement with Avinger, under which we made available to Avinger up to $40.0 million to be used by Avinger in connection with the commercialization of its currently marketed lumivascular catheter devices and in the development of Avinger's lumivascular atherectomy device. Of the $40.0 million available to Avinger, we funded an initial $20.0 million, net of fees, at close of the transaction. Upon the attainment by Avinger of a certain revenue milestone to be accomplished no later than the end of the first half of 2014, we will fund them an additional amount between $10.0 million and $20.0 million (net of fees) at Avinger's election. Outstanding borrowings under the initial loan bear interest at a stated rate of 12% per annum, and any future outstanding borrowings as a result of an additional amount funded upon reaching the revenue milestone will bear interest at the rate of 14% per annum. | |
Avinger is required to make quarterly interest and principal payments. Principal repayment will commence on: (i) the eleventh interest payment date if the revenue milestone is not achieved or (ii) the thirteenth interest payment date if the revenue milestone is achieved. The principal amount outstanding at commencement of repayment, after taking into account any payment-in-kind, will be repaid in equal installments until final maturity of the loans. The loans will mature in April 2018. | |
In connection with entering into the credit agreement, the Company will receive a low, single-digit royalty on Avinger's net revenues through April 2018. Avinger may prepay the outstanding principal and accrued interest on the notes receivable at any time. If Avinger repays the notes receivable prior to April 2018, the royalty on Avinger's net revenues will be reduced by 50% and will be subject to certain minimum payments from the prepayment date through April 2018. | |
The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Avinger and any of its subsidiaries (other than controlled foreign corporations, if any). The credit agreement provides for a number of standard events of default, including payment, bankruptcy, covenant, representation and warranty and judgment defaults. | |
LENSAR Credit Agreement | |
On October 1, 2013, PDL entered into a credit agreement with LENSAR, under which PDL made available to LENSAR up to $60 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR Laser System. Of the $60 million available to LENSAR, an initial $40 million, net of fees, was funded by PDL at close of the transaction. Upon the attainment by LENSAR of a specified sales milestone to be accomplished no later than September 30, 2014, PDL will fund LENSAR an additional $20 million. Outstanding borrowings under the loans bear interest at the rate of 15.5% per annum, payable quarterly in arrears. | |
Principal repayment will commence on the thirteenth interest payment date or December 30, 2016. The principal amount outstanding at the commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on October 1, 2018. LENSAR may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The loans are secured by all of the assets of LENSAR. | |
Durata Credit Agreement | |
On October 31, 2013, PDL entered into a credit agreement with Durata, whereby the Company made available to Durata up to $70.0 million. Of the $70.0 million available to Durata, an initial $25.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. Upon marketing approval of dalbavancin in the United States, to be accomplished no later than December 31, 2014 (the tranche two milestone), the Company will fund Durata an additional $15 million (tranche two). Within 9 months after the occurrence of the tranche two milestone, Durata may request up to a single additional $30 million borrowing. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bear interest at the rate of 14.0% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans will decrease to 12.75%. | |
Principal repayment will commence on the fifth interest payment date, March 31, 2015. The principal amount outstanding will be repaid quarterly over the remainder of the loans in an increasing percentage of the principal outstanding at commencement of repayment. The loans will mature on October 31, 2018. Durata may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The Company is entitled to receive a fee in addition to the prepayment penalty in the event that Durata undergoes a change in control. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Durata. | |
Direct Flow Credit Agreement | |
On November 5, 2013, PDL entered into a credit agreement with Direct Flow Medical, in which PDL will provide up to $50.0 million to Direct Flow Medical. Of the $50.0 million available to Direct Flow Medical, an initial $35.0 million (tranche one), net of fees, was provided by the Company at the close of the transaction. Upon the attainment of a specified revenue milestone to be accomplished no later than December 31, 2014 (the tranche two milestone), the Company will loan to Direct Flow Medical an additional $15.0 million, net of fees. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bear interest at the rate of 15.5% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans will decrease to 13.5%. | |
Principal repayment will commence on the twelfth interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on November 5, 2018. Direct Flow Medical may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Direct Flow Medical and any of its subsidiaries. | |
For carrying value and fair value information related to our Notes and Other Long-term Receivables, see Note 4. |
Prepaid_and_Other_Current_Asse
Prepaid and Other Current Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid and Other Current Assets [Abstract] | ' | ||||||||
Other Current Assets [Text Block] | ' | ||||||||
Prepaid and Other Current Assets | |||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Convertible notes issuance costs | $ | 3,097 | $ | — | |||||
Prepaid income taxes | 1,877 | 3,351 | |||||||
Other | 2,493 | 1,462 | |||||||
Total | $ | 7,467 | $ | 4,813 | |||||
During the year ended December 31, 2013, the convertible notes issuance costs were reclassified from non-current to current as the notes will be due upon demand during 2014. See Note 13. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
Property and Equipment | |||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Leasehold improvements | $ | 127 | $ | 127 | |||||
Computer and office equipment | 9,028 | 8,993 | |||||||
Furniture and fixtures | 38 | 38 | |||||||
Total | 9,193 | 9,158 | |||||||
Less accumulated depreciation and amortization | (9,152 | ) | (9,131 | ) | |||||
Construction in progress | — | 32 | |||||||
Property and equipment, net | $ | 41 | $ | 59 | |||||
Intangible_Asset_Notes
Intangible Asset (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Intangible Asset [Abstract] | ' | ||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
Intangible Assets | |||||||||||||
Depomed Royalty Purchase and Sales Agreement | |||||||||||||
On October 18, 2013, PDL entered into a royalty purchase and sale agreement with Depomed, Inc. and Depo DR Sub, LLC, a wholly owned subsidiary of Depomed, whereby the Company acquired the rights to receive royalties and milestones payable on sales of Type 2 diabetes products licensed by Depomed in exchange for a $240.5 million cash payment. Total arrangement consideration was $241.3 million which was comprised of the $240.5 million cash payment to Depomed and $0.8 million in transaction costs. | |||||||||||||
The rights acquired include Depomed’s royalty and milestone payments accruing from and after October 1, 2013: (a) from Santarus with respect to sales of Glumetza® (metformin HCL extended-release tablets) in the United States; (b) from Merck with respect to sales of Janumet® XR (sitagliptin and metformin HCL extended-release); (c) from Janssen Pharmaceutica with respect to potential future development milestones and sales of its investigational fixed-dose combination of Invokana® (canagliflozin) and extended-release metformin; (d) from Boehringer Ingelheim with respect to potential future development milestones and sales of the investigational fixed-dose combinations of drugs and extended-release metformin subject to Depomed’s license agreement with Boehringer Ingelheim; and (e) from LG Life Sciences and Valeant Pharmaceuticals for sales of extended-release metformin in Korea and Canada, respectively. | |||||||||||||
Under the terms of the royalty agreement, the Company will receive all royalty and milestone payments due under license agreements between Depomed and its licensees until the Company has received payments equal to two times the cash payment it made to Depomed, after which all net payments received by Depomed will be shared evenly between the Company and Depomed. | |||||||||||||
The royalty agreement terminates on the third anniversary following the date upon which the later of the following occurs: (a) October 25, 2021, or (b) at such time as no royalty payments remain payable under any license agreement and each of the license agreements has expired by its terms. | |||||||||||||
This transaction has been accounted for as the acquisition of intangible assets. An income approach was used for the purpose of allocating the purchase price based on the relative fair value of each intangible asset and in the determination of the useful life of each intangible asset. The intangible assets have finite lives ranging from three to nine years and will be amortized to cost of royalty revenues over the related periods. During the fourth quarter of 2013, we began receiving royalty revenues related to Glumetza and commenced amortization of the carrying value of the related intangible asset of $164.5 million. The intangible assets related to the other licensed products with a carrying value of $76.8 million were not being amortized as of December 31, 2013 as no revenues were recognized related to those intangible assets in 2013. We will commence amortization of those intangible assets when the Company receives royalty revenues related to sales of the related products. | |||||||||||||
The fair value of the intangible assets acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. The discounted cash flow was based upon expected royalties from sales of licensed products over periods up to nine years. We determined that the intangible assets were Level 3 assets, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by the FDA or other regulatory agencies. | |||||||||||||
As of December 31, 2013, the carrying value of the intangible assets acquired in our consolidated balance sheet was approximately $235.7 million. As of December 31, 2013, the maximum loss exposure was $235.7 million. | |||||||||||||
The following table summarizes the components of gross and net intangible assets balances as of December 31, 2013: | |||||||||||||
(In thousands) | December 31, 2013 | ||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Definite lived intangible assets | $ | 241,314 | $ | (5,637 | ) | $ | 235,677 | ||||||
Amortization expense related to the acquired intangible assets was $5.6 million for the year ended December 31, 2013. As of December 31, 2013, the remaining weighted-average amortization period for acquired intangible asset is 8.0 years. The expected annual amortization expense related to the acquired intangible assets is as follows for the years ended December 31, (in thousands): | |||||||||||||
2014 | $ | 33,880 | |||||||||||
2015 | 44,940 | ||||||||||||
2016 | 33,184 | ||||||||||||
2017 | 19,028 | ||||||||||||
2018 | 18,096 | ||||||||||||
Thereafter | 86,549 | ||||||||||||
Total | $ | 235,677 | |||||||||||
On October 18, 2013 and as of December 31, 2013, the Company determined that its royalty purchase interest in Depo DR Sub, LLC represented a variable interest in a variable interest entity since the equity in Depo DR Sub, LLC was not sufficient to finance its operations without additional financing. However, the Company does not have the power to direct the activities of | |||||||||||||
Depo DR Sub, LLC that most significantly impacts the Depo DR Sub, LLC's economic performance and is not the primary beneficiary of Depo DR Sub, LLC therefore, it is not subject to consolidation by the Company. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued Liabilities | |||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Compensation | $ | 768 | $ | 594 | |||||
Interest | 2,925 | 2,925 | |||||||
Foreign currency hedge | 7,355 | 3,574 | |||||||
Dividend payable | 59 | 53 | |||||||
Legal | 324 | 2,020 | |||||||
Other | 426 | 234 | |||||||
Total | $ | 11,857 | $ | 9,400 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | |||||
Operating Leases | |||||
We currently occupy a leased facility in Incline Village, Nevada, with a lease term through May 2014. We also lease certain office equipment under operating leases. Rental expense under these arrangements totaled $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Future minimum operating lease payments for the years ended December 31, were as follows: | |||||
(In thousands) | |||||
2014 | $ | 102 | |||
2015 | 16 | ||||
2016 | 16 | ||||
Total | $ | 134 | |||
Convertible_Notes
Convertible Notes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Convertible and Non-Recourse Notes | ' | ||||||||||||||||||||||||
Convertible Notes, Non-recourse Notes and Term Loans | |||||||||||||||||||||||||
Convertible, Non-recourse Notes, and Term Loan activity for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
(In thousands) | Series | May | February | Non-recourse | Term Loan | Total | |||||||||||||||||||
2012 | 2015 | 2015 | Notes | ||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 138,952 | $ | 177,663 | $ | 93,370 | $ | — | $ | 409,985 | |||||||||||||
Issuance and exchange | 176,679 | — | (176,679 | ) | — | — | — | ||||||||||||||||||
Payment | — | — | — | (93,370 | ) | — | (93,370 | ) | |||||||||||||||||
Non-cash discount | (16,833 | ) | — | — | — | — | (16,833 | ) | |||||||||||||||||
Discount amortization | 5,682 | 4,481 | 7 | — | — | 10,170 | |||||||||||||||||||
Balance at December 31, 2012 | 165,528 | 143,433 | 991 | — | — | 309,952 | |||||||||||||||||||
Issuance and exchange | 1,000 | — | (1,000 | ) | — | 75,000 | 75,000 | ||||||||||||||||||
Non-cash discount | — | — | — | — | (831 | ) | (831 | ) | |||||||||||||||||
Discount amortization | 6,102 | 4,820 | 9 | — | 228 | 11,159 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 172,630 | $ | 148,253 | $ | — | $ | — | $ | 74,397 | $ | 395,280 | |||||||||||||
Series 2012 Notes | |||||||||||||||||||||||||
In January 2012, we exchanged $169.0 million aggregate principal of new Series 2012 Notes for an identical principal amount of our February 2015 Notes, plus a cash payment of $5.00 for each $1,000 principal amount tendered, totaling approximately $845,000. The cash incentive payment was allocated to deferred issue costs of $765,000, additional paid-in capital of $52,000 and deferred tax assets of $28,000. The deferred issue costs will be recognized over the life of the Series 2012 Notes as interest expense. In February 2012, we entered into separate privately negotiated exchange agreements under which we exchanged an additional $10.0 million aggregate principal amount of the new Series 2012 Notes for an identical principal amount of our February 2015 Notes. In August 2013, the Company entered into a separate privately negotiated exchange agreement under which it retired the final $1.0 million aggregate principal amount of the Company's outstanding February 2015 Notes. Pursuant to the exchange agreement, the holder of the February 2015 Notes received $1.0 million aggregate principal amount of the Company's Series 2012 Notes. Immediately following the exchange, no principal amount of the February 2015 Notes remained outstanding and $180.0 million principal amount of the Series 2012 Notes is outstanding. | |||||||||||||||||||||||||
The terms of the Series 2012 Notes are governed by the indenture dated as of January 5, 2012, and include a net share settlement feature, meaning that if a conversion occurs, the principal amount will be settled in cash and the excess, if any, will be settled in the Company’s common stock. The Series 2012 Notes may not be redeemed by the Company prior to their stated maturity date. Our Series 2012 Notes are due February 15, 2015, and bear interest at a rate of 2.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. | |||||||||||||||||||||||||
Holders may convert their Series 2012 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Series 2012 Notes under the following circumstances: | |||||||||||||||||||||||||
• | During any fiscal quarter commencing after the fiscal quarter ending December 31, 2011, if the closing price of the Company’s common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 130% of the conversion price for the Series 2012 Notes on the last day of such preceding fiscal quarter; | ||||||||||||||||||||||||
• | During the five business-day period immediately after any five consecutive trading-day period in which the trading price per $1,000 principal amount of the Series 2012 Notes for each trading day of that measurement period was less than 98% of the product of the closing price of the Company’s common stock and the conversion rate for the Series 2012 Notes for that trading day; | ||||||||||||||||||||||||
• | Upon the occurrence of certain corporate transactions as provided in the indenture; or | ||||||||||||||||||||||||
• | Anytime, at the holder’s option, beginning on August 15, 2014. | ||||||||||||||||||||||||
Holders of our Series 2012 Notes who convert their Series 2012 Notes in connection with a fundamental change resulting in the | |||||||||||||||||||||||||
reclassification, conversion, exchange or cancellation of our common stock may be entitled to a make-whole premium in the form of an increase in the conversion rate. Such fundamental change is generally defined to include a merger involving PDL, an acquisition of a majority of PDL’s outstanding common stock and a change of a majority of PDL’s board of directors without the approval of the board of directors. | |||||||||||||||||||||||||
We allocated $2.3 million of the remaining February 2015 Notes original issue discount as of the date of the exchange to the Series 2012 Notes based on the percentage of the February 2015 Notes exchanged. In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of the Series 2012 Notes, net of the allocated original issue discount, between the fair value of the debt component and the common stock conversion feature. Using an assumed borrowing rate of 7.3%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us during the period of the exchange transactions, we recorded a total debt discount of $16.8 million, allocated $10.9 million to additional paid-in capital and $5.9 million to deferred tax liability. The discount is being amortized to interest expense over the term of the Series 2012 Notes and increases interest expense during the term of the Series 2012 Notes from the 2.875% cash coupon interest rate to an effective interest rate of 7.3%. The common stock conversion feature is recorded as a component of stockholders’ equity (deficit). | |||||||||||||||||||||||||
The principal amount, carrying value and unamortized discount of our Series 2012 Notes were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Principal amount of the Series 2012 Notes | $ | 180,000 | $ | 179,000 | |||||||||||||||||||||
Unamortized discount of liability component | (7,370 | ) | (13,472 | ) | |||||||||||||||||||||
Net carrying value of the Series 2012 Notes | $ | 172,630 | $ | 165,528 | |||||||||||||||||||||
Interest expense for our Series 2012 Notes on the Consolidated Statements of Income was as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,158 | $ | 5,122 | $ | — | |||||||||||||||||||
Amortization of debt issuance costs | 1,152 | 1,107 | — | ||||||||||||||||||||||
Amortization of debt discount | 6,102 | 5,682 | — | ||||||||||||||||||||||
Total | $ | 12,412 | $ | 11,911 | $ | — | |||||||||||||||||||
As of December 31, 2013, our Series 2012 Notes are convertible into 182.598 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.48 per common share, subject to further adjustment upon certain events including dividend payments. As of December 31, 2013, the remaining discount amortization period was 1.1 years. | |||||||||||||||||||||||||
Our common stock exceeded the conversion threshold price of $7.23 per common share for at least 20 days during the 30 consecutive trading days ended September 30, 2013; accordingly, the Series 2012 Notes were convertible at the option of the holder during the quarter ended December 31, 2013. Our common stock price exceeded the conversion threshold price of $7.12 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2013; accordingly, the Series 2012 Notes are convertible at the option of the holder during the quarter ending March 31, 2014. The Series 2012 Notes have been classified as current as the notes will be due upon demand within one year of the year ended December 31, 2013. At December 31, 2013, the if-converted value of our Series 2012 Notes exceeded their principal amount by approximately $97.4 million. | |||||||||||||||||||||||||
See Note 21 for subsequent event transactions related to convertible notes. | |||||||||||||||||||||||||
May 2015 Notes | |||||||||||||||||||||||||
On May 16, 2011, we issued $155.3 million in aggregate principal amount, at par, of our May 2015 Notes in an underwritten public offering, for net proceeds of $149.7 million. Our May 2015 Notes are due May 1, 2015, and we pay interest at 3.75% on our May 2015 Notes semiannually in arrears on May 1 and November 1 of each year, beginning November 1, 2011. Proceeds from our May 2015 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem our 2012 Notes. Upon the occurrence of a fundamental change, as defined in the indenture, holders have the option to require PDL to repurchase their May 2015 Notes at a purchase price equal to 100% of the principal, plus accrued interest. | |||||||||||||||||||||||||
Our May 2015 Notes are convertible under any of the following circumstances: | |||||||||||||||||||||||||
• | During any fiscal quarter ending after the quarter ending June 30, 2011, if the last reported sale price of our common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 130% of the conversion price for the notes on the last day of such preceding fiscal quarter; | ||||||||||||||||||||||||
• | During the five business-day period immediately after any five consecutive trading-day period, which we refer to as the measurement period, in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the notes for each such day; | ||||||||||||||||||||||||
• | Upon the occurrence of specified corporate events as described further in the indenture; or | ||||||||||||||||||||||||
• | At any time on or after November 1, 2014. | ||||||||||||||||||||||||
In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of our May 2015 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.5%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, we recorded a total debt discount of $18.9 million, allocated $12.3 million to additional paid-in capital and allocated $6.6 million to deferred tax liability. The discount is being amortized to interest expense over the term of our May 2015 Notes and increases interest expense during the term of our May 2015 Notes from the 3.75% cash coupon interest rate to an effective interest rate of 7.5%. As of December 31, 2013, the remaining discount amortization period is 1.3 years. | |||||||||||||||||||||||||
The carrying value and unamortized discount of our May 2015 Notes were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Principal amount of the May 2015 Notes | $ | 155,250 | $ | 155,250 | |||||||||||||||||||||
Unamortized discount of liability component | (6,997 | ) | (11,817 | ) | |||||||||||||||||||||
Net carrying value of the May 2015 Notes | $ | 148,253 | $ | 143,433 | |||||||||||||||||||||
Interest expense for our May 2015 Notes on the Condensed Consolidated Statements of Income was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,822 | $ | 5,822 | $ | 3,639 | |||||||||||||||||||
Amortization of debt issuance costs | 1,232 | 1,193 | 727 | ||||||||||||||||||||||
Amortization of debt discount | 4,820 | 4,481 | 2,639 | ||||||||||||||||||||||
Total | $ | 11,874 | $ | 11,496 | $ | 7,005 | |||||||||||||||||||
As of December 31, 2013, our May 2015 Notes are convertible into 159.9165 shares of the Company’s common stock per $1,000 of principal amount, or approximately $6.25 per common share, subject to further adjustment upon certain events including dividend payments. | |||||||||||||||||||||||||
Our common stock did not exceed the conversion threshold price of $8.26 for at least 20 days during the 30 consecutive trading days ended September 30, 2013; accordingly, the May 2015 Notes were not convertible at the option of the holder during the quarter ended December 31, 2013. Our common stock price did exceed the conversion threshold price of $8.13 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2013; accordingly, the May 2015 Notes are convertible at the option of the holder during the quarter ending March 31, 2014. The May 2015 Notes have been classified as current as the notes will be due upon demand within one year of the year ended December 31, 2013. At December 31, 2013, the if-converted value of our May 2015 exceeded their principal amount by approximately $54.3 million. | |||||||||||||||||||||||||
Purchased Call Options and Warrants | |||||||||||||||||||||||||
In connection with the issuance of our May 2015 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $20.8 million, plus legal fees, for the purchased call options with terms substantially similar to the embedded conversion options in our May 2015 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in our May 2015 Notes, approximately 24.8 million shares of our common stock. We may exercise the purchased call options upon conversion of our May 2015 Notes and require the hedge counterparty to deliver shares to the Company in an amount equal to the shares required to be delivered by the Company to the note holder for the excess conversion value. The purchased call options expire on May 1, 2015, or the last day any of our May 2015 Notes remain outstanding. | |||||||||||||||||||||||||
In addition, we sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive up to 27.5 million shares of common stock underlying our May 2015 Notes. We received an aggregate amount of $10.9 million for the sale from the two counterparties. The warrant counterparties may exercise the warrants on their specified expiration dates that occur over a period of time ending on January 20, 2016. If the VWAP of our common stock, as defined in the warrants, exceeds the strike price of the warrants, we will deliver to the warrant counterparties shares equal to the spread between the VWAP on the date of exercise or expiration and the strike price. If the VWAP is less than the strike price, neither party is obligated to deliver anything to the other. | |||||||||||||||||||||||||
The purchased call option transactions and warrant sales effectively serve to reduce the potential dilution associated with conversion of our May 2015 Notes. The strike prices are approximately $6.25 and $7.50, subject to further adjustment upon certain events including dividend payments, for the purchased call options and warrants, respectively. | |||||||||||||||||||||||||
If the share price is above $6.25, but below $7.50, upon conversion of our May 2015 Notes, the purchased call options will offset the share dilution, because the Company will receive shares on exercise of the purchased call options equal to the shares that the Company must deliver to the note holders. If the share price is above $7.50, upon exercise of the warrants, the Company will deliver shares to the counterparties in an amount equal to the excess of the share price over $7.50. For example, a 10% increase in the share price above $7.50 would result in the issuance of 1.9 million incremental shares upon exercise of the warrants. As our share price continues to increase, additional dilution would occur. | |||||||||||||||||||||||||
While the purchased call options are expected to reduce the potential equity dilution upon conversion of our May 2015 Notes, prior to conversion or exercise, our May 2015 Notes and the warrants could have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the respective exercise prices of those instruments. As of December 31, 2013, and 2012, there were no related purchased call options or warrants exercised. | |||||||||||||||||||||||||
The purchased call options and warrants are considered indexed to PDL stock, require net-share settlement, and met all criteria for equity classification at inception and at December 31, 2013, and 2012. The purchased call options cost, including legal fees, of $20.8 million, less deferred taxes of $7.2 million, and the $10.9 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification. | |||||||||||||||||||||||||
February 2015 Notes | |||||||||||||||||||||||||
On November 1, 2010, we completed an exchange of $92.0 million in aggregate principal of our 2012 Notes in separate, privately negotiated transactions with the note holders. In the exchange transactions, the note holders received $92.0 million in aggregate principal of our February 2015 Notes, and we recorded a net gain of $1.1 million. As part of the transaction, we placed an additional $88.0 million in aggregate principal of our February 2015 Notes. In January 2012, we completed an exchange transaction where we exchanged and subsequently retired approximately $169.0 million aggregate principal amount of our February 2015 Notes for approximately $169.0 million aggregate principal amount of new Series 2012 Notes, plus a cash payment of $5.00 for each $1,000 principal amount tendered for a total cash incentive payment of approximately $0.8 million. In February 2012, we entered into separate privately negotiated exchange agreements under which we retired an additional $10.0 million aggregate principal amount of our February 2015 Notes for $10.0 million aggregate principal amount of our Series 2012 Notes. In August 2013, the Company entered into a separate privately negotiated exchange agreement under which it retired the final $1.0 million aggregate principal amount of the Company's outstanding February 2015 Notes. Pursuant to the exchange agreement, the holder of the February 2015 Notes received $1.0 million aggregate principal amount of the Company's Series 2012 Notes. Immediately following the exchange, no principal amount of the February 2015 Notes remained outstanding. Our February 2015 Notes bore interest at 2.875% per annum. | |||||||||||||||||||||||||
Non-recourse Notes Retirement | |||||||||||||||||||||||||
In November 2009, we completed a $300.0 million securitization transaction in which we monetized 60% of the net present value of the estimated 5 years royalties from sales of Genentech products including Avastin®, Herceptin®, Lucentis®, Xolair® and future products, if any, under which Genentech may take a license under our related agreements with Genentech. Our QHP PhaRMASM Senior Secured Notes due 2015 bore interest at 10.25% per annum and were issued in a non-registered offering by QHP, a Delaware limited liability company, and a newly formed, wholly-owned subsidiary of PDL. Concurrent with the securitization transaction and under the terms of a purchase and sale agreement, we sold, transferred, conveyed, assigned, contributed and granted to QHP, certain rights under our non-exclusive license agreements with Genentech including the right to receive the Genentech Royalties in exchange for QHP’s proceeds from our Non-recourse Notes issuance. As of December 31, 2012, there was no remaining balance on our Non-recourse Notes, as they were fully repaid and retired on September 17, 2012. The indenture has ceased to be of further effect and all of the security interests in the collateral have terminated, including the pledge by PDL to the trustee of its equity interest in QHP. There are no further restrictions on the Genentech Royalties. | |||||||||||||||||||||||||
Term Loan | |||||||||||||||||||||||||
On October 28, 2013, PDL entered into a credit agreement among the Company, the lenders party, and Royal Bank of Canada as administrative agent. The initial Term Loan amount was for $75 million, with a term of one year. | |||||||||||||||||||||||||
The interest rates per annum applicable to amounts outstanding under the Term Loan are, at the Company’s option, either (a) the base rate plus 1.00%, or (b) the Eurodollar rate plus 2.00% per annum. As of December 31, 2013, the interest rate was 2.24%. Interest and principal payments associated with the Term Loan are due on the interest payment dates of January 31, April 30, and July 31 of 2014, with the remaining outstanding balance due on October 28, 2014. | |||||||||||||||||||||||||
Any future material domestic subsidiaries of the Company are required to guarantee the obligations of the Company under the Term Loan, except as otherwise provided. The Company’s obligations under the Term Loan are secured by a lien on a substantial portion of its assets. | |||||||||||||||||||||||||
The Term Loan contains affirmative and negative covenants that the Company believes are usual and customary for a senior secured credit agreement. The Term loan also requires compliance with certain financial covenants, including a maximum total leverage ratio and a debt service coverage ratio, in each case calculated as set forth in the Term Loan and compliance with which may be necessary to take certain corporate actions. The Term Loan contains events of default that the Company believes are usual and customary for a senior secured credit agreement. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, PDL was in compliance with all applicable debt covenants. | |||||||||||||||||||||||||
As of December 31, 2013, the future minimum principal payments under our Series 2012 Notes, May 2015 Notes and Term Loan were: | |||||||||||||||||||||||||
(In thousands) | Series | May | Term Loan | Total | |||||||||||||||||||||
2012 | 2015 | ||||||||||||||||||||||||
Notes | Notes | ||||||||||||||||||||||||
2014 | $ | — | $ | — | $ | 75,000 | $ | 75,000 | |||||||||||||||||
2015 | 180,000 | 155,250 | — | 335,250 | |||||||||||||||||||||
Total | $ | 180,000 | $ | 155,250 | $ | 75,000 | $ | 410,250 | |||||||||||||||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Long-Term Liabilities | ' | ||||||||
Other Long-Term Liabilities | |||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Accrued lease liability | $ | 10,700 | $ | 10,700 | |||||
Uncertain tax position | 10,826 | 12,955 | |||||||
Foreign currency hedge | 1,516 | 4,007 | |||||||
Total | $ | 23,042 | $ | 27,662 | |||||
In connection with the Spin-Off, we entered into amendments to the leases for our former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify us for all matters related to the leases attributable to the period after the Spin-Off date. Should Facet default under its lease obligations, we could be held liable by the landlord as a co-tenant and, thus, we have in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of December 31, 2013, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $90.2 million. If Facet were to default, we could also be responsible for lease related costs including utilities, property taxes and common area maintenance which may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Condensed Consolidated Balance Sheets as of December 31, 2013, and 2012, related to this guarantee. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||
We recognize compensation expense using a fair-value based method for costs associated with all share-based awards issued to our directors, employees and outside consultants under our stock plan. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our Consolidated Statements of Income. | ||||||||||||||||||||||
We have adopted the simplified method to calculate the beginning balance of the additional paid-in capital pool of the excess tax benefit and to determine the subsequent effect on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that were outstanding upon our adoption. | ||||||||||||||||||||||
We calculate stock-based compensation expense based on the number of awards ultimately expected to vest, net of estimated forfeitures. We estimate forfeiture rates at the time of grant and revise such rates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation expense was determined using the Black-Scholes option valuation model. | ||||||||||||||||||||||
Stock-based compensation expense for employees and directors and non-employees for the years ended December 31, 2013, 2012 and 2011, is presented below: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
Stock-based Compensation | 2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Employees and directors | $ | 655 | $ | 650 | $ | 337 | ||||||||||||||||
Non-employees | 217 | 287 | 50 | |||||||||||||||||||
Total | $ | 872 | $ | 937 | $ | 387 | ||||||||||||||||
Stock-Based Incentive Plans | ||||||||||||||||||||||
We currently have one active stock-based incentive plan under which we may grant stock-based awards to our employees, directors and non-employees. | ||||||||||||||||||||||
The total number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock, shares of common stock subject to outstanding awards and available for grant under this plan as of December 31, 2013, is as follows: | ||||||||||||||||||||||
Title of Plan | Total Shares of Common Stock Authorized | Total Shares of Common Stock Issued | Total Shares of Common Stock | Total Shares of Common Stock Available for Grant | ||||||||||||||||||
Subject to | ||||||||||||||||||||||
Outstanding Awards | ||||||||||||||||||||||
2005 Equity Incentive Plan(1) | 5,200,000 | 722,335 | — | 4,477,665 | ||||||||||||||||||
2002 Outside Directors Stock Option Plan(2) | 157,000 | 140,750 | 16,250 | — | ||||||||||||||||||
1999 Non-statutory Stock Option Plan(2) | 5,071,183 | 4,966,183 | 105,000 | — | ||||||||||||||||||
1999 Stock Option Plan(2) | 3,704,376 | 3,653,150 | 51,226 | — | ||||||||||||||||||
_________________________ | ||||||||||||||||||||||
-1 | As of December 31, 2013, there were 113,882 shares of unvested restricted stock awards outstanding. | |||||||||||||||||||||
-2 | Plan terminated in 2009, subject to options outstanding under the plan. | |||||||||||||||||||||
Under our 2005 Equity Incentive Plan, we are authorized to issue a variety of incentive awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance share and performance unit awards, deferred compensation awards and other stock-based or cash-based awards. | ||||||||||||||||||||||
In 2009, our Compensation Committee terminated the 1991 Nonstatutory Stock Option Plan. Additionally our Compensation Committee terminated the 1999 Outside Director Stock Option Plan, the 1999 Nonstatutory Stock Option Plan and the 2002 Outside Directors Stock Option Plan, subject to any outstanding options. Also in June 2009, our stockholders approved amendments to the Company’s 2005 Equity Incentive Plan to expand persons eligible to participate in the plan to include our outside directors. | ||||||||||||||||||||||
Stock Option Activity | ||||||||||||||||||||||
A summary of our stock option activity is presented below: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Number of shares | Weighted-Average Exercise Price | Number of shares | Weighted-Average Exercise Price | Number of shares | Weighted-Average Exercise Price | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Outstanding at beginning of year | 196 | $ | 16.22 | 231 | $ | 16.62 | 274 | $ | 17.25 | |||||||||||||
Expired | (24 | ) | $ | 14.07 | (35 | ) | $ | 18.83 | (43 | ) | $ | 20.67 | ||||||||||
Outstanding at end of year | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
Exercisable at end of year | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
As of December 31, 2013, the aggregate intrinsic value of our outstanding and exercisable stock options was $0.2 million and the weighted-average remaining contractual life was 0.8 years. The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the closing prices of our common stock of $8.44 on December 31, 2013, which would have been received by the option holders had option holders exercised their options as of that date. All stock options were fully vested as of 2010 and at December 31, 2013, had a range of exercise price of $5.41 to $22.60. | ||||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||
Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock, including, in some cases, the right to accrue dividends, which are held in escrow until the award vests. The compensation expense related to these awards is determined using the fair market value of the Company’s common stock on the date of the grant, and the compensation expense is recognized ratably over the vesting period. Restricted stock awards typically vest over twelve to twenty-four months. In addition to service requirements, vesting of restricted stock awards may be subject to the achievement of specified performance goals set by the Compensation Committee of the Company’s Board of Directors. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. | ||||||||||||||||||||||
A summary of our restricted stock activity is presented below: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Number of shares | Weighted-average grant-date fair value per share | Number of shares | Weighted-average grant-date fair value per share | Number of shares | Weighted- average grant-date fair value per share | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Nonvested at beginning of year | 120 | $ | 6.51 | 137 | $ | 6.09 | 40 | $ | 5.05 | |||||||||||||
Awards granted | 127 | $ | 7.5 | 139 | $ | 6.49 | 155 | $ | 6.15 | |||||||||||||
Awards vested | (118 | ) | $ | 6.59 | (137 | ) | $ | 6.09 | (40 | ) | $ | 5.05 | ||||||||||
Forfeited | (15 | ) | $ | 7.07 | (19 | ) | $ | 6.35 | (18 | ) | $ | 6.59 | ||||||||||
Nonvested at end of year | 114 | $ | 7.45 | 120 | $ | 6.51 | 137 | $ | 6.09 | |||||||||||||
Stock-based compensation expense associated with our restricted stock for the years ended December 31, 2013, 2012 and 2011, was $0.9 million, $0.9 million and $0.4 million, respectively. As of December 31, 2013, the aggregate intrinsic value of non-vested restricted stock was $1.0 million. Total unrecognized compensation costs associated with non-vested restricted stock as of December 31, 2013, was $0.4 million, excluding forfeitures, which we expect to recognize over a weighted-average period of 10 months. |
Cash_Dividends
Cash Dividends | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Cash Dividends | ' |
Cash Dividends | |
On January 29, 2014, our board of directors declared that the regular quarterly dividends to be paid to our stockholders in 2014 will be $0.15 per share of common stock, payable on March 12, June 12, September 12 and December 12 of 2014 to stockholders of record on March 5, June 5, September 5 and December 5 of 2014, the record dates for each of the dividend payments, respectively. | |
On January 23, 2013, our board of directors declared a regular quarterly dividend of $0.15 per share of common stock, which were paid on March 12, June 12, September 12 and December 12 of 2013 to stockholders of record on March 5, June 5, September 5 and December 5 of 2013, the record dates for each of the dividend payments, respectively. We paid $84.0 million in dividends in 2013. | |
On January 18, 2012, our board of directors declared regular quarterly dividends of $0.15 per share of common stock, which were paid on March 14, June 14, September 14 and December 14 of 2012 to stockholders of record on March 7, June 7, September 7 and December 7 of 2012, the record dates for each of the dividend payments, respectively. We paid $83.9 million in dividends in 2012. | |
On February 25, 2011, our board of directors declared regular quarterly dividends of $0.15 per share of common stock, which were paid on March 15, June 15, September 15 and December 15 of 2011 to stockholders of record on March 8, June 8, September 8 and December 8 of 2011, the record dates for each of the dividend payment dates, respectively. We paid $83.8 million in dividends in 2011. |
Customer_Concentration
Customer Concentration | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||||||
Customer Concentration | |||||||||||||
The percentage of total revenue earned from licensees net sales, which individually accounted for 10% or more of our total revenues: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Licensees | |||||||||||||
Genentech | 83 | % | 85 | % | 86 | % | |||||||
Biogen Idec1 | 11 | % | 13 | % | 12 | % | |||||||
____________________ | |||||||||||||
1 In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan. | |||||||||||||
Total revenues by geographic area are based on the country of domicile of the counterparty to the agreement: | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 165,412 | $ | 133,824 | $ | 137,269 | |||||||
Europe | 277,434 | 240,626 | 224,472 | ||||||||||
Other | 75 | 75 | 300 | ||||||||||
Total revenues | $ | 442,921 | $ | 374,525 | $ | 362,041 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The provision for income taxes for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current income tax expense | |||||||||||||
Federal | $ | 134,619 | $ | 104,152 | $ | 83,569 | |||||||
State | 3,726 | 1 | 1 | ||||||||||
Total current | 138,345 | 104,153 | 83,570 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | (416 | ) | 11,311 | 24,469 | |||||||||
State | (583 | ) | — | — | |||||||||
Total deferred | (999 | ) | 11,311 | 24,469 | |||||||||
Total provision | $ | 137,346 | $ | 115,464 | $ | 108,039 | |||||||
A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision for income included in the Consolidated Statements of Income is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax at U.S. statutory rate on income before income taxes | $ | 140,656 | $ | 114,496 | $ | 107,600 | |||||||
Change in valuation allowance | (2,055 | ) | — | — | |||||||||
State taxes | 1 | 1 | 1 | ||||||||||
Change in uncertain tax positions | (2,082 | ) | — | — | |||||||||
Other | 826 | 967 | 438 | ||||||||||
Total | $ | 137,346 | $ | 115,464 | $ | 108,039 | |||||||
Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The significant components of our net deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 6,063 | $ | 6,686 | |||||||||
Research and other tax credits | 2,259 | 15,205 | |||||||||||
Intangible assets | 3,559 | 5,487 | |||||||||||
Stock-based compensation | 215 | 222 | |||||||||||
Accruals | 255 | 229 | |||||||||||
Debt modifications | 330 | — | |||||||||||
Unrealized losses on foreign currency hedge contracts | 2,632 | 2,740 | |||||||||||
Other | 47 | 227 | |||||||||||
Total deferred tax assets | 15,360 | 30,796 | |||||||||||
Valuation allowance | (5,390 | ) | (20,392 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 9,970 | 10,404 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred gain on repurchase of convertible notes | (953 | ) | (954 | ) | |||||||||
Debt modifications | (1,779 | ) | (3,285 | ) | |||||||||
Other | (161 | ) | — | ||||||||||
Total deferred tax liabilities | (2,893 | ) | (4,239 | ) | |||||||||
Net deferred tax assets | $ | 7,077 | $ | 6,165 | |||||||||
As of December 31, 2013 and 2012, we had federal net operating loss carryforwards of $39.4 million and $41.1 million, respectively. We also had California net operating loss carryforwards of $215.5 million as of December 31, 2013 and 2012. The federal net operating loss carryforwards will expire in the year 2023 and the California net operating loss carryforwards will expire between 2014 and 2019, if not utilized. As of December 31, 2013 and 2012, we had $20.0 million of state tax credit carryforwards that do not expire and can be carried forward indefinitely. The net operating loss carryforwards and tax credit carryforwards which resulted from exercises of stock options were not recorded on the Consolidated Balance Sheet. | |||||||||||||
Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of net operating losses and credits before utilization. We have an annual limitation on the utilization of our federal operating losses of $1.8 million for each of the years ending December 31, 2014 to 2022, and $1.3 million for the year ending December 31, 2023. As of December 31, 2013, we estimate that at least $22.0 million of the $39.4 million of federal net operating loss carryforwards and $18.7 million of the $215.5 million state net operating losses will expire unutilized. | |||||||||||||
During 2013, as a result of changes in our business model and increased forecasted earnings, we determined that it was more likely than not that certain net operating losses, tax credits and other deferred tax assets would be realized in the near future. As a result, our valuation allowance against deferred tax assets was decreased by $15 million. We continue to believe it is more likely than not that the benefit from certain net operating losses and deferred tax assets will not be realized in the near future, and have provided a valuation allowance of $5.4 million against these deferred tax assets. | |||||||||||||
A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, for 2013, 2012 and 2011 is: | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance at the beginning of the year | $ | 32,647 | $ | 23,061 | $ | 23,061 | |||||||
Increases related to tax positions from prior fiscal years | — | 4,029 | — | ||||||||||
Increases related to tax positions taken during current fiscal year | 5,490 | 5,557 | — | ||||||||||
Expiration of statute of limitations for the assessment of taxes from prior fiscal years | (5,718 | ) | — | — | |||||||||
Balance at the end of the year | $ | 32,419 | $ | 32,647 | $ | 23,061 | |||||||
The future impact of the unrecognized tax benefit of $32.4 million, if recognized, is as follows: $9.3 million would affect the effective tax rate and $23.1 million would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. We periodically evaluate our exposures associated with our tax filing positions. During 2013, as a result of the evaluation of our uncertain tax positions, we increased the unrecognized tax benefits by $5.5 million primarily related to state items and decreased the unrecognized tax benefits by $5.7 million due to expiration of statute of limitation for our tax attributes. The Company expects its unrecognized tax benefits to decrease by $6.5 million due to the expiration of statute of limitations within the next twelve months, substantially all of which would affect the effective income tax rate. | |||||||||||||
Estimated interest and penalties associated with unrecognized tax benefits decreased income tax expense in the Consolidated Statements of Income by $0.7 million during the year ended December 31, 2013, and increased income tax expense by $0.2 million, and $0.5 million during the year ended December 31, 2012, and 2011, respectively. In general, our income tax returns are subject to examination by U.S. federal, state, and local tax authorities for tax years 1996 forward. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $1.5 million and $0.7 million as of December 31, 2013 and 2012, respectively. In May 2012, PDL received a “no-change” letter from the IRS upon completion of an examination of the Company's 2008 Federal tax return. We are currently under income tax examination in the state of California for tax years 2010, 2009 and 2008. | |||||||||||||
Although the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year, except as noted above, we do not anticipate any material change to the amount of our unrecognized tax benefits related to the California audit over the next twelve months. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Comprehensive income is comprised of net income and other comprehensive income (loss). We include unrealized net gains on investments held in our available-for-sale securities and unrealized gains (losses) on our cash flow hedges in other comprehensive income (loss), and present the amounts net of tax. Our other comprehensive income (loss) is included in our Consolidated Statements of Comprehensive Income. | |||||||||||||
The balance of accumulated other comprehensive income (loss), net of tax, was as follows: | |||||||||||||
Unrealized gain | Unrealized | Total Accumulated | |||||||||||
(loss) on | gain (loss) on | Other | |||||||||||
available-for- | cash flow | Comprehensive | |||||||||||
sale securities | hedges | Income (Loss) | |||||||||||
(In thousands) | |||||||||||||
Beginning Balance at December 31, 2010 | $ | (1 | ) | $ | 3,220 | $ | 3,219 | ||||||
Activity for the year ended December 31, 2011 | 30 | (5,134 | ) | (5,104 | ) | ||||||||
Balance at December 31, 2011 | 29 | (1,914 | ) | (1,885 | ) | ||||||||
Activity for the year ended December 31, 2012 | (22 | ) | (3,181 | ) | (3,203 | ) | |||||||
Balance at December 31, 2012 | 7 | (5,095 | ) | (5,088 | ) | ||||||||
Activity for the year ended December 31, 2013 | 1,122 | (922 | ) | 200 | |||||||||
Ending Balance at December 31, 2013 | $ | 1,129 | $ | (6,017 | ) | $ | (4,888 | ) | |||||
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2013 | |
Legal Proceedings [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
Legal Proceedings | |
Resolution of Past Challenges to the Queen et al. Patents in the United States and Europe | |
MedImmune Settlement | |
On February 10, 2011, we entered into a definitive settlement agreement with MedImmune resolving all legal disputes with them, including those relating to MedImmune’s product Synagis® and PDL’s patents known as the Queen et al. patents. Under the settlement agreement, PDL paid MedImmune $65.0 million on February 15, 2011, and an additional $27.5 million on February 9, 2012, for a total of $92.5 million. No further payments will be owed by MedImmune to PDL under its license to the Queen et al. patents as a result of past or future Synagis sales and MedImmune will cease any support, financial or otherwise, of any party involved in the appeal proceeding before the European Patent Office relating to the opposition against our '216B Patent including the opposition owned by BioTransplant. | |
Settlement with UCB | |
On February 2, 2011, we reached a settlement with UCB. Under the settlement agreement, PDL provided UCB a covenant not to sue UCB for any royalties regarding UCB’s Cimzia® product under the Queen et al. patents in return for a lump sum payment of $10.0 million to PDL and termination of pending patent interference proceedings before the U.S. Patent and Trademark office involving our U.S. Patent No. 5,585,089 patent and our U.S. Patent No. 6,180,370 in PDL’s favor. UCB also agreed to formally withdraw its opposition appeal challenging the validity of the ‘216B Patent. | |
Settlement with Novartis | |
On February 25, 2011, we reached a settlement with Novartis. Under the settlement agreement, PDL agreed to dismiss its claims against Novartis in its action in Nevada state court which also includes Genentech and Roche as defendants. Novartis agreed to withdraw its opposition appeal in the EPO challenging the validity of the ‘216B Patent. Under the settlement agreement with Novartis, we will pay Novartis certain amounts based on net sales of Lucentis made by Novartis during calendar year 2011 and beyond. The settlement does not affect our claims against Genentech and Roche in the Nevada state court action. We do not currently expect such amount to materially impact our total annual revenues. | |
European Opposition to ‘216B Patent | |
Termination of European Opposition to ‘216B Patent | |
Pursuant to our settlements with UCB, MedImmune and Novartis, and as a result of our acquisition of BioTransplant and subsequent withdrawal of BioTransplant’s appeal, all of the active appellants in the EPO opposition have formally withdrawn their participation in the appeal proceeding. Accordingly, the EPO has canceled the appeal proceeding and terminated the opposition proceeding in its entirety, with the result that the 2007 EPO decision upholding the claims of our ‘216B Patent as valid will become the final decision of the EPO. In the year ending December 31, 2013, approximately 43% of our royalty revenues were derived from sales of products that were made in Europe and sold outside of the United States. | |
Genentech / Roche Matter | |
Settlement Agreement | |
On January 31, 2014, we entered into a settlement agreement with Genentech and Roche which resolves all outstanding legal disputes between the parties, including our Nevada litigation with Genentech relating to an August 2010 facsimile sent by Genentech on behalf of Roche and Novartis asserting its products do not infringe on PDL’s SPC’s, and our arbitration proceedings with Genentech related to the audit of royalties on sales. | |
Under the terms of the settlement agreement, effective retroactively to August 15, 2013, Genentech will pay a fixed royalty rate of 2.125 percent on worldwide sales of all its licensed products, as compared to the previous tiered royalty rate in the U.S and the fixed rate on all ex-U.S. based manufactured and sold licensed products. Pursuant to the agreement, Genentech and Roche confirmed that Avastin, Herceptin, Lucentis, Xolair and Perjeta are licensed products as defined in the relevant license agreements between the parties, and further agreed that Kadcyla and Gazyva are licensed products. Genentech will pay these royalties on all worldwide sales of Avastin, Herceptin, Xolair, Perjeta and Kadcyla occurring on or before December 31, 2015. With respect to Lucentis, Genentech owes no royalties on U.S. sales occurring after June 30, 2013, and will pay a royalty of 2.125 percent on all ex-U.S. sales occurring on or before December 28, 2014. The royalty term for Gazyva remains unchanged from the existing license agreement pertaining thereto. | |
The agreement precludes Genentech and Roche from challenging the validity of PDL’s patents, including its SPCs in Europe, from contesting their obligation to pay royalties, from contesting patent coverage for Avastin, Herceptin, Lucentis, Xolair, Perjeta, Kadcyla and Gazyva and from assisting or encouraging any third party in challenging PDL’s patents and SPCs. The agreement further outlines the conduct of any audits initiated by PDL of the books and records of Genentech in an effort to ensure a full and fair audit procedure. Finally, the agreement clarifies that the sales amounts from which the royalties are calculated does not include certain taxes and discounts. | |
The settlement and the related agreements are conditional upon entry of a proposed order dismissing the underlying litigation and | |
dismissal of the AAA arbitration filed by PDL. | |
Other Legal Proceedings | |
In addition, from time to time, we may be subject to various other legal proceedings and claims that arise in the ordinary course of business and which we do not expect to materially impact our financial statements. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
February 2018 Notes | |
On February 6, 2014, the Company agreed to sell $260.87 million aggregate principal amount of its February 2018 Notes in an underwritten public offering. The conversion rate of the February 2018 Notes will initially be 109.1048 shares of common stock per $1,000 principal amount of the February 2018 Notes equivalent to an initial conversion price of approximately $9.17 per share of common stock. The Company granted the underwriters an option to purchase up to an additional $39.13 million aggregate principal amount of the February 2018 Notes solely to cover overallotments (or $300 million principal amount in the aggregate). The conversion rate, subject to increase under certain circumstances, will not be increased in respect of regular quarterly cash dividends paid by us that do not exceed $0.15 per share. | |
On February 12, 2014, we issued $300 million aggregate principal amount of February 2018 Notes, which included $39.13 million aggregate principal amount of February 2018 Notes issued pursuant to the exercise of the underwriters’ overallotment option to purchase additional February 2018 Notes. | |
In connection with the offering of the February 2018 Notes, the Company has entered into privately negotiated convertible note hedge transactions with RBC Capital Markets and Wells Fargo Securities. The convertible note hedge transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that will initially | |
underlie the February 2018 Notes, and are intended to reduce the dilutive impact of the conversion feature of the February 2018 Notes on the Company’s outstanding shares of common stock. The Company has also entered into privately negotiated warrant transactions with the hedge counterparties relating to the same number of shares of the Company’s common stock. The warrant transactions could separately have a dilutive effect to the extent that the market price per share of the Company’s common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants. | |
Series 2012 Notes Exchange | |
On February 6, 2014, the Company entered into exchange and purchase agreements with certain holders of approximately $131.7 million aggregate principal amount of outstanding Series 2012 Notes. The exchange agreements provide for the issuance, by the Company, of shares of common stock and a cash payment for the Series 2012 Notes being exchanged, and the purchase agreement provides for a cash payment for the Series 2012 Notes being repurchased. The Company issued a total of approximately 20.3 million shares of its common stock and paid an aggregate cash payment of approximately $34.2 million pursuant to the exchange and purchase agreements. | |
Paradigm Spine | |
On February 14, 2014, the Company entered into a credit agreement with Paradigm Spine, LLC, under which it made available to Paradigm up to $75 million to be used by Paradigm to refinance its existing credit facility and expand its domestic commercial operations. A portion of the amount available under the agreement in an aggregate principal amount equal to $50 million, net of fees, was funded at the close of the transaction. In the event that certain specified sales and other milestones occur before December 31, 2014, the Company will fund Paradigm between an additional $6.25 million and $12.5 million, at Paradigm’s discretion. In the event that additional specified sales and other milestones occur before June 30, 2015, the Company will fund up to an additional $12.5 million also at Paradigm’s discretion. Borrowings under the credit agreement bear interest at the rate of 13.0% per annum, payable quarterly in arrears. | |
Principal repayment will commence on the eleventh interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on February 14, 2019, or, if Paradigm has achieved the first milestone and the additional loan amount is provided to Paradigm, the loans will mature on August 14, 2019. Paradigm may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Paradigm and its domestic subsidiaries and, initially, certain assets of Paradigm’s German subsidiaries. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||
2013 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 110,143 | $ | 97,314 | $ | 143,617 | $ | 91,847 | |||||||||
Net income | $ | 61,092 | $ | 56,225 | $ | 93,742 | $ | 53,471 | |||||||||
Net income per basic share | $ | 0.44 | $ | 0.4 | $ | 0.67 | $ | 0.38 | |||||||||
Net income per diluted share | $ | 0.39 | $ | 0.36 | $ | 0.62 | $ | 0.36 | |||||||||
2012 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 86,046 | $ | 85,231 | $ | 125,904 | $ | 77,344 | |||||||||
Net income | $ | 49,408 | $ | 48,575 | $ | 73,502 | $ | 40,184 | |||||||||
Net income per basic share | $ | 0.35 | $ | 0.35 | $ | 0.53 | $ | 0.29 | |||||||||
Net income per diluted share | $ | 0.34 | $ | 0.32 | $ | 0.52 | $ | 0.29 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation, Policy | ' | ||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and under the rules and regulations of the Securities and Exchange Commission. | |||
Principles of Consolidation, Policy | ' | ||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, QHP Royalty Sub LLC. All material intercompany balances and transactions are eliminated in consolidation. | |||
Management Estimates, Policy | ' | ||
Management Estimates | |||
The preparation of financial statements in conformity with GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||
Segment Disclosures, Policy | ' | ||
Segment Disclosures | |||
Our chief operating decision-maker consists of our executive management. Our chief operating decision-maker reviews our operating results and operating plans and makes resource allocation decisions on a company-wide basis; therefore, we operate as one segment. | |||
Cash Equivalents and Investments, Policy | ' | ||
Cash Equivalents and Investments | |||
We consider all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and, by policy, limit the amount of credit exposure in any one financial instrument. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). See Note 5. | |||
Fair Value Measurements, Policy | ' | ||
Fair Value Measurements | |||
The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or we paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories: | |||
Level 1 – based on quoted market prices in active markets for identical assets and liabilities; | |||
Level 2 – based on quoted market prices for similar assets and liabilities, using observable market based inputs or unobservable market based inputs corroborated by market data, and | |||
Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable. | |||
We do not estimate the fair value of our royalty assets for financial statement reporting purposes. | |||
Notes Receivable and Other Long-Term Receivables, Policy | ' | ||
Notes and Other Long-Term Receivables | |||
Notes receivable and loans originated by us are initially recorded at the amount advanced to the borrower. Notes receivable and loan origination and commitment fees, net of certain origination costs, are recorded as an adjustment to the carrying value of the notes receivable and loans and are amortized over the term of the related financial asset using the effective interest rate method. Certain of our notes receivable and loans require the borrower to make variable payments which are dependent upon the borrower's sales of specific products. We have elected to use the prospective interest method to account for these notes receivable and loans subsequent to their initial recognition. Under this approach, we recognize the impact of any variations from the expected returns in the period when received. From time to time, we will re-evaluate the expected cash flows and may adjust the effective interest rate with effect prospective from the date of assessment, if the impact of such adjustment could be material to our financial statements. Determining the initial effective interest rates and subsequent re-assessment of the effective interest rates for notes receivable and loans with variable cash flows requires judgment and is based on significant assumptions related to estimates of the amounts and timing of future product sales by the borrowers. | |||
We evaluate the collectability of both interest and principal for each note receivable and loan to determine whether it is impaired. A note receivable or loan is considered to be impaired when, based on current information and events, we determine it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a note receivable or loan is considered to be impaired, the amount of loss is calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan's effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan is collateralized and we expect repayment to be provided solely by the collateral. Impairment assessments require significant judgments and are based on significant assumptions related to the borrower's credit risk, financial performance, expected sales, and fair value of the collateral. | |||
Intangible Asset, Policy | ' | ||
Intangible Assets | |||
Amortization of definite-lived intangible royalty assets is computed using a units of production method over the estimated useful lives of the assets. The related amortization is recognized as a cost of royalty revenues. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference. | |||
Foreign Currency Hedging, Policy | ' | ||
Foreign Currency Hedging | |||
We enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes. | |||
We hedge certain Euro-denominated currency exposures related to our licensees’ product sales with Euro forward contracts. In general, these contracts are intended to offset the underlying Euro market risk in our royalty revenues. These contracts extend through the fourth quarter of 2014. We designate foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated sales as cash flow hedges. | |||
At the inception of the hedging relationship and on a quarterly basis, we assess hedge effectiveness. The fair value of the Euro contracts is estimated using pricing models with readily observable inputs from actively quoted markets and is disclosed on a gross basis. The aggregate unrealized gain or loss, net of tax, on the effective component of the hedge is recorded in stockholders’ equity (deficit) as accumulated other comprehensive income (loss). Gains or losses on cash flow hedges are recognized as an adjustment to royalty revenue in the same period that the hedged transaction impacts earnings as royalty revenue. Any gain or loss on the ineffective portions is reported in other income in the period the ineffectiveness occurs. | |||
During the third quarter of 2012, we de-designated and terminated a portion of our cash flow hedges. The gain realized was reclassified from other comprehensive income (loss) to other income in the third quarter. See Note 6 for additional information on our foreign currency hedge transactions. | |||
Revenue Recognition, Policy | ' | ||
Revenue Recognition | |||
Licensed Royalty Revenues | |||
Under most of our patent license agreements, we receive royalty payments based upon our licensees’ net sales of covered products. Generally, under these agreements we receive royalty reports from our licensees approximately one quarter in arrears, that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the quarter reported to us by our licensees, that is, royalty revenues are generally recognized one quarter following the quarter in which sales by our licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from our licensees. | |||
We may also receive annual maintenance fees from licensees of our Queen et al. patents prior to patent expiry as well as periodic milestone payments. We have no performance obligations with respect to such fees. Maintenance fees are recognized as they are due and when payment is reasonably assured. Total annual milestone payments in each of the last several years have been less than 1% of total revenue. | |||
Acquired Royalty Revenues | |||
We receive royalty payments based upon Depomed's licensees’ net sales of covered products. Generally, under these agreement we receive royalty reports from Depomed approximately one month in arrears, that is, generally in the month after Depomed's licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the month reported to us by Depomed, that is, royalty revenues are generally recognized one month following the month in which sales by Depomed's licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from Depomed licensees. | |||
Comprehensive Income, Policy | ' | ||
Comprehensive Income (Loss) | |||
Comprehensive income (loss) comprises net income adjusted for other comprehensive income (loss), using the specific identification method, which includes the changes in unrealized gains and losses on cash flow hedges and changes in unrealized gains and losses on our investments in available-for-sale securities, all net of tax, which are excluded from our net income. | |||
Property and Equipment, Policy | ' | ||
Property and Equipment | |||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight-line method over the following estimated useful lives: | |||
Leasehold improvements | Shorter of asset life or term of lease | ||
Computer and office equipment | 3 years | ||
Furniture and fixtures | 7 years |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of calculation of numerator and denominator in earnings per share | ' | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Numerator | ||||||||||||
Net income | $ | 264,530 | $ | 211,669 | $ | 199,389 | ||||||
Add back interest expense for convertible notes, net of estimated tax of $13,000, $25,000 and $3.0 million, for the years ended December 31, 2013, 2012 and 2011, respectively | 25 | 46 | 5,544 | |||||||||
Income used to compute net income per diluted share | $ | 264,555 | $ | 211,715 | $ | 204,933 | ||||||
Denominator | ||||||||||||
Total weighted-average shares used to compute net income per basic share | 139,842 | 139,711 | 139,663 | |||||||||
Effect of dilutive stock options | 83 | 95 | 13 | |||||||||
Restricted stock awards | 20 | 17 | 25 | |||||||||
Assumed conversion of Series 2012 notes | 12,373 | 4,944 | — | |||||||||
Assumed conversion of 2012 notes | — | — | 9,790 | |||||||||
Assumed conversion of February 2015 notes | 106 | 631 | 27,950 | |||||||||
Assumed conversion of May 2015 notes | 6,919 | 1,005 | — | |||||||||
Shares used to compute net income per diluted share | 159,343 | 146,403 | 177,441 | |||||||||
Net income per basic share | $ | 1.89 | $ | 1.52 | $ | 1.43 | ||||||
Net income per diluted share | $ | 1.66 | $ | 1.45 | $ | 1.15 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Schedule of fair value of financial instruments measured on recurring basis | ' | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 85,970 | $ | — | $ | 85,970 | $ | 121,095 | $ | — | $ | 121,095 | |||||||||||||
Certificates of deposit | — | — | — | — | 26,128 | 26,128 | |||||||||||||||||||
Corporate securities | — | 5,238 | 5,238 | — | — | — | |||||||||||||||||||
Corporate debt securities | — | — | — | — | 13,572 | 13,572 | |||||||||||||||||||
Total | $ | 85,970 | $ | 5,238 | $ | 91,208 | $ | 121,095 | $ | 39,700 | $ | 160,795 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 8,871 | $ | 8,871 | $ | — | $ | 7,581 | $ | 7,581 | |||||||||||||
Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy | ' | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Carrying Value | Level 2 | Level 3 | Carrying Value | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Wellstat Diagnostics note receivable | $ | 47,694 | $ | — | $ | 46,042 | $ | 41,098 | $ | — | $ | 41,098 | |||||||||||||
Merus Labs note receivable | — | — | — | 30,000 | 30,000 | — | |||||||||||||||||||
AxoGen note receivable and embedded derivative | 26,544 | — | 25,785 | 22,110 | — | 22,110 | |||||||||||||||||||
Avinger note receivable | 20,250 | — | 19,061 | — | — | — | |||||||||||||||||||
LENSAR note receivable | 39,572 | — | 39,572 | — | — | — | |||||||||||||||||||
Durata note receivable | 24,995 | — | 24,995 | — | — | — | |||||||||||||||||||
Direct Flow Medical note receivable | 34,799 | — | 34,799 | — | — | — | |||||||||||||||||||
Total | $ | 193,854 | $ | — | $ | 190,254 | $ | 93,208 | $ | 30,000 | $ | 63,208 | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Series 2012 Notes | $ | 172,630 | $ | 277,650 | $ | — | $ | 165,528 | $ | 227,187 | $ | — | |||||||||||||
May 2015 Notes | 148,253 | 212,304 | — | 143,433 | 182,031 | — | |||||||||||||||||||
February 2015 Notes | — | — | — | 991 | 1,269 | — | |||||||||||||||||||
Term loan | 74,397 | 75,000 | — | — | — | — | |||||||||||||||||||
Total | $ | 395,280 | $ | 564,954 | $ | — | $ | 309,952 | $ | 410,487 | $ | — | |||||||||||||
Cash_Equivalents_and_Investmen1
Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of cash and available-for-sale securities | ' | ||||||||||||||||||||||||||||
Summary of Cash and Available-For-Sale Securities | Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Restricted Investment | Short-Term Investments | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Cash | $ | 8,332 | $ | — | $ | — | $ | 8,332 | $ | 8,332 | $ | — | $ | — | |||||||||||||||
Money market funds | 85,970 | — | — | 85,970 | 85,970 | — | — | ||||||||||||||||||||||
Corporate securities | 3,500 | 1,738 | — | 5,238 | — | — | 5,238 | ||||||||||||||||||||||
Total | $ | 97,802 | $ | 1,738 | $ | — | $ | 99,540 | $ | 94,302 | $ | — | $ | 5,238 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Cash | $ | 7,894 | $ | — | $ | — | $ | 7,894 | $ | 7,894 | $ | — | $ | — | |||||||||||||||
Money market funds | 121,095 | — | — | 121,095 | 121,095 | — | — | ||||||||||||||||||||||
Certificates of deposit | 26,128 | — | — | 26,128 | 2,223 | 20,000 | 3,905 | ||||||||||||||||||||||
Corporate debt securities | 13,562 | 10 | — | 13,572 | — | — | 13,572 | ||||||||||||||||||||||
Total | $ | 168,679 | $ | 10 | $ | — | $ | 168,689 | $ | 131,212 | $ | 20,000 | $ | 17,477 | |||||||||||||||
Cash and available-for-sale securities classified by contractual maturity date | ' | ||||||||||||||||||||||||||||
Cash and Available-For-Sale Securities by Contractual Maturity | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||
Less than one year | $ | 97,802 | $ | 99,540 | $ | 168,679 | $ | 168,689 | |||||||||||||||||||||
Greater than one year but less than five years | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 97,802 | $ | 99,540 | $ | 168,679 | $ | 168,689 | |||||||||||||||||||||
Foreign_Currency_Hedging_Table
Foreign Currency Hedging (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Euro forward contracts | ' | ||||||||||||||||||||
Euro Forward Contracts | December 31, 2013 | December 31, 2012 | |||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Currency | Settlement Price | Type | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||
($ per Euro) | |||||||||||||||||||||
Euro | 1.23 | Sell Euro | $ | — | $ | — | $ | 27,553 | $ | (2,036 | ) | ||||||||||
Euro | 1.24 | Sell Euro | 10,850 | (1,207 | ) | 10,850 | (726 | ) | |||||||||||||
Euro | 1.27 | Sell Euro | 44,450 | (3,760 | ) | 44,450 | (1,950 | ) | |||||||||||||
Euro | 1.281 | Sell Euro | 36,814 | (2,785 | ) | 36,814 | (1,331 | ) | |||||||||||||
Euro | 1.3 | Sell Euro | 19,500 | (1,119 | ) | 91,000 | (1,538 | ) | |||||||||||||
Total | $ | 111,614 | $ | (8,871 | ) | $ | 210,667 | $ | (7,581 | ) | |||||||||||
Schedule of location and fair values of Euro contracts in Consolidated Balance Sheets | ' | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
Cash Flow Hedge | Location | 2013 | 2012 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Euro contracts | Accrued liabilities | $ | 7,355 | $ | 3,574 | ||||||||||||||||
Euro contracts | Other long-term liabilities | $ | 1,516 | $ | 4,007 | ||||||||||||||||
Schedule of the effect of derivative instruments in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | ' | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net gain (loss) recognized in OCI, net of tax (1) | $ | (2,432 | ) | $ | (5,040 | ) | $ | (4,470 | ) | ||||||||||||
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax (2) | $ | (1,510 | ) | $ | (1,859 | ) | $ | 664 | |||||||||||||
Net gain (loss) recognized in interest and other income, net -- cash flow hedges (3) | $ | 11 | $ | (169 | ) | $ | (19 | ) | |||||||||||||
Net gain recognized in interest and other income, net -- non-designated contracts (4) | $ | — | $ | 391 | $ | — | |||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Leasehold improvements | $ | 127 | $ | 127 | |||||
Computer and office equipment | 9,028 | 8,993 | |||||||
Furniture and fixtures | 38 | 38 | |||||||
Total | 9,193 | 9,158 | |||||||
Less accumulated depreciation and amortization | (9,152 | ) | (9,131 | ) | |||||
Construction in progress | — | 32 | |||||||
Property and equipment, net | $ | 41 | $ | 59 | |||||
Intangible_Asset_Tables
Intangible Asset (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||
(In thousands) | December 31, 2013 | ||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Definite lived intangible assets | $ | 241,314 | $ | (5,637 | ) | $ | 235,677 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||
2014 | $ | 33,880 | |||||||||||
2015 | 44,940 | ||||||||||||
2016 | 33,184 | ||||||||||||
2017 | 19,028 | ||||||||||||
2018 | 18,096 | ||||||||||||
Thereafter | 86,549 | ||||||||||||
Total | $ | 235,677 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum operating lease payments [Abstract] | ' |
Operating Leases, Future Minimum Payments Due | $102 |
Operating Leases, Future Minimum Payments, Due in Two Years | 16 |
Operating Leases, Future Minimum Payments, Due in Three Years | 16 |
Operating Leases, Future Minimum Payments Due | $134 |
Convertible_Notes_Tables
Convertible Notes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of convertible and non-recourse notes activity | ' | ||||||||||||||||||||||||
(In thousands) | Series | May | February | Non-recourse | Term Loan | Total | |||||||||||||||||||
2012 | 2015 | 2015 | Notes | ||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 138,952 | $ | 177,663 | $ | 93,370 | $ | — | $ | 409,985 | |||||||||||||
Issuance and exchange | 176,679 | — | (176,679 | ) | — | — | — | ||||||||||||||||||
Payment | — | — | — | (93,370 | ) | — | (93,370 | ) | |||||||||||||||||
Non-cash discount | (16,833 | ) | — | — | — | — | (16,833 | ) | |||||||||||||||||
Discount amortization | 5,682 | 4,481 | 7 | — | — | 10,170 | |||||||||||||||||||
Balance at December 31, 2012 | 165,528 | 143,433 | 991 | — | — | 309,952 | |||||||||||||||||||
Issuance and exchange | 1,000 | — | (1,000 | ) | — | 75,000 | 75,000 | ||||||||||||||||||
Non-cash discount | — | — | — | — | (831 | ) | (831 | ) | |||||||||||||||||
Discount amortization | 6,102 | 4,820 | 9 | — | 228 | 11,159 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 172,630 | $ | 148,253 | $ | — | $ | — | $ | 74,397 | $ | 395,280 | |||||||||||||
Schedule of carrying value and unamortized discount on Series 2012 Notes | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Principal amount of the Series 2012 Notes | $ | 180,000 | $ | 179,000 | |||||||||||||||||||||
Unamortized discount of liability component | (7,370 | ) | (13,472 | ) | |||||||||||||||||||||
Net carrying value of the Series 2012 Notes | $ | 172,630 | $ | 165,528 | |||||||||||||||||||||
Schedule of interest expense on Series 2012 Notes | ' | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,158 | $ | 5,122 | $ | — | |||||||||||||||||||
Amortization of debt issuance costs | 1,152 | 1,107 | — | ||||||||||||||||||||||
Amortization of debt discount | 6,102 | 5,682 | — | ||||||||||||||||||||||
Total | $ | 12,412 | $ | 11,911 | $ | — | |||||||||||||||||||
Schedule of carrying value and unamortized discount on May 2015 Notes | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Principal amount of the May 2015 Notes | $ | 155,250 | $ | 155,250 | |||||||||||||||||||||
Unamortized discount of liability component | (6,997 | ) | (11,817 | ) | |||||||||||||||||||||
Net carrying value of the May 2015 Notes | $ | 148,253 | $ | 143,433 | |||||||||||||||||||||
Schedule of interest expense for May 2015 Notes | ' | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,822 | $ | 5,822 | $ | 3,639 | |||||||||||||||||||
Amortization of debt issuance costs | 1,232 | 1,193 | 727 | ||||||||||||||||||||||
Amortization of debt discount | 4,820 | 4,481 | 2,639 | ||||||||||||||||||||||
Total | $ | 11,874 | $ | 11,496 | $ | 7,005 | |||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||||||||||||||||||
(In thousands) | Series | May | Term Loan | Total | |||||||||||||||||||||
2012 | 2015 | ||||||||||||||||||||||||
Notes | Notes | ||||||||||||||||||||||||
2014 | $ | — | $ | — | $ | 75,000 | $ | 75,000 | |||||||||||||||||
2015 | 180,000 | 155,250 | — | 335,250 | |||||||||||||||||||||
Total | $ | 180,000 | $ | 155,250 | $ | 75,000 | $ | 410,250 | |||||||||||||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Schedule of other liabilities | ' | ||||||||
December 31, | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Accrued lease liability | $ | 10,700 | $ | 10,700 | |||||
Uncertain tax position | 10,826 | 12,955 | |||||||
Foreign currency hedge | 1,516 | 4,007 | |||||||
Total | $ | 23,042 | $ | 27,662 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||||||||||
Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block] | ' | |||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
Stock-based Compensation | 2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Employees and directors | $ | 655 | $ | 650 | $ | 337 | ||||||||||||||||
Non-employees | 217 | 287 | 50 | |||||||||||||||||||
Total | $ | 872 | $ | 937 | $ | 387 | ||||||||||||||||
Schedule of common stock activity available under share-based compensation plans | ' | |||||||||||||||||||||
Title of Plan | Total Shares of Common Stock Authorized | Total Shares of Common Stock Issued | Total Shares of Common Stock | Total Shares of Common Stock Available for Grant | ||||||||||||||||||
Subject to | ||||||||||||||||||||||
Outstanding Awards | ||||||||||||||||||||||
2005 Equity Incentive Plan(1) | 5,200,000 | 722,335 | — | 4,477,665 | ||||||||||||||||||
2002 Outside Directors Stock Option Plan(2) | 157,000 | 140,750 | 16,250 | — | ||||||||||||||||||
1999 Non-statutory Stock Option Plan(2) | 5,071,183 | 4,966,183 | 105,000 | — | ||||||||||||||||||
1999 Stock Option Plan(2) | 3,704,376 | 3,653,150 | 51,226 | — | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Number of shares | Weighted-Average Exercise Price | Number of shares | Weighted-Average Exercise Price | Number of shares | Weighted-Average Exercise Price | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Outstanding at beginning of year | 196 | $ | 16.22 | 231 | $ | 16.62 | 274 | $ | 17.25 | |||||||||||||
Expired | (24 | ) | $ | 14.07 | (35 | ) | $ | 18.83 | (43 | ) | $ | 20.67 | ||||||||||
Outstanding at end of year | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
Exercisable at end of year | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Number of shares | Weighted-average grant-date fair value per share | Number of shares | Weighted-average grant-date fair value per share | Number of shares | Weighted- average grant-date fair value per share | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Nonvested at beginning of year | 120 | $ | 6.51 | 137 | $ | 6.09 | 40 | $ | 5.05 | |||||||||||||
Awards granted | 127 | $ | 7.5 | 139 | $ | 6.49 | 155 | $ | 6.15 | |||||||||||||
Awards vested | (118 | ) | $ | 6.59 | (137 | ) | $ | 6.09 | (40 | ) | $ | 5.05 | ||||||||||
Forfeited | (15 | ) | $ | 7.07 | (19 | ) | $ | 6.35 | (18 | ) | $ | 6.59 | ||||||||||
Nonvested at end of year | 114 | $ | 7.45 | 120 | $ | 6.51 | 137 | $ | 6.09 | |||||||||||||
Customer_Concentration_Tables
Customer Concentration (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Licensees | |||||||||||||
Genentech | 83 | % | 85 | % | 86 | % | |||||||
Biogen Idec1 | 11 | % | 13 | % | 12 | % | |||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 165,412 | $ | 133,824 | $ | 137,269 | |||||||
Europe | 277,434 | 240,626 | 224,472 | ||||||||||
Other | 75 | 75 | 300 | ||||||||||
Total revenues | $ | 442,921 | $ | 374,525 | $ | 362,041 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current income tax expense | |||||||||||||
Federal | $ | 134,619 | $ | 104,152 | $ | 83,569 | |||||||
State | 3,726 | 1 | 1 | ||||||||||
Total current | 138,345 | 104,153 | 83,570 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | (416 | ) | 11,311 | 24,469 | |||||||||
State | (583 | ) | — | — | |||||||||
Total deferred | (999 | ) | 11,311 | 24,469 | |||||||||
Total provision | $ | 137,346 | $ | 115,464 | $ | 108,039 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax at U.S. statutory rate on income before income taxes | $ | 140,656 | $ | 114,496 | $ | 107,600 | |||||||
Change in valuation allowance | (2,055 | ) | — | — | |||||||||
State taxes | 1 | 1 | 1 | ||||||||||
Change in uncertain tax positions | (2,082 | ) | — | — | |||||||||
Other | 826 | 967 | 438 | ||||||||||
Total | $ | 137,346 | $ | 115,464 | $ | 108,039 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 6,063 | $ | 6,686 | |||||||||
Research and other tax credits | 2,259 | 15,205 | |||||||||||
Intangible assets | 3,559 | 5,487 | |||||||||||
Stock-based compensation | 215 | 222 | |||||||||||
Accruals | 255 | 229 | |||||||||||
Debt modifications | 330 | — | |||||||||||
Unrealized losses on foreign currency hedge contracts | 2,632 | 2,740 | |||||||||||
Other | 47 | 227 | |||||||||||
Total deferred tax assets | 15,360 | 30,796 | |||||||||||
Valuation allowance | (5,390 | ) | (20,392 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 9,970 | 10,404 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred gain on repurchase of convertible notes | (953 | ) | (954 | ) | |||||||||
Debt modifications | (1,779 | ) | (3,285 | ) | |||||||||
Other | (161 | ) | — | ||||||||||
Total deferred tax liabilities | (2,893 | ) | (4,239 | ) | |||||||||
Net deferred tax assets | $ | 7,077 | $ | 6,165 | |||||||||
Summary of Income Tax Contingencies [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance at the beginning of the year | $ | 32,647 | $ | 23,061 | $ | 23,061 | |||||||
Increases related to tax positions from prior fiscal years | — | 4,029 | — | ||||||||||
Increases related to tax positions taken during current fiscal year | 5,490 | 5,557 | — | ||||||||||
Expiration of statute of limitations for the assessment of taxes from prior fiscal years | (5,718 | ) | — | — | |||||||||
Balance at the end of the year | $ | 32,419 | $ | 32,647 | $ | 23,061 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Unrealized gain | Unrealized | Total Accumulated | |||||||||||
(loss) on | gain (loss) on | Other | |||||||||||
available-for- | cash flow | Comprehensive | |||||||||||
sale securities | hedges | Income (Loss) | |||||||||||
(In thousands) | |||||||||||||
Beginning Balance at December 31, 2010 | $ | (1 | ) | $ | 3,220 | $ | 3,219 | ||||||
Activity for the year ended December 31, 2011 | 30 | (5,134 | ) | (5,104 | ) | ||||||||
Balance at December 31, 2011 | 29 | (1,914 | ) | (1,885 | ) | ||||||||
Activity for the year ended December 31, 2012 | (22 | ) | (3,181 | ) | (3,203 | ) | |||||||
Balance at December 31, 2012 | 7 | (5,095 | ) | (5,088 | ) | ||||||||
Activity for the year ended December 31, 2013 | 1,122 | (922 | ) | 200 | |||||||||
Ending Balance at December 31, 2013 | $ | 1,129 | $ | (6,017 | ) | $ | (4,888 | ) | |||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
2013 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 110,143 | $ | 97,314 | $ | 143,617 | $ | 91,847 | |||||||||
Net income | $ | 61,092 | $ | 56,225 | $ | 93,742 | $ | 53,471 | |||||||||
Net income per basic share | $ | 0.44 | $ | 0.4 | $ | 0.67 | $ | 0.38 | |||||||||
Net income per diluted share | $ | 0.39 | $ | 0.36 | $ | 0.62 | $ | 0.36 | |||||||||
2012 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 86,046 | $ | 85,231 | $ | 125,904 | $ | 77,344 | |||||||||
Net income | $ | 49,408 | $ | 48,575 | $ | 73,502 | $ | 40,184 | |||||||||
Net income per basic share | $ | 0.35 | $ | 0.35 | $ | 0.53 | $ | 0.29 | |||||||||
Net income per diluted share | $ | 0.34 | $ | 0.32 | $ | 0.52 | $ | 0.29 | |||||||||
Organization_and_Business_Narr
Organization and Business (Narrative) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Strategic initiative funds deployed to date | $500 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Number of Operating Segments (in segments) | 1 |
Maximum maturity period of investments considered as cash equivalents (in duration) | '3 months |
Maximum total annual milestone payments as a percentage of total revenue (in percent) | 1.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Schedule of Property and Equipment of Estimated Useful Lives) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Computer and Office Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life (in years) | '3 years |
Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life (in years) | '7 years |
Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment, Useful Life (in description) | 'Shorter of asset life or term of lease |
Net_Income_per_Share_Narrative
Net Income per Share (Narrative) (Detail) (USD $) | 12 Months Ended | ||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 | Mar. 31, 2012 | Feb. 29, 2012 | Jan. 31, 2012 | Nov. 01, 2010 |
Warrants [Member] | Warrants [Member] | Purchased Call Options [Member] | Purchased Call Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of convertible notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $179 | ' | ' | ' |
Convertible Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | $10 | $169 | $92 |
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 21,100,000 | 19,600,000 | 24,800,000 | 23,000,000 | 115,000 | 157,000 | 193,000 | 0 | 1,000 | 0 | ' | ' | ' | ' | ' |
Net_Income_per_Share_Net_Incom
Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $61,092 | $56,225 | $93,742 | $53,471 | $49,408 | $48,575 | $73,502 | $40,184 | $264,530 | $211,669 | $199,389 |
Add back interest expense for convertible notes, net of estimated tax of approximately $7 and $4 for the three months ended September 30, 2013 and 2012, respectively, and $13 and $21 for the nine months ended September 30, 2013 and 2012, respectively (see Note 9) | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 46 | 5,544 |
Income used to compute net income per diluted share | ' | ' | ' | ' | ' | ' | ' | ' | $264,555 | $211,715 | $204,933 |
Total weighted-average shares used to compute net income per basic share (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 139,842 | 139,711 | 139,663 |
Diluted (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 159,343 | 146,403 | 177,441 |
Net income per basic share (in Dollars per Share) | $0.44 | $0.40 | $0.67 | $0.38 | $0.35 | $0.35 | $0.53 | $0.29 | $1.89 | $1.52 | $1.43 |
Net income per diluted share (in Dollars per Share) | $0.39 | $0.36 | $0.62 | $0.36 | $0.34 | $0.32 | $0.52 | $0.29 | $1.66 | $1.45 | $1.15 |
Series 2012 Notes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed conversion of debt notes (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 12,373 | 4,944 | 0 |
2012 Notes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed conversion of debt notes (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 9,790 |
February 2015 Notes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed conversion of debt notes (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 106 | 631 | 27,950 |
May 2015 Notes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed conversion of debt notes (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 6,919 | 1,005 | 0 |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares included in the calculation of diluted EPS (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 83 | 95 | 13 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares included in the calculation of diluted EPS (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 17 | 25 |
Net_Income_per_Share_Net_Incom1
Net Income per Share (Net Income Per Basic and Diluted Share) (Parentheticals) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Estimated tax on interest expense on convertible notes | $13,000 | $25,000 | $3,000,000 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Depomed [Member] | |||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $1,100,000 | $600,000 | ' |
Fair Value Assumptions, Expected Term | ' | ' | '15 years |
Restricted investment | 0 | 20,000,000 | ' |
Transfers from level 1 to level 2, amount | 0 | 0 | ' |
Transfers from level 2 to level 1, amount | $0 | $0 | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | $99,540 | $168,689 |
Assets, Fair Value | 91,208 | 160,795 |
Financial liabilites: | ' | ' |
Foreign currency hedge contracts | 8,871 | 7,581 |
Money Market Funds [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and Cash Equivalents, Fair Value | 85,970 | 121,095 |
Certificate of Deposit [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 26,128 |
Equity Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 5,238 | 0 |
Corporate Debt Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 13,572 |
Fair Value Level 1 [Member] | ' | ' |
Financial assets: | ' | ' |
Assets, Fair Value | 85,970 | 121,095 |
Financial liabilites: | ' | ' |
Foreign currency hedge contracts | 0 | 0 |
Fair Value Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and Cash Equivalents, Fair Value | 85,970 | 121,095 |
Fair Value Level 1 [Member] | Certificate of Deposit [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 0 |
Fair Value Level 1 [Member] | Equity Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 0 |
Fair Value Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 0 |
Fair Value Level 2 [Member] | ' | ' |
Financial assets: | ' | ' |
Assets, Fair Value | 5,238 | 39,700 |
Financial liabilites: | ' | ' |
Foreign currency hedge contracts | 8,871 | 7,581 |
Fair Value Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and Cash Equivalents, Fair Value | 0 | 0 |
Fair Value Level 2 [Member] | Certificate of Deposit [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 26,128 |
Fair Value Level 2 [Member] | Equity Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | ' | 0 |
Fair Value Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Available for Sale Securities, Fair Value | 0 | 13,572 |
Equity Securities [Member] | ' | ' |
Financial assets: | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | $5,238 | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value by Balance Sheet Grouping [Line Items] | ' | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | $1,100,000 | $600,000 | ' |
Assets | ' | ' | ' |
Intangible Asset, Carrying Value | 235,677,000 | ' | ' |
Assets, Fair Value Disclosure | 91,208,000 | 160,795,000 | ' |
Liabilities: | ' | ' | ' |
Notes Payable, Carrying Value | 395,280,000 | 309,952,000 | 409,985,000 |
Series 2012 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes Payable, Carrying Value | 172,630,000 | 165,528,000 | 0 |
May 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes Payable, Carrying Value | 148,253,000 | 143,433,000 | 138,952,000 |
February 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes Payable, Carrying Value | 0 | 991,000 | 177,663,000 |
Term Loan [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes Payable, Carrying Value | 74,397,000 | 0 | ' |
Wellstat Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 47,694,000 | 41,098,000 | ' |
Merus Labs Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 0 | 30,000,000 | ' |
AxoGen Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 26,544,000 | 22,110,000 | ' |
Avinger Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 20,250,000 | 0 | ' |
LENSAR Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 39,572,000 | 0 | ' |
Durata Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 24,995,000 | 0 | ' |
Direct Flow Medical Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Carrying Value | 34,799,000 | 0 | ' |
Fair Value Level 2 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Assets, Fair Value Disclosure | 5,238,000 | 39,700,000 | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 564,954,000 | 410,487,000 | ' |
Fair Value Level 2 [Member] | Series 2012 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 277,650,000 | 227,187,000 | ' |
Fair Value Level 2 [Member] | May 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 212,304,000 | 182,031,000 | ' |
Fair Value Level 2 [Member] | February 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 1,269,000 | ' |
Fair Value Level 2 [Member] | Term Loan [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 75,000,000 | 0 | ' |
Fair Value Level 2 [Member] | Wellstat Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 2 [Member] | Merus Labs Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 30,000,000 | ' |
Fair Value Level 2 [Member] | AxoGen Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 2 [Member] | Avinger Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 2 [Member] | LENSAR Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 2 [Member] | Durata Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 2 [Member] | Direct Flow Medical Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Assets, Fair Value Disclosure | 190,254,000 | 63,208,000 | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | Series 2012 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | May 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | February 2015 Notes [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | Term Loan [Member] | ' | ' | ' |
Liabilities: | ' | ' | ' |
Notes payable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | Wellstat Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 46,042,000 | 41,098,000 | ' |
Fair Value Level 3 [Member] | Merus Labs Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 0 | 0 | ' |
Fair Value Level 3 [Member] | AxoGen Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 25,785,000 | 22,110,000 | ' |
Fair Value Level 3 [Member] | Avinger Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 19,061,000 | 0 | ' |
Fair Value Level 3 [Member] | LENSAR Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 39,572,000 | 0 | ' |
Fair Value Level 3 [Member] | Durata Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 24,995,000 | 0 | ' |
Fair Value Level 3 [Member] | Direct Flow Medical Note Receivable [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Notes receivable, Fair Value | 34,799,000 | 0 | ' |
Assets [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Assets, Fair Value Disclosure | 193,854,000 | 93,208,000 | ' |
Assets [Member] | Fair Value Level 2 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Assets, Fair Value Disclosure | $0 | $30,000,000 | ' |
Cash_Equivalents_and_Investmen2
Cash Equivalents and Investments (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash and Cash Equivalents [Abstract] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $1,129,000 | $7,000 | ' |
Gains (losses) on sales of available-for-sale securities | 0 | 13,000 | 0 |
Other-than-temporary impairments on available-for-sale securities | $0 | $0 | ' |
Cash_Equivalents_and_Investmen3
Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | $97,802 | $168,679 | ' | ' |
Unrealized Gains | 1,738 | 10 | ' | ' |
Unrealized Losses | 0 | 0 | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 99,540 | 168,689 | ' | ' |
Cash and Cash Equivalents | 94,302 | 131,212 | 168,544 | 211,574 |
Restricted Investment | 0 | 20,000 | ' | ' |
Short-Term Marketable Securities | 5,238 | 17,477 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | 8,332 | 7,894 | ' | ' |
Unrealized Gains | 0 | 0 | ' | ' |
Unrealized Losses | 0 | 0 | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 8,332 | 7,894 | ' | ' |
Cash and Cash Equivalents | 8,332 | 7,894 | ' | ' |
Restricted Investment | 0 | 0 | ' | ' |
Short-Term Marketable Securities | 0 | 0 | ' | ' |
Money Market Funds [Member] | ' | ' | ' | ' |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | 85,970 | 121,095 | ' | ' |
Unrealized Gains | 0 | 0 | ' | ' |
Unrealized Losses | 0 | 0 | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 85,970 | 121,095 | ' | ' |
Cash and Cash Equivalents | 85,970 | 121,095 | ' | ' |
Restricted Investment | 0 | 0 | ' | ' |
Short-Term Marketable Securities | 0 | 0 | ' | ' |
Certificate of Deposit [Member] | ' | ' | ' | ' |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | ' | 26,128 | ' | ' |
Unrealized Gains | ' | 0 | ' | ' |
Unrealized Losses | ' | 0 | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | ' | 26,128 | ' | ' |
Cash and Cash Equivalents | ' | 2,223 | ' | ' |
Restricted Investment | ' | 20,000 | ' | ' |
Short-Term Marketable Securities | ' | 3,905 | ' | ' |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | 3,500 | ' | ' | ' |
Unrealized Gains | 1,738 | ' | ' | ' |
Unrealized Losses | 0 | ' | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 5,238 | ' | ' | ' |
Cash and Cash Equivalents | 0 | ' | ' | ' |
Restricted Investment | 0 | ' | ' | ' |
Short-Term Marketable Securities | 5,238 | ' | ' | ' |
Corporate Debt Securities [Member] | ' | ' | ' | ' |
Schedule of Available-For-Sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | ' | 13,562 | ' | ' |
Unrealized Gains | ' | 10 | ' | ' |
Unrealized Losses | ' | 0 | ' | ' |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | ' | 13,572 | ' | ' |
Cash and Cash Equivalents | ' | 0 | ' | ' |
Restricted Investment | ' | 0 | ' | ' |
Short-Term Marketable Securities | ' | $13,572 | ' | ' |
Cash_Equivalents_and_Investmen4
Cash Equivalents and Investments (Summary of Available-For-Sale Securities by Contractual Maturity) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ' | ' |
Less than one year, Amortized Cost | $97,802 | $168,679 |
Less than one year, Fair Value | 99,540 | 168,689 |
Greater than one year but less than five years, Amortized Cost | 0 | 0 |
Greater than one year but less than five years, Fair Value | 0 | 0 |
Total, Amortized Cost | 97,802 | 168,679 |
Total, Fair Value | $99,540 | $168,689 |
Foreign_Currency_Hedging_Narra
Foreign Currency Hedging (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative Instrument Gain Loss [Line Items] | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | ($4,800,000) | ' | ' |
Gain recognized in other comprehensive income (loss) net of tax effects | ' | 391,000 | ' |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | -11,000 | 8 | 19 |
Restructuring hedges, net loss | $0 | $161,000 | $0 |
Foreign_Currency_Hedging_Sched
Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | $111,614 | $210,667 |
Fair Value | -8,871 | -7,581 |
Eurodollar Sell Forward Contract 1.230 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Forward Exchange Rate | 1.23 | ' |
Derivative, Notional Amount | 0 | 27,553 |
Fair Value | 0 | -2,036 |
Eurodollar Sell Forward Contract 1.240 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Forward Exchange Rate | 1.24 | ' |
Derivative, Notional Amount | 10,850 | 10,850 |
Fair Value | -1,207 | -726 |
Eurodollar Sell Forward Contract 1.270 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Forward Exchange Rate | 1.27 | ' |
Derivative, Notional Amount | 44,450 | 44,450 |
Fair Value | -3,760 | -1,950 |
Eurodollar Sell Forward Contract 1.281 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Forward Exchange Rate | 1.281 | ' |
Derivative, Notional Amount | 36,814 | 36,814 |
Fair Value | -2,785 | -1,331 |
Eurodollar Sell Forward Contract 1.300 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Forward Exchange Rate | 1.3 | ' |
Derivative, Notional Amount | 19,500 | 91,000 |
Fair Value | ($1,119) | ($1,538) |
Foreign_Currency_Hedging_Fair_
Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Euro contracts, Accrued liabilities | $7,355 | $3,574 |
Euro contracts, Other long-term liabilities | $1,516 | $4,007 |
Foreign_Currency_Hedging_Sched1
Foreign Currency Hedging (Schedule of Effect of Derivative Instruments in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income) (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in OCI, net of tax | ($2,432) | [1] | ($5,040) | [1] | ($4,470) | [1] |
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax | -1,510 | [2] | -1,859 | [2] | 664 | [2] |
Cash Flow Hedges [Member] | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in interest and other income, net | 11 | [3] | -169 | [3] | -19 | [3] |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in interest and other income, net | $0 | [4] | $391 | [4] | $0 | [4] |
[1] | Net change in the fair value of the effective portion of cash flow hedges classified in other comprehensive income (loss) (OCI) | |||||
[2] | Effective portion classified as royalty revenue | |||||
[3] | Ineffectiveness from excess hedge was approximately ($11), $8 and $19 for the years ended December 31, 2013, 2012 and 2011, respectively. Net loss from restructuring hedges was approximately zero, $161 and zero for the years ended December 31, 2013, 2012 and 2011, respectively | |||||
[4] | Gain on de-designation classified as interest and other income, net |
Notes_Receivable_and_Other_Lon1
Notes Receivable and Other Long-term Receivables (Narrative) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 58 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | Aug. 15, 2013 | Sep. 23, 2013 | Jul. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 24, 2013 | Dec. 31, 2013 | Aug. 14, 2013 | Oct. 03, 2013 | Nov. 02, 2013 | Oct. 31, 2013 | Nov. 05, 2013 | Nov. 06, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Aug. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2013 | Jun. 30, 2014 | Apr. 18, 2013 | Aug. 15, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Nov. 02, 2012 | Jul. 31, 2012 | Aug. 15, 2013 | Sep. 30, 2013 | Jun. 28, 2013 | Sep. 30, 2013 | Apr. 18, 2013 | Oct. 03, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2018 | Aug. 15, 2013 | Aug. 15, 2013 | Oct. 31, 2013 | Nov. 06, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | |
Wellstat Diagnostics [Member] | Merus Labs [Member] | Merus Labs [Member] | Merus Labs [Member] | Merus Labs [Member] | Merus Labs [Member] | AxoGen [Member] | AxoGen [Member] | LENSAR [Member] | Durata [Member] | Durata [Member] | DirectFlow [Member] | DirectFlow [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Initial Loan [Member] | Initial Loan [Member] | Additional Loan [Member] | Additional Loan [Member] | Additional Loan [Member] | Additional Loan [Member] | Royalty Agreement [Member] | Royalty Agreement [Member] | Royalty Agreement [Member] | Royalty Agreement [Member] | Royalty Agreement [Member] | Term loan and interest [Member] | Forbearance principal and interest [Member] | Tranche two [Member] | Tranche two [Member] | Tranche three [Member] | Notes Receivable [Member] | |||||
Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Merus Labs [Member] | Avinger [Member] | Avinger [Member] | Avinger [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Merus Labs [Member] | Wellstat Diagnostics [Member] | Merus Labs [Member] | Wellstat Diagnostics [Member] | Merus Labs [Member] | Avinger [Member] | LENSAR [Member] | AxoGen [Member] | AxoGen [Member] | AxoGen [Member] | AxoGen [Member] | Avinger [Member] | Wellstat Diagnostics [Member] | Wellstat Diagnostics [Member] | Durata [Member] | DirectFlow [Member] | Durata [Member] | Merus Labs [Member] | ||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing receivable, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | $25,000,000 | ' | $35,000,000 | $7,500,000 | $47,700,000 | $10,000,000 | $35,000,000 | ' | ' | $20,000,000 | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | $1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | $15,000,000 | $30,000,000 | $0 |
Period after occurence of milestone, additional funding available [months] | ' | ' | ' | '9 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | 9,100,000 | ' | ' | ' | ' |
Financing receivable, modification, cost as a component of interest and other income, net | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of receivable (in Duration) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate on AxoGen net revenues (in percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed quarterly minimum payment-low | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed quarterly minimum payment-high | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of note receivable (in Percent) | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | 15.50% | ' | 14.00% | ' | 15.50% | 10.00% | ' | 12.00% | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | 13.50% | ' | 14.00% | 14.00% | ' | ' | ' | ' | ' | ' | ' | ' | 12.75% | 13.50% | ' | ' |
Reduction in royalty rate (in percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Repayment of notes receivable | 58,134,000 | 5,000,000 | 0 | ' | ' | 43,300,000 | ' | 7,500,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing receivable, prepayment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, stated interest rate (in Percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds received under remedies available for borrower's breach of terms credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount company has agreed to advance under agreement | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | 60,000,000 | 70,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | 7,900,000 | ' | 8,700,000 | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forbearance period under terms of credit agreement (in Duration) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit extended | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of royalty agreement (in Duration) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration paid to AxoGen for the royalty rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial interim funding for royalty rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Internal rate of return (in percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
fair value change of control | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, Balance, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,166,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price | $8.44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, at Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain (Loss) on Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of additional funds, upon attainment of milestones | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of additional funds, upon attainment of milestones | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid_and_Other_Current_Asse1
Prepaid and Other Current Assets (Prepaid and Other Current Assets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Convertible notes issuance costs | $3,097 | $0 |
Prepaid Taxes | 1,877 | 3,351 |
Other Assets, Current | 2,493 | 1,462 |
Prepaid Expense and Other Assets, Current | $7,467 | $4,813 |
Property_and_Equipment_Propert
Property and Equipment (Property and Equipment) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Leasehold Improvements, Gross | $127 | $127 |
Computer and office equipment | 9,028 | 8,993 |
Furniture and Fixtures, Gross | 38 | 38 |
Property, Plant and Equipment, Gross | 9,193 | 9,158 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -9,152 | -9,131 |
Construction in Progress, Gross | 0 | 32 |
Property, Plant and Equipment, Net | $41 | $59 |
Intangible_Asset_Details
Intangible Asset (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Oct. 17, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 18, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of Intangible Assets | ' | $5,637,000 | $0 | $0 | ' |
Payments to Acquire Intangible Assets | 240,500,000 | 241,314,000 | 0 | 0 | ' |
Total consideration paid to purchase intangible assets, plus transaction costs | ' | ' | ' | ' | 241,300,000 |
Business Acquisition, Transaction Costs | ' | ' | ' | ' | 800,000 |
Finite-Lived Intangible Asset, Useful Life | ' | '9 years | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | ' | 33,880,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | ' | 241,314,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | -5,637,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Net | ' | 235,677,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | ' | 44,940,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | ' | 33,184,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | ' | 19,028,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | ' | 18,096,000 | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | ' | 86,549,000 | ' | ' | ' |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | ' | 235,700,000 | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | '8 years | ' | ' | ' |
Glumetza [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible purchase price being amortized | ' | ' | ' | ' | 164,500,000 |
Other Depomed Products [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible purchase price being amortized | ' | ' | ' | ' | $76,800,000 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities (Accrued Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Compensation | $768 | $594 |
Interest | 2,925 | 2,925 |
Foreign currency hedge | 7,355 | 3,574 |
Dividend payable | 59 | 53 |
Legal | 324 | 2,020 |
Other | 426 | 234 |
Total | $11,857 | $9,400 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | $0.20 | $0.20 | $0.20 |
Convertible_Notes_Narrative_De
Convertible Notes (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 16-May-11 | Jan. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2013 | Feb. 29, 2012 | 16-May-11 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 01, 2010 | Jan. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Aug. 01, 2013 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | Oct. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | Purchased Call Options [Member] | Purchased Call Options [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | Non-recourse Notes [Member] | Non-recourse Notes [Member] | Non-recourse Notes [Member] | Term Loan. [Member] | Term Loan. [Member] | Term Loan. [Member] | Term Loan. [Member] | Purchased Call Options [Member] | Purchased Call Options [Member] | |||||||
Base Rate [Member] | |||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,800,000 | 23,000,000 |
Convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | $155,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $92,000,000 | $169,000,000 | ' | ' | $1,000,000 | $10,000,000 | ' | ' | $300,000,000 | ' | ' | ' | ' | ' | ' |
Incentive fee per each $1,000 principal amount tendered to convert debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount a $5 incentive cash payment per each to convert debt | 1,000 | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Induced conversion of convertible debt expense | ' | ' | ' | ' | ' | ' | 845,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred issue costs, incentive payment allocated | ' | ' | ' | ' | ' | ' | 765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to additional paid in capital, equity component of convertible debt | ' | ' | ' | 10,692,000 | 11,870,000 | ' | 52,000 | ' | ' | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | 12,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noted obligation allocated to deferred tax assets | ' | ' | ' | ' | ' | ' | 28,000 | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate (in Percent) | ' | ' | ' | ' | ' | ' | 2.88% | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | 3.75% | 3.75% | ' | ' | ' | ' | ' | ' | ' | 2.88% | ' | ' | ' | ' | ' | ' | 10.25% | ' | ' | 2.24% | 1.00% | ' | ' |
Convertible note rate conversion trading days (in days) | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes rate conversion consecutive trading days (in days) | 30 | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes due upon demand within (in years) | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,900,000 | ' | 18,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount of liability component | ' | ' | ' | ' | ' | ' | -2,300,000 | -7,370,000 | ' | ' | -7,370,000 | -13,472,000 | ' | ' | ' | -6,997,000 | ' | -6,997,000 | -11,817,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum conversion price percent for note conversion (in Percent) | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes rate conversion business day period (in days) | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes rate conversion consecutive trading day period (in days) | 0 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percent of common stock closing price and conversion rate to convert note (in Percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | 7.50% | 7.30% | ' | 7.30% | 7.30% | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes, conversion price (in Dollars per Share) | ' | ' | ' | ' | ' | ' | ' | $5.48 | ' | ' | $5.48 | ' | ' | ' | ' | $6.25 | ' | $6.25 | ' | ' | ' | ' | ' | $7.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, remaining amortization period (in Duration) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 1 month | ' | ' | ' | ' | ' | ' | '1 year 4 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, conversion threshold (in Dollars per Share) | ' | ' | ' | ' | ' | ' | ' | $7.12 | $7.23 | ' | ' | ' | ' | ' | ' | $8.13 | $8.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, if-converted value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,400,000 | ' | ' | ' | ' | 54,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from the issuance of convertible notes | ' | ' | 0 | 0 | 149,712,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes repurchase price as a percentage of principal (in Percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | 180,000,000 | ' | ' | 180,000,000 | 179,000,000 | 180,000,000 | ' | ' | 155,250,000 | ' | 155,250,000 | 155,250,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion Rate per $1,000 Principal Amount (in Ratio) | ' | ' | ' | ' | ' | ' | ' | 182.598 | ' | ' | ' | ' | ' | ' | ' | 159.9165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hedge counterparties (in Counterparties) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased call options cost | ' | ' | 0 | 0 | -20,765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | 20,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock covered by the purchased call options purchased (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of warrants | ' | ' | 0 | 0 | 10,868,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,900,000 | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, shares issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on conversion of convertible notes | ' | ' | 0 | 0 | -766,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, increase, additional borrowings | ' | ' | 75,000,000 | 0 | ' | ' | ' | ' | ' | ' | 1,000,000 | 176,679,000 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | 88,000,000 | ' | ' | ' | ' | ' | 0 | 0 | ' | 75,000,000 | 0 | ' | ' | ' | ' |
Securitization of royalties (in percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' |
Securitization of royalties (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Short-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000,000 | ' | ' | ' |
Convertible_Notes_Summary_of_C
Convertible Notes (Summary of Convertible Notes) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Nov. 01, 2010 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | |
Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | May 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | February 2015 Notes [Member] | Non-recourse Notes [Member] | Non-recourse Notes [Member] | Non-recourse Notes [Member] | Term Loan. [Member] | Term Loan. [Member] | Term Loan. [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 2.88% | 3.75% | 3.75% | ' | ' | 3.75% | ' | 2.88% | ' | ' | ' | ' | ' | 10.25% | ' | ' | 2.24% |
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | 182.598 | ' | ' | ' | ' | ' | 159.9165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes, conversion price (in Dollars per Share) | ' | ' | ' | $5.48 | $5.48 | ' | ' | ' | ' | $6.25 | $6.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount a $5 incentive cash payment per each to convert debt | $1,000 | ' | ' | $1,000 | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes, Principal Balance Outstanding | ' | ' | ' | 180,000,000 | 180,000,000 | 179,000,000 | ' | 180,000,000 | ' | 155,250,000 | 155,250,000 | 155,250,000 | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' |
Convertible Notes and Term Loans, Beginning Balance | ' | 309,952,000 | 409,985,000 | ' | 165,528,000 | 0 | ' | ' | ' | ' | 143,433,000 | 138,952,000 | ' | ' | ' | 177,663,000 | 991,000 | 177,663,000 | ' | 0 | 93,370,000 | ' | 0 | 0 | ' |
Issuance and exchange of Debt | ' | 75,000,000 | 0 | ' | 1,000,000 | 176,679,000 | ' | ' | ' | ' | 0 | 0 | ' | ' | 88,000,000 | ' | ' | ' | ' | 0 | 0 | ' | 75,000,000 | 0 | ' |
Exchange of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000,000 | -176,679,000 | ' | ' | ' | ' | ' | ' | ' |
Repayments of Debt | ' | ' | -93,370,000 | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | -93,370,000 | ' | ' | 0 | ' |
Non-cash discount | ' | -831,000 | -16,833,000 | ' | 0 | -16,833,000 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | 0 | 0 | ' | -831,000 | 0 | ' |
Amortization of Debt Discount (Premium) | ' | 11,159,000 | 10,170,000 | ' | 6,102,000 | 5,682,000 | 0 | ' | ' | ' | 4,820,000 | 4,481,000 | 2,639,000 | ' | ' | ' | 9,000 | 7,000 | ' | 0 | 0 | ' | 228,000 | 0 | ' |
Convertible Notes and Term Loans, Ending Balance | $395,280,000 | $395,280,000 | $309,952,000 | $172,630,000 | $172,630,000 | $165,528,000 | $0 | ' | ' | $148,253,000 | $148,253,000 | $143,433,000 | $138,952,000 | ' | ' | ' | $0 | $991,000 | ' | $0 | $0 | ' | $74,397,000 | $0 | ' |
Convertible_Notes_Summary_of_S
Convertible Notes (Summary of Series 2012 Notes) (Detail) (USD $) | Dec. 31, 2013 | Aug. 01, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Convertible Notes Payable, Carrying Value | $395,280 | ' | $309,952 | ' | $409,985 |
Series 2012 Notes [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Convertible Notes, Principal Balance Outstanding | 180,000 | 180,000 | 179,000 | ' | ' |
Unamortized discount of liability component | -7,370 | ' | -13,472 | -2,300 | ' |
Convertible Notes Payable, Carrying Value | $172,630 | ' | $165,528 | ' | $0 |
Convertible_Notes_Interest_Exp
Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Amortization of debt discount | $11,159 | $10,170 | ' |
Series 2012 Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Contractual coupon interest | 5,158 | 5,122 | 0 |
Amortization of debt issuance costs | 1,152 | 1,107 | 0 |
Amortization of debt discount | 6,102 | 5,682 | 0 |
Total | $12,412 | $11,911 | $0 |
Convertible_Notes_Summary_of_M
Convertible Notes (Summary of May 2015 Notes) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Convertible Notes Payable, Carrying Value | $395,280 | $309,952 | $409,985 |
May 2015 Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | 155,250 | 155,250 | ' |
Unamortized discount of liability component | -6,997 | -11,817 | ' |
Convertible Notes Payable, Carrying Value | $148,253 | $143,433 | $138,952 |
Convertible_Notes_Interest_Exp1
Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ' | ' | ' |
Amortization of debt discount | $11,159 | $10,170 | ' |
May 2015 Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Contractual coupon interest | 5,822 | 5,822 | 3,639 |
Amortization of debt issuance costs | 1,232 | 1,193 | 727 |
Amortization of debt discount | 4,820 | 4,481 | 2,639 |
Total | $11,874 | $11,496 | $7,005 |
Convertible_Notes_Schedule_of_
Convertible Notes Schedule of Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $75,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 335,250 |
Long-term Debt | 410,250 |
Series 2012 Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 180,000 |
Long-term Debt | 180,000 |
May 2015 Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 155,250 |
Long-term Debt | 155,250 |
Term Loan. [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 75,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt | $75,000 |
Other_LongTerm_Liabilities_Nar
Other Long-Term Liabilities (Narrative) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Liabilities Disclosure [Abstract] | ' | ' |
Total lease payments for the duration of the guarantee | $90,200,000 | ' |
Accrued lease liability | $10,700,000 | $10,700,000 |
Other_LongTerm_Liabilities_Oth
Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Accrued lease liability | $10,700 | $10,700 |
Uncertain tax position | 10,826 | 12,955 |
Foreign currency hedge, long-term | 1,516 | 4,007 |
Total | $23,042 | $27,662 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense, Net of Tax | $872,000 | $937,000 | $387,000 | ' |
Aggregate intrinsic value, non-vested restricted stock | 1,000,000 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 400,000 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '10 months | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 200,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 114,000 | 120,000 | 137,000 | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '10 months | ' | ' | ' |
Share Price | $8.44 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $5.41 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $22.60 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '24 months | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense, Net of Tax | $900,000 | $900,000 | $400,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 113,882 | ' | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense for Employees and Directors and Non-Employees) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $872 | $937 | $387 |
Employees and directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 655 | 650 | 337 |
Non-employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $217 | $287 | $50 |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares of Company Common Stock Available Under Share-Based Plans) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||||
2005 Equity Incentive Plan [Member] | 2002 Outside Directors Stock Option Plan [Member] | 1999 Non-statutory Stock Option Plan [Member] | 1999 Stock Option Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 5,200,000 | [1] | 157,000 | [2] | 5,071,183 | [2] | 3,704,376 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | ' | ' | ' | ' | 722,335 | [1] | 140,750 | [2] | 4,966,183 | [2] | 3,653,150 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 172,000 | 196,000 | 231,000 | 274,000 | 0 | [1] | 16,250 | [2] | 105,000 | [2] | 51,226 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | 4,477,665,000 | [1] | 0 | [2] | 0 | [2] | 0 | [2] |
[1] | As of DecemberB 31, 2013, there were 113,882 shares of unvested restricted stock awards outstanding. | |||||||||||
[2] | Plan terminated in 2009, subject to options outstanding under the plan. |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 172 | 196 | 231 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $16.52 | $16.22 | $16.62 |
Stock Options, Number of Shares, Balance at beginning of period (in Shares) | 196 | 231 | 274 |
Stock Options, Number of Shares, Balance at end of period (in Shares) | 172 | 196 | 231 |
Stock Options, Weighted Average Exercise Price, Balance at beginning of period (in Dollars per Share) | $16.22 | $16.62 | $17.25 |
Stock Options, Weighted Average Exercise Price, Balance at end of period (in Dollars per Share) | $16.52 | $16.22 | $16.62 |
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares) | 120 | 137 | 40 |
Restricted Stock Awards, Number of Shares Granted (in Shares) | 127 | 139 | 155 |
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares) | 114 | 120 | 137 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share) | $6.51 | $6.09 | $5.05 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share) | $7.50 | $6.49 | $6.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 118 | 137 | 40 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $7.07 | $6.35 | $6.59 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share) | $7.45 | $6.51 | $6.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -24 | -35 | -43 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $14.07 | $18.83 | $20.67 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 114 | 120 | 137 | 40 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $7.45 | $6.51 | $6.09 | $5.05 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 127 | 139 | 155 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $7.50 | $6.49 | $6.15 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -118 | -137 | -40 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $6.59 | $6.09 | $5.05 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $7.07 | $6.35 | $6.59 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -15 | -19 | -18 | ' |
Cash_Dividends_Narrative_Detai
Cash Dividends (Narrative) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Jan. 29, 2014 | Jan. 24, 2013 | Jan. 19, 2012 | Feb. 26, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.15 | $0.15 | $0.15 | $0.15 | $0.60 | $0.60 | $0.60 |
Payments of Dividends | ' | ' | ' | ' | $84,006,000 | $83,942,000 | $83,828,000 |
Payments of Ordinary Dividends, Common Stock | ' | ' | ' | ' | ' | $83,900,000 | $83,800,000 |
Customer_Concentration_Percent
Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Genentech [Member] | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Royalty by Licensee as a percentage of revenue, Percentage | 83.00% | 85.00% | 86.00% | |||
Biogen Idec [Member] | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Royalty by Licensee as a percentage of revenue, Percentage | 11.00% | [1] | 13.00% | [1] | 12.00% | [1] |
[1] | In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan. |
Customer_Concentration_Total_R
Customer Concentration (Total Revenues by Geographic Area) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $110,143 | $97,314 | $143,617 | $91,847 | $86,046 | $85,231 | $125,904 | $77,344 | $442,921 | $374,525 | $362,041 |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 165,412 | 133,824 | 137,269 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 277,434 | 240,626 | 224,472 |
Other geographic location [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $75 | $75 | $300 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2010 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits | $32,419,000 | $32,647,000 | $23,061,000 | ' | $23,061,000 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 15,000,000 | ' | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | 5,390,000 | 20,392,000 | ' | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 9,300,000 | ' | ' | 6,500,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 700,000 | 200,000 | 500,000 | ' | ' |
Unrecognized tax benefits resulting in adjustment to deferred tax assets | 23,100,000 | ' | ' | ' | ' |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 5,490,000 | 5,557,000 | 0 | ' | ' |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 5,718,000 | 0 | 0 | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,500,000 | 700,000 | ' | ' | ' |
Federal [Member] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | 39,400,000 | 41,100,000 | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 22,000,000 | ' | ' | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | 215,500,000 | 215,500,000 | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards | 20,000,000 | ' | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $18,700,000 | ' | ' | ' | ' |
For the years ending December 31, 2014 to 2022 [Member] | Federal [Member] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards, Limitations on Use | '1.8 | ' | ' | ' | ' |
For the year ending December 31, 2023 [Member] | Federal [Member] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards, Limitations on Use | '1.3 | ' | ' | ' | ' |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Current Federal Tax Expense (Benefit) | $134,619 | $104,152 | $83,569 |
Current State and Local Tax Expense (Benefit) | 3,726 | 1 | 1 |
Current Income Tax Expense (Benefit) | 138,345 | 104,153 | 83,570 |
Deferred Federal Income Tax Expense (Benefit) | -416 | 11,311 | 24,469 |
Deferred State and Local Income Tax Expense (Benefit) | -583 | 0 | 0 |
Deferred Income Tax Expense (Benefit) | -999 | 11,311 | 24,469 |
Income Tax Expense (Benefit) | $137,346 | $115,464 | $108,039 |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $6,063 | $6,686 | ' |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 140,656 | 114,496 | 107,600 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -2,055 | 0 | 0 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 1 | 1 | 1 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | -2,082 | ' | ' |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | ' | 0 | 0 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 826 | 967 | 438 |
Income Tax Expense (Benefit) | 137,346 | 115,464 | 108,039 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 2,259 | 15,205 | ' |
Deferred Tax Liabilities, Intangible Assets | 3,559 | 5,487 | ' |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 215 | 222 | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 255 | 229 | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses | 330 | 0 | ' |
Deferred Tax Assets, Unrealized Currency Losses | 2,632 | 2,740 | ' |
Deferred Tax Assets, Other | 47 | 227 | ' |
Deferred Tax Assets, Gross | 15,360 | 30,796 | ' |
Deferred Tax Assets, Valuation Allowance | -5,390 | -20,392 | ' |
Deferred Tax Assets, Net of Valuation Allowance | 9,970 | 10,404 | ' |
Deferred Tax Liabilities, Financing Arrangements | -953 | -954 | ' |
Deferred Tax Liabilities, Unrealized Currency Transaction Gains | -1,779 | -3,285 | ' |
Deferred Tax Liabilities, Other | -161 | 0 | ' |
Deferred Tax Liabilities, Gross | -2,893 | -4,239 | ' |
Deferred Tax Assets, Net | $7,077 | $6,165 | ' |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning Balance | $32,647 | $23,061 | $23,061 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 4,029 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 5,490 | 5,557 | 0 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -5,718 | 0 | 0 |
Unrecognized Tax Benefits, Ending Balance | $32,419 | $32,647 | $23,061 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total Accumulated Other Comprehensive Loss, beginning balance | ($5,088) | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 200 | -3,203 | -5,104 |
Total Accumulated Other Comprehensive Loss, ending balance | -4,888 | -5,088 | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total Accumulated Other Comprehensive Loss, beginning balance | -5,088 | -1,885 | 3,219 |
Other Comprehensive Income (Loss), Net of Tax | 200 | -3,203 | -5,104 |
Total Accumulated Other Comprehensive Loss, ending balance | -4,888 | -5,088 | -1,885 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total Accumulated Other Comprehensive Loss, beginning balance | 7 | 29 | -1 |
Other Comprehensive Income (Loss), Net of Tax | 1,122 | -22 | 30 |
Total Accumulated Other Comprehensive Loss, ending balance | 1,129 | 7 | 29 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Total Accumulated Other Comprehensive Loss, beginning balance | -5,095 | -1,914 | 3,220 |
Other Comprehensive Income (Loss), Net of Tax | -922 | -3,181 | -5,134 |
Total Accumulated Other Comprehensive Loss, ending balance | ($6,017) | ($5,095) | ($1,914) |
Legal_Proceedings_Narrative_De
Legal Proceedings (Narrative) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Feb. 12, 2012 | Feb. 10, 2012 | Feb. 16, 2011 | Feb. 03, 2011 | Aug. 16, 2013 |
MedImmune [Member] | MedImmune [Member] | MedImmune [Member] | UCB [Member] | Genentech [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | ' | ' | ' | ' | $10 | ' |
Royalty revenue from sales of products made in Europe and sold outside US (in Percent) | 43.00% | ' | ' | ' | ' | ' |
Fixed royalty rate as a percentage of sales | ' | ' | ' | ' | ' | 212.50% |
Payments for Legal Settlements | ' | $92.50 | $27.50 | $65 | ' | ' |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2014 | Feb. 14, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 01, 2013 | Dec. 31, 2012 | Feb. 29, 2012 | Feb. 06, 2014 | Feb. 06, 2014 | Mar. 31, 2014 | Feb. 07, 2014 |
Paradigm Spine [Member] | Paradigm Spine [Member] | Tranche two [Member] | February 2018 Notes [Member] | February 2018 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | Underwritten public offering [Member] | Option to underwriters to purchase an amount of principal of convertible notes [Member] | Exchange of convertible debt [Member] | Exchange of convertible debt [Member] | ||
Paradigm Spine [Member] | February 2018 Notes [Member] | February 2018 Notes [Member] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount a $5 incentive cash payment per each to convert debt | $1,000 | ' | ' | ' | $1,000 | ' | $1,000 | $1,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | $9.17 | $5.48 | $5.48 | ' | ' | ' | ' | ' | ' | ' |
Interest rate of note receivable (in Percent) | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount company has agreed to advance under credit agreement | ' | 75,000,000 | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Gross | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Low end of amount company has agreed to advance under credit agreement | ' | ' | 6,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | 300,000,000 | 180,000,000 | 180,000,000 | 180,000,000 | 179,000,000 | ' | 260,870,000 | 39,130,000 | ' | ' |
Conversion Rate per $1,000 Principal Amount (in Ratio) | ' | ' | ' | ' | 109.1048 | ' | 182.598 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Amount Per Share | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | 131,700,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.3 | ' |
Cash paid to exchange convertible note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,200,000 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $110,143 | $97,314 | $143,617 | $91,847 | $86,046 | $85,231 | $125,904 | $77,344 | $442,921 | $374,525 | $362,041 |
Net income | $61,092 | $56,225 | $93,742 | $53,471 | $49,408 | $48,575 | $73,502 | $40,184 | $264,530 | $211,669 | $199,389 |
Net income per basic share (in Dollars per Share) | $0.44 | $0.40 | $0.67 | $0.38 | $0.35 | $0.35 | $0.53 | $0.29 | $1.89 | $1.52 | $1.43 |
Net income per diluted share (in Dollars per Share) | $0.39 | $0.36 | $0.62 | $0.36 | $0.34 | $0.32 | $0.52 | $0.29 | $1.66 | $1.45 | $1.15 |