PDL Biopharma (PDLI) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 25, 2016
Entity Information [Line Items]
Entity Registrant Name	PDL BIOPHARMA, INC.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		165,540,749
Amendment Flag	false
Entity Central Index Key	882,104
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	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Interest revenue	$ 7,343	$ 8,966	$ 16,307	$ 19,500
Licenses Revenue	327	0	134	0
Total revenues	21,047	138,066	124,171	287,772
Operating expenses
General and administrative	6,951	7,429	16,797	15,095
Acquisition-related expenses	2,959	0	2,959	0
Total operating expenses	9,910	7,429	19,756	15,095
Operating income	11,137	130,637	104,415	272,677
Non-operating expense, net
Interest and other income, net	129	121	242	207
Interest expense	(4,461)	(7,199)	(9,011)	(15,809)
Total non-operating expense, net	(4,332)	(7,078)	(8,769)	(15,602)
Income before income taxes	6,805	123,559	95,646	257,075
Income tax expense	2,657	45,295	35,611	94,313
Net income	$ 4,148	$ 78,264	$ 60,035	$ 162,762
Net income per share
Basic (in Dollars per Share)	$ 0.03	$ 0.48	$ 0.37	$ 1
Net income per diluted share (in Dollars per Share)	$ 0.03	$ 0.47	$ 0.37	$ 0.97
Weighted average shares outstanding
Basic (in Shares)	163,791	163,544	163,729	163,188
Diluted (in Shares)	164,029	165,384	163,920	167,376
Cash dividends declared per common share (in Dollars per Share)	$ 0.05	$ 0	$ 0.10	$ 0.60
Queen et al. patents [Member]
Revenues
Royalty revenues	$ 14,232	$ 116,884	$ 135,687	$ 244,694
Acquired rights [Member]
Revenues
Royalty revenues	$ (855)	$ 12,216	$ (27,957)	$ 23,578

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income		$ 4,148	$ 78,264	$ 60,035	$ 162,762
Other comprehensive income (loss), net of tax
Change in fair value of investments in available-for-sale securities, net of tax		15	(151)	122	(189)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax		433	0	557	0
Total change in unrealized gains (losses) on investments in available-for-sale securities, net of tax	[1]	(418)	(151)	(435)	(189)
Unrealized gains (losses) on cash flow hedges		0	(1,305)	0	4,363
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax		0	(1,739)	(1,821)	(2,408)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	[2]	0	(3,044)	(1,821)	1,955
Total other comprehensive income (loss), net of tax		(418)	(3,195)	(2,256)	1,766
Comprehensive income		$ 3,730	$ 75,069	$ 57,779	$ 164,528
[1]	Net of tax of ($225) and ($82) for the three months ended June 30, 2016 and 2015, respectively, and ($234) and ($102) for the six months ended June 30, 2016 and 2015, respectively
[2]	Net of tax of zero and ($1,639) for the three months ended June 30, 2016 and 2015, respectively

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities, tax	$ (225)	$ (82)	$ (234)	$ (102)
Unrealized gains (losses) on cash flow hedges, tax	$ 0	$ (1,639)	$ (981)	$ 1,053

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jun. 30, 2016		Dec. 31, 2015
Current assets:
Cash and cash equivalents		$ 115,854	[1],[2]	$ 218,883	[3]
Short-term restricted cash	[1]	105,938		0
Short-term investments		0	[1]	1,469	[3]
Receivables from licensees and other		2,881	[1]	0	[3]
Deferred tax assets		0	[1]	981	[3]
Notes receivable		95,359	[1]	58,398	[3]
Prepaid and other current assets		673	[1]	2,979	[3]
Total current assets		320,705	[1]	282,710	[3]
Property and equipment, net		18	[1]	31	[3]
Investments-other		75,000		0
Royalty rights		339,338	[1]	399,204	[3]
Notes and other receivables, long-term		276,823	[1]	306,507	[3]
Long-term deferred tax assets		25,707	[1]	16,172	[3]
Other assets		11,600	[1]	7,581	[3]
Total assets		1,049,191	[1]	1,012,205	[3]
Current liabilities:
Accounts payable		1,073	[1]	394	[3]
Accrued liabilities		11,738	[1]	8,009	[3]
Accrued Income Taxes, Current		9,793	[1]	3,372	[3]
Term loan payable	[1]	0		24,966
Total current liabilities		22,604	[1]	36,741	[3]
Convertible notes payable		232,847	[1]	228,862	[3]
Other long-term liabilities		55,088	[1]	50,650	[3]
Total liabilities		310,539	[1]	316,253	[3]
Commitments and contingencies (Note 8)			[1]		[3]
Stockholders' deficit:
Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding		0	[1]	0	[3]
Common stock, par value $0.01 per share, 350,000 shares authorized; 165,541 and 164,287 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively		1,655	[1]	1,643	[3]
Additional paid-in capital		(116,542)	[1]	(117,983)	[3]
Accumulated other comprehensive income		0	[1]	2,256	[3]
Retained earnings		853,539	[1]	810,036	[3]
Total stockholders' equity		738,652	[1]	695,952	[3]
Total liabilities and stockholders' equity		$ 1,049,191	[1]	$ 1,012,205	[3]
[1]	unaudited
[2]	unaudited
[3]	Note 1

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands	Jun. 30, 2016	[1]	Dec. 31, 2015	[2]
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		0
Common stock par value (in Dollars per Share)	$ 0.01		$ 0.01
Common stock, shares authorized (in Shares)	350,000		350,000
Common stock, shares issued (in Shares)	165,541		164,287
Common stock, shares outstanding (in Shares)	165,541		164,287
[1]	unaudited
[2]	Note 1

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016		Jun. 30, 2015
Cash flows from operating activities
Net income	$ 60,035		$ 162,762
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible notes and term loan offering costs	4,019		7,210
Change in fair value of acquired royalty rights	27,957		(23,578)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss)	747		0
Depreciation, Amortization and Accretion, Net	13		20
Gain (Loss) on Sale of Investments	(881)		0
Stock-based compensation expense	1,599		727
Deferred income taxes	(7,485)		8,358
Changes in assets and liabilities:
Receivables from licensees and other	(2,881)		(100)
Prepaid and other current assets	(496)		(695)
Accrued interest on notes receivable	(2,277)		(2,527)
Other assets	31		23
Accounts payable	679		383
Accrued liabilities	3,746		(102)
Increase (Decrease) in Income Taxes Payable	6,421		(3,293)
Other long-term liabilities	3,525		6,712
Net cash provided by operating activities	94,752		155,900
Cash flows from investing activities
Purchase consideration paid in advance	(4,000)		0
Payments to Acquire Other Investments	75,000		0
Proceeds from Sale of Available-for-sale Securities, Equity	1,681		0
Increase (Decrease) in Restricted Cash	(105,938)		0
Payments for (Proceeds from) Productive Assets	31,909		2,091
Purchase of notes receivable	(5,000)		(5,226)
Net cash used in investing activities	(156,348)		(3,135)
Cash flows from financing activities
Proceeds from Short-term Debt	0		100,000
Repurchase of Convertible Notes	0		177,387
Payment of debt issuance costs	0		(607)
Repayments of Notes Payable	(25,000)		(25,000)
Cash dividends paid	(16,433)		(49,083)
Net cash used in financing activities	(41,433)		(152,077)
Net increase (decrease) in cash and cash equivalents	(103,029)		688
Cash and cash equivalents at beginning of the period	218,883	[1]	291,377
Cash and cash equivalents at end of period	115,854	[2],[3]	292,065
Supplemental cash flow information
Cash paid for income taxes	34,000		84,000
Cash paid for interest	5,001		9,655
Other Significant Noncash Transaction, Value of Consideration Given	0		9,794
Line of Credit Facility, Commitment Fee Amount	$ 797		$ (1,258)
[1]	Note 1
[2]	unaudited
[3]	unaudited

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), that management of PDL believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited Condensed Consolidated Financial Statements and related financial information should be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2015 , included in our Annual Report on Form 10-K, filed with the SEC. The Condensed Consolidated Balance Sheet at December 31, 2015 , has been derived from the audited Consolidated Financial Statements at that date, but does not include all disclosures required by GAAP. Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of PDL and its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Our accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP and the rules and regulations of the SEC. Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Notes Receivable and Other Long-Term Receivables We account for our notes receivable at both amortized cost, net of unamortized origination fees, if any, and as dependent on collateral when the 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 effective interest method. When and if supplemental payments 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 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 estimated fair value of the collateral. Convertible Notes We issued our Series 2012 Notes, May 2015 Notes and 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 upon 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. Queen et al. Royalty Revenues Under our Queen Patent license agreements, the Company receives 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. 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. The Company also received 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 were recognized as they became due and when payment was reasonably assured. Total annual maintenance and milestone payments in each of the last several years have been less than 1% of total revenue. Although the last of our Queen et al. patents expired in December 2014, we have received royalties beyond expiration based on the terms of our licenses and our legal settlement. Under the terms of the legal settlement between Genentech and PDL, the first quarter of 2016 was the last period for which Genentech paid royalties to PDL for Avastin, Herceptin, Xolair, Kadcyla and Perjeta. Royalty payments for Avastin, Herceptin, Xolair, Kadcyla and Perjeta accounted for 86% of the $121.5 million Queen et al. royalty revenue recognized in the first quarter of 2016 and our royalties from our Queen et al. patents declined to $14.2 million in the second quarter of 2016. Other products from the Queen et al. patent licenses, such as Tysabri, entitle us to royalties following the expiration of our patents with respect to sales of licensed product manufactured prior to patent expiry in jurisdictions providing patent protection licenses. The amount of royalties we are due for product manufactured prior to patent expiry but sold after patent expiry is uncertain; however, the Company's revenues from payments made from these Queen et al. patent licenses and settlements materially decreased in the second quarter of 2016. The continued success of the Company is dependent on the timing and our ability to acquire new income generating assets in order to provide recurring revenues going forward and to support the Company's business model, and to pay amounts due on our debt as they become due. Royalty Rights - At Fair Value Currently, 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. The changes in the estimated fair value from investments in royalty rights along with cash receipts each reporting period are presented together on our Condensed Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.” Customer Concentration The percentage of total revenue recognized, which individually accounted for 10% or more of our total revenues, was as follows: Three Months Ended June 30, Six Months Ended June 30, Licensee Product Name 2016 2015 2016 2015 Genentech Avastin 0 % 28 % 31 % 27 % Herceptin 0 % 29 % 31 % 27 % Xolair 0 % 8 % 10 % 8 % Biogen Tysabri ® 68 % 10 % 23 % 10 % Depomed Glumetza, Janumet and Jentadueto 20 % 7 % N/M 6 % AcelRx Zalviso 10 % 0 % 3 % 0 % kaléo Interest revenues 22 % 4 % 8 % 3 % ____________________ N/M = Not meaningful Foreign Currency Hedging From time to time, we may enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes. We hedged certain Euro-denominated currency exposures related to royalties associated with our licensees’ product sales with Euro forward contracts. In general, those contracts are intended to offset the underlying Euro market risk in our royalty revenues. The last of those contracts expired in the fourth quarter of 2015 and was settled in the first quarter of 2016. We designated foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated licensee product sales as cash flow hedges. The fair value of the Euro forward contracts was estimated using pricing models with readily observable inputs from actively quoted markets and was disclosed on a gross basis. The aggregate unrealized gains or losses, net of tax, on the effective component of the hedge was recorded in stockholders’ equity as "Accumulated other comprehensive income." Realized 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 portion of our hedge contracts is reported in "Interest and other income, net" in the period the ineffectiveness occurs. 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. 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. Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and is effective for the Company beginning in the first quarter of 2016. The Company adopted this update in the first quarter of 2016 resulting in an immaterial impact on its unaudited condensed consolidated results of operations, financial position and cash flows. At December 31, 2015, the Company had $4.0 million in unamortized debt expense that was classified as a long-term asset and reclassified as a contra liability included in long-term debt. As of June 30, 2016, long-term debt included a contra liability of $3.1 million for unamortized debt expense previously recognized as a long-term asset. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which amends existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. ASU No. 2015-17 was adopted on a prospective basis by the Company in the first quarter of 2016, thus resulting in the reclassification of $1.0 million of current deferred tax liabilities to non-current on the accompanying condensed consolidated balance sheet. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on the Company’s results of operations, financial positions or cash flows. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued an update to defer the effective date of this update by one year. The updated standard becomes effective for the Company in the first quarter of fiscal year 2018, but allows the Company to adopt the standard one year earlier if it so chooses. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its unaudited Condensed Consolidated Financial Statements and related disclosures, and is therefore unable to determine the impact on the Company's unaudited Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. ASU No. 2016-02 becomes effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the provisions of ASU No. 2016-02 and assessing the impact, if any, it may have on the Company’s unaudited Condensed Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , intended to improve the accounting for share-based payment transactions as part of its simplification initiative. The new guidance mainly requires entities to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the statement of income. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively while a cumulative-effective adjustment in retained earnings would be made for tax benefits that had not previously been recognized and potential changes to forfeiture recognition. Cash flow presentation changes can be applied prospectively or retrospectively. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. Upon adoption, the ASU may result in approximately $7.5 million cumulative-effect adjustment in retained earnings associated with tax benefits that were not previously recognized. The Company is continuing to evaluate the impact of the updated standard on its consolidated results of operations, financial position and cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU No. 2016-13 has an effective date of the fiscal years beginning December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating ASU 2016-13 and assessing the impact, if any, it may have to the Company's consolidated results of operations, financial position and cash flows.

Net Income per Share

Net Income per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income per Share	2. Net Income per Share Three Months Ended Six Months Ended June 30, June 30, Net Income per Basic and Diluted Share: 2016 2015 2016 2015 (in thousands except per share amounts) Numerator Income used to compute net income per basic and diluted share $ 4,148 $ 78,264 $ 60,035 $ 162,762 Denominator Total weighted average shares used to compute net income per basic share 163,791 163,544 163,729 163,188 Restricted stock outstanding 238 134 191 117 Effect of dilutive stock options — 19 — 19 Assumed conversion of Series 2012 Notes — — — 266 Assumed conversion of warrants — 503 — 1,551 Assumed conversion of May 2015 Notes — 1,184 — 2,235 Shares used to compute net income per diluted share 164,029 165,384 163,920 167,376 Net income per share - basic $ 0.03 $ 0.48 $ 0.37 $ 1.00 Net income per share - diluted $ 0.03 $ 0.47 $ 0.37 $ 0.97 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 agreement, 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 the first quarter of 2015, the Company completed the retirement of the remaining $22.3 million of aggregate principal of its 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 were 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, shown in the table above, include the shares issuable in respect of such excess. In the second quarter of 2015, the Company completed the retirement of the remaining $155.1 million of aggregate principal of its May 2015 Notes. Concurrently with the retirement of the May 2015 Notes, we exercised our purchased call options and received 5.2 million of PDL's common shares, which was the amount equal to the number of shares required to be delivered by us to the note holders for the excess conversion value (Note 9). February 2018 Notes Purchase Call Option and Warrant Potential Dilution We excluded from our calculation of net income per diluted share 23.8 million shares for the three and six months ended June 30, 2016 , respectively, and 29.0 million shares for the three and six months ended June 30, 2015 , respectively, 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, therefore 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 26.9 million shares were excluded from our calculation of net income per diluted share for the three and six months ended June 30, 2016 , respectively, and 32.7 million shares were excluded from our calculation of net income per diluted share for the three and six months ended June 30, 2015 , because they have no effect on net income per diluted share. For information related to the conversion rates on our convertible debt, see Note 9. Anti-Dilutive Effect of Stock Options and Restricted Stock Awards For the three months ended June 30, 2016 and 2015 , we excluded approximately 1,154,000 and 39,000 shares underlying restricted stock awards, respectively, and for the six months ended June 30, 2016 and 2015 , we excluded approximately 1,095,000 and 38,000 shares underlying restricted stock awards, respectively, 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	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. 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 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. The following tables present the fair value of our financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy. June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Money market funds $ 59,630 $ — $ — $ 59,630 $ 94,801 $ — $ — $ 94,801 Certificates of deposit — 75,000 — 75,000 — — — — Corporate securities — — — — — 1,469 — 1,469 Foreign currency hedge contracts — — — — — 2,802 — 2,802 Warrants — 339 695 1,034 — 984 — 984 Royalty rights - at fair value — — 339,338 339,338 — — 399,204 399,204 Total $ 59,630 $ 75,339 $ 340,033 $ 475,002 $ 94,801 $ 5,255 $ 399,204 $ 499,260 As of June 30, 2016, PDL held $75.0 million in a long-term certificate of deposit, which is designated as cash collateral for the letter of credit issued with respect to the first anniversary payment under the Noden Purchase Agreement described below. Except of the transfer of the long-term certificate of deposit into level 2, there have been no other transfers between levels during each of the three or six-month periods ended June 30, 2016 , and December 31, 2015 . The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer. Certificates of Deposit The fair value of the certificates of deposit is determined using quoted market prices for similar instruments and non-binding market prices that are corroborated by observable market data. 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, which itself was recently acquired by Valeant Pharmaceuticals) 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 N.V. 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 receives 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 June 30, 2016 , and December 31, 2015 , 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 financial asset acquired represents a single unit of accounting. The fair value of the financial 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. This financial 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. The discounted cash flows are based upon expected royalties from sales of licensed products over a ten-year period. The discount rates utilized range from approximately 15% to 25% . Significant judgment is required in selecting appropriate discount rates. At June 30, 2016 , an evaluation was performed to assess those rates and general market conditions potentially affecting the fair market value. Should these discount rates increase or decrease by 2.5%, the fair value of the asset could decrease by $8.4 million or increase by $9.4 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. We periodically assess the expected future cash flows and to the extent such payments are greater or less than our initial estimates, or the timing of such payments is materially different than our original estimates, we will adjust the estimated fair value of the asset. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $3.4 million or decrease by $3.4 million, respectively. When PDL acquired the Depomed royalty rights, 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, the practices leading to this excess of supply which were under review by Salix's audit committee in relation to the related 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. Salix was acquired by Valeant Pharmaceuticals in early April 2015. In mid-2015, Valeant Pharmaceuticals implemented two price increases on Glumetza. At year-end 2015, a third-party expert was engaged by PDL to assess the impact of the Glumetza price adjustments and near-term market entrance of manufacturer of generic equivalents to Glumetza to the expected future cash flows. Based on the analysis performed, management revised the underlying assumptions used in the discounted cash flow analysis at year-end 2015. In February 2016, a manufacturer of generic equivalents to Glumetza entered the market. At March 31, 2016, management evaluated, with assistance of a third-party expert, the erosion of market share data, the gross-to-net revenue adjustment assumptions and Glumetza demand data. These data and assumptions are based on available but limited information. Our expected future cash flows at year-end 2015 anticipated a reduction in future cash flows of Glumetza as a result of the generic competition in 2016. However, based on the demand and supply data of Glumetza it appeared that the loss of market share progressed more rapidly than forecasted at year-end 2015. At the end of the second quarter in 2016, management re-evaluated, with the assistance of a third-party expert, the cash flow projections concluding that a further deterioration in the net pricing warranted revision of the assumptions used in the discounted cash flow model at June 30, 2016. As of June 30, 2016 , our discounted cash flow analysis reflects our expectations as to the amount and timing of future cash flows up to the valuation date. We continue to monitor whether the generic competition further affects sales of Glumetza and thus royalties on such sales paid to PDL. Due to the uncertainty around Valeant's marketing and pricing strategy, as well as the recent generic competition and limited historical demand data after generic market entrance, we may need to further reduce future cash flows in the event of more rapid reduction in market share of Glumetza or a further erosion in net pricing. PDL exercised its audit right under the Depomed Royalty Agreement with respect to the Glumetza royalties in January 2016 and expects to conclude the audit in the second half of 2016. In May 31, 2016, PDL obtained a notification indicating that the FDA approved Jentadueto XR for use in patients with type 2 diabetes. In June 2016, PDL received a $6.0 million FDA approval milestone. The product approval was earlier than initially expected, based on the FDA approval and expected product launch, PDL has adjusted the timing of future cash flows and discount rate used in the discounted cash flow model at June 30, 2016. As of June 30, 2016 , the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheet was $136.6 million and the maximum loss exposure was $136.6 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 pre-market approval from the FDA, in exchange for a $15.5 million cash payment, less fees. The royalty rights acquired includes royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company receives 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 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 June 30, 2016 , 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 ten-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 $1.3 million or increase by $1.5 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 was 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. At each reporting period, an evaluation is performed to assess those estimates, discount rates utilized and general market conditions affecting fair market value. As of June 30, 2016 , the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheet was $14.6 million and the maximum loss exposure was $14.6 million . U-M Royalty Agreement 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, in the European Union on January 22, 2015, and in Japan in March 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities. While marketing applications have been approved in the European Union and Japan, national pricing and reimbursement decisions are delayed in some countries. At June 30, 2016, a third party expert was engaged by PDL to assess the impact of the delayed pricing and reimbursement decisions to Cerdelga's expected future cash flows. Based on the analysis performed, management revised the underlying assumptions used in the discounted cash flow analysis at June 30, 2016. The fair value of the royalty right at June 30, 2016 , 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 six-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 $5.0 million or increase by $5.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.6 million or decrease by $1.6 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 June 30, 2016 , the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheet was $64.0 million and the maximum loss exposure was $64.0 million . ARIAD Royalty Agreement On July 28, 2015, PDL entered into the ARIAD Royalty Agreement, whereby the Company acquired the rights to receive royalties payable from ARIAD's net revenues generated by the sale, distribution or other use of Iclusig ® (ponatinib), a cancer medicine for the treatment of adult patients with chronic myeloid leukemia, in exchange for up to $200.0 million in cash payments. The purchase price of $100.0 million is payable in two tranches of $50.0 million each, with the first tranche funded on the closing date and the second tranche to be funded on the first anniversary of the closing date. The ARIAD Royalty Agreement provided ARIAD with an option to draw up to an additional $100.0 million in up to two draws at any time between the six and 12 months after the closing date. ARIAD may repurchase the royalty rights at any time for a specified amount. Upon the occurrence of certain events, PDL has the right to require ARIAD to repurchase the royalty rights for a specified amount. Under the ARIAD Royalty Agreement, the Company has the right to a make-whole payment from ARIAD if the Company does not receive payments equal to or greater than the amounts funded on or prior to the fifth anniversary of each of the respective fundings. In such case, ARIAD will pay to the Company the difference between the amounts paid to such date by ARIAD (excluding any delinquent fee payments) and the amounts funded by the Company. PDL has elected the fair value option to account for the hybrid instrument in its entirety. Any embedded derivative shall not be separated from the host contract. Under the terms of the ARIAD Royalty Agreement, the Company receives royalty payments at a royalty rate ranging from 2.5% to 7.5% of Iclusig revenue until the first to occur of (i) repurchase of the royalty rights by ARIAD or (ii) December 31, 2033. The annual royalty payments shall not exceed $20.0 million in any fiscal year for the years ended December 31, 2015 through December 31, 2018. If Iclusig revenue does not meet certain agreed-upon projections on an annual basis, PDL is entitled to certain royalty payments from net revenue of another ARIAD product, brigatinib, up to the amount of the shortfall from the projections for the applicable year. On May 9, 2016, ARIAD entered into a share purchase agreement with Incyte, pursuant to which ARIAD agreed to sell to Incyte all of the outstanding shares of ARIAD Pharmaceuticals (Luxembourg) S.a.r.l., which is the parent company of ARIAD’s European subsidiaries responsible for the commercialization of Iclusig in the European Union and certain other countries. On May 9, 2016, the Company and ARIAD agreed to amend the ARIAD Royalty Agreement to, among other things, include in the Iclusig Net Revenues calculation payable to the Company by ARIAD under the ARIAD Royalty Agreement, net sales of Iclusig made by Incyte once it takes over ARIAD’s commercialization operations with respect to Iclusig in the European Union and certain other countries. In addition, the Company and ARIAD agreed to restructure future funding under the ARIAD Royalty Agreement such that ARIAD’s option to draw up to an additional $100.0 million between January and July of 2016 was reduced to a maximum amount of up to an additional $40.0 million , which will be funded at ARIAD’s option in July of 2017 upon 90 days’ written notice to the Company. The amendment to the ARIAD Royalty Agreement did not affect the Company’s obligation to fund the second tranche of $50.0 million on the first anniversary of the ARIAD Royalty Agreement, which was funded on July 28, 2016. The asset acquired pursuant to the ARIAD Royalty Agreement represents a single unit of accounting. The fair value of the royalty right at June 30, 2016 , 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 six-year period. The discount rate utilized was approximately 10.0% . 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 $7.9 million or increase by $9.0 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.3 million or decrease by $1.3 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 June 30, 2016 , the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheet was $50.3 million and the maximum loss exposure was $50.3 million . AcelRx Royalty Agreement On September 18, 2015, PDL entered into the AcelRx Royalty Agreement with ARPI LLC, a wholly owned subsidiary of AcelRx, whereby the Company acquired the rights to receive a portion of the royalties and certain milestone payments on sales of Zalviso ™ (sufentanil sublingual tablet system) in the European Union, Switzerland and Australia by AcelRx's commercial partner, Grünenthal, in exchange for a $65.0 million cash payment. Under the terms of the AcelRx Royalty Agreement, the Company will receive 75% of all royalty payments and 80% of the first four commercial milestone payments due under AcelRx's license agreement with Grünenthal until the earlier to occur of (i) receipt by the Company of payments equal to three times the cash payments made to AcelRx and (ii) the expiration of the licensed patents. Zalviso received marketing approval by the European Commission in September 2015. Grüenthal launched Zalviso in the second quarter of 2016 and PDL expects to begin receiving royalties in the third quarter of 2016. As of June 30, 2016 , and December 31, 2015 , the Company determined that its royalty rights under the agreement with ARPI LLC represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of ARPI LLC that most significantly impact ARPI LLC's economic performance and is not the primary beneficiary of ARPI LLC; therefore, ARPI LLC is not subject to consolidation by the Company. The fair value of the royalty right at June 30, 2016 , 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 fifteen-year period. The discount rate utilized was approximately 13.4% . 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 $10.2 million or increase by $12.7 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.8 million or decrease by $1.8 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. At each reporting period, an evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period. As of June 30, 2016 , the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheet was $71.8 million and the maximum loss exposure was $71.8 million . Dr. Stephen Hoffman is the President of 10x Capital, Inc., a third-party consultant to the Company, and is also a member of the board of directors of AcelRx. Dr. Hoffman recused himself from the AcelRx board of directors with respect to the entirety of its discussions and considerations of the transaction. Dr. Hoffman is being compensated for his contribution to consummate this transaction by PDL as part of his consulting agreement. PDL concluded Dr. Hoffman is not considered a related party in accordance with FASB ASC 850, Related Party Disclosures and SEC Regulation S-X, Related Party Transactions Which Affect the Financial Statements . Avinger Credit and Royalty Agreement On April 18, 2013, PDL entered into the Avinger Credit and Royalty Agreement, under which we made available to Avinger up to $40.0 million (of which only $20.0 million was funded) to be used by Avinger in connection with the commercialization of its lumivascular catheter devices and the development of Avinger's lumivascular atherectomy device. On September 22, 2015, Avinger elected to prepay the note receivable in whole for a payment of $21.4 million in cash. Under the terms of the Avinger Credit and Royalty Agreement, the Company was entitled to receive royalties at a rate of 1.8% on Avinger's net revenues until the note receivable was repaid by Avinger. Upon the repayment of the note receivable, which occurred on September 22, 2015, the royalty rate was reduced to 0.9% subject to certain minimum payments from the prepayment date until April 2018. The Company has accounted for the royalty rights in accordance with the fair value option. The fair value of the royalty right at June 30, 2016 , 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 two-year period. The discount rate utilized was approximately 15.0% . Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 5%, the fair value of this asset could decrease by $93,000 or increase by $103,000, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $105,000 or decrease by $105,000, respectively. Management considered the contractual minimum payments when developing its estimate of the expected future cash flows. 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 June 30, 2016 , the fair value of the royalty asset as reported in our Condensed Consolidated Balance Sheet was $2.1 million and the maximum loss exposure was $2.1 million . The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the six months ended June 30, 2016 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Royalty Rights Preferred Stock Warrants Fair value as of December 31, 2015 $ 399,204 $ — Fair value of financial instruments purchased — 797 Total net change in fair value for the period Change in fair value (27,957 ) (102 ) Proceeds (31,909 ) — Total net change in fair value for the period (59,866 ) (102 ) Fair value as of June 30, 2016 $ 339,338 $ 695 Gains and losses included in earnings for each period are presented in "Royalty rights - change in fair value" as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Total change in fair value for the period included in earnings for assets held at the end of the reporting period $ (855 ) $ 12,216 $ (27,957 ) $ 23,578 The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy: June 30, 2016 December 31, 2015 Carrying Value Fair Value Level 2 Fair Value Level 3 Carrying Value Fair Value Level 2 Fair Value Level 3 (In thousands) Assets: Wellstat Diagnostics note receivable $ 50,191 $ — $ 52,468 $ 50,191 $ — $ 55,970 Hyperion note receivable 1,200 — 1,200 1,200 — 1,200 LENSAR note receivable 43,909 — 46,229 42,271 — 42,618 Direct Flow Medical note receivable 57,022 — 60,537 51,852 — 51,992 Paradigm Spine note receivable 54,332 — 54,450 53,973 — 54,250 kaléo note receivable 146,731 — 145,494 146,778 — 146,789 CareView note receivable 18,797 — 19,500 18,640 — 19,495 Total $ 372,182 $ — $ 379,878 $ 364,905 $ — $ 372,314 Liabilities: February 2018 Notes $ 232,847 $ 234,125 $ — $ 228,862 $ 197,946 $ — March 2015 Term Loan — — — 24,966 — 25,000 Total $ 232,847 $ 234,125 $ — $ 253,828 $ 197,946 $ 25,000 As of June 30, 2016 and December 31, 2015 , the estimated fair values of our Paradigm Spine note receivable, kaléo note receivable, Hyperion note receivable, Avinger note receivable, LENSAR note receivable, CareView note receivable and Direct Flow Medical 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. 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. The Wellstat Diagnostics Note Receivable and Credit Agreement, as amended and restated, is secured by substantially all assets and equity interests in Wellstat Diagnostics. In addition, the note is subject to a guaranty from the Wellstat Diagnostics Guarantors. The estimated fair value of the collateral assets was determined by using an asset approach and discounted cash flow model related to the underlying collateral and was adjusted to consider estimated costs to sell the assets. On June 30, 2016 , the carrying values of several of our notes receivable differed from their estimated fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. We determined these notes receivable to be Level 3 assets, as our valuations utilized significant unobservable inputs, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurements, 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. Warrants Warrants consist primarily of purchased call options to buy U.S. corporate equity holdings and derivative assets acquired as part of note receivable investments. The fair value of the warrants is estimated using recently quoted market prices or estimated fair value of the underlying equity security and the Black-Scholes option pricing model.

Cash Equivalents and Investment

Cash Equivalents and Investments	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash Equivalents and Investments	4. Cash, Cash Equivalents and Investments As of June 30, 2016 , and December 31, 2015 , 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" in stockholders’ equity, net of estimated taxes. See Note 3 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. The following tables summarize the Company’s cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents, short-term restricted cash, or short-term investments as of June 30, 2016, and December 31, 2015: Reported as: Amortized Cost Unrealized Gains Estimated Fair Value Cash and Cash Equivalents Short-Term Restricted Cash Short-Term Investments (In thousands) June 30, 2016 Cash $ 162,162 $ — $ 162,162 $ 56,224 $ 105,938 $ — Money market funds 59,630 — 59,630 59,630 — — Total $ 221,792 $ — $ 221,792 $ 115,854 $ 105,938 $ — December 31, 2015 Cash $ 124,082 $ — $ 124,082 $ 124,082 $ — $ — Money market funds 94,801 — 94,801 94,801 — — Corporate securities 799 670 1,469 — — 1,469 Total $ 219,682 $ 670 $ 220,352 $ 218,883 $ — $ 1,469 For the three and six months ended June 30, 2016 , we recognized approximately $746,000 and $882,000 , on sales of available-for-sale securities, respectively. No gains or losses on sales of available-for-sale securities were recognized for the three and six months ended June 30, 2015 . The unrealized gain on investments included in "Other comprehensive income (loss), net of tax" was approximately zero and $435,000 as of June 30, 2016 , and December 31, 2015, respectively. As of June 30, 2016, PDL held $105.9 million in short-term restricted cash, as designated for payment of the acquisition consideration to be paid on July 1, 2016 for the Noden transaction, and held $75.0 million in a long-term certificate of deposit, which is designated as cash collateral for the letter of credit issued with respect to the first anniversary payment under the Noden Purchase Agreement described below.

Foreign Currency Hedging

Foreign Currency Hedging	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign Currency Hedging	5. 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 Condensed Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of December 31, 2015 , all outstanding Euro forward contracts were classified as cash flow hedges. There were no Euro forward contracts outstanding as of June 30, 2016 . The notional amounts, Euro exchange rates and fair values of our Euro forward contracts designated as cash flow hedges were as follows: Euro Forward Contracts December 31, 2015 (In thousands) Currency Settlement Price ($ per Euro) Type Notional Amount Fair Value Euro 1.260 Sell Euro $ 16,500 $ 2,802 The location and fair values of our Euro forward contracts in our Condensed Consolidated Balance Sheets were as follows: Cash Flow Hedge Location December 31, (In thousands) Euro forward contracts Prepaid and other current assets $ 2,802 The effect of our derivative instruments in our Condensed Consolidated Statements of Income and our Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) Net gain (loss) recognized in OCI, net of tax (1) $ — $ (1,305 ) $ — $ 4,363 Gain (loss) reclassified from accumulated OCI into "Queen et al. royalty revenue," net of tax (2) $ — $ 1,739 $ 1,821 $ 2,408 _______________________________ (1) Net change in the fair value of cash flow hedges, net of tax. (2) Effective portion classified as royalty revenue.

Notes Receivable and Other Long

Notes Receivable and Other Long-term Receivables	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Notes and Other Long-term Receivables	6. 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 , which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics' obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics 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 is lower as a function of the variable nature of the internal rate of return to be realized by the Company based on when the note 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’ stockholders. 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. On November 4, 2014, the Company entered into the third amendment to the 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 the agreement by Wellstat Diagnostics to make certain operational changes within Wellstat Diagnostics, which the Company believes will allow the receiver to more efficiently optimize the value of the collateral. During the second quarter of 2015, the receiver initiated a process for a public sale of the assets of Wellstat Diagnostics and retained the investment banking firm of Duff & Phelps to organize and manage the sale process. The receiver filed a "Motion For Approval of Sale Procedures" with the Circuit Court for Montgomery County, Maryland, which is the court having jurisdiction over the receivership and a hearing was held on July 22, 2015 at which time arguments were heard from interested parties regarding the sale procedures. No significant substantive disagreements between the parties regarding the sale procedures remained after the hearing and a decision approving the receiver’s sale procedures was made in the third quarter of 2015. PDL submitted a credit bid for the Wellstat Diagnostic assets at a value corresponding to some portion of the outstanding amount due under the amended and restated credit agreement which is subject to court approval. A hearing was scheduled in the Maryland Circuit Court for April 13, 2016 to hear the Receiver’s motion to approve the credit bid sale to PDL. However, on April 12, 2016, Wellstat Diagnostics changed its name to Defined Diagnostics, LLC and filed for bankruptcy under Chapter 11 in the United Stated Bankruptcy Court in the Southern District of New York. The filing of the bankruptcy case stays the proceedings in the Maryland Circuit Court pursuant to the automatic stay provisions of the Bankruptcy Code. On June 15, 2016, in response to a Motion to Dismiss filed by the Company alleging, inter alia, that the New York Bankruptcy Court is not a proper venue for Defined Diagnostics to file for bankruptcy under Chapter 11, the New York Bankruptcy Court dismissed and transferred the action to the United States Bankruptcy Court in Delaware. On August 2, 2016 the Delaware Bankruptcy Court announced its decision to grant the Company’s motion to dismiss the chapter 11 petition with prejudice as a bad faith filing, which should result in the receivership sale in the Maryland Circuit Court proceeding promptly. On September 4, 2015, PDL filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On September 23, 2015, PDL filed in the same court an ex parte application for a temporary restraining order and order of attachment of the Wellstat Diagnostics Guarantors' assets. At a hearing on September 24, 2015, regarding the Company’s request for a temporary restraining order, the court ordered that the Company’s request for attachment and for summary judgment would be heard at a hearing on November 5, 2015. Although the court denied the Company’s request for a temporary restraining order at the hearing on September 24, 2015, it ordered that assets of the Wellstat Diagnostics Guarantors should be held in status quo ante and only used in the normal course of business pending the outcome of the matters under consideration at the hearing. On July 29, 2016, the Supreme Court of New York issued its Memorandum of Decision granting the Company’s motion for summary judgment and denying the Wellstat Diagnostics Guarantors’ cross-motion for summary judgment. The Supreme Court of New York held that the Wellstat Diagnostics Guarantors are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. It did not set a specific dollar amount due, but ordered that a judicial hearing officer or special referee be designated to determine the amount of the Obligations owing, and awarded the Company its attorneys’ fees and costs in an amount to be determined. The Supreme Court of New York has also set a hearing on August 23, 2016 to consider the implication of the status quo ante instruction on certain actions of the Wellstat Diagnostics Guarantors and whether to issue a writ of attachment. On July 29, 2016, the Wellstat Diagnostics Guarantors filed a notice of appeal from the Memorandum of Decision. This appeal does not stay the Supreme Court of New York from entering a money judgment for the balance owing based on the decision of the judicial hearing officer or special referee to be designated to determine the amount of the Obligations owing pursuant to the Memorandum of Decision. On October 22, 2015, the Wellstat Diagnostics Guarantors filed a complaint against the Company in the Supreme Court of New York seeking a declaratory judgment that certain contractual arrangements entered into between the parties subsequent to Wellstat Diagnostics’ default, and which relate to a split of proceeds in the event that the Wellstat Diagnostics Guarantors voluntarily monetize any assets that are the Company’s collateral, is of no force or effect. Through the period ended June 30, 2016 , PDL has advanced to Wellstat Diagnostics $16.2 million to fund the ongoing operations of the business and other associated costs. This funding has been expensed as incurred. As of June 30, 2016, PDL is owed $117.5 million , which includes unpaid principal, and interest and repayment of amounts funded for ongoing operations of Wellstat Diagnostics. 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 June 30, 2016 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 recover the current carrying value of $50.2 million . The Company continues to closely monitor the timing and expected recovery of amounts due, including litigation and other matters related to Wellstat Diagnostics Guarantors' assets. There can be no assurance that an allowance on the carrying value of the notes receivable investment will not be necessary in a future period depending on future developments. 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 second payment that was due on March 5, 2014. The Company completed an impairment analysis as of June 30, 2016 . Effective with this date and as a result of the event of default, we ceased to accrue interest revenue. As of June 30, 2016 , the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance that this will be true in the event of the Company's foreclosure on the collateral, nor can there be any assurance of realizing value from such collateral. AxoGen Note Receivable and AxoGen Royalty Agreement In October 2012, PDL entered into the AxoGen Royalty Agreement with AxoGen providing for the payment of specified royalties to PDL 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 million to $2.5 million , which began 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. 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 approximately $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. At the same time, 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 were classified as available for sale securities and recorded as short-term investments on the Condensed Consolidated Balance Sheets. In the third and fourth quarters of 2015, PDL sold 200,000 and 149,650 shares, respectively, at a price range between $5.46 and $5.69 per share, resulting in a gain totaling approximately $1.9 million . In the first and second quarters of 2016, PDL sold 50,000 and 243,732 shares, respectively, at a price range between $5.44 and $6.10 per share, resulting in a gain totaling approximately $882,000 . As of June 30, 2016 , PDL held zero shares of AxoGen common stock. Avinger Credit and Royalty Agreement On April 18, 2013, PDL entered into the Avinger Credit and Royalty Agreement, 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 available to Avinger, we funded an initial $20.0 million , net of fees, at the close of the transaction. Outstanding borrowings under the initial loan bore interest at a stated rate of 12% per annum. On September 22, 2015, Avinger elected to prepay the note receivable in whole for a payment of $21.4 million in cash, which was the sum of the outstanding principal, interest and a prepayment fee. Under the terms of the Avinger Credit and Royalty Agreement, the Company receives a low, single-digit royalty on Avinger's net revenues until April 2018. Commencing in October 2015, after Avinger repaid the note receivable prior to its maturity date, the royalty on Avinger's net revenues reduced by 50% , subject to certain minimum payments from the prepayment date until April 2018. PDL has accounted for the royalty rights in accordance with the fair value option. 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 remaining $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 bore interest at the rate of 15.5% per annum, payable quarterly in arrears. On May 12, 2015, PDL entered into a forbearance agreement with LENSAR under which PDL agreed to refrain from exercising certain remedies available to it resulting from the failure of LENSAR to comply with a liquidity covenant and make interest payments due under the credit agreement. Under the forbearance agreement, PDL agreed to provide LENSAR with up to an aggregate of $8.5 million in weekly increments through the period ended September 30, 2015 plus employee retention amounts of approximately $0.5 million in the form of additional loans subject to LENSAR meeting certain milestones related to LENSAR obtaining additional capital to fund the business or selling itself and repaying outstanding amounts under the credit agreement. In exchange for the forbearance, LENSAR agreed to additional reporting covenants, the engagement of a chief restructuring officer and an increase on the interest rate to 18.5% , applicable to all outstanding amounts under the credit agreement. On September 30, 2015, PDL agreed to extend the forbearance agreement until October 9, 2015 and provide for up to an additional $0.8 million in funding while LENSAR negotiated a potential sale of its assets. On October 9, 2015, the forbearance agreement expired, but PDL agreed to fund LENSAR's operations while LENSAR continued to negotiate a potential sale of its assets. On November 15, 2015, New LENSAR, a wholly owned subsidiary of Alphaeon, and LENSAR entered into the Asset Purchase Agreement whereby New LENSAR agreed to acquire substantially all the assets and assumed certain liabilities of LENSAR subject to the satisfaction of certain closing conditions. The acquisition was consummated on December 15, 2015. In connection with the closing of the acquisition, New LENSAR entered into an amended and restated credit agreement with PDL, assuming $42.0 million in loans as part of the borrowings under PDL’s prior credit agreement with LENSAR. In addition, Alphaeon issued 1.7 million shares of its Class A common stock to PDL. Under the terms of the amended and restated credit agreement, PDL has a first lien security interest in substantially all of the equity interests and assets of New LENSAR. The loans bear interest of 15.5% per annum, payable quarterly in arrears. New LENSAR may elect to pay in kind interest the first three interest payments in the form of additional principal amount added to the loans. The principal repayment will commence on the ninth interest payment date. The principal amount outstanding at commencement of repayment is to be repaid in equal installments until final maturity of the loans which is December 15, 2020. PDL concluded that the amendment and restatement of the original LENSAR credit agreement shall be accounted for as a troubled debt restructuring due to the concession granted by PDL and LENSAR’s financial difficulties. PDL has recognized a loss on extinguishment of notes receivable of $4.0 million and expensed $3.0 million of closing fees as general & administrative costs as incurred at closing on December 15, 2015. We have estimated a fair value of $3.84 per share for the 1.7 million shares of Alphaeon Class A common stock received in connection with the transactions and recognized this investment as a cost-method investment of $6.6 million included in other long-term asset. The Alphaeon Class A common stock is subject to other-than-temporary impairment assessments in future periods. There is no other-than-temporary impairment charge incurred as of June 30, 2016. The Company completed an impairment analysis as of June 30, 2016. Effective as of this date and as a result of the non-compliance with certain covenants, we determined the loan to be impaired and we ceased to accrue interest revenue. As of June 30, 2016, the estimated fair value of the collateral underlying the LENSAR loan was determined to be in excess of the carrying value. In the event the Company was to foreclose on the collateral, there can be no assurance as to the accuracy of the estimated fair value of the collateral, nor can there be any assurance of realizing value from such collateral. 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. Under the terms of the credit agreement, principal repayment will commence on the 12th 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 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. On December 21, 2015, Direct Flow Medical and PDL entered into a waiver to the credit agreement in anticipation of Direct Flow Medical being unable to comply with the liquidity covenant and make interest payments due under the credit agreement. On January 14, 2016, both parties agreed to provide Direct Flow Medical with an extension to waive the liquidity covenant and delay the timing of the interest payments through the period ending September 30, 2016. On January 28, 2016, PDL funded an additional $5.0 million to Direct Flow Medical in the form of a short-term secured promissory note. On February 26, 2016, PDL and Direct Flow Medical entered into the fourth Amendment to the Credit Agreement that, among other things, (i) converted the $5.0 million short-term secured promissory note into a loan under the credit agreement with substantially the same interest and payment terms as the existing loans, (ii) added a conversion feature whereby the $5.0 million loan would convert into equity of Direct Flow Medical upon the occurrence of certain events and (iii) provided for a second $5.0 million convertible loan tranche commitment, to be funded at the option of PDL. The commitment for the second tranche was not funded and has since expired. In addition, (i) PDL agreed to waive the liquidity covenant and delay the timing of the unpaid interest payments until September 30, 2016 and (ii) Direct Flow Medical agreed to issue to PDL a specified amount of warrants to purchase shares of convertible preferred stock on the first day of each month for the duration of the waiver period at an exercise price of $0.01 per share. At June 30, 2016, we determined an estimated fair value of the warrants of $0.7 million . On July 15, 2016, PDL and Direct Flow Medical entered into the Fifth Amendment and Limited Waiver to the Credit Agreement. PDL funded an additional $1.5 million to Direct Flow Medical in the form of a note with substantially the same interest and payment terms as the existing loans and a conversion feature whereby the $1.5 million loan would convert into equity of Direct Flow Medical upon the occurrence of certain events. In addition, Direct Flow Medical agreed to issue to PDL warrants to purchase shares of convertible preferred stock at an exercise price of $0.01 per share. The Company completed an impairment analysis as of June 30, 2016. Effective as of this date and as a result of the waived defaults, we determined the loan to be impaired and we ceased to accrue interest revenue. As of June 30, 2016, the estimated fair value of the collateral was determined to be in excess of the carrying value. In the event the Company was to foreclose on the collateral, there can be no assurance as to the accuracy of the estimated fair value of the collateral, nor can there be any assurance of realizing value from such collateral. 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. The second and third tranches of up to an additional $25.0 million in the aggregate, net of fees, are no longer available under the terms of the Paradigm Spine Credit Agreement. On October 27, 2015, PDL and Paradigm Spine entered into an amendment to the Paradigm Spine Credit Agreement to provide additional term loan commitments of up to $7.0 million payable in two tranches of $4.0 million and $3.0 million , of which the first tranche was drawn on the closing date of the amendment, net of fees. Paradigm Spine chose not to draw down the second tranche of $3.0 million and such tranche is no longer available. Borrowings under the credit agreement bear interest at the rate of 13.0% per annum, payable quarterly in arrears. Under the terms of the Paradigm Spine Credit Agreement, principal repayment will commence on the 12th 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 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 June 30, 2016 , 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 powe

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, (In thousands) Compensation $ 3,861 $ 1,979 Interest 4,107 4,107 Deferred revenue 1,118 87 Dividend payable 168 184 Legal 1,423 730 Other 1,061 922 Total $ 11,738 $ 8,009

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies PDL BioPharma, Inc. v Merck Sharp & Dohme, Corp. On October 28, 2015, the Company filed a Complaint against Merck Sharp & Dohme, Corp (“Merck”) for patent infringement in the United States District Court for the District of Nevada. In the Complaint, the Company alleges that manufacture and sales of certain of Merck’s Keytruda product infringes one or more claims of the Company’s '761 Patent. The Company has requested judgment that Merck has infringed the '761 Patent, an award of damages due to the infringement, a finding that such infringement was willful and deliberate and trebling of damages therefore, and a declaration that the case is exceptional and warrants an award of attorney’s fees and costs. Although the '761 Patent expired on December 2, 2014, the Company believes that Merck infringed the patent through, e.g., manufacture and/or sale of Keytruda prior to the expiration of the '761 Patent. On December 21, 2015, Merck filed a Motion to Dismiss for Lack of Personal Jurisdiction. In response to Merck’s motion, on January 22, 2016, rather than dispute Merck’s contentions regarding jurisdiction, the Company elected to dismiss the action in Nevada and refile the Complaint in its entirety in the District of New Jersey. On May 25, 2016, Merck filed a Motion to Bifurcate Discovery and Trial into Liability and Damages Phases. The Company filed an opposition to Merck’s motion. The court has not yet ruled on the motion. Wellstat Litigation On September 4, 2015, PDL filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On September 23, 2015, PDL filed in the same court an ex parte application for a temporary restraining order and order of attachment of the Wellstat Diagnostics Guarantors' assets. At a hearing on September 24, 2015, regarding the Company’s request for a temporary restraining order, the court ordered that the Company’s request for attachment and for summary judgment would be heard at a hearing on November 5, 2015. Although the court denied the Company’s request for a temporary restraining order at the hearing on September 24, 2015, it ordered that assets of the Wellstat Diagnostics Guarantors should be held in status quo ante and only used in the normal course of business pending the outcome of the matters under consideration at the hearing. On July 29, 2016, the court issued its Memorandum of Decision granting the Company’s motion for summary judgment and denying the Wellstat Diagnostics Guarantors’ cross-motion for summary judgment. The Supreme Court of New York held that the Wellstat Diagnostics Guarantors are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. It did not set a specific dollar amount due, but ordered that a judicial hearing officer or special referee be designated to determine the amount of the Obligations owing, and awarded the Company its attorneys’ fees and costs in an amount to be determined. The Supreme Court of New York has also set a hearing on August 23, 2016 to consider the implication of the status quo ante instruction on certain actions of the Wellstat Diagnostics Guarantors and whether to issue a writ of attachment. On July 29, 2016, the Wellstat Diagnostics Guarantors filed a notice of appeal from the Memorandum of Decision. This appeal does not stay the Supreme Court of New York from entering a money judgment for the balance owing based on the decision of the judicial hearing officer or special referee to be designated to determine the amount of the Obligations owing pursuant to the Memorandum of Decision. On October 22, 2015, the Wellstat Diagnostics Guarantors filed a complaint against the Company in the Supreme Court of New York seeking a declaratory judgment that certain contractual arrangements entered into between the parties subsequent to Wellstat Diagnostics’ default, and which relate to a split of proceeds in the event that the Wellstat Diagnostics Guarantors voluntarily monetize any assets that are the Company’s collateral, is of no force or effect. Other Legal Proceedings From time to time, we are involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of our operations of that period and on our cash flows and liquidity. Lease Guarantee 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 June 30, 2016 , the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $62.0 million . In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie. If AbbVie were to default, we could also be responsible for lease-related costs including utilities, property taxes and common area maintenance, which may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Condensed Consolidated Balance Sheets as of June 30, 2016 , and December 31, 2015 , related to this guarantee. In future periods, we may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable.

Convertible Notes

Convertible Notes	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible and Non-Recourse Notes	9. Convertible Notes and Term Loans Principal Balance Outstanding Carrying Value June 30, June 30, December 31, Description Maturity Date 2016 2016 2015 (In thousands) Convertible Notes February 2018 Notes February 1, 2018 $ 246,447 $ 232,847 $ 228,862 March 2015 Term Loan February 15, 2016 $ — — 24,966 Total $ 232,847 $ 253,828 Series 2012 Notes In January 2012, we issued and exchanged $169.0 million aggregate principal of 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 were 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 issued and exchanged an additional $10.0 million aggregate principal amount of the 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 that was 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. The Series 2012 Notes were due February 17, 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. 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. Interest expense for our Series 2012 Notes on our Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ — $ — $ — $ 80 Amortization of debt issuance costs — — — 13 Amortization of debt discount — — — 76 Total $ — $ — $ — $ 169 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 were due May 1, 2015, and we paid 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. On May 1, 2015, the Company completed the retirement of the remaining $155.1 million of aggregate principal of its May 2015 Notes at their stated maturity for $155.1 million , plus approximately 5.2 million shares of its common stock for the excess conversion value. Interest expense for the May 2015 Notes on the Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ — $ 484 $ — $ 1,938 Amortization of debt issuance costs — 109 — 435 Amortization of debt discount — 458 — 1,815 Total $ — $ 1,051 $ — $ 4,188 Purchased Call Options and Warrants In connection with the issuance of our May 2015 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $20.8 million , plus legal fees, for the purchased call options with terms substantially similar to the embedded conversion options in our May 2015 Notes. We exercised the purchased call options upon conversion of our May 2015 Notes on May 1, 2015, which required the hedge counterparties to deliver shares to the Company. The hedge counterparties delivered to us approximately 5.2 million of PDL common shares, which was the amount equal to the shares required to be delivered by us to the note holders for the excess conversion value. In addition, we sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive up to 27.5 million shares of common stock underlying our May 2015 Notes. We received an aggregate amount of $10.9 million for the sale from the two counterparties. Under the terms of the warrant agreement, the warrant counterparties had the option to exercise the warrants on their specified expiration dates through the 120 scheduled trading days beginning on July 30, 2015 and ended on January 20, 2016. Because the VWAP of our common stock never exceeded the strike price of the warrants, PDL did not deliver any common stock to the warrant counterparties. The purchased call option transactions and warrant sales effectively served to reduce the potential dilution associated with conversion of our May 2015 Notes. Because the share price was above $5.72 , but below $6.73 , upon conversion of the Company's May 2015 Notes, the purchased call options offset the share dilution, and the Company received shares on exercise of the purchased call options equal to the shares that the Company delivered to the note holders. While the purchased call options reduced the potential equity dilution upon conversion of our May 2015 Notes, prior to the conversion or exercise, our May 2015 Notes and the warrants had 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. 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. On November 20, 2015, PDL's agent initiated the repurchase of $53.6 million in aggregate principal amount of its February 2018 Notes for $43.7 million in cash in four open market transactions. The closing of these transactions occurred on November 30, 2015. It was determined that the repurchase of the principal amount shall be accounted for as an extinguishment. As a result, a gain on extinguishment of $6.5 million was recorded at closing of the transaction. The $6.5 million gain on extinguishment included the de-recognition of the original issuance discount of $3.1 million , outstanding deferred issuance costs of $0.9 million and agent fees of $0.1 million . Immediately following the repurchase, $246.4 million principal amount of the February 2018 Notes was outstanding with $14.1 million of remaining original issuance discount and $4.1 million of debt issuance costs to be amortized over the remaining life of the February 2018 Notes. As of June 30, 2016, our February 2018 Notes are not convertible. At June 30, 2016, the if-converted value of our February 2018 Notes did not exceed the principal amount. In connection with the repurchase of the February 2018 Notes, the Company and the counterparties agreed to unwind a portion of the purchased call options. As a result of this unwinding, PDL received $270,000 in cash. The payments received have been recorded as an increase to APIC. In addition, the Company and the counterparties agreed to unwind a portion of the warrants for $170,000 in cash, payable by PDL. The payments have been recorded as a decrease to APIC. At June 30, 2016, PDL concluded that the remaining purchased call options and warrants continue to meet all criteria for equity classification. The February 2018 Notes are convertible under any of the following circumstances: • During any fiscal quarter ending after the quarter ended 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 June 30, 2016 , the remaining discount amortization period is 1.6 years . The carrying value and unamortized discount of the February 2018 Notes were as follows: (In thousands) June 30, 2016 December 31, 2015 Principal amount of the February 2018 Notes $ 246,447 $ 246,447 Unamortized discount of liability component (13,600 ) (17,585 ) Net carrying value of the February 2018 Notes $ 232,847 $ 228,862 Interest expense for our February 2018 Notes on our Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ 2,464 $ 3,000 $ 4,928 $ 6,000 Amortization of debt issuance costs 442 546 880 1,089 Amortization of debt discount 1,555 1,776 3,105 3,523 Total $ 4,461 $ 5,322 $ 8,913 $ 10,612 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 June 30, 2016 . 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. March 2015 Term Loan On March 30, 2015, PDL entered into a credit agreement among the Company, the lenders party thereto and the Royal Bank of Canada, as administrative agent. The credit agreement consisted of a term loan of $100.0 million . The interest rates per annum applicable to amounts outstanding under the term loan were, at the Company’s option, either (a) the alternate base rate (as defined in the credit agreement) plus 0.75% , or (b) the adjusted Eurodollar rate (as defined in the credit agreement) plus 1.75% per annum. As of February 12, 2016, the interest rate, based upon the adjusted Eurodollar rate, was 2.17% . Interest payments under the credit agreement were due on the interest payment dates specified in the credit agreement. The credit agreement required amortization of the term loan in the form of scheduled principal payments on June 15, September 15 and December 15 of 2015, with the remaining outstanding balance due on February 15, 2016. This principal balance and outstanding interest was paid in full on February 12, 2016.

Other Long-Term Liabilities

Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 2016
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	10. Other Long-Term Liabilities Other long-term liabilities consist of the following: June 30, December 31, 2016 2015 (In thousands) Accrued lease liability $ 10,700 $ 10,700 Long-term incentive accrual 2,966 1,318 Uncertain tax positions 41,141 38,467 Dividend payable 281 165 Total $ 55,088 $ 50,650 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 June 30, 2016 , the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $62.0 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 Condensed Consolidated Balance Sheets as of June 30, 2016 , and December 31, 2015, related to this guarantee.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	11. Stock-Based Compensation The Company grants restricted stock awards pursuant to a stockholder approved stock-based incentive plan. This incentive plan is described in further detail in Note 13, Stock-Based Compensation, of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . The following table summarizes the Company’s restricted stock award activity during the six months ended June 30, 2016 : Restricted Stock Awards (In thousands except per share amounts) Shares Available for Grant Number of Shares Outstanding Weighted Average Grant-date Fair Value Per Share Balance at December 31, 2015 4,684 586 $ 7.13 Granted (1,254 ) 1,254 $ 3.31 Shares released — (145 ) $ 6.22 Balance at June 30, 2016 3,430 1,695 $ 4.38

Cash Dividends

Cash Dividends	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Cash Dividends	12. Cash Dividends On May 2, 2016 , our board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on June 6 , 2016 . On June 13 , 2016, we paid $8.2 million in connection with such dividend payment. Unvested restricted stock awards ("RSAs") as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On January 26, 2016 , our board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on March 4, 2016. On March 11, 2016, we paid $8.2 million in connection with such dividend payment. Unvested RSAs as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On August 3, 2016, the PDL board of directors decided to eliminate the quarterly cash dividend payment.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes Income tax expense for the three months ended June 30, 2016 and 2015 , was $2.7 million and $45.3 million , respectively, and for the six months ended June 30, 2016 and 2015 , was $35.6 million and $94.3 million which resulted primarily from applying the federal statutory income tax rate to income before income taxes. The uncertain tax positions increased during the three months ended June 30, 2016 and 2015, by $0.4 million and $2.2 million , respectively, and increased during the six months ended June 30, 2016 and 2015, by $1.6 million and $4.6 million , resulting from an increase in tax uncertainties and estimated tax liabilities. In general, our income tax returns are subject to examination by U.S. federal, state and local tax authorities for tax years 1996 forward. 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, 2010, 2011 and 2012. 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, we do not anticipate any material change to the amount of our unrecognized tax benefit over the next 12 months.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Abstract]
Accumulated Other Comprehensive Income (Loss)	14. Accumulated Other Comprehensive Income Comprehensive income is comprised of net income and other comprehensive income (loss). We include unrealized net gains (losses) 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 Condensed Consolidated Statements of Comprehensive Income. The balance of accumulated other comprehensive income, net of tax, was as follows: Unrealized gains (losses) on available-for-sale securities Unrealized gains on cash flow hedges Total Accumulated Other Comprehensive Income (In thousands) Beginning Balance at December 31, 2015 $ 435 $ 1,821 $ 2,256 Activity for the six months ended June 30, 2016 (435 ) (1,821 ) (2,256 ) Ending Balance at June 30, 2016 $ — $ — $ —

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	15. Subsequent Events Noden Transactions On July 1, 2016, pursuant to the Noden Purchase Agreement, Noden, a newly-formed company organized under the laws of Ireland, purchased from Novartis the exclusive worldwide rights to manufacture, market, and sell the branded prescription medicine product sold under the name Tekturna ® and Tekturna HCT ® in the United States and Rasilez ® and Rasilez HCT ® in the rest of the world (collectively the "Noden Products") and certain related assets and will assume certain related liabilities in exchange for the following cash commitments: $110.0 million paid on July 1, 2016, the closing date of the acquisition, $89.0 million payable on the first anniversary of the closing date and up to $95.0 million of additional cash consideration contingent on achievement of sales targets and the date of the launch of a generic drug containing the pharmaceutical ingredient aliskiren. In accordance with ASC 805-10-55-11 through 15 the Company concluded that PDL is the acquirer of the Noden Products for accounting purposes. On July 1, 2016, in connection with the closing of the Noden Purchase Agreement, PDL entered into the Noden Pharma DAC Investment and Stockholders’ Agreement with Noden and certain members of Noden’s management (the “Noden Stockholders’ Agreement”). Under the Noden Stockholders’ Agreement, the Company acquired an approximately 99% equity stake and obtained the majority voting power of Noden, for a total cash consideration of $75.0 million . It is expected that PDL’s equity ownership stake shall be reduced to 88% upon the vesting of shares granted to Noden's noncontrolling interest holders. Pursuant to the Noden Stockholders’ Agreement, in addition to the initial $75.0 million cash equity contribution, the Company will make the following additional equity contributions to Noden and an affiliate: $32 million (and up to $89 million if Noden is unable to obtain debt financing) on July 1, 2017 to fund the anniversary payment under the Noden Purchase Agreement and at least $38.0 million to fund a portion of certain milestone payments under the Noden Purchase Agreement, subject to their occurrence. In exchange for such equity contributions, the Company was issued and will be issued ordinary shares and preferred shares. For a separate contribution, Elie Farah, chief executive officer of Noden was also issued preferred and ordinary shares subject to certain vesting restrictions. In connection with the transaction, Noden and Novartis also entered into a supply agreement pursuant to which Novartis will manufacture and supply to Noden a finished form of the Noden Products and bulk drug form of the Noden Products for specified periods of time prior to the transfer of manufacturing responsibilities for the Noden Products to another manufacturer. Under the supply agreement, Novartis is also obligated to sell the Noden Products on a country by country basis during a specified time period prior to Noden’s assumption of responsibility for sales of Noden Product in such country, and to share profits from such sales with Noden on a specified basis. The supply agreement may be terminated by either party for material breach that remains uncured for a specified time period. The supply agreement and Noden Purchase Agreement include other transitional activities to be performed by Novartis, the purpose of which is to effect a smooth transfer of the marketing authorizations necessary to complete the ownership transfer to Noden. In accordance with the authoritative guidance for business combinations, the transaction with Novartis was determined to be a business combination and is expected to be accounted for using the acquisition method of accounting. During the three and six month periods ended June 30, 2016, the Company recorded approximately $3.0 million in acquisition-related costs. Noden is expected to reimburse PDL as part of the intercompany arrangement for acquisition-related costs on or before December 31, 2016. The Company has not yet finalized the purchase price allocation for this acquisition. The Company will include additional information about the fair value of acquired assets and assumed liabilities of the Noden Products in its Quarterly Report on Form 10-Q for the period ending September 30, 2016 and in the Company's Form 8-K/A due to be filed within 71 days of the filing date of the Form 8-K with respect to the closing of the Noden transaction that the Company filed on July 6, 2016. Kybella Royalty Agreement On July 8, 2016, PDL entered into a royalty purchase agreement with an individual, whereby the Company acquired that individual's rights to receive certain royalties on sales of Kybella ® by Allergan, in exchange for a $9.5 million cash payment and up to $1.0 million in future milestone payments based upon product sales targets. ARIAD Royalty Agreement Second Tranche Payment On July 28, 2016, PDL funded the second tranche of $50.0 million due on the anniversary of the closing date under the terms of the ARIAD Royalty Agreement. Direct Flow Medical Convertible Loan Payment On July 15, 2016, PDL and Direct Flow Medical entered into the Fifth Amendment and Limited Waiver to the Credit Agreement. PDL funded an additional $1.5 million to Direct Flow Medical in the form of a note with substantially the same interest and payment terms as the existing loans and a conversion feature whereby the $1.5 million loan would convert into equity of Direct Flow Medical upon the occurrence of certain events. In addition, Direct Flow Medical agreed to issue to PDL warrants to purchase shares of convertible preferred stock at an exercise price of $0.01 per share. Cash Dividend On August 3, 2016, the PDL board of directors decided to eliminate the quarterly cash dividend payment.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation, Policy	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), that management of PDL believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited Condensed Consolidated Financial Statements and related financial information should be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2015 , included in our Annual Report on Form 10-K, filed with the SEC. The Condensed Consolidated Balance Sheet at December 31, 2015 , has been derived from the audited Consolidated Financial Statements at that date, but does not include all disclosures required by GAAP.
Principles of Consolidation, Policy	Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of PDL and its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Our accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP and the rules and regulations of the SEC.
Use of Estimates, Policy [Policy Text Block]	Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Notes Receivable and Other Long-Term Receivables, Policy	Notes Receivable and Other Long-Term Receivables We account for our notes receivable at both amortized cost, net of unamortized origination fees, if any, and as dependent on collateral when the 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 effective interest method. When and if supplemental payments 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 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 estimated fair value of the collateral.
Debt, Policy [Policy Text Block]	Convertible Notes We issued our Series 2012 Notes, May 2015 Notes and 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 upon 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.
Revenue Recognition, Policy [Policy Text Block]	Queen et al. Royalty Revenues Under our Queen Patent license agreements, the Company receives 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. 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. The Company also received 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 were recognized as they became due and when payment was reasonably assured. Total annual maintenance and milestone payments in each of the last several years have been less than 1% of total revenue. Although the last of our Queen et al. patents expired in December 2014, we have received royalties beyond expiration based on the terms of our licenses and our legal settlement. Under the terms of the legal settlement between Genentech and PDL, the first quarter of 2016 was the last period for which Genentech paid royalties to PDL for Avastin, Herceptin, Xolair, Kadcyla and Perjeta. Royalty payments for Avastin, Herceptin, Xolair, Kadcyla and Perjeta accounted for 86% of the $121.5 million Queen et al. royalty revenue recognized in the first quarter of 2016 and our royalties from our Queen et al. patents declined to $14.2 million in the second quarter of 2016. Other products from the Queen et al. patent licenses, such as Tysabri, entitle us to royalties following the expiration of our patents with respect to sales of licensed product manufactured prior to patent expiry in jurisdictions providing patent protection licenses. The amount of royalties we are due for product manufactured prior to patent expiry but sold after patent expiry is uncertain; however, the Company's revenues from payments made from these Queen et al. patent licenses and settlements materially decreased in the second quarter of 2016. The continued success of the Company is dependent on the timing and our ability to acquire new income generating assets in order to provide recurring revenues going forward and to support the Company's business model, and to pay amounts due on our debt as they become due.
Acquired Royalty Rights [Policy Text Block]	Royalty Rights - At Fair Value Currently, 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. The changes in the estimated fair value from investments in royalty rights along with cash receipts each reporting period are presented together on our Condensed Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.”
Customer Concentration, Policy	Customer Concentration The percentage of total revenue recognized, which individually accounted for 10% or more of our total revenues, was as follows: Three Months Ended June 30, Six Months Ended June 30, Licensee Product Name 2016 2015 2016 2015 Genentech Avastin 0 % 28 % 31 % 27 % Herceptin 0 % 29 % 31 % 27 % Xolair 0 % 8 % 10 % 8 % Biogen Tysabri ® 68 % 10 % 23 % 10 % Depomed Glumetza, Janumet and Jentadueto 20 % 7 % N/M 6 % AcelRx Zalviso 10 % 0 % 3 % 0 % kaléo Interest revenues 22 % 4 % 8 % 3 %
Foreign Currency Hedging, Policy	Foreign Currency Hedging From time to time, we may enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes. We hedged certain Euro-denominated currency exposures related to royalties associated with our licensees’ product sales with Euro forward contracts. In general, those contracts are intended to offset the underlying Euro market risk in our royalty revenues. The last of those contracts expired in the fourth quarter of 2015 and was settled in the first quarter of 2016. We designated foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated licensee product sales as cash flow hedges. The fair value of the Euro forward contracts was estimated using pricing models with readily observable inputs from actively quoted markets and was disclosed on a gross basis. The aggregate unrealized gains or losses, net of tax, on the effective component of the hedge was recorded in stockholders’ equity as "Accumulated other comprehensive income." Realized 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 portion of our hedge contracts is reported in "Interest and other income, net" in the period the ineffectiveness occurs.
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.
Comprehensive Income, Policy [Policy Text Block]	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.
New Accounting Pronouncements, Policy [Policy Text Block]	Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and is effective for the Company beginning in the first quarter of 2016. The Company adopted this update in the first quarter of 2016 resulting in an immaterial impact on its unaudited condensed consolidated results of operations, financial position and cash flows. At December 31, 2015, the Company had $4.0 million in unamortized debt expense that was classified as a long-term asset and reclassified as a contra liability included in long-term debt. As of June 30, 2016, long-term debt included a contra liability of $3.1 million for unamortized debt expense previously recognized as a long-term asset. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which amends existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. ASU No. 2015-17 was adopted on a prospective basis by the Company in the first quarter of 2016, thus resulting in the reclassification of $1.0 million of current deferred tax liabilities to non-current on the accompanying condensed consolidated balance sheet. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on the Company’s results of operations, financial positions or cash flows. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued an update to defer the effective date of this update by one year. The updated standard becomes effective for the Company in the first quarter of fiscal year 2018, but allows the Company to adopt the standard one year earlier if it so chooses. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its unaudited Condensed Consolidated Financial Statements and related disclosures, and is therefore unable to determine the impact on the Company's unaudited Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. ASU No. 2016-02 becomes effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the provisions of ASU No. 2016-02 and assessing the impact, if any, it may have on the Company’s unaudited Condensed Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , intended to improve the accounting for share-based payment transactions as part of its simplification initiative. The new guidance mainly requires entities to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the statement of income. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively while a cumulative-effective adjustment in retained earnings would be made for tax benefits that had not previously been recognized and potential changes to forfeiture recognition. Cash flow presentation changes can be applied prospectively or retrospectively. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. Upon adoption, the ASU may result in approximately $7.5 million cumulative-effect adjustment in retained earnings associated with tax benefits that were not previously recognized. The Company is continuing to evaluate the impact of the updated standard on its consolidated results of operations, financial position and cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU No. 2016-13 has an effective date of the fiscal years beginning December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating ASU 2016-13 and assessing the impact, if any, it may have to the Company's consolidated results of operations, financial position and cash flows.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of Revenue by Major Customers	Three Months Ended June 30, Six Months Ended June 30, Licensee Product Name 2016 2015 2016 2015 Genentech Avastin 0 % 28 % 31 % 27 % Herceptin 0 % 29 % 31 % 27 % Xolair 0 % 8 % 10 % 8 % Biogen Tysabri ® 68 % 10 % 23 % 10 % Depomed Glumetza, Janumet and Jentadueto 20 % 7 % N/M 6 % AcelRx Zalviso 10 % 0 % 3 % 0 % kaléo Interest revenues 22 % 4 % 8 % 3 %

Net Income per Share (Tables)

Net Income per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of calculation of numerator and denominator in earnings per share	Three Months Ended Six Months Ended June 30, June 30, Net Income per Basic and Diluted Share: 2016 2015 2016 2015 (in thousands except per share amounts) Numerator Income used to compute net income per basic and diluted share $ 4,148 $ 78,264 $ 60,035 $ 162,762 Denominator Total weighted average shares used to compute net income per basic share 163,791 163,544 163,729 163,188 Restricted stock outstanding 238 134 191 117 Effect of dilutive stock options — 19 — 19 Assumed conversion of Series 2012 Notes — — — 266 Assumed conversion of warrants — 503 — 1,551 Assumed conversion of May 2015 Notes — 1,184 — 2,235 Shares used to compute net income per diluted share 164,029 165,384 163,920 167,376 Net income per share - basic $ 0.03 $ 0.48 $ 0.37 $ 1.00 Net income per share - diluted $ 0.03 $ 0.47 $ 0.37 $ 0.97

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
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 six months ended June 30, 2016 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Royalty Rights Preferred Stock Warrants Fair value as of December 31, 2015 $ 399,204 $ — Fair value of financial instruments purchased — 797 Total net change in fair value for the period Change in fair value (27,957 ) (102 ) Proceeds (31,909 ) — Total net change in fair value for the period (59,866 ) (102 ) Fair value as of June 30, 2016 $ 339,338 $ 695
Schedule of fair value of financial instruments measured on recurring basis	June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Money market funds $ 59,630 $ — $ — $ 59,630 $ 94,801 $ — $ — $ 94,801 Certificates of deposit — 75,000 — 75,000 — — — — Corporate securities — — — — — 1,469 — 1,469 Foreign currency hedge contracts — — — — — 2,802 — 2,802 Warrants — 339 695 1,034 — 984 — 984 Royalty rights - at fair value — — 339,338 339,338 — — 399,204 399,204 Total $ 59,630 $ 75,339 $ 340,033 $ 475,002 $ 94,801 $ 5,255 $ 399,204 $ 499,260
Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy	The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy: June 30, 2016 December 31, 2015 Carrying Value Fair Value Level 2 Fair Value Level 3 Carrying Value Fair Value Level 2 Fair Value Level 3 (In thousands) Assets: Wellstat Diagnostics note receivable $ 50,191 $ — $ 52,468 $ 50,191 $ — $ 55,970 Hyperion note receivable 1,200 — 1,200 1,200 — 1,200 LENSAR note receivable 43,909 — 46,229 42,271 — 42,618 Direct Flow Medical note receivable 57,022 — 60,537 51,852 — 51,992 Paradigm Spine note receivable 54,332 — 54,450 53,973 — 54,250 kaléo note receivable 146,731 — 145,494 146,778 — 146,789 CareView note receivable 18,797 — 19,500 18,640 — 19,495 Total $ 372,182 $ — $ 379,878 $ 364,905 $ — $ 372,314 Liabilities: February 2018 Notes $ 232,847 $ 234,125 $ — $ 228,862 $ 197,946 $ — March 2015 Term Loan — — — 24,966 — 25,000 Total $ 232,847 $ 234,125 $ — $ 253,828 $ 197,946 $ 25,000

Cash Equivalents and Investme27

Cash Equivalents and Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Summary of cash and available-for-sale securities	Reported as: Amortized Cost Unrealized Gains Estimated Fair Value Cash and Cash Equivalents Short-Term Restricted Cash Short-Term Investments (In thousands) June 30, 2016 Cash $ 162,162 $ — $ 162,162 $ 56,224 $ 105,938 $ — Money market funds 59,630 — 59,630 59,630 — — Total $ 221,792 $ — $ 221,792 $ 115,854 $ 105,938 $ — December 31, 2015 Cash $ 124,082 $ — $ 124,082 $ 124,082 $ — $ — Money market funds 94,801 — 94,801 94,801 — — Corporate securities 799 670 1,469 — — 1,469 Total $ 219,682 $ 670 $ 220,352 $ 218,883 $ — $ 1,469

Foreign Currency Hedging (Table

Foreign Currency Hedging (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Euro forward contracts	The notional amounts, Euro exchange rates and fair values of our Euro forward contracts designated as cash flow hedges were as follows: Euro Forward Contracts December 31, 2015 (In thousands) Currency Settlement Price ($ per Euro) Type Notional Amount Fair Value Euro 1.260 Sell Euro $ 16,500 $ 2,802
Schedule of location and fair values of Euro contracts in Consolidated Balance Sheets	The location and fair values of our Euro forward contracts in our Condensed Consolidated Balance Sheets were as follows: Cash Flow Hedge Location December 31, (In thousands) Euro forward contracts Prepaid and other current assets $ 2,802
Schedule of the effect of derivative instruments in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	The effect of our derivative instruments in our Condensed Consolidated Statements of Income and our Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) Net gain (loss) recognized in OCI, net of tax (1) $ — $ (1,305 ) $ — $ 4,363 Gain (loss) reclassified from accumulated OCI into "Queen et al. royalty revenue," net of tax (2) $ — $ 1,739 $ 1,821 $ 2,408

Convertible Notes (Tables)

Convertible Notes (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of convertible and non-recourse notes activity	Principal Balance Outstanding Carrying Value June 30, June 30, December 31, Description Maturity Date 2016 2016 2015 (In thousands) Convertible Notes February 2018 Notes February 1, 2018 $ 246,447 $ 232,847 $ 228,862 March 2015 Term Loan February 15, 2016 $ — — 24,966 Total $ 232,847 $ 253,828
Schedule of interest expense on Series 2012 Notes	Interest expense for our Series 2012 Notes on our Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ — $ — $ — $ 80 Amortization of debt issuance costs — — — 13 Amortization of debt discount — — — 76 Total $ — $ — $ — $ 169
Schedule of interest expense for May 2015 Notes	Interest expense for the May 2015 Notes on the Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ — $ 484 $ — $ 1,938 Amortization of debt issuance costs — 109 — 435 Amortization of debt discount — 458 — 1,815 Total $ — $ 1,051 $ — $ 4,188
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) June 30, 2016 December 31, 2015 Principal amount of the February 2018 Notes $ 246,447 $ 246,447 Unamortized discount of liability component (13,600 ) (17,585 ) Net carrying value of the February 2018 Notes $ 232,847 $ 228,862
Schedule of interest expense for February 2018 Notes [Table Text Block]	Interest expense for our February 2018 Notes on our Condensed Consolidated Statements of Income was as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Contractual coupon interest $ 2,464 $ 3,000 $ 4,928 $ 6,000 Amortization of debt issuance costs 442 546 880 1,089 Amortization of debt discount 1,555 1,776 3,105 3,523 Total $ 4,461 $ 5,322 $ 8,913 $ 10,612

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Other Liabilities Disclosure [Abstract]
Schedule of other liabilities	June 30, December 31, 2016 2015 (In thousands) Accrued lease liability $ 10,700 $ 10,700 Long-term incentive accrual 2,966 1,318 Uncertain tax positions 41,141 38,467 Dividend payable 281 165 Total $ 55,088 $ 50,650

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The balance of accumulated other comprehensive income, net of tax, was as follows: Unrealized gains (losses) on available-for-sale securities Unrealized gains on cash flow hedges Total Accumulated Other Comprehensive Income (In thousands) Beginning Balance at December 31, 2015 $ 435 $ 1,821 $ 2,256 Activity for the six months ended June 30, 2016 (435 ) (1,821 ) (2,256 ) Ending Balance at June 30, 2016 $ — $ — $ —

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Nov. 06, 2014
Royalty revenues		$ 121,500
Percentage of royalty acquired	86.00%			86.00%			75.00%
Unamortized Debt Issuance Expense	$ 3,100			$ 3,100		$ 4,000
Deferred Tax Assets, Gross, Current		$ 1,000
New accounting pronouncement not yet applied - Retained Earnings Effect	7,500			7,500
Queen et al. patents [Member]
Royalty revenues	$ 14,232		$ 116,884	$ 135,687	$ 244,694

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Schedule of Revenue by Major Customers) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Genentech [Member] | Avastin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	0.00%	28.00%	31.00%	27.00%
Genentech [Member] | Herceptin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	0.00%	29.00%	31.00%	27.00%
Genentech [Member] | Xolair [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	0.00%	8.00%	10.00%	8.00%
Elan [Member] | Tysabri [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	68.00%	10.00%	23.00%	10.00%
Depomed [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	20.00%	7.00%		6.00%
AcelRx [Member] | Zalviso [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	10.00%	0.00%	3.00%
Kaleo [Member] | Interest revenues [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	22.00%	4.00%	8.00%	3.00%

Net Income per Share (Narrative

Net Income per Share (Narrative) (Detail) - USD ($) $ in Thousands

May 02, 2015

Feb. 18, 2015

Oct. 20, 2014

Feb. 05, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

Dec. 31, 2015

Nov. 20, 2015

May 01, 2015

Feb. 17, 2015

Nov. 24, 2014

Feb. 12, 2014

Feb. 07, 2014

Feb. 06, 2014

Aug. 01, 2013

Mar. 31, 2012

Feb. 29, 2012

Jan. 31, 2012

Restricted Stock [Member]

Debt Instrument [Line Items]

Antidilutive securities excluded from computation of earnings per share (in Shares)

1,154,000

39,000

1,095,000

38,000

February 2015 Notes [Member]

Debt Instrument [Line Items]

Convertible Notes Payable

$ 179,000

Convertible notes

$ 1,000

$ 169,000

Series 2012 Notes [Member]

Debt Instrument [Line Items]

Convertible notes

$ 22,300

$ 26,000

$ 131,700

$ 131,700

$ 10,000

Debt Conversion, Converted Instrument, Shares Issued

1,340,000

1,800,000

20,300,000

May 2015 Notes [Member] [Member]

Debt Instrument [Line Items]

Convertible notes

$ 155,100

February 2018 Notes [Member]

Debt Instrument [Line Items]

Convertible notes

$ 232,847

$ 232,847

$ 228,862

$ 246,400

$ 300,000

February 2018 Notes [Member] | Warrants [Member]

Debt Instrument [Line Items]

Antidilutive securities excluded from computation of earnings per share (in Shares)

23,800,000

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)

26,900,000

32,700,000

Series 2012 Notes [Member]

Debt Instrument [Line Items]

Debt Conversion, Converted Instrument, Shares Issued

5,200,000

Net Income per Share (Net Incom

Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator
Income used to compute net income per diluted share	$ 4,148	$ 78,264	$ 60,035	$ 162,762
Denominator
Total weighted-average shares used to compute net income per basic share (in Shares)	163,791	163,544	163,729	163,188
Diluted (in Shares)	164,029	165,384	163,920	167,376
Basic (in Dollars per Share)	$ 0.03	$ 0.48	$ 0.37	$ 1
Net income per diluted share (in Dollars per Share)	$ 0.03	$ 0.47	$ 0.37	$ 0.97
Debt Instrument [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants	0	503	0	1,551
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	0	0	0	266
May 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	0	1,184	0	2,235
Stock Options [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	0	19	0	19
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	238	134	191	117

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Detail) - USD ($)	Jun. 02, 2016	Sep. 22, 2015	Apr. 30, 2013	Jun. 30, 2016		Jun. 30, 2016		May 09, 2016	Dec. 31, 2015		Sep. 23, 2015	Sep. 18, 2015	Jul. 28, 2015	Nov. 06, 2014	Jun. 26, 2014	Oct. 18, 2013	Apr. 18, 2013
Investments-other				$ 75,000,000		$ 75,000,000			$ 0
Unamortized Debt Issuance Expense				3,100,000		3,100,000			4,000,000
Cash payment for purchase of royalty right														$ 65,600,000
Revenue Recognition, Milestone Method, Revenue Recognized	$ 6,000,000
Royalty rights				339,338,000	[1]	339,338,000	[1]		399,204,000	[2]
Transfers from level 1 to level 2, amount				0		0			0
Transfers from level 2 to level 1, amount				$ 0		$ 0			$ 0
Percentage of royalty acquired				86.00%		86.00%								75.00%
Financing receivable, gross																	$ 20,000,000
Proceeds from Collection of Notes Receivable		$ 21,400,000
Depomed [Member]
Cash payment for purchase of royalty right																$ 240,500,000
Purchase of royalty rights																241,300,000
Royalty right purchase transaction costs																$ 800,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				15.00%		15.00%
Fair Value Measurements, Sensitivity Analysis, Description						Should these discount rates increase or decrease by 2.5%, the fair value of the asset could decrease by $8.4 million or increase by $9.4 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. We periodically assess the expected future cash flows and to the extent such payments are greater or less than our initial estimates, or the timing of such payments is materially different than our original estimates, we will adjust the estimated fair value of the asset. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $3.4 million or decrease by $3.4 million, respectively.
Royalty rights				$ 136,600,000		$ 136,600,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 136,600,000		$ 136,600,000
VB [Member]
Purchase of royalty rights															$ 15,500,000
Fair value inputs, discount rate (in Percent)				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 $1.3 million or increase by $1.5 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				$ 14,600,000		$ 14,600,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 14,600,000		$ 14,600,000
University of Michigan [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				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 $5.0 million or increase by $5.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.6 million or decrease by $1.6 million, respectively.
Royalty rights				$ 64,000,000		$ 64,000,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 64,000,000		$ 64,000,000
ARIAD [Member]
Annual royalty payment, maximum													$ 20,000,000
Purchase of royalty rights													100,000,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				10.00%		10.00%
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 $7.9 million or increase by $9.0 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.3 million or decrease by $1.3 million, respectively.
Royalty rights				$ 50,300,000		$ 50,300,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 50,300,000		$ 50,300,000
Royalty Guarantees, Commitments, Amount													200,000,000
ARIAD [Member] | Tranche 1 [Member]
Purchase of royalty rights													50,000,000
ARIAD [Member] | Tranche two [Member]
Purchase of royalty rights													50,000,000
ARIAD [Member] | Tranche 3 [Member]
Cash payment for purchase of royalty right								$ 40,000,000					$ 100,000,000
ARIAD [Member] | Low [Member]
Fixed royalty rate as a percentage of sales													2.50%
ARIAD [Member] | High [Member]
Fixed royalty rate as a percentage of sales													7.50%
AcelRx [Member]
Purchase of royalty rights												$ 65,000,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				13.40%		13.40%
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 $10.2 million or increase by $12.7 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.8 million or decrease by $1.8 million, respectively
Royalty rights				$ 71,800,000		$ 71,800,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 71,800,000		$ 71,800,000
Percentage of royalty acquired												75.00%
Avinger Royalty Right [Member]
Fixed royalty rate as a percentage of sales											0.90%						1.80%
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				15.00%		15.00%
Fair Value Measurements, Sensitivity Analysis, Description				Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 5%, the fair value of this asset could decrease by $93,000 or increase by $103,000, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $105,000 or decrease by $105,000, respectively.
Royalty rights				$ 2,100,000		$ 2,100,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 2,100,000		$ 2,100,000
Avinger [Member]
Proceeds from Collection of Notes Receivable		$ 21,400,000
Avinger [Member] | Notes Receivable [Member]
Amount company has agreed to advance under credit agreement			$ 40,000,000
Financing receivable, gross																	$ 20,000,000
[1]	unaudited
[2]	Note 1

Fair Value Measurements (Financ

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016		Dec. 31, 2015
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty rights	$ 339,338	[1]	$ 399,204	[2]
Financial assets:
Assets, Fair Value	475,002		499,260
Foreign Currency Contract, Asset, Fair Value Disclosure	0		2,802
Warrants and Rights Outstanding	1,034		984
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	59,630		94,801
Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	75,000		0
Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		1,469
Fair Value Level 1 [Member]
Financial assets:
Assets, Fair Value	59,630		94,801
Foreign Currency Contract, Asset, Fair Value Disclosure	0		0
Fair Value Level 1 [Member] | Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	59,630		94,801
Fair Value Level 1 [Member] | Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		0
Fair Value Level 1 [Member] | Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		0
Fair Value Level 2 [Member]
Financial assets:
Assets, Fair Value	75,339		5,255
Foreign Currency Contract, Asset, Fair Value Disclosure	0		2,802
Warrants and Rights Outstanding	339		984
Fair Value Level 2 [Member] | Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	0		0
Fair Value Level 2 [Member] | Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	75,000		0
Fair Value Level 2 [Member] | Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		1,469
Fair Value Level 3 [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty rights	339,338		399,204
Financial assets:
Assets, Fair Value	340,033		$ 399,204
Warrants and Rights Outstanding	$ 695
[1]	unaudited
[2]	Note 1

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Assets
Notes receivable, Carrying Value		$ 372,182	$ 364,905
Liabilities:
Convertible Notes Payable, Carrying Value		232,847	253,828
February 2018 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	[1]	232,847	228,862	[2]
Term Loan. [Member]
Liabilities:
Convertible Notes Payable, Carrying Value			24,966
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value		50,191	50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value		1,200	1,200
LENSAR Note Receivable [Member]
Assets
Notes receivable, Carrying Value		43,909	42,271
Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Carrying Value		57,022	51,852
Paradigm Spine [Member]
Assets
Notes receivable, Carrying Value		54,332	53,973
kaleo Note Receivable [Member]
Assets
Notes receivable, Carrying Value		146,731	146,778
CareView [Member]
Assets
Notes receivable, Carrying Value		18,797	18,640
Fair Value Level 2 [Member]
Liabilities:
Notes payable, Fair Value		234,125	197,946
Fair Value Level 2 [Member] | February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value		234,125	197,946
Fair Value Level 2 [Member] | Hyperion [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] | 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 Note Receivable [Member]
Assets
Notes receivable, Fair Value		0	0
Fair Value Level 2 [Member] | CareView [Member]
Assets
Notes receivable, Fair Value		0	0
Fair Value Level 3 [Member]
Assets
Notes receivable, Fair Value		379,878	372,314
Liabilities:
Notes payable, Fair Value			25,000
Fair Value Level 3 [Member] | Term Loan. [Member]
Liabilities:
Notes payable, Fair Value			25,000
Fair Value Level 3 [Member] | Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value		52,468	55,970
Fair Value Level 3 [Member] | Hyperion [Member]
Assets
Notes receivable, Fair Value		1,200	1,200
Fair Value Level 3 [Member] | LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value		46,229	42,618
Fair Value Level 3 [Member] | Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value		60,537	51,992
Fair Value Level 3 [Member] | Paradigm Spine [Member]
Assets
Notes receivable, Fair Value		54,450	54,250
Fair Value Level 3 [Member] | kaleo Note Receivable [Member]
Assets
Notes receivable, Fair Value		145,494	146,789
Fair Value Level 3 [Member] | CareView [Member]
Assets
Notes receivable, Fair Value		$ 19,500	$ 19,495
[1]	{F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjk4N2NmNzNlNzk4MzRhMTViNzU1MWFlODViYjg0MDIzfFRleHRTZWxlY3Rpb246MDQzMkFCQjFBNTNEQzYxNTMwNTI0OEQyMzk4MTZCNjkM}
[2]	{F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjk4N2NmNzNlNzk4MzRhMTViNzU1MWFlODViYjg0MDIzfFRleHRTZWxlY3Rpb246MjREREIwQjI2QjMwRUQwRTJCMjg0OEQyMzk4MjIzQUQM}

Fair Value Measurements Level 3

Fair Value Measurements Level 3 Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of acquired royalty rights	$ (855)	$ 12,216	$ (27,957)	$ 23,578
Payments for (Proceeds from) Productive Assets			(31,909)	$ (2,091)
Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of acquired royalty rights			(27,957)
Beginning balance			399,204
Gains (losses) included in earnings			(59,866)
Purchases			0
Ending balance	339,338		339,338
Payments for (Proceeds from) Productive Assets			(31,909)
Preferred Stock Warrant, Derivative Asset [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of acquired royalty rights			(102)
Beginning balance			0
Gains (losses) included in earnings			(102)
Purchases			797
Ending balance	$ 695		695
Payments for (Proceeds from) Productive Assets			$ 0

Cash Equivalents and Investme40

Cash Equivalents and Investments (Narrative) (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash and Cash Equivalents [Abstract]
Gains (losses) on sales of available-for-sale securities	$ 746,000		$ 0	$ 882,000	$ 0
Unrealized Gain (Loss) on Investments		$ 435,000		0
Restricted Cash and Investments, Current	$ 105,938,000			$ 105,938,000

Cash Equivalents and Investme41

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016		Dec. 31, 2015		Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	$ 221,792		$ 219,682
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		670
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	221,792		220,352
Cash and cash equivalents	115,854	[1],[2]	218,883	[3]	$ 292,065	$ 291,377
Available-for-sale Securities, Restricted			0
Restricted Cash and Investments, Current	105,938
Short-Term Marketable Securities	0	[1]	1,469	[3]
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	162,162		124,082
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	162,162		124,082
Cash and cash equivalents	56,224		124,082
Available-for-sale Securities, Restricted	105,938		0
Short-Term Marketable Securities	0		0
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	59,630		94,801
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	59,630		94,801
Cash and cash equivalents	59,630		94,801
Available-for-sale Securities, Restricted	0		0
Short-Term Marketable Securities	$ 0		0
Equity Securities [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost			799
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax			670
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value			1,469
Cash and cash equivalents			0
Short-Term Marketable Securities			$ 1,469
[1]	unaudited
[2]	unaudited
[3]	Note 1

Foreign Currency Hedging (Sched

Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) - ERROR in label resolution. $ in Thousands	Jun. 30, 2016	Dec. 31, 2015USD ($)
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.260
Fair Value		$ 2,802
Derivative, Notional Amount		$ 16,500

Foreign Currency Hedging (Fair

Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) $ in Thousands	Dec. 31, 2015USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Current	$ 2,802

Foreign Currency Hedging (Sch44

Foreign Currency Hedging (Schedule of Effect of Derivative Instruments in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income) (Detail) - Cash Flow Hedges [Member] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative [Line Items]
Net gain (loss) recognized in OCI, net of tax	[1]	$ 0	$ (1,305)	$ 0	$ 4,363
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax	[2]	$ 0	$ 1,739	$ 1,821	$ 2,408
[1]	hange in the fair value of cash flow hedges, net of tax.
[2]	Effective portion classified as royalty revenue.

Notes Receivable and Other Lo45

Notes Receivable and Other Long-term Receivables (Narrative) (Detail)

Jul. 16, 2016$ / shares

Dec. 15, 2015USD ($)shares

Oct. 27, 2015USD ($)

Sep. 22, 2015USD ($)

Sep. 14, 2015USD ($)

Jun. 26, 2015USD ($)$ / sharesshares

Feb. 23, 2015USD ($)

Nov. 14, 2014USD ($)

Nov. 10, 2014USD ($)

Nov. 05, 2013USD ($)

Oct. 03, 2013USD ($)

Aug. 15, 2013USD ($)

Apr. 30, 2013USD ($)

Feb. 28, 2013USD ($)

Jan. 31, 2013USD ($)

Oct. 31, 2012USD ($)

Mar. 31, 2012USD ($)

Jun. 30, 2016USD ($)shares

Jun. 30, 2016USD ($)shares

Jun. 30, 2015USD ($)

Apr. 30, 2018

Jul. 15, 2016USD ($)

Jun. 10, 2016$ / sharesshares

Mar. 24, 2016$ / sharesshares

Dec. 31, 2015USD ($)$ / shares

Dec. 01, 2015USD ($)

Nov. 12, 2015shares

Oct. 28, 2015USD ($)

Oct. 07, 2015USD ($)$ / shares

Sep. 29, 2015USD ($)

Sep. 15, 2015$ / sharesshares

Aug. 07, 2015$ / shares

May 12, 2015USD ($)

Dec. 12, 2014USD ($)$ / sharesshares

Nov. 09, 2014

Apr. 01, 2014USD ($)

Feb. 14, 2014USD ($)

Feb. 06, 2014$ / shares

Nov. 06, 2013USD ($)

Aug. 14, 2013USD ($)$ / sharesshares

Jun. 28, 2013USD ($)

Apr. 18, 2013USD ($)

Mar. 05, 2013USD ($)

Nov. 02, 2012USD ($)

Aug. 31, 2012USD ($)

Jan. 27, 2012USD ($)

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 20,000,000

Investment Warrants, Exercise Price | $ / shares

$ 0.01

Repayment of notes receivable

$ 21,400,000

Investment Owned, Balance, Shares | shares

1,700,000

Share Price | $ / shares

$ 7.97

Equity investment, shares sold (shares) | shares

243,732

50,000

149,650

200,000

Price per share of investment sold | $ / shares

$ 6.10

$ 5.44

$ 5.46

$ 5.69

Marketable Securities, Realized Gain (Loss)

$ 882,000

Proceeds from Sale of Available-for-sale Securities

$ 1,900,000

Proceeds from Sale of Available-for-sale Securities, Equity

$ 1,681,000

$ 0

Commitments and Contingencies

[1]

[1]

[2]

$ 8,500,000

Warrants and Rights Outstanding

1,034,000

1,034,000

$ 984,000

Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

53,900,000

53,900,000

Financing receivable, modification, cost as a component of interest and other income, net

$ 2,500,000

Financing Receivable, Net

50,200,000

50,200,000

Asset Management Costs

16,200,000

Note receivable, amount legally owed

$ 117,500,000

$ 117,500,000

Interest rate of note receivable (in Percent)

5.00%

AxoGen [Member]

Accounts Notes And Loans Receivable [Line Items]

Repayment of notes receivable

$ 30,300,000

Investment Owned, Balance, Shares | shares

643,382

1,166,666

Share Price | $ / shares

$ 2.72

$ 3

Investment Owned, at Cost

$ 1,700,000

$ 3,500,000

Price per share of investment sold | $ / shares

$ 3.03

Equity investment, shares held (shares) | shares

0

0

Proceeds from Sale of Available-for-sale Securities, Equity

$ 3,500,000

Avinger [Member]

Accounts Notes And Loans Receivable [Line Items]

Repayment of notes receivable

$ 21,400,000

LENSAR [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 42,000,000

$ 40,000,000

Interest rate of note receivable (in Percent)

15.50%

18.50%

Gain (Loss) on Sale of Notes Receivable

4,000,000

Other General and Administrative Expense

3,000,000

Amount company has agreed to advance under agreement

$ 60,000,000

Alphaeon [Member]

Accounts Notes And Loans Receivable [Line Items]

Investment estimated fair value, per share | $ / shares

$ 3.84

Cost Method Investments, Original Cost

6,600,000

DirectFlow [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 1,500,000

$ 35,000,000

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

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 0.01

Warrants and Rights Outstanding

$ 700,000

$ 700,000

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

$ 7,000,000

75,000,000

Maximum amount of additional funds, upon attainment of milestones

25,000,000

Tranche 1 of note receivable

$ 4,000,000

Tranche 2 of note receivable

$ 3,000,000

Hyperion [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 2,300,000

Number of payments to be received

2

Periodic contractual payments

$ 1,200,000

First minimum payment

$ 1,200,000

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%

Note receivable payment received

$ 9,500,000

Interest reserve balance

$ 20,000,000

CareView [Member]

Accounts Notes And Loans Receivable [Line Items]

Interest rate of note receivable (in Percent)

13.50%

Amount company has agreed to advance under agreement

$ 40,000,000

Tranche 1 of note receivable

20,000,000

$ 20,000,000

Tranche 2 of note receivable

$ 20,000,000

$ 20,000,000

Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares

4,400,000

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 0.45

$ 0.40

Warrants and Rights Outstanding

$ 300,000

300,000

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] | 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

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

Initial Loan [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Modifications, Pre-Modification Recorded Investment

33,700,000

Additional Loan [Member]

Accounts Notes And Loans Receivable [Line Items]

Commitments and Contingencies

$ 800,000

$ 500,000

Additional Loan [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 1,300,000

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

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] | DirectFlow [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 15,000,000

Tranche three [Member] | DirectFlow [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing receivable, gross

$ 5,000,000

[1]

unaudited

[2]

Note 1

Accrued Liabilities (Accrued Li

Accrued Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016		Dec. 31, 2015
Payables and Accruals [Abstract]
Compensation	$ 3,861		$ 1,979
Interest	4,107		4,107
Deferred Revenue, Current	1,118		87
Dividend payable	168		184
Legal	1,423		730
Other	1,061		922
Total	$ 11,738	[1]	$ 8,009	[2]
[1]	unaudited
[2]	Note 1

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Total lease payments for the duration of the guarantee	$ 62,000
Accrued lease liability	$ 10,700	$ 10,700

Convertible Notes (Narrative) (

Convertible Notes (Narrative) (Detail) $ / shares in Units, shares in Thousands	Nov. 20, 2015USD ($)	May 02, 2015shares	Feb. 18, 2015shares	Oct. 20, 2014USD ($)shares	Feb. 11, 2014USD ($)	Feb. 05, 2014USD ($)shares	May 16, 2011USD ($)	Jan. 31, 2013USD ($)	Jan. 31, 2012USD ($)	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2015USD ($)	Mar. 31, 2016$ / shares	Dec. 31, 2015USD ($)	Nov. 21, 2015USD ($)	May 01, 2015USD ($)	Mar. 30, 2015USD ($)	Feb. 17, 2015USD ($)	Nov. 24, 2014USD ($)	Feb. 12, 2014USD ($)$ / shares	Feb. 07, 2014USD ($)	Feb. 06, 2014USD ($)$ / shares	Aug. 01, 2013USD ($)	Feb. 29, 2012USD ($)
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense										$ 3,100,000	$ 3,100,000			$ 4,000,000
Principal amount a $5 incentive cash payment per each to convert debt										1,000
Convertible note rate conversion trading days (in days)										0
Convertible Notes rate conversion consecutive trading days (in days)										$ 30
Debt Conversion, Original Debt, Amount				$ 26,000,000
Convertible notes repurchase price as a percentage of principal (in Percent)							100.00%
Gain on conversion of convertible notes												$ 6,143,000
Share Price | $ / shares																						$ 7.97
Dividends Payable, Amount Per Share | $ / shares										$ 0.05	$ 0.05		$ 0.05
Warrants [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) | $ / shares										$ 6.73	$ 6.73
Number of shares of common stock covered by the purchased call options purchased (in Shares) | shares										27,500	27,500
Proceeds from Issuance of Warrants								$ 10,900,000
February 2015 Notes [Member]
Debt Instrument [Line Items]
Convertible notes									$ 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
Debt Instrument, Face Amount										$ 0	$ 0
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible notes	$ 246,400,000									232,847,000	232,847,000			228,862,000						$ 300,000,000
Debt instrument, interest rate (in Percent)																				4.00%
Unamortized discount of liability component	(3,100,000)									$ (13,600,000)	$ (13,600,000)			(17,585,000)	$ (14,100,000)					$ (29,700,000)
Deferred issuance costs	900,000														$ 4,100,000
Purchase call option unwind	270,000
Warrant unwind	170,000
Fees and Commissions, Transfer Agent	100,000
Debt discount recorded to additional paid in capital																				19,300,000
Debt discount recorded to deferred tax liability																				$ 10,400,000
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																				6.90%
Convertible notes, conversion price (in Dollars per Share) | $ / shares																				$ 9.17
Estimated market interest rate for similar nonconvertible instrument																				7.00%
Debt instrument, convertible, remaining amortization period (in Duration)											1 year 7 months 6 days
Net proceeds from the issuance of convertible notes					$ 290,200,000
Debt Instrument, Repurchase Amount	53,600,000
Debt instrument, repurchase amount paid	43,700,000
Debt Instrument, Face Amount										$ 246,447,000	$ 246,447,000			$ 246,447,000						$ 246,447,000
Conversion Rate per $1,000 Principal Amount (in Ratio)					109.1048
Gain on conversion of convertible notes	$ (6,500,000)
Dividends Payable, Amount Per Share | $ / shares										$ 0.15	$ 0.15
February 2018 Note Warrant [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) | $ / shares										$ 10.3610	$ 10.3610
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	2
Purchased call options cost					$ 31,000,000
Number of shares of common stock covered by the purchased call options purchased (in Shares) | shares										32,700	32,700
Deferred taxes included in purchased call options cost					$ 10,800,000
Term Loan. [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount										$ 0	$ 0
March 2015 Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate (in Percent)										2.17%	2.17%						0.75%
Short-term Debt																	$ 100,000,000
May 2015 Notes [Member]
Debt Instrument [Line Items]
Convertible notes							$ 155,300,000
Debt instrument, interest rate (in Percent)										3.75%	3.75%
Convertible notes, conversion price (in Dollars per Share) | $ / shares										$ 5.72	$ 5.72
Net proceeds from the issuance of convertible notes							$ 149,700,000
Debt Instrument, Face Amount																$ 155,100,000
Debt conversion, shares issued (in Shares) | shares		5,200
Purchased Call Options [Member]
Debt Instrument [Line Items]
Purchased call options cost										$ 20,800,000
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible notes																		$ 22,300,000	$ 26,000,000		$ 131,700,000	$ 131,700,000		$ 10,000,000
Total consideration given for convertible note exchange																						191,800,000
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									52,000
Noted obligation allocated to deferred tax assets									$ 28,000
Debt instrument, interest rate (in Percent)									2.875%
Unamortized discount of liability component				$ (100,000)																$ (2,100,000)
Debt Instrument, Face Amount																		$ 22,300,000				48,300,000	$ 180,000,000
Debt conversion, shares issued (in Shares) | shares			1,340	1,800		20,300
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

Convertible Notes (Summary of C

Convertible Notes (Summary of Convertible Notes) (Detail)

Feb. 11, 2014

Jan. 31, 2012USD ($)

Jun. 30, 2016USD ($)$ / shares

Jun. 30, 2016USD ($)$ / shares

Dec. 31, 2015USD ($)

May 01, 2015USD ($)

Feb. 17, 2015USD ($)

Feb. 12, 2014USD ($)$ / shares

Feb. 06, 2014USD ($)

Aug. 01, 2013USD ($)

Debt Instrument [Line Items]

Principal amount a $5 incentive cash payment per each to convert debt

$ 1,000

Term loan payable

[1]

0

$ 0

$ 24,966,000

Convertible Notes Payable, Carrying Value

$ 232,847,000

$ 232,847,000

253,828,000

Series 2012 Notes [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.875%

Convertible Notes, Principal Balance Outstanding

$ 22,300,000

$ 48,300,000

$ 180,000,000

May 2015 Notes [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

3.75%

3.75%

Convertible notes, conversion price (in Dollars per Share) | $ / shares

$ 5.72

$ 5.72

Convertible Notes, Principal Balance Outstanding

$ 155,100,000

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

$ 0

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) | $ / shares

$ 9.17

Convertible Notes, Maturity Date (Date)

Feb. 1, 2018

Convertible Notes, Principal Balance Outstanding

246,447,000

$ 246,447,000

246,447,000

$ 246,447,000

Convertible Notes Payable, Carrying Value

[2]

232,847,000

$ 232,847,000

228,862,000

[3]

Term Loan. [Member]

Debt Instrument [Line Items]

Convertible Notes, Maturity Date (Date)

Feb. 15, 2016

Convertible Notes, Principal Balance Outstanding

$ 0

$ 0

Convertible Notes Payable, Carrying Value

$ 24,966,000

[1]

unaudited

[2]

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[3]

{F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjk4N2NmNzNlNzk4MzRhMTViNzU1MWFlODViYjg0MDIzfFRleHRTZWxlY3Rpb246MjREREIwQjI2QjMwRUQwRTJCMjg0OEQyMzk4MjIzQUQM}

Convertible Notes (Summary of S

Convertible Notes (Summary of Series 2012 Notes) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Feb. 17, 2015	Oct. 20, 2014	Feb. 12, 2014	Feb. 06, 2014	Aug. 01, 2013
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 232,847	$ 253,828
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding			$ 22,300			$ 48,300	$ 180,000
Unamortized discount of liability component				$ (100)	$ (2,100)

Convertible Notes (Interest Exp

Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) - Series 2012 Notes [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Contractual coupon interest	$ 0	$ 0	$ 0	$ 80
Amortization of debt issuance costs	0	0	0	13
Amortization of debt discount	0	0	0	76
Total	$ 0	$ 0	$ 0	$ 169

Convertible Notes (Summary of M

Convertible Notes (Summary of May 2015 Notes) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	May 01, 2015
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 232,847	$ 253,828
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 155,100

Convertible Notes (Interest E53

Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) - May 2015 Notes [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Contractual coupon interest	$ 0	$ 484	$ 0	$ 1,938
Amortization of debt issuance costs	0	109	0	435
Amortization of debt discount	0	458	0	1,815
Total	$ 0	$ 1,051	$ 0	$ 4,188

Convertible Notes Convertible N

Convertible Notes Convertible Notes (Summary of February 2018 Notes) (Detail) (Details) - February 2018 Notes [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Nov. 21, 2015	Nov. 20, 2015	Feb. 12, 2014
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ (13,600)	$ (17,585)	$ (14,100)	$ (3,100)	$ (29,700)
Convertible notes	232,847	228,862		$ 246,400	300,000
Debt Instrument, Face Amount	$ 246,447	$ 246,447			$ 246,447

Convertible Notes Convertible55

Convertible Notes Convertible Notes (Interest Expense for February 2018 Notes) (Detail) (Details) - February 2018 Notes [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Contractual coupon interest	$ 2,464	$ 3,000	$ 4,928	$ 6,000
Amortization of debt issuance costs	442	546	880	1,089
Amortization of debt discount	1,555	1,776	3,105	3,523
Total	$ 4,461	$ 5,322	$ 8,913	$ 10,612

Other Long-Term Liabilities (Na

Other Long-Term Liabilities (Narrative) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Other Liabilities [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 62,000
Accrued lease liability	$ 10,700	$ 10,700

Other Long-Term Liabilities (Ot

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016		Dec. 31, 2015
Schedule of Other Liabilities [Line Items]
Accrued lease liability	$ 10,700		$ 10,700
Accrued Bonuses	2,966		1,318
Uncertain tax position	41,141		38,467
Dividends Payable	281		165
Total	$ 55,088	[1]	$ 50,650	[2]
[1]	unaudited
[2]	Note 1

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(145)
Stock-Based Incentive Plan [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	(1,254)
Shares Available for Grant, Balance beginning of period (in Shares)	4,684
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Shares Available for Grant, Balance end of period (in Shares)	3,430
Restricted Stock [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 6.22
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	586
Restricted Stock Awards, Number of Shares Granted (in Shares)	1,254
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	1,695
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share) | $ / shares	$ 7.13
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share) | $ / shares	3.31
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share) | $ / shares	$ 4.38

Cash Dividends (Narrative) (Det

Cash Dividends (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Dividends payable quarterly (in Dollars per Share)	$ 0.05	$ 0.05	$ 0.05
Dividends payable, date declared (Date)	May 2, 2016	Jan. 26, 2016
Payments of Dividends	$ 8,200	$ 8,200	$ 16,433	$ 49,083

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investments, Owned, Federal Income Tax Note [Line Items]
Income Tax Expense	$ 2,657	$ 45,295	$ 35,611	$ 94,313
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	$ 400	$ 2,200	$ 1,600	$ 4,600

Accumulated Other Comprehensi61

Accumulated Other Comprehensive Income (Loss) (Schedule of Balances of Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Unrealized gains (losses) on available-for-sale securities, beginning balance				$ 435
Unrealized losses on cash flow hedges, beginning balance				1,821
Total Accumulated Other Comprehensive Loss, beginning balance	[1]			2,256
Unrealized gains (losses) on available-for-sale securities	[2]	$ (418)	$ (151)	(435)	$ (189)
Unrealized gains (losses) on cash flow hedges	[3]	0	(3,044)	(1,821)	1,955
Total Accumulated Other Comprehensive Loss		(418)	$ (3,195)	(2,256)	$ 1,766
Unrealized gains (losses) on available-for-sale securities, ending balance		0		0
Unrealized losses on cash flow hedges, ending balance		0		0
Total Accumulated Other Comprehensive Loss, ending balance	[4]	$ 0		$ 0
[1]	Note 1
[2]	Net of tax of ($225) and ($82) for the three months ended June 30, 2016 and 2015, respectively, and ($234) and ($102) for the six months ended June 30, 2016 and 2015, respectively
[3]	Net of tax of zero and ($1,639) for the three months ended June 30, 2016 and 2015, respectively
[4]	unaudited

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands

Jul. 07, 2016

Jul. 02, 2016

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

Jul. 25, 2016

Jul. 15, 2016

Jul. 08, 2016

Jul. 01, 2016

Jul. 28, 2015

Apr. 18, 2013

Subsequent Event [Line Items]

Acquisition-related expenses

$ 2,959

$ 0

$ 2,959

$ 0

Financing receivable, gross

$ 20,000

Subsequent Event [Member]

Subsequent Event [Line Items]

Equity Method Investment, Ownership Percentage

99.00%

Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests

$ 75,000

Filing deadline (in days)

71 days

Kybella [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Purchase of royalty rights

$ 9,500

Contractual Obligation

$ 1,000

ARIAD [Member]

Subsequent Event [Line Items]

Purchase of royalty rights

$ 100,000

ARIAD [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Purchase of royalty rights

$ 50,000

Direct Flow Medical Note Receivable [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Financing receivable, gross

$ 1,500

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.01

Noden [Member] | Cash paid [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Other Commitment

$ 110,000

Noden [Member] | Cash to be paid [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Other Commitment

89,000

Noden [Member] | Milestone [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Other Commitment

95,000

PDL BioPharma [Member] | Cash to be paid [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Other Commitment

32,000

PDL BioPharma [Member] | Milestone [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Other Commitment

$ 38,000

Tranche 1 [Member] | ARIAD [Member]

Subsequent Event [Line Items]

Purchase of royalty rights

$ 50,000