Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
DocumentAndEntityInformation [Abstract] | |||
Entity Registrant Name | PDL BIOPHARMA, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 162,750,797 | ||
Entity Public Float | $1,548,603,932 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 882104 | ||
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-14 | ||
Document Fiscal Year Focus | 2014 | ||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Interest revenue | $48,020 | $18,976 | $6,355 |
Licenses Revenue | 575 | 1,500 | 0 |
Total revenues | 581,225 | 456,260 | 380,880 |
Operating expenses | |||
General and administrative | 34,914 | 29,755 | 25,469 |
Operating income | 546,311 | 426,505 | 355,411 |
Non-operating expense, net | |||
Income before income taxes | 501,272 | 401,876 | 327,133 |
Loss on retirement or conversion of convertible notes | -6,143 | 0 | 0 |
Interest and other income, net | 315 | 242 | 758 |
Interest expense | -39,211 | -24,871 | -29,036 |
Total non-operating expense, net | -45,039 | -24,629 | -28,278 |
Income tax expense | 179,028 | 137,346 | 115,464 |
Net income | 322,244 | 264,530 | 211,669 |
Net income per share | |||
Basic (in Dollars per Share) | $2.04 | $1.89 | $1.52 |
Diluted (in Dollars per Share) | $1.86 | $1.66 | $1.45 |
Weighted average shares outstanding | |||
Basic (in Shares) | 158,224 | 139,842 | 139,711 |
Diluted (in Shares) | 173,110 | 159,343 | 146,403 |
Cash dividends declared per common share (in Dollars per Share) | $0.60 | $0.60 | $0.60 |
Queen et al. patents [Member] | |||
Revenues | |||
Royalties | 486,888 | 430,219 | 374,525 |
Acquired rights [Member] | |||
Revenues | |||
Royalties | $45,742 | $5,565 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $322,244 | $264,530 | $211,669 | |||
Other comprehensive income (loss), net of tax | ||||||
Unrealized gains (losses) on investments in available-for-sale securities | -745 | 1,122 | -14 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -20 | 0 | -8 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | -765 | [1] | 1,122 | [1] | -22 | [1] |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 4,834 | -2,432 | -5,040 | |||
Unrealized gains (losses) on cash flow hedges | 8,602 | [2] | -922 | [2] | -3,181 | [2] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 3,768 | 1,510 | 1,859 | |||
Total other comprehensive income (loss), net of tax | 7,837 | 200 | -3,203 | |||
Comprehensive income | $330,081 | $264,730 | $208,466 | |||
[1] | Net of tax of ($412), $604 and ($12) for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Net of tax of $4,632, ($496) and ($1,713) for the years ended December 31, 2014, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) on available-for-sale securities, tax | ($412) | $604 | ($12) |
Unrealized gains (losses) on cash flow hedges, tax | $4,632 | ($496) | ($1,713) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Income Taxes, Current | $3,293 | $0 |
Current assets: | ||
Cash and cash equivalents | 291,377 | 94,302 |
Short-term investments | 2,310 | 5,238 |
Receivables from licensees | 300 | 300 |
Deferred tax assets | 375 | 377 |
Notes receivable | 57,597 | 1,208 |
Prepaid and other current assets | 3,938 | 6,272 |
Total current assets | 355,897 | 107,697 |
Property and equipment, net | 62 | 41 |
Royalty rights | 259,244 | 235,677 |
Notes and other receivables, long-term | 305,615 | 193,840 |
Long-term deferred tax assets | 33,799 | 6,700 |
Other assets | 7,733 | 0 |
Total assets | 962,350 | 543,955 |
Current liabilities: | ||
Accounts payable | 318 | 287 |
Accrued liabilities | 8,876 | 11,857 |
Term loan payable | 0 | 74,397 |
Convertible Notes Payable, Current | 175,496 | 320,883 |
Total current liabilities | 187,983 | 407,424 |
Convertible notes payable | 276,228 | 0 |
Other long-term liabilities | 37,702 | 23,042 |
Total liabilities | 501,913 | 430,466 |
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; 162,186 and 139,935 shares issued and outstanding at December 31, 2014 and 2013, respectively | 1,622 | 1,399 |
Additional paid-in capital | -119,874 | -233,173 |
Accumulated other comprehensive loss | 2,949 | -4,888 |
Retained earnings | 575,740 | 350,151 |
Total stockholders' equity (deficit) | 460,437 | 113,489 |
Total liabilities and stockholders' equity (deficit) | $962,350 | $543,955 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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) | 162,186 | 139,935 |
Common stock, shares outstanding (in Shares) | 162,186 | 139,935 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $322,244 | $264,530 | $211,669 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of convertible notes and term loan offering costs | 18,696 | 13,320 | 12,481 |
Change in fair value of acquired royalty rights | -44,927 | 5,637 | 0 |
Amortization of non-recourse notes offering costs | 0 | 0 | 1,226 |
Other amortization, depreciation and accretion of embedded derivative | -134 | -404 | 946 |
Loss on retirement or conversion of convertible notes | 6,143 | 0 | 0 |
Hedge ineffectiveness on foreign exchange contracts | -5 | -11 | -257 |
Gain (Loss) on Sale of Investments | -30 | 0 | 0 |
Stock-based compensation expense | 1,501 | 872 | 937 |
Net excess tax benefit from stock-based compensation | 0 | -22 | -27 |
Deferred taxes | -19,842 | -999 | 11,338 |
Changes in assets and liabilities: | |||
Receivables from licensees | 0 | 66 | 234 |
Prepaid and other current assets | 2,126 | 387 | 5,233 |
Accrued interest on notes receivable | -6,800 | -9,530 | -2,832 |
Other assets | -63 | 264 | -17 |
Accounts payable | 31 | -787 | 546 |
Accrued legal settlement | 0 | 0 | -27,500 |
Accrued liabilities | 4,343 | -1,447 | 62 |
Increase (Decrease) in Income Taxes Payable | 3,293 | 0 | 0 |
Other long-term liabilities | 5,705 | -2,131 | -1,533 |
Net cash provided by operating activities | 292,281 | 269,745 | 212,506 |
Cash flows from investing activities | |||
Purchases of investments | -1,750 | -9,875 | -29,898 |
Maturities of investments | 3,530 | 43,780 | 50,831 |
Purchase of royalty rights | -81,100 | -241,314 | 0 |
Payments for (Proceeds from) Productive Assets | 102,460 | 0 | 0 |
Issuance of notes receivable | -230,000 | -148,708 | -97,590 |
Repayment of notes receivable | 68,800 | 59,279 | 5,000 |
Acquisition of property and equipment | -49 | -2 | -51 |
Net cash provided by/(used in) investing activities | -138,109 | -296,840 | -71,708 |
Cash flows from financing activities | |||
Proceeds from term loan | 0 | 74,169 | 0 |
Repayments of Notes Payable | -75,000 | 0 | 0 |
Payments for Repurchase of Convertible Preferred Stock | -56,191 | 0 | 0 |
Repayment of non-recourse notes | 0 | 0 | -93,370 |
Payment of debt issuance costs | -9,825 | 0 | -845 |
Net proceeds from the issuance of convertible notes | 300,000 | 0 | 0 |
Purchased call options cost | -30,951 | 0 | 0 |
Proceeds from issuance of warrants | 11,427 | 0 | 0 |
Cash dividends paid | -96,557 | -84,006 | -83,942 |
Excess tax benefit from stock-based compensation | 0 | 22 | 27 |
Net cash used in financing activities | 42,903 | -9,815 | -178,130 |
Net increase/(decrease) in cash and cash equivalents | 197,075 | -36,910 | -37,332 |
Cash and cash equivalents at beginning of the period | 94,302 | 131,212 | |
Cash and cash equivalents at end of period | 291,377 | 94,302 | 131,212 |
Supplemental cash flow information | |||
Cash paid for income taxes | 189,000 | 139,000 | 99,000 |
Cash paid for interest | 18,439 | 10,997 | 15,754 |
Other Significant Noncash Transaction, Value of Consideration Given | $171,879 | $0 | $0 |
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] | Series 2012 Notes [Member] | Series 2012 Notes [Member] | February 2018 Notes [Member] | February 2018 Notes [Member] | |
Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | |||||||||
Beginning Balance at Dec. 31, 2011 | ($204,273,000) | $1,397,000 | ($161,750,000) | ($42,035,000) | ($1,885,000) | |||||
Beginning 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 | -14,000 | |||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before 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 | |||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before 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 | |||||||||
Issuance of common stock under employee benefit plans (in Shares) | 148,882 | |||||||||
Issuance of common stock under employee benefit plans | 0 | -2,000 | -2,000 | |||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 22,103,031 | |||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 221,000 | |||||||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 0 | -221,000 | ||||||||
Issuance of convertible debt | 102,134,000 | 10,900,000 | 102,134,000 | 18,689,000 | 18,689,000 | |||||
Purchase of purchased call options, net of tax | 20,118,000 | 20,118,000 | ||||||||
Proceeds from the sale of warrants | 11,427,000 | 11,427,000 | ||||||||
Stock-based compensation expense | 1,501,000 | 1,501,000 | ||||||||
Tax benefit (expense) from employee stock options | -111,000 | -111,000 | ||||||||
Dividends declared, Retained Earnings adjustment | -96,655,000 | -96,655,000 | ||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Net income | 322,244,000 | 322,244,000 | ||||||||
Change in unrealized gains (losses) on available-for-sale securities, net of tax | -745,000 | |||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | -765,000 | [1] | -765,000 | |||||||
Changes in unrealized gains and losses on cash flow hedges, net of tax | 8,602,000 | [2] | 8,602,000 | |||||||
Total comprehensive income | 330,081,000 | |||||||||
Ending Balance at Dec. 31, 2014 | $460,437,000 | $1,622,000 | ($119,874,000) | $575,740,000 | $2,949,000 | |||||
Ending Balance (in shares) at Dec. 31, 2014 | 162,186,482 | |||||||||
[1] | Net of tax of ($412), $604 and ($12) for the years ended DecemberB 31, 2014, 2013 and 2012, respectively. | |||||||||
[2] | Net of tax of $4,632, ($496) and ($1,713) for the years ended DecemberB 31, 2014, 2013 and 2012, respectively. |
Organization_and_Business
Organization and Business | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Business | ||
PDL manages a portfolio of patents and royalty assets, consisting of its Queen et al. patents, license agreements with various biotechnology and pharmaceutical companies, and royalty and other assets acquired. To acquire new income generating assets, PDL provides 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 has invested approximately $780 million to date. PDL evaluates its investments based on the quality of the income generating assets and potential returns on investment. PDL is currently focused on intellectual property asset management, acquiring new income generating assets and maximizing value for its stockholders. | |||
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. 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. | |||
In the year ended December 31, 2014, we received Queen et al. patent royalties on sales of the ten 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 | ||
Roche | Gazyva | ||
Takeda | Entyvio | ||
____________________ | |||
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. | |||
Prior to December 2008, our business included biotechnology operations, which were focused on the discovery and development of novel antibodies that 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, 2014 | |||
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 GAAP and under the rules and regulations of the SEC. The financial statements include all adjustments (consisting only of normal recurring adjustments), except as discussed under "Correction of Immaterial Error" below, that management of PDL believes are necessary for a fair presentation of the periods presented. | |||
Reclassifications | |||
Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Consolidated statements of Income. | |||
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. | |||
Notes and Other Long-Term Receivables | |||
We account for our notes receivable at both amortized cost, net of unamortized origination fees, if any, and as collateral dependent when a loan for which repayment is expected to be provided solely by the underlying collateral. For loans accounted for at their amortized cost, related fees and costs are recorded net of any amounts reimbursed. Interest is accreted or accrued to "Interest revenue" using the interest method. When and if supplemental royalties are received from certain of these notes and other long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively. | |||
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. | |||
Convertible Notes | |||
We issued our Series 2012 Notes, May 2015 Notes and our February 2018 Notes with a net share settlement feature, meaning that upon any conversion, the principal amount will be settled in cash and the remaining amount, if any, will be settled in shares of our common stock. In accordance with accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we separated the principal balance between the fair value of the liability component and the common stock conversion feature using a market interest rate for a similar nonconvertible instrument at the date of issuance. | |||
Royalty Rights - At Fair Value | |||
We have elected to account for our investments in royalty rights at fair value with changes in fair value presented in earnings. The fair value of the investments in royalty rights is determined by using a discounted cash flow analysis related to the expected future cash flows to be received. These assets are classified as Level 3 assets within the fair value hierarchy as our valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Transaction related fees and costs are expensed as incurred. | |||
Realized and unrealized gains and losses from investments in royalty rights are presented together on our Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.” | |||
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 2015. 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 forward 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 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. | |||
Queen et al. 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. | |||
Income Taxes | |||
The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. See Note 16, “Income Taxes” of this Form 10-K for additional information. | |||
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 | ||
Correction of Immaterial Error | |||
As disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014, PDL was engaged in ongoing discussions with the SEC staff after receiving a comment letter regarding our Consolidated Financial Statements included in our Annual Report on Form 10- K for the fiscal year ended December 31, 2013. The comment letter requested additional information about the Company’s accounting for the Depomed Royalty Agreement. The Company was asked to support its position and explain why the transaction was accounted for as the acquisition of intangible assets as opposed to that of financial assets. While significant judgment was required to account for this transaction, as either the acquisition of intangible assets or financial | |||
assets, we concluded that it is most appropriate to account for the asset as a Level 3 financial asset, which was a change to the previously reported accounting for this transaction. For the quarterly period ended June 30, 2014, PDL elected to measure this asset at fair value each reporting period. The change in the estimated fair value of this asset at each reporting period is now shown on a single caption, “Royalty rights - change in fair value” in our Consolidated Statements of Income. The purchase of this asset is reported as an investing activity in our Consolidated Statements of Cash Flows. The revenue recognized each period related to this asset is now reported as an adjustment to net income in order to determine net cash provided by (used in) operating activities in our Consolidated Statements of Cash Flows. Actual cash received is reported as an investing cash inflow in our Consolidated Statements of Cash Flows, separate from cash used in investing activities to purchase the asset in 2013. The Company reviewed the impact of this change in accounting on prior annual and interim periods in accordance with SAB no. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined that the changes were not material for the period from October 18, 2013 (acquisition date), through March 31, 2014, and did not represent a material impact to our Consolidated Financial Statements in either our previously filed Annual Report on Form 10-K for the fiscal year ended December 31, 2013, or our previously filed Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014. | |||
We evaluated the materiality of correcting the cumulative error in the period ended June 30, 2014. Based on such evaluation, we concluded that the correction was not material to that period. Accordingly, we corrected the cumulative error in our Consolidated Statement of Income for the year ended December 31, 2014 as follows: (i) $1.7 million increase in total revenues, (ii) $12.8 million increase in pre-tax income, (iii) $8.1 million increase in net income. This correction includes the cumulative impact of 2013 corrections. The impacts to our Consolidated Balance Sheet and Statements of Cash Flows were not material. | |||
We determined that a retrospective revision due to the correction of an error was not required. The prospective change is reflected beginning April 1, 2014 as a component of “Royalty rights - change in fair value” in our Consolidated Statements of Income. Intangible assets that were presented in historical periods have been reclassified to "Royalty rights - at fair value" in our Consolidated Balance Sheets and amortization of intangible assets that was presented in cost of revenues have been reclassified to "Royalty rights - change in fair value" as a component of revenues in our Consolidated Statements of Income for all periods | |||
presented. Such reclassifications did not have an impact on our results of operations, cash flows or financial position. | |||
On December 8, 2014, the SEC communicated to PDL, in a close-out letter, that it had completed its review of the Annual Report on Form 10- K for the fiscal year ended December 31, 2013 and the related topic of accounting for the acquisition of Depomed royalties. |
Net_Income_per_Share
Net Income per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income per Share | 3. Net Income per Share | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Numerator | ||||||||||||
Net income | $ | 322,244 | $ | 264,530 | $ | 211,669 | ||||||
Add back interest expense for convertible notes, net of estimated tax of zero, $13 and $25, for the years ended December 31, 2014, 2013 and 2012, respectively | — | 25 | 46 | |||||||||
Income used to compute net income per diluted share | $ | 322,244 | $ | 264,555 | $ | 211,715 | ||||||
Denominator | ||||||||||||
Total weighted-average shares used to compute net income per basic share | 158,224 | 139,842 | 139,711 | |||||||||
Effect of dilutive stock options | 126 | 83 | 95 | |||||||||
Restricted stock awards | 21 | 20 | 17 | |||||||||
Assumed conversion of Series 2012 Notes | 3,532 | 12,373 | 4,944 | |||||||||
Assumed conversion of February 2015 Notes | — | 106 | 631 | |||||||||
Assumed conversion of warrants | 5,510 | — | — | |||||||||
Assumed conversion of May 2015 Notes | 5,697 | 6,919 | 1,005 | |||||||||
Shares used to compute net income per diluted share | 173,110 | 159,343 | 146,403 | |||||||||
Net income per basic share | $ | 2.04 | $ | 1.89 | $ | 1.52 | ||||||
Net income per diluted share | $ | 1.86 | $ | 1.66 | $ | 1.45 | ||||||
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, the Series 2012 Notes and the 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 the February 2015 Notes was exchanged for the Series 2012 Notes, and in the third quarter of 2013, $1.0 million aggregate principal of the February 2015 Notes was exchanged for the Series 2012 Notes, and the February 2015 Notes were retired, in the first quarter of 2014, $131.7 million aggregate principal of the Series 2012 Notes was retired in a privately negotiated exchange and purchase agreements, and in the fourth quarter of 2014, the Company entered into a privately negotiated exchange agreement under which it retired approximately $26.0 million in principal of the outstanding Series 2012 Notes. | ||||||||||||
In May 2011, we issued the May 2015 Notes, and in January and February 2012 we issued the 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 the Series 2012 Notes and May 2015 Notes include the shares issuable in respect of such excess. | ||||||||||||
May 2015 Notes Purchase Call Option and Warrant Potential Dilution | ||||||||||||
The warrants are dilutive for the year ended December 31, 2014, as the exercise price of the warrant was lower than the average market price of our common stock. We excluded from our calculations of net income per diluted share zero, 21.1 million and 19.6 million shares for the years ended December 31, 2014, 2013 and 2012, respectively, for warrants issued in 2011, because the exercise price of the warrants was higher than the average market price of our common stock and thus, for the years ended December 31, 2013 and 2012, no stock was issuable upon conversion. Our purchased call options, issued in 2011, will always be anti-dilutive and therefore 26.6 million, 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, 2014, 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 11. | ||||||||||||
February 2018 Notes Purchase Call Option and Warrant Potential Dilution | ||||||||||||
We excluded from our calculation of net income per diluted share 29.0 million shares for the year ended December 31, 2014, for warrants issued in February 2014, because the exercise price of the warrants exceeded the VWAP of our common stock and conversion of the underlying February 2018 Notes is not assumed, no stock would be issuable upon conversion. These securities could be dilutive in future periods. Our purchased call options, issued in February 2014, will always be anti-dilutive and therefore 32.7 million shares were excluded from our calculation of net income per diluted share for the year ended December 31, 2014, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 11. | ||||||||||||
Anti-Dilutive Effect of Stock Options and Restricted Stock Awards | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012, we excluded approximately 35,000, 115,000 and 157,000 shares underlying outstanding stock options, respectively, calculated on a weighted-average basis, from our net income per diluted share calculations because their effect was anti-dilutive. For the years ended December 31, 2014, 2013 and 2012, we excluded approximately zero, zero, and 1,000 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, 2014 | |||||||||||||||||||||||||||||||||
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, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||
Money market funds | $ | 221,792 | $ | — | $ | — | $ | 221,792 | $ | 85,970 | $ | — | $ | — | $ | 85,970 | |||||||||||||||||
Corporate securities | — | 2,310 | — | 2,310 | — | 5,238 | — | 5,238 | |||||||||||||||||||||||||
Foreign currency hedge contracts | — | 4,069 | — | 4,069 | — | — | — | — | |||||||||||||||||||||||||
Royalty rights - at fair value | — | — | 259,244 | 259,244 | — | — | 235,677 | 235,677 | |||||||||||||||||||||||||
Total | $ | 221,792 | $ | 6,379 | $ | 259,244 | $ | 487,415 | $ | 85,970 | $ | 5,238 | $ | 235,677 | $ | 326,885 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 8,871 | $ | — | $ | 8,871 | |||||||||||||||||
There have been no transfers between levels during the years ended December 31, 2014 and 2013. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer. | |||||||||||||||||||||||||||||||||
Corporate Securities | |||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
Royalty Rights - At Fair Value | |||||||||||||||||||||||||||||||||
Depomed Royalty Agreement | |||||||||||||||||||||||||||||||||
On October 18, 2013, PDL entered into the Depomed Royalty Agreement, 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 (which was subsequently acquired by Salix) 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 tablets); (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 tablets; (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 tablets in Korea and Canada, respectively. | |||||||||||||||||||||||||||||||||
Under the terms of the Depomed 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 Depomed 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. | |||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Company determined that its royalty purchase interest in Depo DR Sub represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Depo DR Sub that most significantly impact Depo DR Sub's economic performance and is not the primary beneficiary of Depo DR Sub; therefore, Depo DR Sub is not subject to consolidation by the Company. | |||||||||||||||||||||||||||||||||
The asset acquired represents a single unit of accounting. The fair value of the asset 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 asset is classified as a Level 3 asset within the fair value hierarchy, 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 and estimates of inventory levels within the related distribution channels. The discounted cash flow was based upon expected royalties from sales of licensed products over a nine-year period. The discount rates utilized ranged from approximately 21% to 25%. Significant judgment is required in selecting appropriate discount rates. Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $19.8 million or increase by $25.2 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. Should the expected cash flows from royalties increase or decrease by 10%, the fair value of the asset could increase by $14.2 million or decrease by $14.9 million, respectively. At each reporting period an evaluation is performed to assess those estimates, discount rates utilized and general market conditions affecting fair market value. | |||||||||||||||||||||||||||||||||
When PDL acquired the Depomed royalties, Glumetza was marketed by Santarus. In January 2014, Salix acquired Santarus and assumed responsibility for commercializing Glumetza, which was generally perceived to be a positive development because of Salix's larger sales force and track record in the successful commercialization of therapies. In late 2014, Salix made a number of disclosures relating to an excess of supply at the distribution level of Glumetza and other drugs that it commercialized, to the likely practices of its distributors in drawing down such inventory and to a review by the Salix's audit committee of its accounting practices. Because of these disclosures and PDL's lack of direct access to information as to the levels of inventory of Glumetza in the distribution channels, PDL commenced a review of all public statements by Salix, publicly available historical third party prescription data, analyst reports and other relevant data sources. PDL also engaged a third-party expert to specifically assess estimated inventory levels of Glumetza in the distribution channel and to ascertain the potential effects those inventory levels may have on expected future cash flows. While the cash royalties paid to PDL on sales of Glumetza in the third and fourth quarter of 2014 were $51.7 million, approximately $18.9 million above our internal forecast, we have determined that sales of Glumetza, and therefore royalties on such sales paid to PDL, will be lower in 2015 as distributors reduce their excess levels of inventory of Glumetza. As a result, an adjustment to our previously estimated future cash flows of Glumetza was required to properly reflect the estimated excess inventory levels of Glumetza. That adjustment resulted in a decrease of $42.6 million in the fair value. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the fair value of the asset acquired as reported in our Consolidated Balance Sheets was $176.2 million. As of December 31, 2014, the maximum loss exposure was $176.2 million. | |||||||||||||||||||||||||||||||||
VB Royalty Agreement | |||||||||||||||||||||||||||||||||
On June 26, 2014, PDL entered into the VB Royalty Agreement, whereby VB conveyed to the Company the right to receive royalties payable on sales of a spinal implant that has received PMA, in exchange for a $15.5 million cash payment, less fees. | |||||||||||||||||||||||||||||||||
The royalty acquired includes royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company will receive all royalty payments due to VB pursuant to certain technology transfer agreements between VB and Paradigm Spine until the Company has received payments equal to two and three tenths times the cash payment made to VB, after which all rights to receive royalties will be returned to VB. VB may repurchase the royalty right at any time on or before June 26, 2018, for a specified amount. The acting chief executive officer of Paradigm Spine is one of the owners of VB. The Paradigm Spine Credit Agreement and the VB Royalty Agreement were negotiated separately. | |||||||||||||||||||||||||||||||||
The fair value of the royalty right at December 31, 2014, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a nine-year period. The discount rate utilized was approximately 17.5%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from our estimates. An evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the fair value of the asset acquired as reported in our Consolidated Balance Sheets was $16.1 million. As of December 31, 2014, the maximum loss exposure was $16.1 million. | |||||||||||||||||||||||||||||||||
University of Michigan | |||||||||||||||||||||||||||||||||
On November 6, 2014, PDL acquired a portion of all royalty payments of the U-M’s worldwide royalty interest in Cerdelga (eliglustat) for $65.6 million. Under the terms of the Michigan Royalty Agreement, PDL will receive 75% of all royalty payments due under U-M’s license agreement with Genzyme until expiration of the licensed patents, excluding any patent term extension. Cerdelga, an oral therapy for adult patients with Gaucher disease type 1, was developed by Genzyme, a Sanofi company. Cerdelga was approved in the United States on August 19, 2014 and in the European Union on January 22, 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities. | |||||||||||||||||||||||||||||||||
The fair value of the royalty right at December 31, 2014, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a nine-year period. The discount rate utilized was approximately 12.8%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $6.4 million or increase by $7.4 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $3.3 million or decrease by $3.3 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from our estimates. An evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the fair value of the asset acquired as reported in our Consolidated Balance Sheets was $66.9 million. As of December 31, 2014, the maximum loss exposure was $66.9 million. | |||||||||||||||||||||||||||||||||
The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the year ended December 31, 2014: | |||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
(in thousands) | Royalty Rights | ||||||||||||||||||||||||||||||||
- At Fair Value | |||||||||||||||||||||||||||||||||
Beginning Balance at December 31, 2013 | $ | — | |||||||||||||||||||||||||||||||
Transfer into Level 3 | 235,677 | ||||||||||||||||||||||||||||||||
Total net change in fair value for the period | |||||||||||||||||||||||||||||||||
Change in fair value of royalty rights - at fair value | $ | 44,927 | |||||||||||||||||||||||||||||||
Proceeds from royalty rights - at fair value | $ | (102,460 | ) | ||||||||||||||||||||||||||||||
Total net change in fair value for the period | (57,533 | ) | |||||||||||||||||||||||||||||||
Purchases, issues, sales, and settlements | |||||||||||||||||||||||||||||||||
Purchases | 81,100 | ||||||||||||||||||||||||||||||||
Ending Balance at December 31, 2014 | $ | 259,244 | |||||||||||||||||||||||||||||||
The correction of the immaterial error as described in Note 2 resulted in accounting for the Depomed Royalty Agreement as a Level 3 financial asset. That correction has been identified above as a transfer into Level 3. | |||||||||||||||||||||||||||||||||
Gains and losses included in earnings for each period are presented in "Royalty rights - change in fair value" as follows: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Total change in fair value for the period included in earnings for assets held at the end of the reporting period | $ | 44,927 | $ | — | |||||||||||||||||||||||||||||
Foreign Currency Hedge Contracts | |||||||||||||||||||||||||||||||||
The fair value of the foreign currency hedge contracts is estimated based on pricing models using readily observable inputs from actively quoted markets and are disclosed on a gross basis. | |||||||||||||||||||||||||||||||||
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, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Carrying Value | Level 2 | Level 3 | Carrying Value | Level 2 | Level 3 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Wellstat Diagnostics note receivable | $ | 50,191 | $ | — | $ | 50,191 | $ | 47,694 | $ | — | $ | 46,042 | |||||||||||||||||||||
Hyperion note receivable | 1,200 | — | 1,200 | 1,194 | — | 1,195 | |||||||||||||||||||||||||||
AxoGen note receivable and embedded derivative | — | — | — | 26,544 | — | 25,785 | |||||||||||||||||||||||||||
Avinger note receivable | 20,611 | — | 20,760 | 20,250 | — | 19,061 | |||||||||||||||||||||||||||
LENSAR note receivable | 39,668 | — | 40,451 | 39,572 | — | 39,572 | |||||||||||||||||||||||||||
Durata note receivable | — | — | — | 24,995 | — | 24,995 | |||||||||||||||||||||||||||
Direct Flow Medical note receivable | 50,397 | — | 49,940 | 34,799 | — | 34,799 | |||||||||||||||||||||||||||
Paradigm Spine note receivable | 49,571 | — | 50,125 | — | — | — | |||||||||||||||||||||||||||
kaléo note receivable | 151,574 | — | 151,073 | — | — | — | |||||||||||||||||||||||||||
Total | $ | 363,212 | $ | — | $ | 363,740 | $ | 195,048 | $ | — | $ | 191,449 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Series 2012 Notes | $ | 22,261 | $ | 33,506 | $ | — | $ | 172,630 | $ | 277,650 | $ | — | |||||||||||||||||||||
May 2015 Notes | 153,235 | 205,534 | — | 148,253 | 212,304 | — | |||||||||||||||||||||||||||
February 2018 Notes | 276,228 | 289,665 | — | — | — | — | |||||||||||||||||||||||||||
Term loan | — | — | — | 74,397 | 75,000 | — | |||||||||||||||||||||||||||
Total | $ | 451,724 | $ | 528,705 | $ | — | $ | 395,280 | $ | 564,954 | $ | — | |||||||||||||||||||||
As of December 31, 2014, the estimated fair value of our Paradigm Spine note receivable and kaléo note receivable, as of December 31, 2014 and 2013, the estimated fair values of our Wellstat Diagnostics note receivable, Hyperion note receivable, Avinger note receivable, LENSAR note receivable and Direct Flow Medical note receivable, and as of December 31, 2013, the estimated fair values of our AxoGen note receivable and embedded derivative and Durata 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 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 assist in evaluating our investments and the related inputs needed for us to estimate the fair value of certain investments. We determined our notes receivable assets are 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. | |||||||||||||||||||||||||||||||||
On November 13, 2014, the Company agreed to terminate the AxoGen Royalty Agreement in consideration for a payment of $30.3 million in cash in connection with a refinancing at AxoGen. | |||||||||||||||||||||||||||||||||
The Wellstat Diagnostics Note Receivable and Credit Agreement, as amended and restated, 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. On December 31, 2014, the discounted cash flow was based upon expected income from estimated sales of planned products over a period of 15 years. The terminal value was estimated using selected market multiples based on sales and EBITDA. On December 31, 2013, the estimated fair value of Wellstat Diagnostics Note Receivable and Credit Agreement was determined by using a discounted cash flow that was based upon expected income from estimated sales through December 31, 2016. | |||||||||||||||||||||||||||||||||
On December 31, 2014, the carrying value of the Direct Flow Medical note exceeded its fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. We determined this note to be Level 3 asset, as our valuation utilized significant unobservable inputs, including a discount rate of 15.50%, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurement, we considered forward-looking performance, and current measures associated with high yield and published indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in a similar sector. | |||||||||||||||||||||||||||||||||
On December 31, 2014, the carrying value of the kaléo note exceeded its fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. We determined this note to be Level 3 asset, as our valuation utilized significant unobservable inputs, including a discount rate of 13.00%, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurement, we considered forward-looking performance, and current measures associated with high yield and published indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in a similar sector. | |||||||||||||||||||||||||||||||||
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, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||
Cash Equivalents and Investments | 5. Cash, Cash Equivalents and Investments | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, we had invested our excess cash balances primarily in money market funds and a corporate equity security. 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, 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 | Short-Term Investments | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Cash | $ | 69,585 | $ | — | $ | — | $ | 69,585 | $ | 69,585 | $ | — | |||||||||||||
Money market funds | 221,792 | — | — | 221,792 | 221,792 | — | |||||||||||||||||||
Corporate securities | 1,750 | 560 | — | 2,310 | — | 2,310 | |||||||||||||||||||
Total | $ | 293,127 | $ | 560 | $ | — | $ | 293,687 | $ | 291,377 | $ | 2,310 | |||||||||||||
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 | |||||||||||||
We recognized approximately $30,000, zero and $13,000, respectively, of gains on sales of available-for-sale securities in the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
The unrealized gain on investments included in "Other comprehensive income (loss), net of tax," was approximately $364,000 and $1,129,000 as of December 31, 2014 and 2013, respectively. |
Foreign_Currency_Hedging
Foreign Currency Hedging | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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, 2014 and 2013, 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. In October 2014, we entered an additional series of Euro forward contracts covering the quarters in which our licensees' sales occurred through December 2015. | |||||||||||||||||||||
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 $391,000 to "Interest and other income, net," which was reclassified from other comprehensive income (loss) net of tax effects. The termination of these contracts was effected through a reduction in the notional amount of the original hedge contracts. | |||||||||||||||||||||
The notional amounts, Euro exchange rates, fair values of our Euro forward contracts designated as cash flow hedges were as follows: | |||||||||||||||||||||
Euro Forward Contracts | December 31, 2014 | December 31, 2013 | |||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Currency | Settlement Price | Type | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||
($ per Euro) | |||||||||||||||||||||
Euro | 1.24 | Sell Euro | $ | — | $ | — | $ | 10,850 | $ | (1,207 | ) | ||||||||||
Euro | 1.256 | Sell Euro | 6,000 | 241 | — | — | |||||||||||||||
Euro | 1.257 | Sell Euro | 15,750 | 728 | — | — | |||||||||||||||
Euro | 1.259 | Sell Euro | 16,125 | 752 | — | — | |||||||||||||||
Euro | 1.26 | Sell Euro | 33,000 | 1,468 | — | — | |||||||||||||||
Euro | 1.27 | Sell Euro | 7,000 | 377 | 44,450 | (3,760 | ) | ||||||||||||||
Euro | 1.281 | Sell Euro | 8,000 | 503 | 36,814 | (2,785 | ) | ||||||||||||||
Euro | 1.3 | Sell Euro | — | — | 19,500 | (1,119 | ) | ||||||||||||||
Total | $ | 85,875 | $ | 4,069 | $ | 111,614 | $ | (8,871 | ) | ||||||||||||
The location and fair values of our Euro forward contracts in our Consolidated Balance Sheets were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Cash Flow Hedge | Location | 2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Euro forward contracts | Prepaid and other current assets | $ | 3,352 | $ | — | ||||||||||||||||
Euro forward contracts | Other assets | $ | 717 | $ | — | ||||||||||||||||
Euro forward contracts | Accrued liabilities | $ | — | $ | 7,355 | ||||||||||||||||
Euro forward contracts | Other long-term liabilities | $ | — | $ | 1,516 | ||||||||||||||||
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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net gain (loss) recognized in OCI, net of tax (1) | $ | 4,834 | $ | (2,432 | ) | $ | (5,040 | ) | |||||||||||||
Gain (loss) reclassified from accumulated OCI into "Queen et al. | $ | (3,768 | ) | $ | (1,510 | ) | $ | (1,859 | ) | ||||||||||||
royalty revenue," net of tax (2) | |||||||||||||||||||||
Net gain (loss) recognized in "Interest and other income, net" | $ | 5 | $ | 11 | $ | (169 | ) | ||||||||||||||
-- cash flow hedges (3) | |||||||||||||||||||||
Net gain (loss) recognized in "Interest and other income, net" | $ | — | $ | — | $ | 391 | |||||||||||||||
-- non-designated contracts (4) | |||||||||||||||||||||
_________________________ | |||||||||||||||||||||
(1) Net change in the fair value of the effective portion of cash flow hedges classified in OCI | |||||||||||||||||||||
(2) Effective portion classified as royalty revenue | |||||||||||||||||||||
(3) Ineffectiveness from excess hedge was approximately ($5), ($11) and $8 for the years ended December 31, 2014, 2013 and 2012, respectively. Net loss from restructuring hedges was approximately zero, zero and $161 for the years ended December 31, 2014, 2013 and 2012, respectively | |||||||||||||||||||||
(4) Gain on de-designation classified as "Interest and other income, net" | |||||||||||||||||||||
A gain of approximately $2.1 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, 2014 | |
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 receivable gave PDL certain rights to negotiate for certain future financing transactions. In August 2012, PDL and Wellstat Diagnostics 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 receivable. This $10.0 million note receivable was repaid on November 2, 2012, using the proceeds of the $40.0 million credit facility entered into with the Company on the same date. | |
On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company was to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL was to 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 December 31, 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 forbearance period that ended on June 28, 2013, the Company agreed to forbear 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 Wellstat Diagnostics' 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 and restated 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 was to continue to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics' net revenues. However, pursuant to the amended and restated credit agreement: (i) the principal amount was reset to approximately $44.1 million that 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 were required to contribute additional capital to Wellstat Diagnostics upon the sale of an affiliate entity. The amended and restated credit agreement had an ultimate maturity date of December 31, 2021 (but has subsequently been accelerated as described below). | |
When the principal amount was reset, a $2.5 million reduction of the carrying value was recorded as a financing cost as a component of "Interest and other income, net." The new carrying value was 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 receivable was to be repaid. The internal rate of return calculation, although increased, was reset when the credit agreement was amended and restated. | |
In June of 2014, the Company received information from Wellstat Diagnostics that showed that it was generally unable to pay its debts as they became due. This constituted an event of default under the amended and restated credit agreement. Wellstat Diagnostics entered into a transaction involving another lender, pursuant to which Wellstat Diagnostics obtained additional short-term funding for its operations. At the same time, the Company entered into the first amendment to amended and restated credit agreement with Wellstat Diagnostics. The material terms of the amendment included the following: (1) Wellstat Diagnostics acknowledged that an event of default had occurred, (2) the Company agreed to forbear from immediately enforcing its rights for up to 60 days, so long as the other lender provided agreed levels of interim funding to Wellstat Diagnostics, and (3) the Company obtained specified additional information rights with regard to Wellstat Diagnostics’ financial matters and investment banking activities. | |
On August 5, 2014, the Company received notice that the short-term funding being provided pursuant to the agreement with the other lender entered into during June 2014 was being terminated. Wellstat Diagnostics remained in default because it was still unable to pay its debts as they became due. Accordingly, the Company delivered the Wellstat Diagnostics Borrower Notice. The Wellstat Diagnostics Borrower Notice accelerated all obligations under the amended and restated credit agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, included an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered the Wellstat Diagnostics Guarantor Notice. The Wellstat Diagnostics Guarantor Notice included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ shareholders. | |
On September 24, 2014, the Company filed the Wellstat Diagnostics Petition, which was granted on the same day. The order granting the Wellstat Diagnostics Petition authorizes the receiver to take immediate possession of the physical assets of Wellstat Diagnostics, with the purpose of holding, protecting, insuring, managing and preserving the business of Wellstat Diagnostics and the value of the Company’s collateral. Wellstat Diagnostics has remained in operation during the period of the receivership with incremental additional funding from the Company. The Company continues to assess its options with respect to collecting on the loan, including determining whether and when it will foreclose on the collateral and proceed with a sale of Wellstat Diagnostics’ assets, whether providing further capital to the receiver to fund Wellstat Diagnostics’ operations for a period of time prior to sale will best position Wellstat Diagnostics’ assets for sale, and assessing the value of the guarantees obtained by the Company from Wellstat Diagnostics’ guarantors, including Wellstat Diagnostics’ shareholders and Wellstat Therapeutics. | |
On November 4, 2014, the Company entered into the third amendment to amended and restated credit agreement with Wellstat Diagnostics. The amendment provides that additional funding, if any, to be made by the Company is conditioned upon agreement by Wellstat Diagnostics to effecting certain operational changes within Wellstat Diagnostics, which the Company believes will allow the receiver to more efficiently optimize the value of the collateral. | |
Subsequent to the third amendment to amended and restated credit agreement with Wellstat Diagnostics, PDL advanced to Wellstat Diagnostics $6.2 million to fund the ongoing operations of the business and other associated costs. This funding has been expensed as incurred. | |
Effective April 1, 2014 and as a result of the event of default, we determined the loan to be impaired and we ceased to accrue interest revenue. At that time and as of December 31, 2014 it has been determined that an allowance on the carrying value of the note was not necessary as the Company believes the value of the collateral securing Wellstat Diagnostics’ obligations exceeds the carrying value of the asset and is sufficient to enable the Company to recoup the full carrying value, there can be no assurance that this will be true in the event of the Company’s foreclosure on the collateral or the timing in realizing value from such collateral. | |
Hyperion Agreement | |
On January 27, 2012, PDL and Hyperion entered into an agreement whereby Hyperion sold to PDL the royalty streams due from SDK related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. The agreement assigned the patent license agreement royalty stream accruing from January 1, 2012 through December 31, 2013 to PDL in exchange for the lump sum payment to Hyperion of $2.3 million. In exchange for the lump sum payment, PDL was to receive two equal payments of $1.2 million on each of March 5, 2013 and 2014. The first payment of $1.2 million was paid on March 5, 2013, but Hyperion has not made the payment that was due on March 5, 2014. The Company completed an impairment analysis as of December 31, 2014. The estimated fair value of the collateral was determined to be in excess of that of the carrying value. Hyperion is considering other sources of financing and strategic alternatives, including selling the company. Depending on the outcome of its efforts and PDL's assessment of Hyperion's financial viability, we may recognize an impairment charge in a future period. | |
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 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, 2014. | |
AxoGen Note Receivable and AxoGen Royalty Agreement | |
In October 2012, PDL entered into the AxoGen Royalty Agreement with AxoGen pursuant to which the Company would receive specified royalties on AxoGen’s net revenues (as defined in the AxoGen Royalty Agreement) generated by the sale, distribution or other use of AxoGen’s products. The AxoGen Royalty Agreement had an eight-year term and provided PDL with royalties of 9.95% based on AxoGen's net revenues, subject to agreed-upon guaranteed quarterly minimum payments of approximately $1.3 to $2.5 million, which were to begin in the fourth quarter of 2014, and the right to require AxoGen to repurchase the royalties under the AxoGen Royalty Agreement at the end of the fourth year. AxoGen was granted certain rights to call the contract in years five through eight. The total consideration PDL paid to AxoGen for the royalty rights was $20.8 million, including an interim funding of $1.8 million in August 2012. AxoGen was required to use a portion of the proceeds from the AxoGen Royalty Agreement to pay the outstanding balance under its existing credit facility. The royalty rights were secured by the cash and accounts receivable of AxoGen. | |
Under the AxoGen Royalty Agreement, beginning on October 1, 2016, or in the event of the occurrence of a material adverse event, AxoGen's bankruptcy or material breach of the AxoGen Royalty Agreement, the Company could have required AxoGen to repurchase the royalty rights 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 that should be bifurcated and separately accounted for at fair value. The estimated fair value of the change of control provision was approximately zero and $1.1 million as of December 31, 2014 and 2013, respectively. | |
In the event of a change of control, AxoGen was required to repurchase the assigned interests from the Company for a repurchase price equal to an amount that, together with payments already made by AxoGen, would have generated a 32.5% internal rate of return to the Company. | |
On August 14, 2013, PDL purchased 1,166,666 shares of registered common stock of AxoGen (AXGN) at $3.00 per share, totaling $3.5 million. On December 22, 2014, PDL sold these shares at $3.03 per share, totaling $3.5 million. | |
On November 13, 2014, the Company agreed to terminate the AxoGen Royalty Agreement in consideration for a payment of $30.3 million in cash, which was the sum of the outstanding principal, interest and embedded derivative. | |
Subsequent to the pay-off, the Company acquired 643,382 shares of registered common stock of AxoGen for approximately $1.7 million at a public offering price of $2.72 per share. The shares are classified as available for sale and recorded as short-term investments on the balance sheet. As of December 31, 2014, the shares were valued at $2.3 million, which resulted in an unrealized gain of $0.6 million and is recorded in "Other comprehensive income (loss), net of tax." | |
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 lumivascular catheter devices and the development of Avinger's lumivascular atherectomy device. Of the $40.0 million initially available to Avinger, we funded an initial $20.0 million, net of fees, at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to Avinger. Outstanding borrowings under the initial loan bear interest at a stated rate of 12% per annum. | |
Avinger is required to make quarterly interest and principal payments. Principal repayment will commence on the eleventh interest payment date. 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 loan. The loan 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 $60.0 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR Laser System. Of the $60.0 million available to LENSAR, an initial $40.0 million, net of fees, was funded by the Company at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to LENSAR under the terms of the credit agreement. 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 31, 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 substantially all of the assets of LENSAR. | |
Durata Credit Agreement | |
On October 31, 2013, PDL entered into a credit agreement with Durata, under which 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. On May 27, 2014, the Company funded Durata an additional $15.0 million (tranche two) as a result of Durata's marketing approval of dalbavancin in the United States, which occurred on May 23, 2014, and was the milestone needed to receive the tranche two funding. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bore 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 decreased to 12.75%. | |
On November 17, 2014, the Company received a payment of approximately $42.7 million constituting repayment in full of the outstanding principal amount of loans plus accrued interest and fees under the credit agreement. The repayment was made in connection with the acquisition of Durata by Actavis plc. | |
Direct Flow Medical Credit Agreement | |
On November 5, 2013, PDL entered into a credit agreement with Direct Flow Medical, under which PDL agreed to 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 funded by the Company at the close of the transaction. Pursuant to the original terms of the credit agreement, the Company agreed to provide Direct Flow Medical with an additional $15.0 million tranche, net of fees, upon the attainment of a specified revenue milestone to be accomplished no later than December 31, 2014 (the tranche two milestone). Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bore interest at the rate of 15.5% per annum, payable quarterly in arrears. | |
On November 10, 2014, PDL and Direct Flow Medical agreed to an amendment to the credit agreement to permit Direct Flow Medical to borrow the $15.0 million second tranche upon receipt by Direct Flow Medical of a specified minimum amount of proceeds from an equity offering prior to December 31, 2014. In exchange, the parties amended the credit agreement to provide for additional fees associated with certain liquidity events, such as a change of control or the consummation of an initial public offering, and granted PDL certain board of director observation rights. On November 19, 2014, upon Direct Flow Medical satisfying the amended tranche two milestone, the Company funded the $15.0 million second tranche to Direct Flow Medical, net of fees. Upon occurrence of the borrowing of this second tranche, the interest rate applicable to all loans under the credit agreement was decreased to 13.5% per annum, payable quarterly in arrears. | |
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. | |
Paradigm Spine Credit Agreement | |
On February 14, 2014, the Company entered into the Paradigm Spine Credit Agreement, under which it made available to Paradigm Spine up to $75.0 million to be used by Paradigm Spine to refinance its existing credit facility and expand its domestic commercial operations. Of the $75.0 million available to Paradigm Spine, an initial $50.0 million, net of fees, was funded by the Company at the close of the transaction. A second tranche of up to an additional $12.5 million, net of fees, is no longer available under the terms of the Paradigm Spine Credit Agreement. Upon the attainment of specified sales and other milestones before June 30, 2015, the Company agreed to fund Paradigm Spine up to an additional $12.5 million, at Paradigm Spine’s discretion. Borrowings under the Paradigm Spine Credit Agreement bear interest at the rate of 13.0% per annum, payable quarterly in arrears. | |
Principal repayment will commence on the twelfth interest payment date, December 31, 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. Paradigm Spine 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 Paradigm Spine Credit Agreement are secured by a pledge of substantially all of the assets of Paradigm Spine and its domestic subsidiaries and, initially, certain assets of Paradigm Spine’s German subsidiaries. | |
kaléo Note Purchase Agreement | |
On April 1, 2014, PDL entered into a note purchase agreement with Accel 300, a wholly-owned subsidiary of kaléo, pursuant to which the Company acquired $150.0 million of secured notes due 2029. The secured notes were issued pursuant to an indenture between Accel 300 and U.S. Bank, National Association, as trustee, and are secured by the kaléo Revenue Interests, and a pledge of kaléo’s equity ownership in Accel 300. | |
The secured notes bear interest at 13% per annum, paid quarterly in arrears on principal outstanding. The principal balance of the secured notes is repaid to the extent that the kaléo Revenue Interests exceed the quarterly interest payment, as limited by a quarterly payment cap. The final maturity of the secured notes is June 2029. Kaléo may redeem the secured notes at any time, subject to a redemption premium. | |
As of December 31, 2014, the Company determined that its royalty purchase interest in Accel 300 represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Accel 300 that most significantly impact Accel 300's economic performance and is not the primary beneficiary of Accel 300; therefore, Accel 300 is not subject to consolidation by the Company. | |
For carrying value and fair value information related to our Notes and Other Long-term Receivables, see Note 4. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment | ||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Leasehold improvements | $ | 153 | $ | 127 | |||||
Computer and office equipment | 9,043 | 9,028 | |||||||
Furniture and fixtures | 45 | 38 | |||||||
Total | 9,241 | 9,193 | |||||||
Less accumulated depreciation and amortization | (9,179 | ) | (9,152 | ) | |||||
Property and equipment, net | $ | 62 | $ | 41 | |||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Compensation | $ | 1,332 | $ | 768 | |||||
Interest | 6,210 | 2,925 | |||||||
Foreign currency hedge | — | 7,355 | |||||||
Dividend payable | 90 | 59 | |||||||
Legal | 296 | 324 | |||||||
Other | 948 | 426 | |||||||
Total | $ | 8,876 | $ | 11,857 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 2016. We also lease certain office equipment under operating leases. Rental expense under these arrangements totaled $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Future minimum operating lease payments for the years ended December 31, were as follows: | |||||
(In thousands) | |||||
2015 | $ | 221 | |||
2016 | 101 | ||||
Total | $ | 322 | |||
Convertible_Notes
Convertible Notes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Convertible and Non-Recourse Notes | Convertible Notes and Term Loans | ||||||||||||||||||||||||
Convertible Notes and Term Loan activity for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
(In thousands) | Series | May | February | Feb-18 | Term Loan | Total | |||||||||||||||||||
2012 | 2015 | 2015 | Notes | ||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
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 | |||||||||||||||||||
Issuance and exchange | (152,784 | ) | (200 | ) | — | 300,000 | — | 147,016 | |||||||||||||||||
Payment | — | — | — | — | (75,000 | ) | (75,000 | ) | |||||||||||||||||
Non-cash discount | — | — | — | (29,726 | ) | — | — | ||||||||||||||||||
Discount amortization | 2,415 | 5,182 | — | 5,954 | 603 | 14,154 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 22,261 | $ | 153,235 | $ | — | $ | 276,228 | $ | — | $ | 451,724 | |||||||||||||
Series 2012 Notes | |||||||||||||||||||||||||
In January 2012, we exchanged $169.0 million aggregate principal of new Series 2012 Notes for an identical principal amount of the February 2015 Notes, plus a cash payment of $5.00 for each $1,000 principal amount tendered, totaling approximately $845,000. The cash 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 the 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 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 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. | |||||||||||||||||||||||||
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 agreement provided 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 provided for a cash payment for the Series 2012 Notes being repurchased. The total consideration given was approximately $191.8 million. The Company issued to the participating holders of the Series 2012 Notes a total of approximately 20.3 million shares of its common stock with a fair value of approximately $157.6 million and made an aggregate cash payment of approximately $34.2 million pursuant to the exchange and purchase agreements. Of the $34.2 million cash payment, $2.5 million is attributable to an inducement fee, $1.8 million is attributable to interest accrued through the date of settlement and $29.9 million is attributable to the repurchase of the Series 2012 Notes. It was determined that the exchange and purchase agreement represented an extinguishment of the related notes. As a result, a loss on extinguishment of $6.1 million was recorded. The $6.1 million loss on extinguishment included the de-recognition of the original issuance discount of $5.8 million and a $0.3 million charge resulting from the difference of the face value of the notes and the fair value of the notes. Immediately following the exchange, $48.3 million principal amount of the Series 2012 Notes was outstanding with approximately $2.1 million of remaining original issuance discount to be amortized over the remaining life of the Series 2012 Notes. | |||||||||||||||||||||||||
On October 20, 2014, the Company entered into a privately negotiated exchange agreement under which it retired approximately $26.0 million in principal of the outstanding Series 2012 Notes. The exchange agreement provided for the issuance, by the Company, of shares of common stock and a cash payment for the Series 2012 Notes being exchanged. The Company issued approximately 1.8 million shares of its common stock and paid a cash payment of approximately $26.2 million. Immediately following the exchange, $22.3 million principal amount of the Series 2012 Notes was outstanding with approximately $0.1 million of remaining original issuance discount to be amortized over the remaining life of the Series 2012 Notes. On February 17, 2015, the Company completed the retirement of the remaining $22.3 million of aggregate principal of its Series 2012 notes at their stated maturity for $22.3 million, plus approximately 1.34 million shares of its common stock. | |||||||||||||||||||||||||
The terms of the Series 2012 Notes were governed by the indenture dated as of January 5, 2012, and included a net-share settlement feature, meaning that if a conversion occurred, the principal amount would have been settled in cash and the excess, if any, would have been settled in the Company’s common stock. The Series 2012 Notes could not be redeemed by the Company prior to their stated maturity date. The Series 2012 Notes were due February 15, 2015, and bore interest at a rate of 2.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. | |||||||||||||||||||||||||
Holders could 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 the 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 our 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. | |||||||||||||||||||||||||
The principal amount, carrying value and unamortized discount of the Series 2012 Notes were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||
Principal amount of the Series 2012 Notes | $ | 22,337 | $ | 180,000 | |||||||||||||||||||||
Unamortized discount of liability component | (76 | ) | (7,370 | ) | |||||||||||||||||||||
Net carrying value of the Series 2012 Notes | $ | 22,261 | $ | 172,630 | |||||||||||||||||||||
Interest expense for the Series 2012 Notes on the Consolidated Statements of Income was as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 1,726 | $ | 5,158 | $ | 5,122 | |||||||||||||||||||
Amortization of debt issuance costs | 1,089 | 1,152 | 1,107 | ||||||||||||||||||||||
Amortization of debt discount | 2,415 | 6,102 | 5,682 | ||||||||||||||||||||||
Total | $ | 5,230 | $ | 12,412 | $ | 11,911 | |||||||||||||||||||
As of December 31, 2014, the Series 2012 Notes were convertible into 195.248 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.12 per common share. As of December 31, 2014, the remaining discount amortization period was 0.1 years. | |||||||||||||||||||||||||
Our common stock exceeded the conversion threshold price of $6.78 per common share for at least 20 days during the 30 consecutive trading days ended September 30, 2014; accordingly, the Series 2012 Notes were convertible at the option of the holder during the quarter ended December 31, 2014. Our common stock price exceeded the conversion threshold price of $6.66 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2014; accordingly, the Series 2012 Notes are convertible at the option of the holder during the quarter ending March 31, 2015. 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, 2014. At December 31, 2014, the if-converted value of the Series 2012 Notes exceeded their principal amount by approximately $11.3 million. | |||||||||||||||||||||||||
See Note 19 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 the May 2015 Notes in an underwritten public offering, for net proceeds of $149.7 million. The May 2015 Notes are due May 1, 2015, and we pay interest at 3.75% on the May 2015 Notes semiannually in arrears on May 1 and November 1 of each year, beginning November 1, 2011. Proceeds from the 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. | |||||||||||||||||||||||||
The 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 the 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 the May 2015 Notes and increases interest expense during the term of the May 2015 Notes from the 3.75% cash coupon interest rate to an effective interest rate of 7.5%. As of December 31, 2014, the remaining discount amortization period is 0.3 years. | |||||||||||||||||||||||||
The carrying value and unamortized discount of the May 2015 Notes were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||
Principal amount of the May 2015 Notes | $ | 155,050 | $ | 155,250 | |||||||||||||||||||||
Unamortized discount of liability component | (1,815 | ) | (6,997 | ) | |||||||||||||||||||||
Net carrying value of the May 2015 Notes | $ | 153,235 | $ | 148,253 | |||||||||||||||||||||
Interest expense for the May 2015 Notes on the Consolidated Statements of Income was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,817 | $ | 5,822 | $ | 5,822 | |||||||||||||||||||
Amortization of debt issuance costs | 1,274 | 1,232 | 1,193 | ||||||||||||||||||||||
Amortization of debt discount | 5,182 | 4,820 | 4,481 | ||||||||||||||||||||||
Total | $ | 12,273 | $ | 11,874 | $ | 11,496 | |||||||||||||||||||
As of December 31, 2014, the May 2015 Notes are convertible into 171.1768 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.84 per common share, subject to further adjustment upon certain events including dividend payments. | |||||||||||||||||||||||||
Our common stock exceed the conversion threshold price of $7.74 for at least 20 days during the 30 consecutive trading days ended September 30, 2014; accordingly, the May 2015 Notes were convertible at the option of the holder during the quarter ended December 31, 2014. Our common stock price did exceed the conversion threshold price of $7.59 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2014; accordingly, the May 2015 Notes are convertible at the option of the holder during the quarter ending March 31, 2015. 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, 2014. At December 31, 2014, the if-converted value of the May 2015 exceeded their principal amount by approximately $49.6 million. | |||||||||||||||||||||||||
Purchased Call Options and Warrants | |||||||||||||||||||||||||
In connection with the issuance of the 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 the May 2015 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in the May 2015 Notes, approximately 26.6 million shares of our common stock. We may exercise the purchased call options upon conversion of the 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 the 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 31.0 million shares of common stock underlying the 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 the May 2015 Notes. The strike prices are approximately $5.84 and $6.87, subject to further adjustment upon certain events including dividend payments, for the purchased call options and warrants, respectively. | |||||||||||||||||||||||||
If the share price is above $5.84, but below $6.87, upon conversion of the 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 $6.87, 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 $6.87. For example, a 10% increase in the share price above $6.87 would result in the issuance of 2.1 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 the May 2015 Notes, prior to conversion or exercise, the 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, 2014, and 2013, 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, 2014, and 2013. 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 2018 Notes | |||||||||||||||||||||||||
On February 12, 2014, we issued $300.0 million in aggregate principal amount, at par, of the February 2018 Notes in an underwritten public offering, for net proceeds of $290.2 million. The February 2018 Notes are due February 1, 2018, and we pay interest at 4.0% on the February 2018 Notes semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2014. A portion of the proceeds from the February 2018 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem $131.7 million of the Series 2012 Notes. Upon the occurrence of a fundamental change, as defined in the indenture, holders have the option to require PDL to repurchase their February 2018 Notes at a purchase price equal to 100% of the principal, plus accrued interest. | |||||||||||||||||||||||||
The February 2018 Notes are convertible under any of the following circumstances: | |||||||||||||||||||||||||
• | During any fiscal quarter ending after the quarter ending June 30, 2014, 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 August 1, 2017. | ||||||||||||||||||||||||
The initial conversion rate for the February 2018 Notes is 109.1048 shares of the Company's common stock per $1,000 principal amount of February 2018 Notes, which is equivalent to an initial conversion price of approximately $9.17 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the indenture. Upon conversion, the Company will be required to pay cash and, if applicable, deliver shares of the Company's common stock as described in the indenture. | |||||||||||||||||||||||||
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 February 2018 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 7.0%, 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 $29.7 million, allocated $19.3 million to additional paid-in capital and allocated $10.4 million to deferred tax liability. The discount is being amortized to interest expense over the term of the February 2018 Notes and increases interest expense during the term of the February 2018 Notes from the 4.0% cash coupon interest rate to an effective interest rate of 6.9%. As of December 31, 2014, the remaining discount amortization period is 3.1 years. | |||||||||||||||||||||||||
The carrying value and unamortized discount of the February 2018 Notes were as follows: | |||||||||||||||||||||||||
(In thousands) | December 31, 2014 | ||||||||||||||||||||||||
Principal amount of the February 2018 Notes | $ | 300,000 | |||||||||||||||||||||||
Unamortized discount of liability component | (23,772 | ) | |||||||||||||||||||||||
Net carrying value of the February 2018 Notes | $ | 276,228 | |||||||||||||||||||||||
Interest expense for the February 2018 Notes on our Consolidated Statements of Income was as follows: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | ||||||||||||||||||||||||
Contractual coupon interest | $ | 10,633 | |||||||||||||||||||||||
Amortization of debt issuance costs | 1,898 | ||||||||||||||||||||||||
Amortization of debt discount | 5,954 | ||||||||||||||||||||||||
Total | $ | 18,485 | |||||||||||||||||||||||
As of December 31, 2014, the February 2018 Notes are not convertible. At December 31, 2014, the if-converted value of the February 2018 Notes did not exceed the principal amount. | |||||||||||||||||||||||||
Purchased Call Options and Warrants | |||||||||||||||||||||||||
In connection with the issuance of the February 2018 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $31.0 million for the purchased call options with terms substantially similar to the embedded conversion options in the February 2018 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in the February 2018 Notes, approximately 32.7 million shares of our common stock. We may exercise the purchased call options upon conversion of the February 2018 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 February 1, 2018, or the last day any of the February 2018 Notes remain outstanding. | |||||||||||||||||||||||||
In addition, we sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive shares of common stock that will initially underlie the February 2018 Notes at a strike price of $10.3610 per share, which represents a premium of approximately 30% over the last reported sale price of the Company's common stock of $7.97 on February 6, 2014. The warrant transactions could have a dilutive effect to the extent that the market price of the Company's common stock exceeds the applicable strike price of the warrants on the date of conversion. We received an aggregate amount of $11.4 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. 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 the February 2018 Notes. The strike price is subject to further adjustment in the event that future quarterly dividends exceed $0.15 per share. | |||||||||||||||||||||||||
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, 2014. The purchased call options cost of $31.0 million, less deferred taxes of $10.8 million, and the $11.4 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. | |||||||||||||||||||||||||
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 were, 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 October 28, 2014, the interest rate was 2.23%. Interest and principal payments associated with the Term Loan were paid on the interest payment dates of January 31, April 30, July 31 of 2014 and October 28, 2014. This principal balance and outstanding interest were paid in full on October 28, 2014. | |||||||||||||||||||||||||
As of December 31, 2014 and 2013, PDL was in compliance with all applicable debt covenants. | |||||||||||||||||||||||||
As of December 31, 2014, the future minimum principal payments under the Series 2012 Notes, May 2015 Notes and February 2018 Notes were: | |||||||||||||||||||||||||
(In thousands) | Series | May | February | Total | |||||||||||||||||||||
2012 | 2015 | 2018 | |||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
2015 | $ | 22,337 | $ | 155,050 | $ | — | $ | 177,387 | |||||||||||||||||
2016 | — | — | — | — | |||||||||||||||||||||
2017 | — | — | — | — | |||||||||||||||||||||
2018 | — | — | 300,000 | 300,000 | |||||||||||||||||||||
Total | $ | 22,337 | $ | 155,050 | $ | 300,000 | $ | 477,387 | |||||||||||||||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Long-Term Liabilities | Other Long-Term Liabilities | ||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Accrued lease liability | $ | 10,700 | $ | 10,700 | |||||
Long term incentive | 578 | — | |||||||
Uncertain tax position | 26,356 | 10,826 | |||||||
Foreign currency hedge | — | 1,516 | |||||||
Dividend payable | 68 | — | |||||||
Total | $ | 37,702 | $ | 23,042 | |||||
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, 2014, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $79.0 million. If Facet were to default, we could also be responsible for lease-related costs including utilities, property taxes and common area maintenance that may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Consolidated Balance Sheets as of December 31, 2014, and 2013, related to this guarantee. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
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, 2014, 2013 and 2012, is presented below: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
Stock-based Compensation | 2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Employees and directors | $ | 1,157 | $ | 655 | $ | 650 | ||||||||||||||||
Non-employees | 344 | 217 | 287 | |||||||||||||||||||
Total | $ | 1,501 | $ | 872 | $ | 937 | ||||||||||||||||
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, 2014, 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 | 1,034,216 | — | 4,165,784 | ||||||||||||||||||
2002 Outside Directors Stock Option Plan(2) | 157,000 | 140,750 | 16,250 | — | ||||||||||||||||||
1999 Non-statutory Stock Option Plan(2) | 4,966,183 | 4,966,183 | — | — | ||||||||||||||||||
1999 Stock Option Plan(2) | 3,694,485 | 3,653,150 | 41,335 | — | ||||||||||||||||||
_________________________ | ||||||||||||||||||||||
-1 | As of December 31, 2014, there were 277,881 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, the compensation committee of our board of directors (the "Compensation Committee") terminated the 1991 Nonstatutory Stock Option Plan. Additionally the 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: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
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 | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
Expired | (114 | ) | $ | 22.08 | (24 | ) | $ | 14.07 | (35 | ) | $ | 18.83 | ||||||||||
Outstanding at end of year | 58 | $ | 5.41 | 172 | $ | 16.52 | 196 | $ | 16.22 | |||||||||||||
Exercisable at end of year | 58 | $ | 5.41 | 172 | $ | 16.52 | 196 | $ | 16.22 | |||||||||||||
As of December 31, 2014, the aggregate intrinsic value of our outstanding and exercisable stock options was $0.1 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 $7.71 on December 31, 2014, 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, 2014, had an exercise price of to $5.41. | ||||||||||||||||||||||
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. Under the company's recent restricted stock plans, restricted stock awards typically vest over one to five years. 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. 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: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
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 | 114 | $ | 7.45 | 120 | $ | 6.51 | 137 | $ | 6.09 | |||||||||||||
Awards granted | 312 | $ | 8.39 | 127 | $ | 7.5 | 139 | $ | 6.49 | |||||||||||||
Awards vested | (149 | ) | $ | 7.67 | (118 | ) | $ | 6.59 | (137 | ) | $ | 6.09 | ||||||||||
Forfeited | — | $ | — | (15 | ) | $ | 7.07 | (19 | ) | $ | 6.35 | |||||||||||
Nonvested at end of year | 277 | $ | 8.39 | 114 | $ | 7.45 | 120 | $ | 6.51 | |||||||||||||
Stock-based compensation expense associated with our restricted stock for the years ended December 31, 2014, 2013 and 2012, was $1.5 million, $0.9 million and $0.9 million, respectively. As of December 31, 2014, the aggregate intrinsic value of non-vested restricted stock was $2.1 million. Total unrecognized compensation costs associated with non-vested restricted stock as of December 31, 2014, was $1.4 million, excluding forfeitures, which we expect to recognize over a weighted-average period of 1.8 years. |
Cash_Dividends
Cash Dividends | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Cash Dividends | Cash Dividends |
On January 27, 2015, our board of directors declared that the regular quarterly dividends to be paid to our stockholders in 2015 will be $0.15 per share of common stock, payable on March 12, June 12, September 11 and December 11 of 2015 to stockholders of record on March 5, June 5, September 4 and December 4 of 2015, the record dates for each of the dividend payments, respectively. | |
On January 29, 2014, 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 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. We paid $96.6 million in dividends in 2014. | |
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. |
Customer_Concentration
Customer Concentration | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Licensees | |||||||||||||
Genentech | 71 | % | 81 | % | 84 | % | |||||||
Biogen Idec | 10 | % | 11 | % | 12 | % | |||||||
Total revenues by geographic area are based on the country of domicile of the counterparty to the agreement: | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 334,325 | $ | 177,251 | $ | 140,179 | |||||||
Europe | 246,825 | 278,934 | 240,626 | ||||||||||
Other | 75 | 75 | 75 | ||||||||||
Total revenues | $ | 581,225 | $ | 456,260 | $ | 380,880 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The provision for income taxes for the years ended December 31, 2014, 2013 and 2012 consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Current income tax expense | |||||||||||||
Federal | $ | 187,056 | $ | 134,619 | $ | 104,152 | |||||||
State | 22,631 | 3,726 | 1 | ||||||||||
Total current | 209,687 | 138,345 | 104,153 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | (29,095 | ) | (416 | ) | 11,311 | ||||||||
State | (1,564 | ) | (583 | ) | — | ||||||||
Total deferred | (30,659 | ) | (999 | ) | 11,311 | ||||||||
Total provision | $ | 179,028 | $ | 137,346 | $ | 115,464 | |||||||
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) | 2014 | 2013 | 2012 | ||||||||||
Tax at U.S. statutory rate on income before income taxes | $ | 175,445 | $ | 140,656 | $ | 114,496 | |||||||
Change in valuation allowance | (5,390 | ) | (2,055 | ) | — | ||||||||
State taxes | 1 | 1 | 1 | ||||||||||
Change in uncertain tax positions | 7,395 | (2,082 | ) | — | |||||||||
Other | 1,577 | 826 | 967 | ||||||||||
Total | $ | 179,028 | $ | 137,346 | $ | 115,464 | |||||||
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) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 5,441 | $ | 6,063 | |||||||||
Research and other tax credits | 2,147 | 2,259 | |||||||||||
Intangible assets | 14,125 | 3,559 | |||||||||||
Stock-based compensation | 241 | 215 | |||||||||||
Accruals | 662 | 255 | |||||||||||
Debt modifications | 5,407 | 330 | |||||||||||
Unrealized losses on foreign currency hedge contracts | — | 2,632 | |||||||||||
Other | 8,500 | 47 | |||||||||||
Total deferred tax assets | 36,523 | 15,360 | |||||||||||
Valuation allowance | — | (5,390 | ) | ||||||||||
Total deferred tax assets, net of valuation allowance | 36,523 | 9,970 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred gain on repurchase of convertible notes | (762 | ) | (953 | ) | |||||||||
Debt modifications | — | (1,779 | ) | ||||||||||
Other | — | (161 | ) | ||||||||||
Unrealized gain on foreign currency hedge contracts | (1,588 | ) | — | ||||||||||
Total deferred tax liabilities | (2,350 | ) | (2,893 | ) | |||||||||
Net deferred tax assets | $ | 34,173 | $ | 7,077 | |||||||||
As of December 31, 2014 and 2013, we had federal net operating loss carryforwards of $37.5 million and $39.4 million, respectively. We also had California net operating loss carryforwards of $215.5 million as of December 31, 2014 and 2013. The federal net operating loss carryforwards will expire in the year 2023 and the California net operating loss carryforwards will expire in 2019, if not utilized. As of December 31, 2014 and 2013, we had $19.3 million and $20.2 million, respectively of state tax credit carryforwards that will expire in 2028, if not utilized. 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. | |||||||||||||
During 2014, 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 of $5.4 million was released during the year. | |||||||||||||
A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, for 2014, 2013 and 2012 is as follows: | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2011 | ||||||||||
Balance at the beginning of the year | $ | 32,419 | $ | 32,647 | $ | 23,061 | |||||||
Increases related to tax positions from prior fiscal years | 10,216 | — | 4,029 | ||||||||||
Increases related to tax positions taken during current fiscal year | 11,006 | 5,490 | 5,557 | ||||||||||
Expiration of statute of limitations for the assessment of taxes from prior fiscal years | (6,495 | ) | (5,718 | ) | — | ||||||||
Balance at the end of the year | $ | 47,146 | $ | 32,419 | $ | 32,647 | |||||||
The future impact of the unrecognized tax benefit of $47.1 million, if recognized, is as follows: $23.6 million would affect the effective tax rate and $23.5 million would result in adjustments to deferred tax assets. We periodically evaluate our exposures associated with our tax filing positions. During 2014, as a result of the evaluation of our uncertain tax positions, we increased the unrecognized tax benefits by $21.2 million primarily related to state items and decreased the unrecognized tax benefits by $6.5 million due to expiration of statute of limitation for our tax attributes. | |||||||||||||
Estimated interest and penalties associated with unrecognized tax benefits increased income tax expense in the Consolidated Statements of Income by $1.3 million during the year ended December 31, 2014, decreased income tax expense by $0.7 million during the year ended December 31, 2013, and increased income tax expense by $0.2 million during the year ended December 31, 2012, 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 $2.8 million and $1.5 million as of December 31, 2014 and 2013, 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 the tax years 2009 and 2010. | |||||||||||||
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, 2014 | |||||||||||||
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, 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 | |||||||||
Balance at December 31, 2013 | 1,129 | (6,017 | ) | (4,888 | ) | ||||||||
Activity for the year ended December 31, 2014 | (765 | ) | 8,602 | 7,837 | |||||||||
Ending Balance at December 31, 2014 | $ | 364 | $ | 2,585 | $ | 2,949 | |||||||
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2014 | |
Legal Proceedings [Abstract] | |
Legal Matters and Contingencies [Text Block] | Legal Proceedings |
Settlement Agreement | |
On January 31, 2014, we entered into the Settlement Agreement with Genentech and Roche, that resolved 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 SPCs, 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% on worldwide sales of Avastin, Herceptin, Xolair, Perjeta and Kadcyla occurring on or before December 31, 2015, as compared to the previous tiered royalty rate in the United States and the fixed rate on all ex-U.S.-based Manufacturing and Sales. 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. 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% on all ex-U.S.-based 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 do not include certain taxes and discounts. | |
The Settlement Agreement provides greater certainty for each of the parties in terms of the royalty rate payable under the agreement and the period over which they will be payable. PDL expects to recognize royalty revenue on the licensed products until the first quarter of 2016. Additionally, the settlement terms provide for a better definition of revenues and audit inspection procedures related to the arbitration dispute filed by PDL. | |
Other Legal Proceedings | |
The Company, its directors, and certain of its officers were parties to three related lawsuits filed by stockholders of the Company. The first lawsuit, which purports to be brought on behalf of a class of purchasers of the Company’s securities from November 6, 2013 to September 16, 2014, was brought in Federal District Court in Nevada and alleged that the Company and certain of its officers violated federal securities laws by allegedly making misstatements or omissions concerning, among other things, the Company’s financial condition. This action is entitled Hampe v. PDL Biopharma, Inc., et al., No. 2:14-cv-01526-APG-NJK (D. Nev.). | |
A second lawsuit, which purported to be brought derivatively on behalf of the Company and was also filed in Federal District Court in Nevada, sought to assert claims on behalf of the Company against the Company’s directors for, among other things, breach of fiduciary duty (for disseminating allegedly false and misleading information). This action was entitled Freely, et ano. v. Lindell, et al., No. 2:14-cv-01738-APG-GWF (D. Nev.). A third lawsuit, with substantially similar allegations to Freely was subsequently filed in Nevada State Court and was entitled Marchetti, et ano. v. Lindell, et al., No. A-14-708757-C (Dist. Ct. Clark Co., Nev.). On December 11, 2014, the Court in Hampe granted an unopposed motion to appoint Robert McElroy to serve as lead plantiff in accordance with Private Securities Litigation Reform Act. Pursuant to the scheduling order dated January 5, 2015, the lead plaintiff was required to file his amended complaint on or before March 5, 2015. The Freely and Marchetti actions were stayed pending the entry of an order dismissing the case or deciding an as yet unfiled motion to dismiss in Hampe. | |
On February 2, 2015 and February 17, 2015, the Hampe and Freely actions, respectively, were voluntarily dismissed without prejudice. On February 18, 2015, the parties to the Marchetti action filed a stipulation and proposed order of dismissal, which is subject to the approval of the court. | |
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, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event |
Retirement of Series 2012 Notes | |
On February 17, 2015, the Company completed the retirement of the remaining $22.3 million of aggregate principal of its Series 2012 notes at their stated maturity for $22.3 million, plus approximately 1.34 million shares of its common stock. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) | ||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 117,075 | $ | 164,594 | $ | 162,752 | $ | 136,804 | |||||||||
Net income | $ | 55,071 | $ | 102,235 | $ | 92,055 | $ | 72,883 | |||||||||
Net income per basic share | $ | 0.34 | $ | 0.64 | $ | 0.57 | $ | 0.48 | |||||||||
Net income per diluted share | $ | 0.32 | $ | 0.61 | $ | 0.52 | $ | 0.44 | |||||||||
2013 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 111,967 | $ | 100,178 | $ | 148,520 | $ | 95,595 | |||||||||
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 | |||||||||
We corrected a cumulative error related to "Royalty rights - change in fair value" in our condensed consolidated statement of income for the quarter ended June 30, 2014 as discussed in Note 2. The impact of the out of period adjustment was a $1.7 million increase in total revenues, $12.8 million increase in pre-tax income and a $8.1 million increase in net income. | |||||||||||||||||
For the quarter ended March 31, 2014, $9.1 million of Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Consolidated statements of Income. | |||||||||||||||||
For the quarters ended March 31, June 30, September 30 and December 31 of 2013, $3.7 million, $4.9 million, $2.9 million and $7.5 million, respectively, of Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Consolidated statements of Income. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||
The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. See Note 16, “Income Taxes” of this Form 10-K for additional information. | |||
Basis of Presentation, Policy | Basis of Presentation | ||
The accompanying Consolidated Financial Statements have been prepared in accordance with GAAP and under the rules and regulations of the SEC. The financial statements include all adjustments (consisting only of normal recurring adjustments), except as discussed under "Correction of Immaterial Error" below, that management of PDL believes are necessary for a fair presentation of the periods presented. | |||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||
Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Consolidated statements of Income. | |||
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. | |||
Notes Receivable and Other Long-Term Receivables, Policy | Notes and Other Long-Term Receivables | ||
We account for our notes receivable at both amortized cost, net of unamortized origination fees, if any, and as collateral dependent when a loan for which repayment is expected to be provided solely by the underlying collateral. For loans accounted for at their amortized cost, related fees and costs are recorded net of any amounts reimbursed. Interest is accreted or accrued to "Interest revenue" using the interest method. When and if supplemental royalties are received from certain of these notes and other long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively. | |||
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. | |||
Debt, Policy [Policy Text Block] | Convertible Notes | ||
We issued our Series 2012 Notes, May 2015 Notes and our February 2018 Notes with a net share settlement feature, meaning that upon any conversion, the principal amount will be settled in cash and the remaining amount, if any, will be settled in shares of our common stock. In accordance with accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we separated the principal balance between the fair value of the liability component and the common stock conversion feature using a market interest rate for a similar nonconvertible instrument at the date of issuance. | |||
Intangible Asset, Policy | Royalty Rights - At Fair Value | ||
We have elected to account for our investments in royalty rights at fair value with changes in fair value presented in earnings. The fair value of the investments in royalty rights is determined by using a discounted cash flow analysis related to the expected future cash flows to be received. These assets are classified as Level 3 assets within the fair value hierarchy as our valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Transaction related fees and costs are expensed as incurred. | |||
Realized and unrealized gains and losses from investments in royalty rights are presented together on our Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.” | |||
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 2015. 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 forward 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 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. | |||
Revenue Recognition, Policy | Queen et al. 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. | |||
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 | ||
Accounting Changes and Error Corrections [Text Block] | Correction of Immaterial Error | ||
As disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014, PDL was engaged in ongoing discussions with the SEC staff after receiving a comment letter regarding our Consolidated Financial Statements included in our Annual Report on Form 10- K for the fiscal year ended December 31, 2013. The comment letter requested additional information about the Company’s accounting for the Depomed Royalty Agreement. The Company was asked to support its position and explain why the transaction was accounted for as the acquisition of intangible assets as opposed to that of financial assets. While significant judgment was required to account for this transaction, as either the acquisition of intangible assets or financial | |||
assets, we concluded that it is most appropriate to account for the asset as a Level 3 financial asset, which was a change to the previously reported accounting for this transaction. For the quarterly period ended June 30, 2014, PDL elected to measure this asset at fair value each reporting period. The change in the estimated fair value of this asset at each reporting period is now shown on a single caption, “Royalty rights - change in fair value” in our Consolidated Statements of Income. The purchase of this asset is reported as an investing activity in our Consolidated Statements of Cash Flows. The revenue recognized each period related to this asset is now reported as an adjustment to net income in order to determine net cash provided by (used in) operating activities in our Consolidated Statements of Cash Flows. Actual cash received is reported as an investing cash inflow in our Consolidated Statements of Cash Flows, separate from cash used in investing activities to purchase the asset in 2013. The Company reviewed the impact of this change in accounting on prior annual and interim periods in accordance with SAB no. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined that the changes were not material for the period from October 18, 2013 (acquisition date), through March 31, 2014, and did not represent a material impact to our Consolidated Financial Statements in either our previously filed Annual Report on Form 10-K for the fiscal year ended December 31, 2013, or our previously filed Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014. | |||
We evaluated the materiality of correcting the cumulative error in the period ended June 30, 2014. Based on such evaluation, we concluded that the correction was not material to that period. Accordingly, we corrected the cumulative error in our Consolidated Statement of Income for the year ended December 31, 2014 as follows: (i) $1.7 million increase in total revenues, (ii) $12.8 million increase in pre-tax income, (iii) $8.1 million increase in net income. This correction includes the cumulative impact of 2013 corrections. The impacts to our Consolidated Balance Sheet and Statements of Cash Flows were not material. | |||
We determined that a retrospective revision due to the correction of an error was not required. The prospective change is reflected beginning April 1, 2014 as a component of “Royalty rights - change in fair value” in our Consolidated Statements of Income. Intangible assets that were presented in historical periods have been reclassified to "Royalty rights - at fair value" in our Consolidated Balance Sheets and amortization of intangible assets that was presented in cost of revenues have been reclassified to "Royalty rights - change in fair value" as a component of revenues in our Consolidated Statements of Income for all periods | |||
presented. Such reclassifications did not have an impact on our results of operations, cash flows or financial position. | |||
On December 8, 2014, the SEC communicated to PDL, in a close-out letter, that it had completed its review of the Annual Report on Form 10- K for the fiscal year ended December 31, 2013 and the related topic of accounting for the acquisition of Depomed royalties. |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Numerator | ||||||||||||
Net income | $ | 322,244 | $ | 264,530 | $ | 211,669 | ||||||
Add back interest expense for convertible notes, net of estimated tax of zero, $13 and $25, for the years ended December 31, 2014, 2013 and 2012, respectively | — | 25 | 46 | |||||||||
Income used to compute net income per diluted share | $ | 322,244 | $ | 264,555 | $ | 211,715 | ||||||
Denominator | ||||||||||||
Total weighted-average shares used to compute net income per basic share | 158,224 | 139,842 | 139,711 | |||||||||
Effect of dilutive stock options | 126 | 83 | 95 | |||||||||
Restricted stock awards | 21 | 20 | 17 | |||||||||
Assumed conversion of Series 2012 Notes | 3,532 | 12,373 | 4,944 | |||||||||
Assumed conversion of February 2015 Notes | — | 106 | 631 | |||||||||
Assumed conversion of warrants | 5,510 | — | — | |||||||||
Assumed conversion of May 2015 Notes | 5,697 | 6,919 | 1,005 | |||||||||
Shares used to compute net income per diluted share | 173,110 | 159,343 | 146,403 | |||||||||
Net income per basic share | $ | 2.04 | $ | 1.89 | $ | 1.52 | ||||||
Net income per diluted share | $ | 1.86 | $ | 1.66 | $ | 1.45 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the year ended December 31, 2014: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
(in thousands) | Royalty Rights | ||||||||||||||||||||||||||||||||
- At Fair Value | |||||||||||||||||||||||||||||||||
Beginning Balance at December 31, 2013 | $ | — | |||||||||||||||||||||||||||||||
Transfer into Level 3 | 235,677 | ||||||||||||||||||||||||||||||||
Total net change in fair value for the period | |||||||||||||||||||||||||||||||||
Change in fair value of royalty rights - at fair value | $ | 44,927 | |||||||||||||||||||||||||||||||
Proceeds from royalty rights - at fair value | $ | (102,460 | ) | ||||||||||||||||||||||||||||||
Total net change in fair value for the period | (57,533 | ) | |||||||||||||||||||||||||||||||
Purchases, issues, sales, and settlements | |||||||||||||||||||||||||||||||||
Purchases | 81,100 | ||||||||||||||||||||||||||||||||
Ending Balance at December 31, 2014 | $ | 259,244 | |||||||||||||||||||||||||||||||
Schedule of fair value of financial instruments measured on recurring basis | |||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||
Money market funds | $ | 221,792 | $ | — | $ | — | $ | 221,792 | $ | 85,970 | $ | — | $ | — | $ | 85,970 | |||||||||||||||||
Corporate securities | — | 2,310 | — | 2,310 | — | 5,238 | — | 5,238 | |||||||||||||||||||||||||
Foreign currency hedge contracts | — | 4,069 | — | 4,069 | — | — | — | — | |||||||||||||||||||||||||
Royalty rights - at fair value | — | — | 259,244 | 259,244 | — | — | 235,677 | 235,677 | |||||||||||||||||||||||||
Total | $ | 221,792 | $ | 6,379 | $ | 259,244 | $ | 487,415 | $ | 85,970 | $ | 5,238 | $ | 235,677 | $ | 326,885 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 8,871 | $ | — | $ | 8,871 | |||||||||||||||||
Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy | |||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Carrying Value | Level 2 | Level 3 | Carrying Value | Level 2 | Level 3 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Wellstat Diagnostics note receivable | $ | 50,191 | $ | — | $ | 50,191 | $ | 47,694 | $ | — | $ | 46,042 | |||||||||||||||||||||
Hyperion note receivable | 1,200 | — | 1,200 | 1,194 | — | 1,195 | |||||||||||||||||||||||||||
AxoGen note receivable and embedded derivative | — | — | — | 26,544 | — | 25,785 | |||||||||||||||||||||||||||
Avinger note receivable | 20,611 | — | 20,760 | 20,250 | — | 19,061 | |||||||||||||||||||||||||||
LENSAR note receivable | 39,668 | — | 40,451 | 39,572 | — | 39,572 | |||||||||||||||||||||||||||
Durata note receivable | — | — | — | 24,995 | — | 24,995 | |||||||||||||||||||||||||||
Direct Flow Medical note receivable | 50,397 | — | 49,940 | 34,799 | — | 34,799 | |||||||||||||||||||||||||||
Paradigm Spine note receivable | 49,571 | — | 50,125 | — | — | — | |||||||||||||||||||||||||||
kaléo note receivable | 151,574 | — | 151,073 | — | — | — | |||||||||||||||||||||||||||
Total | $ | 363,212 | $ | — | $ | 363,740 | $ | 195,048 | $ | — | $ | 191,449 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Series 2012 Notes | $ | 22,261 | $ | 33,506 | $ | — | $ | 172,630 | $ | 277,650 | $ | — | |||||||||||||||||||||
May 2015 Notes | 153,235 | 205,534 | — | 148,253 | 212,304 | — | |||||||||||||||||||||||||||
February 2018 Notes | 276,228 | 289,665 | — | — | — | — | |||||||||||||||||||||||||||
Term loan | — | — | — | 74,397 | 75,000 | — | |||||||||||||||||||||||||||
Total | $ | 451,724 | $ | 528,705 | $ | — | $ | 395,280 | $ | 564,954 | $ | — | |||||||||||||||||||||
Cash_Equivalents_and_Investmen1
Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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 | Short-Term Investments | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Cash | $ | 69,585 | $ | — | $ | — | $ | 69,585 | $ | 69,585 | $ | — | |||||||||||||
Money market funds | 221,792 | — | — | 221,792 | 221,792 | — | |||||||||||||||||||
Corporate securities | 1,750 | 560 | — | 2,310 | — | 2,310 | |||||||||||||||||||
Total | $ | 293,127 | $ | 560 | $ | — | $ | 293,687 | $ | 291,377 | $ | 2,310 | |||||||||||||
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 | |||||||||||||
Foreign_Currency_Hedging_Table
Foreign Currency Hedging (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Euro forward contracts | |||||||||||||||||||||
Euro Forward Contracts | December 31, 2014 | December 31, 2013 | |||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Currency | Settlement Price | Type | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||
($ per Euro) | |||||||||||||||||||||
Euro | 1.24 | Sell Euro | $ | — | $ | — | $ | 10,850 | $ | (1,207 | ) | ||||||||||
Euro | 1.256 | Sell Euro | 6,000 | 241 | — | — | |||||||||||||||
Euro | 1.257 | Sell Euro | 15,750 | 728 | — | — | |||||||||||||||
Euro | 1.259 | Sell Euro | 16,125 | 752 | — | — | |||||||||||||||
Euro | 1.26 | Sell Euro | 33,000 | 1,468 | — | — | |||||||||||||||
Euro | 1.27 | Sell Euro | 7,000 | 377 | 44,450 | (3,760 | ) | ||||||||||||||
Euro | 1.281 | Sell Euro | 8,000 | 503 | 36,814 | (2,785 | ) | ||||||||||||||
Euro | 1.3 | Sell Euro | — | — | 19,500 | (1,119 | ) | ||||||||||||||
Total | $ | 85,875 | $ | 4,069 | $ | 111,614 | $ | (8,871 | ) | ||||||||||||
Schedule of location and fair values of Euro contracts in Consolidated Balance Sheets | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Cash Flow Hedge | Location | 2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Euro forward contracts | Prepaid and other current assets | $ | 3,352 | $ | — | ||||||||||||||||
Euro forward contracts | Other assets | $ | 717 | $ | — | ||||||||||||||||
Euro forward contracts | Accrued liabilities | $ | — | $ | 7,355 | ||||||||||||||||
Euro forward contracts | Other long-term liabilities | $ | — | $ | 1,516 | ||||||||||||||||
Schedule of the effect of derivative instruments in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net gain (loss) recognized in OCI, net of tax (1) | $ | 4,834 | $ | (2,432 | ) | $ | (5,040 | ) | |||||||||||||
Gain (loss) reclassified from accumulated OCI into "Queen et al. | $ | (3,768 | ) | $ | (1,510 | ) | $ | (1,859 | ) | ||||||||||||
royalty revenue," net of tax (2) | |||||||||||||||||||||
Net gain (loss) recognized in "Interest and other income, net" | $ | 5 | $ | 11 | $ | (169 | ) | ||||||||||||||
-- cash flow hedges (3) | |||||||||||||||||||||
Net gain (loss) recognized in "Interest and other income, net" | $ | — | $ | — | $ | 391 | |||||||||||||||
-- non-designated contracts (4) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | |||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Leasehold improvements | $ | 153 | $ | 127 | |||||
Computer and office equipment | 9,043 | 9,028 | |||||||
Furniture and fixtures | 45 | 38 | |||||||
Total | 9,241 | 9,193 | |||||||
Less accumulated depreciation and amortization | (9,179 | ) | (9,152 | ) | |||||
Property and equipment, net | $ | 62 | $ | 41 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, Future Minimum Payments Due | $221 |
Operating Leases, Future Minimum Payments, Due in Two Years | 101 |
Operating Leases, Future Minimum Payments Due | $322 |
Convertible_Notes_Tables
Convertible Notes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of convertible and non-recourse notes activity | |||||||||||||||||||||||||
(In thousands) | Series | May | February | Feb-18 | Term Loan | Total | |||||||||||||||||||
2012 | 2015 | 2015 | Notes | ||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
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 | |||||||||||||||||||
Issuance and exchange | (152,784 | ) | (200 | ) | — | 300,000 | — | 147,016 | |||||||||||||||||
Payment | — | — | — | — | (75,000 | ) | (75,000 | ) | |||||||||||||||||
Non-cash discount | — | — | — | (29,726 | ) | — | — | ||||||||||||||||||
Discount amortization | 2,415 | 5,182 | — | 5,954 | 603 | 14,154 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 22,261 | $ | 153,235 | $ | — | $ | 276,228 | $ | — | $ | 451,724 | |||||||||||||
Schedule of carrying value and unamortized discount on Series 2012 Notes | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||
Principal amount of the Series 2012 Notes | $ | 22,337 | $ | 180,000 | |||||||||||||||||||||
Unamortized discount of liability component | (76 | ) | (7,370 | ) | |||||||||||||||||||||
Net carrying value of the Series 2012 Notes | $ | 22,261 | $ | 172,630 | |||||||||||||||||||||
Schedule of interest expense on Series 2012 Notes | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 1,726 | $ | 5,158 | $ | 5,122 | |||||||||||||||||||
Amortization of debt issuance costs | 1,089 | 1,152 | 1,107 | ||||||||||||||||||||||
Amortization of debt discount | 2,415 | 6,102 | 5,682 | ||||||||||||||||||||||
Total | $ | 5,230 | $ | 12,412 | $ | 11,911 | |||||||||||||||||||
Schedule of carrying value and unamortized discount on May 2015 Notes | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||
Principal amount of the May 2015 Notes | $ | 155,050 | $ | 155,250 | |||||||||||||||||||||
Unamortized discount of liability component | (1,815 | ) | (6,997 | ) | |||||||||||||||||||||
Net carrying value of the May 2015 Notes | $ | 153,235 | $ | 148,253 | |||||||||||||||||||||
Schedule of interest expense for May 2015 Notes | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 5,817 | $ | 5,822 | $ | 5,822 | |||||||||||||||||||
Amortization of debt issuance costs | 1,274 | 1,232 | 1,193 | ||||||||||||||||||||||
Amortization of debt discount | 5,182 | 4,820 | 4,481 | ||||||||||||||||||||||
Total | $ | 12,273 | $ | 11,874 | $ | 11,496 | |||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | |||||||||||||||||||||||||
(In thousands) | Series | May | February | Total | |||||||||||||||||||||
2012 | 2015 | 2018 | |||||||||||||||||||||||
Notes | Notes | Notes | |||||||||||||||||||||||
2015 | $ | 22,337 | $ | 155,050 | $ | — | $ | 177,387 | |||||||||||||||||
2016 | — | — | — | — | |||||||||||||||||||||
2017 | — | — | — | — | |||||||||||||||||||||
2018 | — | — | 300,000 | 300,000 | |||||||||||||||||||||
Total | $ | 22,337 | $ | 155,050 | $ | 300,000 | $ | 477,387 | |||||||||||||||||
Schedule of carrying value and unamortized discount on February 2018 Notes [Table Text Block] | The carrying value and unamortized discount of the February 2018 Notes were as follows: | ||||||||||||||||||||||||
(In thousands) | December 31, 2014 | ||||||||||||||||||||||||
Principal amount of the February 2018 Notes | $ | 300,000 | |||||||||||||||||||||||
Unamortized discount of liability component | (23,772 | ) | |||||||||||||||||||||||
Net carrying value of the February 2018 Notes | $ | 276,228 | |||||||||||||||||||||||
Schedule of interest expense for February 2018 Notes [Table Text Block] | Interest expense for the February 2018 Notes on our Consolidated Statements of Income was as follows: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(In thousands) | 2014 | ||||||||||||||||||||||||
Contractual coupon interest | $ | 10,633 | |||||||||||||||||||||||
Amortization of debt issuance costs | 1,898 | ||||||||||||||||||||||||
Amortization of debt discount | 5,954 | ||||||||||||||||||||||||
Total | $ | 18,485 | |||||||||||||||||||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of other liabilities | |||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Accrued lease liability | $ | 10,700 | $ | 10,700 | |||||
Long term incentive | 578 | — | |||||||
Uncertain tax position | 26,356 | 10,826 | |||||||
Foreign currency hedge | — | 1,516 | |||||||
Dividend payable | 68 | — | |||||||
Total | $ | 37,702 | $ | 23,042 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block] | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
Stock-based Compensation | 2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Employees and directors | $ | 1,157 | $ | 655 | $ | 650 | ||||||||||||||||
Non-employees | 344 | 217 | 287 | |||||||||||||||||||
Total | $ | 1,501 | $ | 872 | $ | 937 | ||||||||||||||||
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 | 1,034,216 | — | 4,165,784 | ||||||||||||||||||
2002 Outside Directors Stock Option Plan(2) | 157,000 | 140,750 | 16,250 | — | ||||||||||||||||||
1999 Non-statutory Stock Option Plan(2) | 4,966,183 | 4,966,183 | — | — | ||||||||||||||||||
1999 Stock Option Plan(2) | 3,694,485 | 3,653,150 | 41,335 | — | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
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 | 172 | $ | 16.52 | 196 | $ | 16.22 | 231 | $ | 16.62 | |||||||||||||
Expired | (114 | ) | $ | 22.08 | (24 | ) | $ | 14.07 | (35 | ) | $ | 18.83 | ||||||||||
Outstanding at end of year | 58 | $ | 5.41 | 172 | $ | 16.52 | 196 | $ | 16.22 | |||||||||||||
Exercisable at end of year | 58 | $ | 5.41 | 172 | $ | 16.52 | 196 | $ | 16.22 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
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 | 114 | $ | 7.45 | 120 | $ | 6.51 | 137 | $ | 6.09 | |||||||||||||
Awards granted | 312 | $ | 8.39 | 127 | $ | 7.5 | 139 | $ | 6.49 | |||||||||||||
Awards vested | (149 | ) | $ | 7.67 | (118 | ) | $ | 6.59 | (137 | ) | $ | 6.09 | ||||||||||
Forfeited | — | $ | — | (15 | ) | $ | 7.07 | (19 | ) | $ | 6.35 | |||||||||||
Nonvested at end of year | 277 | $ | 8.39 | 114 | $ | 7.45 | 120 | $ | 6.51 | |||||||||||||
Customer_Concentration_Tables
Customer Concentration (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Licensees | |||||||||||||
Genentech | 71 | % | 81 | % | 84 | % | |||||||
Biogen Idec | 10 | % | 11 | % | 12 | % | |||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 334,325 | $ | 177,251 | $ | 140,179 | |||||||
Europe | 246,825 | 278,934 | 240,626 | ||||||||||
Other | 75 | 75 | 75 | ||||||||||
Total revenues | $ | 581,225 | $ | 456,260 | $ | 380,880 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Current income tax expense | |||||||||||||
Federal | $ | 187,056 | $ | 134,619 | $ | 104,152 | |||||||
State | 22,631 | 3,726 | 1 | ||||||||||
Total current | 209,687 | 138,345 | 104,153 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | (29,095 | ) | (416 | ) | 11,311 | ||||||||
State | (1,564 | ) | (583 | ) | — | ||||||||
Total deferred | (30,659 | ) | (999 | ) | 11,311 | ||||||||
Total provision | $ | 179,028 | $ | 137,346 | $ | 115,464 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | |||||||||||||
Year Ended December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Tax at U.S. statutory rate on income before income taxes | $ | 175,445 | $ | 140,656 | $ | 114,496 | |||||||
Change in valuation allowance | (5,390 | ) | (2,055 | ) | — | ||||||||
State taxes | 1 | 1 | 1 | ||||||||||
Change in uncertain tax positions | 7,395 | (2,082 | ) | — | |||||||||
Other | 1,577 | 826 | 967 | ||||||||||
Total | $ | 179,028 | $ | 137,346 | $ | 115,464 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 5,441 | $ | 6,063 | |||||||||
Research and other tax credits | 2,147 | 2,259 | |||||||||||
Intangible assets | 14,125 | 3,559 | |||||||||||
Stock-based compensation | 241 | 215 | |||||||||||
Accruals | 662 | 255 | |||||||||||
Debt modifications | 5,407 | 330 | |||||||||||
Unrealized losses on foreign currency hedge contracts | — | 2,632 | |||||||||||
Other | 8,500 | 47 | |||||||||||
Total deferred tax assets | 36,523 | 15,360 | |||||||||||
Valuation allowance | — | (5,390 | ) | ||||||||||
Total deferred tax assets, net of valuation allowance | 36,523 | 9,970 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred gain on repurchase of convertible notes | (762 | ) | (953 | ) | |||||||||
Debt modifications | — | (1,779 | ) | ||||||||||
Other | — | (161 | ) | ||||||||||
Unrealized gain on foreign currency hedge contracts | (1,588 | ) | — | ||||||||||
Total deferred tax liabilities | (2,350 | ) | (2,893 | ) | |||||||||
Net deferred tax assets | $ | 34,173 | $ | 7,077 | |||||||||
Summary of Income Tax Contingencies [Table Text Block] | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2011 | ||||||||||
Balance at the beginning of the year | $ | 32,419 | $ | 32,647 | $ | 23,061 | |||||||
Increases related to tax positions from prior fiscal years | 10,216 | — | 4,029 | ||||||||||
Increases related to tax positions taken during current fiscal year | 11,006 | 5,490 | 5,557 | ||||||||||
Expiration of statute of limitations for the assessment of taxes from prior fiscal years | (6,495 | ) | (5,718 | ) | — | ||||||||
Balance at the end of the year | $ | 47,146 | $ | 32,419 | $ | 32,647 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, 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 | |||||||||
Balance at December 31, 2013 | 1,129 | (6,017 | ) | (4,888 | ) | ||||||||
Activity for the year ended December 31, 2014 | (765 | ) | 8,602 | 7,837 | |||||||||
Ending Balance at December 31, 2014 | $ | 364 | $ | 2,585 | $ | 2,949 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 117,075 | $ | 164,594 | $ | 162,752 | $ | 136,804 | |||||||||
Net income | $ | 55,071 | $ | 102,235 | $ | 92,055 | $ | 72,883 | |||||||||
Net income per basic share | $ | 0.34 | $ | 0.64 | $ | 0.57 | $ | 0.48 | |||||||||
Net income per diluted share | $ | 0.32 | $ | 0.61 | $ | 0.52 | $ | 0.44 | |||||||||
2013 Quarter Ended | |||||||||||||||||
(In thousands, except per share data) | 31-Dec | September 30 | June 30 | March 31 | |||||||||||||
Total revenues | $ | 111,967 | $ | 100,178 | $ | 148,520 | $ | 95,595 | |||||||||
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 | |||||||||
Organization_and_Business_Narr
Organization and Business (Narrative) (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Strategic initiative funds deployed to date | $780 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014 | |
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 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Correction of Immaterial Error (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
total revenues [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $1,700 |
Operating Income (Loss) [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 12,800 |
Net income line item [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $8,100 |
Net_Income_per_Share_Narrative
Net Income per Share (Narrative) (Detail) (USD $) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Aug. 01, 2013 | Mar. 31, 2013 | Jan. 31, 2012 | Nov. 24, 2014 | Feb. 07, 2014 | Feb. 06, 2014 | Feb. 29, 2012 | Feb. 12, 2014 | |
Purchased Call Options [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 24,800,000 | 23,000,000 | |||||||||
Stock Options [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 115,000 | 157,000 | 35,000 | ||||||||
Restricted Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 0 | 1,000 | 0 | ||||||||
May 2015 Notes [Member] [Member] | Warrants [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 21,100,000 | 19,600,000 | 0 | ||||||||
February 2015 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount of convertible notes payable | $179,000,000 | ||||||||||
Convertible Debt | 1,000,000 | 169,000,000 | |||||||||
Series 2012 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible Debt | 26,000,000 | 131,700,000 | 131,700,000 | 10,000,000 | |||||||
February 2018 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible Debt | 276,228,000 | $300,000,000 | |||||||||
February 2018 Notes [Member] | Warrants [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 29,000,000 | ||||||||||
February 2018 Notes [Member] | Purchased Call Options [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares) | 32,700,000 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $55,071 | $102,235 | $92,055 | $72,883 | $61,092 | $56,225 | $93,742 | $53,471 | $322,244 | $264,530 | $211,669 |
Add back interest expense for convertible notes, net of estimated tax of approximately zero, $13, and $25, for the years ended December 31, 2014, 2013 and 2012, respectively | 0 | 25 | 46 | ||||||||
Income used to compute net income per diluted share | $322,244 | $264,555 | $211,715 | ||||||||
Total weighted-average shares used to compute net income per basic share (in Shares) | 158,224 | 139,842 | 139,711 | ||||||||
Diluted (in Shares) | 173,110 | 159,343 | 146,403 | ||||||||
Net income per basic share (in Dollars per Share) | $0.34 | $0.64 | $0.57 | $0.48 | $0.44 | $0.40 | $0.67 | $0.38 | $2.04 | $1.89 | $1.52 |
Net income per diluted share (in Dollars per Share) | $0.32 | $0.61 | $0.52 | $0.44 | $0.39 | $0.36 | $0.62 | $0.36 | $1.86 | $1.66 | $1.45 |
Series 2012 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Assumed conversion of debt notes (in Shares) | 3,532 | 12,373 | 4,944 | ||||||||
February 2015 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Assumed conversion of debt notes (in Shares) | 0 | 106 | 631 | ||||||||
May 2015 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Assumed conversion of debt notes (in Shares) | 5,697 | 6,919 | 1,005 | ||||||||
Stock Options [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Additional shares included in the calculation of diluted EPS (in Shares) | 126 | 83 | 95 | ||||||||
Restricted Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Additional shares included in the calculation of diluted EPS (in Shares) | 21 | 20 | 17 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Estimated tax on interest expense on convertible notes | $0 | $13,000 | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 30, 2014 | Nov. 14, 2014 | Nov. 06, 2014 | Jun. 26, 2014 | Oct. 18, 2013 | |
Repayment of notes receivable | $68,800,000 | $59,279,000 | $5,000,000 | ||||||
Cash payment for purchase of royalty right | 65,600,000 | ||||||||
Royalty rights | 259,244,000 | 235,677,000 | 259,244,000 | ||||||
Percentage of royalty acquired | 75.00% | ||||||||
Transfers from level 1 to level 2, amount | 0 | ||||||||
Transfers from level 2 to level 1, amount | 0 | 0 | 0 | ||||||
VB [Member] | |||||||||
Purchase of royalty right | 15,500,000 | ||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End | 17.50% | 17.50% | |||||||
Fair Value Measurements, Sensitivity Analysis, Description | Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively. | ||||||||
Royalty rights | 16,100,000 | 16,100,000 | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 16,100,000 | 16,100,000 | |||||||
Glumetza [Member] | |||||||||
Proceeds from Royalties Received | 51,700,000 | ||||||||
Expected royalty payments | 18,900,000 | ||||||||
Asset at Fair Value, Changes in Fair Value Resulting from Changes in Assumptions | 42,600,000 | ||||||||
University of Michigan [Member] | |||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End | 12.80% | 12.80% | |||||||
Fair Value Measurements, Sensitivity Analysis, Description | Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $6.4 million or increase by $7.4 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $3.3 million or decrease by $3.3 million, respectively. | ||||||||
Royalty rights | 66,900,000 | 66,900,000 | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 66,900,000 | 66,900,000 | |||||||
Direct Flow Medical Note Receivable [Member] | |||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End | 16.00% | 16.00% | |||||||
Kaleo [Member] | |||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End | 13.00% | 13.00% | |||||||
Depomed [Member] | |||||||||
Cash payment for purchase of royalty right | 240,500,000 | ||||||||
Purchase of royalty right | 241,300,000 | ||||||||
Royalty right purchase transaction costs | 800,000 | ||||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, Low End | 21.00% | 21.00% | |||||||
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End | 25.00% | 25.00% | |||||||
Fair Value Measurements, Sensitivity Analysis, Description | Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $19.8 million or increase by $25.2 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. Should the expected cash flows from royalties increase or decrease by 10%, the fair value of the asset could increase by $14.2 million or decrease by $14.9 million, respectively. | ||||||||
Royalty rights | 176,200,000 | 176,200,000 | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 176,200,000 | 176,200,000 | |||||||
AxoGen [Member] | |||||||||
Repayment of notes receivable | $30,300,000 |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $4,069 | $0 |
Royalty rights | 259,244 | 235,677 |
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 293,687 | 99,540 |
Assets, Fair Value | 487,415 | 326,885 |
Financial liabilites: | ||
Foreign currency hedge contracts | 0 | 8,871 |
Money Market Funds [Member] | ||
Financial assets: | ||
Cash and Cash Equivalents, Fair Value | 221,792 | 85,970 |
Equity Securities [Member] | ||
Financial assets: | ||
Available for Sale Securities, Fair Value | 2,310 | 5,238 |
Fair Value Level 1 [Member] | ||
Financial assets: | ||
Assets, Fair Value | 221,792 | 85,970 |
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 | 221,792 | 85,970 |
Fair Value Level 1 [Member] | Equity Securities [Member] | ||
Financial assets: | ||
Available for Sale Securities, Fair Value | 0 | 0 |
Fair Value Level 2 [Member] | ||
Financial assets: | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 4,069 | |
Assets, Fair Value | 6,379 | 5,238 |
Financial liabilites: | ||
Foreign currency hedge contracts | 0 | 8,871 |
Fair Value Level 2 [Member] | Money Market Funds [Member] | ||
Financial assets: | ||
Cash and Cash Equivalents, Fair Value | 0 | 0 |
Fair Value Level 2 [Member] | Equity Securities [Member] | ||
Financial assets: | ||
Available for Sale Securities, Fair Value | 5,238 | |
Fair Value Level 3 [Member] | ||
Financial assets: | ||
Royalty rights | 259,244 | 235,677 |
Assets, Fair Value | $259,244 | $235,677 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | |||
Assets, Fair Value Disclosure | $487,415 | $326,885 | |
Liabilities: | |||
Notes Payable, Carrying Value | 451,724 | 395,280 | 309,952 |
Series 2012 Notes [Member] | |||
Liabilities: | |||
Notes Payable, Carrying Value | 22,261 | 172,630 | 165,528 |
May 2015 Notes [Member] | |||
Liabilities: | |||
Notes Payable, Carrying Value | 153,235 | 148,253 | 143,433 |
February 2018 Notes [Member] | |||
Liabilities: | |||
Notes Payable, Carrying Value | 276,228 | 0 | 0 |
Term Loan [Member] | |||
Liabilities: | |||
Notes Payable, Carrying Value | 0 | 74,397 | |
Wellstat Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 50,191 | 47,694 | |
Hyperion [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 1,200 | 1,194 | |
AxoGen Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 0 | 26,544 | |
Avinger Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 20,611 | 20,250 | |
LENSAR Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 39,668 | 39,572 | |
Durata Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 0 | 24,995 | |
Direct Flow Medical Note Receivable [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 50,397 | 34,799 | |
Paradigm Spine [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 49,571 | 0 | |
Kaleo [Member] | |||
Assets | |||
Notes receivable, Carrying Value | 151,574 | 0 | |
Fair Value Level 2 [Member] | |||
Assets | |||
Assets, Fair Value Disclosure | 6,379 | 5,238 | |
Liabilities: | |||
Notes payable, Fair Value | 528,705 | 564,954 | |
Fair Value Level 2 [Member] | Series 2012 Notes [Member] | |||
Liabilities: | |||
Notes payable, Fair Value | 33,506 | 277,650 | |
Fair Value Level 2 [Member] | May 2015 Notes [Member] | |||
Liabilities: | |||
Notes payable, Fair Value | 205,534 | 212,304 | |
Fair Value Level 2 [Member] | February 2018 Notes [Member] | |||
Liabilities: | |||
Notes payable, Fair Value | 289,665 | 0 | |
Fair Value Level 2 [Member] | Term Loan [Member] | |||
Liabilities: | |||
Notes payable, Fair Value | 0 | 75,000 | |
Fair Value Level 2 [Member] | Wellstat Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 0 | |
Fair Value Level 2 [Member] | Hyperion [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 0 | |
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 2 [Member] | Paradigm Spine [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 0 | |
Fair Value Level 2 [Member] | Kaleo [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 0 | |
Fair Value Level 3 [Member] | |||
Assets | |||
Notes receivable, Fair Value | 363,740 | 191,449 | |
Assets, Fair Value Disclosure | 259,244 | 235,677 | |
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 2018 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 | 50,191 | 46,042 | |
Fair Value Level 3 [Member] | Hyperion [Member] | |||
Assets | |||
Notes receivable, Fair Value | 1,200 | 1,195 | |
Fair Value Level 3 [Member] | AxoGen Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 25,785 | |
Fair Value Level 3 [Member] | Avinger Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 20,760 | 19,061 | |
Fair Value Level 3 [Member] | LENSAR Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 40,451 | 39,572 | |
Fair Value Level 3 [Member] | Durata Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 0 | 24,995 | |
Fair Value Level 3 [Member] | Direct Flow Medical Note Receivable [Member] | |||
Assets | |||
Notes receivable, Fair Value | 49,940 | 34,799 | |
Fair Value Level 3 [Member] | Paradigm Spine [Member] | |||
Assets | |||
Notes receivable, Fair Value | 50,125 | 0 | |
Fair Value Level 3 [Member] | Kaleo [Member] | |||
Assets | |||
Notes receivable, Fair Value | 151,073 | 0 | |
Assets [Member] | |||
Assets | |||
Assets, Fair Value Disclosure | 363,212 | 195,048 | |
Assets [Member] | Fair Value Level 2 [Member] | |||
Assets | |||
Notes receivable, Fair Value | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Schedule of Fair Value of Financial Instruments Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | $293,687 | $99,540 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Unrealized Gains (Losses), Changes in Assets and Liabilities, Continued to be Held, Amount | 44,927 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 259,244 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 235,677 | ||
Change in fair value of acquired royalty rights, Level 3 Rollforward | 44,927 | ||
Payments for (Proceeds from) Productive Assets | -102,460 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | -57,533 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 81,100 | ||
Equity Securities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | $2,310 | $5,238 |
Cash_Equivalents_and_Investmen2
Cash Equivalents and Investments (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and Cash Equivalents [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $364,000 | $1,129,000 | |
Gains (losses) on sales of available-for-sale securities | $30,000 | $0 | $13,000 |
Cash_Equivalents_and_Investmen3
Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-For-Sale Securities [Line Items] | ||||
Adjusted Cost | $293,127 | $97,802 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 560 | 1,738 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 293,687 | 99,540 | ||
Cash and Cash Equivalents | 291,377 | 94,302 | 131,212 | 168,544 |
Short-Term Marketable Securities | 2,310 | 5,238 | ||
Cash [Member] | ||||
Schedule of Available-For-Sale Securities [Line Items] | ||||
Adjusted Cost | 69,585 | 8,332 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 69,585 | 8,332 | ||
Cash and Cash Equivalents | 69,585 | 8,332 | ||
Short-Term Marketable Securities | 0 | 0 | ||
Money Market Funds [Member] | ||||
Schedule of Available-For-Sale Securities [Line Items] | ||||
Adjusted Cost | 221,792 | 85,970 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 221,792 | 85,970 | ||
Cash and Cash Equivalents | 221,792 | 85,970 | ||
Short-Term Marketable Securities | 0 | 0 | ||
Equity Securities [Member] | ||||
Schedule of Available-For-Sale Securities [Line Items] | ||||
Adjusted Cost | 1,750 | 3,500 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 560 | 1,738 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value | 2,310 | 5,238 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-Term Marketable Securities | $2,310 | $5,238 |
Foreign_Currency_Hedging_Narra
Foreign Currency Hedging (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instrument Gain Loss [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $2,100,000 | ||
Gain recognized in other comprehensive income (loss) net of tax effects | 391,000 | ||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | -5,000 | -11 | 8 |
Restructuring hedges, net loss | $0 | $0 | $161,000 |
Foreign_Currency_Hedging_Sched
Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $85,875 | $111,614 |
Fair Value | 4,069 | -8,871 |
Eurodollar Sell Forward Contract 1.240 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.24 | |
Derivative, Notional Amount | 0 | 10,850 |
Fair Value | 0 | -1,207 |
Eurodollar Sell Forward Contract 1.256 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.256 | |
Derivative, Notional Amount | 6,000 | 0 |
Fair Value | 241 | 0 |
Eurodollar Sell Forward Contract 1.257 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.257 | |
Derivative, Notional Amount | 15,750 | 0 |
Fair Value | 728 | 0 |
Eurodollar Sell Forward Contract 1.259 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.259 | |
Derivative, Notional Amount | 16,125 | 0 |
Fair Value | 752 | 0 |
Eurodollar Sell Forward Contract 1.260 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.26 | |
Derivative, Notional Amount | 33,000 | 0 |
Fair Value | 1,468 | 0 |
Eurodollar Sell Forward Contract 1.270 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.27 | |
Derivative, Notional Amount | 7,000 | 44,450 |
Fair Value | 377 | -3,760 |
Eurodollar Sell Forward Contract 1.281 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.281 | |
Derivative, Notional Amount | 8,000 | 36,814 |
Fair Value | 503 | -2,785 |
Eurodollar Sell Forward Contract 1.300 [Member] | ||
Derivative [Line Items] | ||
Derivative, Forward Exchange Rate | 1.3 | |
Derivative, Notional Amount | 0 | 19,500 |
Fair Value | $0 | ($1,119) |
Foreign_Currency_Hedging_Fair_
Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Current | $3,352 | $0 |
Derivative Asset, Noncurrent | 717 | 0 |
Euro contracts, Accrued liabilities | 0 | 7,355 |
Euro contracts, Other long-term liabilities | $0 | $1,516 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative [Line Items] | ||||||
Net gain (loss) recognized in OCI, net of tax | $4,834 | [1] | ($2,432) | [1] | ($5,040) | [1] |
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax | -3,768 | [2] | -1,510 | [2] | -1,859 | [2] |
Cash Flow Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Net gain (loss) recognized in interest and other income, net | 5 | [3] | 11 | [3] | -169 | [3] |
Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Net gain (loss) recognized in interest and other income, net | $0 | [4] | $0 | [4] | $391 | [4] |
[1] | Net change in the fair value of the effective portion of cash flow hedges classified in OCI | |||||
[2] | Effective portion classified as royalty revenue | |||||
[3] | Ineffectiveness from excess hedge was approximately ($5), ($11) and $8 for the years ended December 31, 2014, 2013 and 2012, respectively. Net loss from restructuring hedges was approximately zero, zero and $161 for the years ended December 31, 2014, 2013 and 2012, 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 | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 58 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Feb. 23, 2015 | Nov. 14, 2014 | Oct. 03, 2013 | Nov. 02, 2013 | Nov. 10, 2014 | Nov. 05, 2013 | Sep. 30, 2014 | Mar. 31, 2012 | Apr. 30, 2013 | Aug. 15, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2012 | Apr. 30, 2018 | Dec. 31, 2014 | Feb. 06, 2014 | Sep. 24, 2013 | Dec. 12, 2014 | Aug. 14, 2013 | 27-May-14 | Oct. 31, 2013 | Nov. 09, 2014 | Nov. 06, 2013 | Mar. 05, 2013 | Jan. 27, 2012 | Feb. 14, 2014 | Apr. 01, 2014 | Aug. 31, 2012 | Apr. 18, 2013 | Nov. 02, 2012 | Jun. 28, 2013 | |
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of notes receivable | $68,800,000 | $59,279,000 | $5,000,000 | |||||||||||||||||||||||||||||||||||
Share Price | $7.71 | $7.71 | $7.97 | |||||||||||||||||||||||||||||||||||
Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, modification, cost as a component of interest and other income, net | 2,500,000 | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 5.00% | |||||||||||||||||||||||||||||||||||||
Financing Receivable, Net | 53,900,000 | 53,900,000 | ||||||||||||||||||||||||||||||||||||
Asset Management Costs | 6,200,000 | |||||||||||||||||||||||||||||||||||||
Merus Labs [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Repayment of notes receivable | 7,500,000 | 5,000,000 | ||||||||||||||||||||||||||||||||||||
Financing receivable, prepayment fee | 0.01 | |||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 55,000,000 | |||||||||||||||||||||||||||||||||||||
AxoGen [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of notes receivable | 30,300,000 | |||||||||||||||||||||||||||||||||||||
Investment Owned, Balance, Shares | 643,382 | 1,166,666 | ||||||||||||||||||||||||||||||||||||
Share Price | $2.72 | $3 | ||||||||||||||||||||||||||||||||||||
Investment Owned, at Cost | 1,700,000 | 3,500,000 | ||||||||||||||||||||||||||||||||||||
Price per share of investment sold | $3.03 | |||||||||||||||||||||||||||||||||||||
Investment Owned, at Fair Value | 2,300,000 | 2,300,000 | ||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | 600,000 | |||||||||||||||||||||||||||||||||||||
Proceeds from Sale of Available-for-sale Securities, Equity | 3,500,000 | |||||||||||||||||||||||||||||||||||||
LENSAR [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 40,000,000 | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 15.50% | |||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 60,000,000 | |||||||||||||||||||||||||||||||||||||
Durata [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 15,000,000 | 25,000,000 | ||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 14.00% | |||||||||||||||||||||||||||||||||||||
Repayment of notes receivable | 42,700,000 | |||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 70,000,000 | |||||||||||||||||||||||||||||||||||||
DirectFlow [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 13.50% | 15.50% | ||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 15,000,000 | 50,000,000 | ||||||||||||||||||||||||||||||||||||
Hyperion [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 2,300,000 | |||||||||||||||||||||||||||||||||||||
Periodic contractual payments | 1,200,000 | |||||||||||||||||||||||||||||||||||||
First minimum payment | 1,200,000 | |||||||||||||||||||||||||||||||||||||
Paradigm Spine [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 50,000,000 | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 13.00% | |||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 75,000,000 | |||||||||||||||||||||||||||||||||||||
kaleo Note Receivable [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 150,000,000 | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 13.00% | |||||||||||||||||||||||||||||||||||||
Notes Receivable [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 7,500,000 | 10,000,000 | ||||||||||||||||||||||||||||||||||||
Term of receivable (in Duration) | 2 years | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 10.00% | 12.00% | ||||||||||||||||||||||||||||||||||||
Notes Receivable [Member] | Merus Labs [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 35,000,000 | |||||||||||||||||||||||||||||||||||||
Notes Receivable [Member] | Avinger [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 20,000,000 | |||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 12.00% | |||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 40,000,000 | |||||||||||||||||||||||||||||||||||||
Maximum amount of additional funds, upon attainment of milestones | 20,000,000 | |||||||||||||||||||||||||||||||||||||
Credit Agreement [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 40,000,000 | |||||||||||||||||||||||||||||||||||||
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 | 7,900,000 | 8,700,000 | ||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 44,100,000 | |||||||||||||||||||||||||||||||||||||
Forbearance period under terms of credit agreement (in Duration) | 120 days | |||||||||||||||||||||||||||||||||||||
Credit Agreement [Member] | Merus Labs [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Letter of credit extended | 20,000,000 | |||||||||||||||||||||||||||||||||||||
Initial Loan [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 33,700,000 | |||||||||||||||||||||||||||||||||||||
Initial Loan [Member] | Merus Labs [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 13.50% | 13.50% | ||||||||||||||||||||||||||||||||||||
Additional Loan [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 1,300,000 | |||||||||||||||||||||||||||||||||||||
Additional Loan [Member] | Merus Labs [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 14.00% | 14.00% | ||||||||||||||||||||||||||||||||||||
Additional Loan [Member] | LENSAR [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | 20,000,000 | |||||||||||||||||||||||||||||||||||||
Royalty Agreement [Member] | AxoGen [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Term of receivable (in Duration) | 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 | |||||||||||||||||||||||||||||||||||||
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 | 0 | 1,100,000 | 0 | |||||||||||||||||||||||||||||||||||
Royalty Agreement [Member] | Avinger [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Reduction in royalty rate (in percent) | 50.00% | |||||||||||||||||||||||||||||||||||||
Term loan and interest [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,300,000 | |||||||||||||||||||||||||||||||||||||
Forbearance principal and interest [Member] | Wellstat Diagnostics [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 9,100,000 | |||||||||||||||||||||||||||||||||||||
Tranche two [Member] | Durata [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest rate of note receivable (in Percent) | 12.75% | |||||||||||||||||||||||||||||||||||||
Tranche two [Member] | DirectFlow [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing receivable, gross | 15,000,000 | |||||||||||||||||||||||||||||||||||||
Tranche two [Member] | Paradigm Spine [Member] | ||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||
Amount company has agreed to advance under agreement | $12,500,000 | $12,500,000 |
Property_and_Equipment_Propert
Property and Equipment (Property and Equipment) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold Improvements, Gross | $153 | $127 |
Computer and office equipment | 9,043 | 9,028 |
Furniture and Fixtures, Gross | 45 | 38 |
Property, Plant and Equipment, Gross | 9,241 | 9,193 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -9,179 | -9,152 |
Property, Plant and Equipment, Net | $62 | $41 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities (Accrued Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Compensation | $1,332 | $768 |
Interest | 6,210 | 2,925 |
Foreign currency hedge | 0 | 7,355 |
Dividend payable | 90 | 59 |
Legal | 296 | 324 |
Other | 948 | 426 |
Total | $8,876 | $11,857 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $0.20 | $0.20 | $0.20 |
Convertible_Notes_Narrative_De
Convertible Notes (Narrative) (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Oct. 20, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 05, 2014 | Feb. 11, 2014 | Feb. 18, 2015 | Jan. 31, 2012 | 16-May-11 | Jan. 31, 2013 | Feb. 06, 2014 | Feb. 17, 2015 | Nov. 24, 2014 | Feb. 12, 2014 | Feb. 07, 2014 | Aug. 01, 2013 | Feb. 29, 2012 | Oct. 28, 2013 |
Debt Instrument [Line Items] | |||||||||||||||||||||
Principal amount a $5 incentive cash payment per each to convert debt | $1,000 | $1,000 | |||||||||||||||||||
Adjustments to additional paid in capital, equity component of convertible debt | 102,134,000 | 10,692,000 | |||||||||||||||||||
Convertible note rate conversion trading days (in days) | 0 | 0 | 0 | ||||||||||||||||||
Convertible Notes rate conversion consecutive trading days (in days) | 30 | 30 | 30 | ||||||||||||||||||
Debt Conversion, Original Debt, Amount | 26,000,000 | ||||||||||||||||||||
Convertible Notes rate conversion business day period (in days) | 5 | 5 | |||||||||||||||||||
Convertible Notes rate conversion consecutive trading day period (in days) | 0 | 5 | |||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.50% | ||||||||||||||||||||
Share Price | $7.71 | $7.71 | $7.97 | ||||||||||||||||||
Net proceeds from the issuance of convertible notes | 300,000,000 | 0 | 0 | ||||||||||||||||||
Purchased call options cost | -30,951,000 | 0 | 0 | ||||||||||||||||||
Proceeds from issuance of warrants | 11,427,000 | 0 | 0 | ||||||||||||||||||
Dividends Payable, Amount Per Share | $0.15 | $0.15 | |||||||||||||||||||
Deferred Income Tax Expense (Benefit) | -30,659,000 | -999,000 | 11,311,000 | ||||||||||||||||||
Gain on conversion of convertible notes | -6,100,000 | -6,143,000 | 0 | 0 | |||||||||||||||||
Debt instrument, increase, additional borrowings | 147,016,000 | 75,000,000 | |||||||||||||||||||
February 2018 Note Warrant [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $10.36 | $10.36 | |||||||||||||||||||
Proceeds from issuance of warrants | 11,400,000 | ||||||||||||||||||||
February 2018 Note Purchase Call Option [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of hedge counterparties (in Counterparties) | 2 | ||||||||||||||||||||
Purchased call options cost | 31,000,000 | ||||||||||||||||||||
Deferred taxes included in purchased call options cost | 10,800,000 | ||||||||||||||||||||
Number of shares of common stock covered by the purchased call options purchased (in Shares) | 32.7 | 32.7 | |||||||||||||||||||
Series 2012 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible Debt | 131,700,000 | 26,000,000 | 131,700,000 | 10,000,000 | |||||||||||||||||
Total consideration given for convertible note exchange | 191,800,000 | ||||||||||||||||||||
Principal amount a $5 incentive cash payment per each to convert debt | 1,000 | 1,000 | |||||||||||||||||||
Induced conversion of convertible debt expense | 845,000 | ||||||||||||||||||||
Deferred issue costs, incentive payment allocated | 765,000 | ||||||||||||||||||||
Adjustments to additional paid in capital, equity component of convertible debt | 10,900,000 | 52,000 | |||||||||||||||||||
Noted obligation allocated to deferred tax assets | 5,900,000 | 28,000 | |||||||||||||||||||
Unamortized discount of liability component | -100,000 | -76,000 | -76,000 | -7,370,000 | -2,300,000 | -2,100,000 | |||||||||||||||
Minimum conversion price percent for note conversion (in Percent) | 130.00% | ||||||||||||||||||||
Maximum percent of common stock closing price and conversion rate to convert note (in Percent) | 98.00% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.30% | 7.30% | 7.30% | ||||||||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $5.12 | $5.12 | |||||||||||||||||||
Debt instrument, convertible, remaining amortization period (in Duration) | 1 month 16 days | ||||||||||||||||||||
Debt instrument, convertible, conversion threshold (in Dollars per Share) | $6.66 | $6.78 | |||||||||||||||||||
Debt instrument, convertible, if-converted value | 11,300,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | 22,300,000 | 22,337,000 | 22,337,000 | 180,000,000 | 48,300,000 | 22,300,000 | 180,000,000 | ||||||||||||||
Conversion Rate per $1,000 Principal Amount (in Ratio) | 195.248 | ||||||||||||||||||||
Debt conversion, shares issued (in Shares) | 1.8 | 20.3 | 1.3 | ||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 157,600,000 | ||||||||||||||||||||
Cash paid to exchange convertible note | 26,200,000 | 34,200,000 | |||||||||||||||||||
Inducement fee | 2,500,000 | ||||||||||||||||||||
Interest Payable | 1,800,000 | ||||||||||||||||||||
Deferred Income Tax Expense (Benefit) | 29,900,000 | ||||||||||||||||||||
Debt discount, derecognition on exchange | 5,800,000 | ||||||||||||||||||||
Debt Exchange cost other | 300,000 | ||||||||||||||||||||
Debt instrument, increase, additional borrowings | -152,784,000 | 1,000,000 | |||||||||||||||||||
May 2015 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible Debt | 155,300,000 | ||||||||||||||||||||
Adjustments to additional paid in capital, equity component of convertible debt | 12,300,000 | ||||||||||||||||||||
Noted obligation allocated to deferred tax assets | 6,600,000 | ||||||||||||||||||||
Total debt discount | 18,900,000 | 18,900,000 | |||||||||||||||||||
Unamortized discount of liability component | -1,815,000 | -1,815,000 | -6,997,000 | ||||||||||||||||||
Minimum conversion price percent for note conversion (in Percent) | 130.00% | 130.00% | |||||||||||||||||||
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% | ||||||||||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $5.84 | $5.84 | |||||||||||||||||||
Debt instrument, convertible, remaining amortization period (in Duration) | 4 months 1 day | ||||||||||||||||||||
Debt instrument, convertible, conversion threshold (in Dollars per Share) | $7.59 | $7.74 | |||||||||||||||||||
Debt instrument, convertible, if-converted value | 49,600,000 | ||||||||||||||||||||
Net proceeds from the issuance of convertible notes | 149,700,000 | ||||||||||||||||||||
Convertible notes repurchase price as a percentage of principal (in Percent) | 100.00% | ||||||||||||||||||||
Debt Instrument, Face Amount | 155,050,000 | 155,050,000 | 155,250,000 | ||||||||||||||||||
Conversion Rate per $1,000 Principal Amount (in Ratio) | 171.1768 | ||||||||||||||||||||
Debt instrument, increase, additional borrowings | -200,000 | 0 | |||||||||||||||||||
Purchased Call Options [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of hedge counterparties (in Counterparties) | 2 | 2 | |||||||||||||||||||
Purchased call options cost | 7,200,000 | 20,800,000 | |||||||||||||||||||
Number of shares of common stock covered by the purchased call options purchased (in Shares) | 26.6 | 26.6 | |||||||||||||||||||
Warrants [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $6.87 | $6.87 | |||||||||||||||||||
Number of shares of common stock covered by the purchased call options purchased (in Shares) | 31 | ||||||||||||||||||||
Proceeds from issuance of warrants | 10,900,000 | 10,900,000 | |||||||||||||||||||
Debt conversion, shares issued (in Shares) | 2.1 | ||||||||||||||||||||
February 2015 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible Debt | 169,000,000 | 1,000,000 | |||||||||||||||||||
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 | ||||||||||||||||||||
Total debt discount | 16,800,000 | 16,800,000 | |||||||||||||||||||
Debt Instrument, Face Amount | 0 | ||||||||||||||||||||
Term Loan. [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, increase, additional borrowings | 0 | 75,000,000 | |||||||||||||||||||
Short-term Debt | 75,000,000 | ||||||||||||||||||||
February 2018 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible Debt | 276,228,000 | 276,228,000 | 300,000,000 | ||||||||||||||||||
Adjustments to additional paid in capital, equity component of convertible debt | 18,689,000 | ||||||||||||||||||||
Unamortized discount of liability component | -23,772,000 | -23,772,000 | -29,700,000 | ||||||||||||||||||
Debt discount recorded to additional paid in capital | 19,300,000 | ||||||||||||||||||||
Debt discount recorded to deferred tax liability | 10,400,000 | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.90% | ||||||||||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $9.17 | ||||||||||||||||||||
Estimated market interest rate for similar nonconvertible instrument | 7.00% | ||||||||||||||||||||
Debt instrument, convertible, remaining amortization period (in Duration) | 3 years 1 month 3 days | ||||||||||||||||||||
Net proceeds from the issuance of convertible notes | 290,200,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | $300,000,000 | ||||||||||||||||||||
Conversion Rate per $1,000 Principal Amount (in Ratio) | 109.1048 |
Convertible_Notes_Summary_of_C
Convertible Notes (Summary of Convertible Notes) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Feb. 11, 2014 | Feb. 17, 2015 | Oct. 20, 2014 | Feb. 06, 2014 | Aug. 01, 2013 | Sep. 30, 2014 | Oct. 28, 2014 | Oct. 28, 2013 | Feb. 12, 2014 | |
Debt Instrument [Line Items] | ||||||||||||||
Principal amount a $5 incentive cash payment per each to convert debt | $1,000 | $1,000 | ||||||||||||
Convertible Notes and Term Loans, Beginning Balance | 395,280,000 | 309,952,000 | ||||||||||||
Issuance and exchange of Debt | 147,016,000 | 75,000,000 | ||||||||||||
Repayments of Debt | 75,000,000 | |||||||||||||
Non-cash discount | 0 | -831,000 | ||||||||||||
Amortization of Debt Discount (Premium) | 14,154,000 | 11,159,000 | ||||||||||||
Convertible Notes and Term Loans, Ending Balance | 451,724,000 | 451,724,000 | 395,280,000 | |||||||||||
Series 2012 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.88% | |||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 195.248 | |||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $5.12 | $5.12 | ||||||||||||
Principal amount a $5 incentive cash payment per each to convert debt | 1,000 | 1,000 | ||||||||||||
Convertible Notes, Principal Balance Outstanding | 22,337,000 | 22,337,000 | 180,000,000 | 22,300,000 | 22,300,000 | 48,300,000 | 180,000,000 | |||||||
Convertible Notes and Term Loans, Beginning Balance | 172,630,000 | 165,528,000 | ||||||||||||
Issuance and exchange of Debt | -152,784,000 | 1,000,000 | ||||||||||||
Repayments of Debt | 0 | |||||||||||||
Non-cash discount | 0 | 0 | ||||||||||||
Amortization of Debt Discount (Premium) | 2,415,000 | 6,102,000 | 5,682,000 | |||||||||||
Convertible Notes and Term Loans, Ending Balance | 22,261,000 | 22,261,000 | 172,630,000 | 165,528,000 | ||||||||||
May 2015 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% | |||||||||||
Debt Instrument, Convertible, Conversion Ratio | 171.1768 | |||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $5.84 | $5.84 | ||||||||||||
Convertible Notes, Principal Balance Outstanding | 155,050,000 | 155,050,000 | 155,250,000 | |||||||||||
Convertible Notes and Term Loans, Beginning Balance | 148,253,000 | 143,433,000 | ||||||||||||
Issuance and exchange of Debt | -200,000 | 0 | ||||||||||||
Repayments of Debt | 0 | |||||||||||||
Non-cash discount | 0 | 0 | ||||||||||||
Amortization of Debt Discount (Premium) | 5,182,000 | 4,820,000 | 4,481,000 | |||||||||||
Convertible Notes and Term Loans, Ending Balance | 153,235,000 | 153,235,000 | 148,253,000 | 143,433,000 | ||||||||||
February 2015 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount a $5 incentive cash payment per each to convert debt | 1,000 | |||||||||||||
Convertible Notes, Principal Balance Outstanding | 0 | |||||||||||||
Convertible Notes and Term Loans, Beginning Balance | 0 | 991,000 | ||||||||||||
Exchange of debt | 0 | -1,000,000 | ||||||||||||
Repayments of Debt | 0 | |||||||||||||
Non-cash discount | 0 | 0 | ||||||||||||
Amortization of Debt Discount (Premium) | 0 | 9,000 | ||||||||||||
Convertible Notes and Term Loans, Ending Balance | 0 | 0 | 0 | |||||||||||
Term Loan. [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.23% | 1.00% | ||||||||||||
Convertible Notes and Term Loans, Beginning Balance | 74,397,000 | 0 | ||||||||||||
Issuance and exchange of Debt | 0 | 75,000,000 | ||||||||||||
Repayments of Debt | 75,000,000 | |||||||||||||
Non-cash discount | 0 | 831,000 | ||||||||||||
Amortization of Debt Discount (Premium) | 603,000 | 228,000 | ||||||||||||
Convertible Notes and Term Loans, Ending Balance | 0 | 0 | 74,397,000 | |||||||||||
February 2018 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 109.1048 | |||||||||||||
Convertible notes, conversion price (in Dollars per Share) | $9.17 | |||||||||||||
Convertible Notes, Principal Balance Outstanding | 300,000,000 | |||||||||||||
Convertible Notes and Term Loans, Beginning Balance | 0 | 0 | ||||||||||||
Exchange of debt | -300,000,000 | 0 | ||||||||||||
Repayments of Debt | 0 | |||||||||||||
Non-cash discount | 29,726,000 | 0 | ||||||||||||
Amortization of Debt Discount (Premium) | 5,954,000 | 0 | ||||||||||||
Convertible Notes and Term Loans, Ending Balance | $276,228,000 | $276,228,000 | $0 |
Convertible_Notes_Summary_of_S
Convertible Notes (Summary of Series 2012 Notes) (Detail) (USD $) | Feb. 17, 2015 | Dec. 31, 2014 | Oct. 20, 2014 | Feb. 12, 2014 | Feb. 06, 2014 | Dec. 31, 2013 | Aug. 01, 2013 | Dec. 31, 2012 | Jan. 31, 2012 |
In Thousands, unless otherwise specified | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible Notes Payable, Carrying Value | $451,724 | $395,280 | $309,952 | ||||||
Series 2012 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible Notes, Principal Balance Outstanding | 22,300 | 22,337 | 22,300 | 48,300 | 180,000 | 180,000 | |||
Unamortized discount of liability component | -76 | -100 | -2,100 | -7,370 | -2,300 | ||||
Convertible Notes Payable, Carrying Value | $22,261 | $172,630 | $165,528 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Amortization of Debt Discount (Premium) | $14,154 | $11,159 | |
Series 2012 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual coupon interest | 1,726 | 5,158 | 5,122 |
Amortization of debt issuance costs | 1,089 | 1,152 | 1,107 |
Amortization of Debt Discount (Premium) | 2,415 | 6,102 | 5,682 |
Total | ($5,230) | ($12,412) | ($11,911) |
Convertible_Notes_Summary_of_M
Convertible Notes (Summary of May 2015 Notes) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Convertible Notes Payable, Carrying Value | $451,724 | $395,280 | $309,952 |
May 2015 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 155,050 | 155,250 | |
Unamortized discount of liability component | -1,815 | -6,997 | |
Convertible Notes Payable, Carrying Value | $153,235 | $148,253 | $143,433 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Amortization of Debt Discount (Premium) | $14,154 | $11,159 | |
May 2015 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual coupon interest | 5,817 | 5,822 | 5,822 |
Amortization of debt issuance costs | 1,274 | 1,232 | 1,193 |
Amortization of Debt Discount (Premium) | 5,182 | 4,820 | 4,481 |
Total | $12,273 | $11,874 | $11,496 |
Convertible_Notes_Schedule_of_
Convertible Notes Schedule of Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $177,387 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 300,000 |
Long-term Debt | 477,387 |
Series 2012 Notes [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 22,337 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt | 22,337 |
May 2015 Notes [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 155,050 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt | 155,050 |
Term Loan. [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 | 300,000 |
Long-term Debt | $300,000 |
Convertible_Notes_Schedule_of_1
Convertible Notes Schedule of carrying value and unamortized discount on February 2018 Notes (Details) (February 2018 Notes [Member], USD $) | Dec. 31, 2014 | Feb. 12, 2014 |
In Thousands, unless otherwise specified | ||
February 2018 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $300,000 | |
Debt Instrument, Unamortized Discount | 23,772 | 29,700 |
Convertible Debt | $276,228 | $300,000 |
Convertible_Notes_Convertible_
Convertible Notes Convertible Notes (Interest Expense for the February 2018 Notes) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 11, 2014 | Sep. 30, 2014 |
Debt Instrument [Line Items] | |||||
Amortization of Debt Discount (Premium) | $14,154 | $11,159 | |||
Purchased call options cost | -30,951 | 0 | 0 | ||
February 2018 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Expense, Debt, Excluding Amortization | 10,633 | ||||
Amortization of debt issuance costs | 1,898 | ||||
Amortization of Debt Discount (Premium) | 5,954 | 0 | |||
Total | -18,485 | ||||
February 2018 Note Purchase Call Option [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of hedge counterparties (in Counterparties) | 2 | ||||
Purchased call options cost | $31,000 | ||||
Number of shares of common stock covered by the purchased call options purchased (in Shares) | 32.7 |
Other_LongTerm_Liabilities_Nar
Other Long-Term Liabilities (Narrative) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Liabilities Disclosure [Abstract] | ||
Total lease payments for the duration of the guarantee | $79,000,000 | |
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, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Accrued lease liability | $10,700 | $10,700 |
Deferred Compensation Liability, Classified, Noncurrent | 578 | 0 |
Deferred Tax and Other Liabilities, Noncurrent | 0 | 0 |
Uncertain tax position | 26,356 | 10,826 |
Foreign currency hedge, long-term | 0 | 1,516 |
Other Sundry Liabilities, Noncurrent | 68 | 0 |
Total | $37,702 | $23,042 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 06, 2014 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense, Net of Tax | $1,501,000 | $872,000 | $937,000 | ||
Aggregate intrinsic value, non-vested restricted stock | 2,100,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 1,400,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 100,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 277,000 | 114,000 | 120,000 | 137,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 months | ||||
Share Price | $7.71 | $7.97 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $5.41 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense, Net of Tax | $1,500,000 | $900,000 | $900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 277,881 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $1,501 | $872 | $937 |
Employees and directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,157 | 655 | 650 |
Non-employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $344 | $217 | $287 |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares of Company Common Stock Available Under Share-Based Plans) (Detail) | 12 Months Ended | ||||
Dec. 31, 2014 | 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, Outstanding, Number | 58,000 | 172,000 | 196,000 | 231,000 | |
2005 Equity Incentive 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] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,034,216 | [1] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | [1] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,166,000 | [1] | |||
2002 Outside Directors 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 | 157,000 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 140,750 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 16,250 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | [2] | |||
1999 Non-statutory 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 | 4,966,183 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 4,966,183 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | [2] | |||
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 | 3,694,485 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3,653,150 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 41,335 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | [2] | |||
[1] | As of DecemberB 31, 2014, there were 277,881 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 58 | 172 | 196 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $5.41 | $16.52 | $16.22 |
Stock Options, Number of Shares, Balance at beginning of period (in Shares) | 172 | 196 | 231 |
Stock Options, Number of Shares, Balance at end of period (in Shares) | 58 | 172 | 196 |
Stock Options, Weighted Average Exercise Price, Balance at beginning of period (in Dollars per Share) | $16.52 | $16.22 | $16.62 |
Stock Options, Weighted Average Exercise Price, Balance at end of period (in Dollars per Share) | $5.41 | $16.52 | $16.22 |
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares) | 114 | 120 | 137 |
Restricted Stock Awards, Number of Shares Granted (in Shares) | 312 | 127 | 139 |
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares) | 277 | 114 | 120 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share) | $7.45 | $6.51 | $6.09 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share) | $8.39 | $7.50 | $6.49 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 149 | 118 | 137 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | $7.07 | $6.35 |
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share) | $8.39 | $7.45 | $6.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -114 | -24 | -35 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $22.08 | $14.07 | $18.83 |
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, 2014 | 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, Equity Instruments Other than Options, Nonvested, Number | 277 | 114 | 120 | 137 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $8.39 | $7.45 | $6.51 | $6.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 312 | 127 | 139 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $8.39 | $7.50 | $6.49 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -149 | -118 | -137 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $7.67 | $6.59 | $6.09 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | $7.07 | $6.35 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | -15 | -19 |
Cash_Dividends_Narrative_Detai
Cash Dividends (Narrative) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 28, 2015 | Jan. 29, 2014 | Jan. 24, 2013 | Jan. 19, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $96,557 | $84,006 | $83,942 |
Customer_Concentration_Percent
Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Genentech [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Royalty by Licensee as a percentage of revenue, Percentage | 71.00% | 81.00% | 84.00% | |||
Biogen Idec [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Royalty by Licensee as a percentage of revenue, Percentage | 10.00% | [1] | 11.00% | [1] | 12.00% | [1] |
[1] | Year Ended December 31, 2014B 2013B 2012Licensees GenentechB 71%B 81%B 84%Biogen IdecB 10%B 11%B 12% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Concentration Risk [Line Items] | |||||||||||
Revenues | $117,075 | $164,594 | $162,752 | $136,804 | $111,967 | $100,178 | $148,520 | $95,595 | $581,225 | $456,260 | $380,880 |
UNITED STATES | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | 334,325 | 177,251 | 140,179 | ||||||||
Europe [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | 246,825 | 278,934 | 240,626 | ||||||||
Other geographic location [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $75 | $75 | $75 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized Tax Benefits | $47,146,000 | $32,419,000 | $32,647,000 | $23,061,000 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 5,400,000 | |||
Deferred Tax Assets, Valuation Allowance | 0 | 5,390,000 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 23,600,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,300,000 | 700,000 | 200,000 | |
Unrecognized tax benefits resulting in adjustment to deferred tax assets | 23,500,000 | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | 21,200,000 | |||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 11,006,000 | 5,490,000 | 5,557,000 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 6,495,000 | -5,718,000 | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,800,000 | 1,500,000 | ||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 37,500,000 | 39,400,000 | ||
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 | 19,300,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $0 | |||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Current Federal Tax Expense (Benefit) | $187,056 | $134,619 | $104,152 |
Current State and Local Tax Expense (Benefit) | 22,631 | 3,726 | 1 |
Current Income Tax Expense (Benefit) | 209,687 | 138,345 | 104,153 |
Deferred Federal Income Tax Expense (Benefit) | -29,095 | -416 | 11,311 |
Deferred State and Local Income Tax Expense (Benefit) | -1,564 | -583 | 0 |
Deferred Income Tax Expense (Benefit) | -30,659 | -999 | 11,311 |
Income Tax Expense (Benefit) | $179,028 | $137,346 | $115,464 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $5,441 | $6,063 | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 175,445 | 140,656 | 114,496 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -5,390 | -2,055 | 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 | 7,395 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | -2,082 | 0 | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 1,577 | 826 | 967 |
Income Tax Expense (Benefit) | 179,028 | 137,346 | 115,464 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 2,147 | 2,259 | |
Deferred Tax Liabilities, Intangible Assets | 14,125 | 3,559 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 241 | 215 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 662 | 255 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses | 5,407 | 330 | |
Deferred Tax Assets, Unrealized Currency Losses | 0 | 2,632 | |
Deferred Tax Assets, Other | 8,500 | 47 | |
Deferred Tax Assets, Gross | 36,523 | 15,360 | |
Deferred Tax Assets, Valuation Allowance | 0 | -5,390 | |
Deferred Tax Assets, Net of Valuation Allowance | 36,523 | 9,970 | |
Deferred Tax Liabilities, Tax Deferred Income | 762 | 953 | |
Deferred Tax Liabilities, Financing Arrangements | 0 | -1,779 | |
Deferred Tax Liabilities, Unrealized Currency Transaction Gains | -1,588 | 0 | |
Deferred Tax Liabilities, Other | 0 | -161 | |
Deferred Tax Liabilities, Gross | -2,350 | -2,893 | |
Deferred Tax Assets, Net | $34,173 | $7,077 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Beginning Balance | $32,419 | $32,647 | $23,061 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 10,216 | 0 | 4,029 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 11,006 | 5,490 | 5,557 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -6,495 | 5,718 | 0 | |
Unrecognized Tax Benefits, Ending Balance | $47,146 | $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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total Accumulated Other Comprehensive Loss, beginning balance | ($4,888) | ||
Other Comprehensive Income (Loss), Net of Tax | 7,837 | 200 | -3,203 |
Total Accumulated Other Comprehensive Loss, ending balance | 2,949 | -4,888 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total Accumulated Other Comprehensive Loss, beginning balance | -4,888 | -5,088 | -1,885 |
Other Comprehensive Income (Loss), Net of Tax | 7,837 | 200 | -3,203 |
Total Accumulated Other Comprehensive Loss, ending balance | 2,949 | -4,888 | -5,088 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total Accumulated Other Comprehensive Loss, beginning balance | 1,129 | 7 | 29 |
Other Comprehensive Income (Loss), Net of Tax | -765 | 1,122 | -22 |
Total Accumulated Other Comprehensive Loss, ending balance | 364 | 1,129 | 7 |
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 | -6,017 | -5,095 | -1,914 |
Other Comprehensive Income (Loss), Net of Tax | 8,602 | -922 | -3,181 |
Total Accumulated Other Comprehensive Loss, ending balance | $2,585 | ($6,017) | ($5,095) |
Legal_Proceedings_Narrative_De
Legal Proceedings (Narrative) (Detail) | Aug. 15, 2013 |
Loss Contingencies [Line Items] | |
Fixed royalty rate as a percentage of sales | 2.13% |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Detail) (Series 2012 Notes [Member], USD $) | 0 Months Ended | ||||||||
In Thousands, except Share data in Millions, unless otherwise specified | Feb. 18, 2015 | Oct. 20, 2014 | Feb. 05, 2014 | Feb. 17, 2015 | Dec. 31, 2014 | Oct. 20, 2014 | Feb. 06, 2014 | Dec. 31, 2013 | Aug. 01, 2013 |
Series 2012 Notes [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt Instrument, Face Amount | $22,300 | $22,300 | $22,337 | $22,300 | $48,300 | $180,000 | $180,000 | ||
Debt conversion, shares issued (in Shares) | 1.3 | 1.8 | 20.3 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Prior Period Reclassification Adjustment | $9,100,000 | $7,500,000 | $2,900,000 | $4,900,000 | $3,700,000 | ||||||
Revenues | 117,075,000 | 164,594,000 | 162,752,000 | 136,804,000 | 111,967,000 | 100,178,000 | 148,520,000 | 95,595,000 | 581,225,000 | 456,260,000 | 380,880,000 |
Net income | 55,071,000 | 102,235,000 | 92,055,000 | 72,883,000 | 61,092,000 | 56,225,000 | 93,742,000 | 53,471,000 | 322,244,000 | 264,530,000 | 211,669,000 |
Net income per basic share (in Dollars per Share) | $0.34 | $0.64 | $0.57 | $0.48 | $0.44 | $0.40 | $0.67 | $0.38 | $2.04 | $1.89 | $1.52 |
Net income per diluted share (in Dollars per Share) | $0.32 | $0.61 | $0.52 | $0.44 | $0.39 | $0.36 | $0.62 | $0.36 | $1.86 | $1.66 | $1.45 |
total revenues [Member] | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 1,700,000 | ||||||||||
Operating Income (Loss) [Member] | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 12,800,000 | ||||||||||
Net income line item [Member] | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $8,100,000 |