Other comprehensive income (loss), net of tax

$ 61,092

$ 56,225

$ 93,742

$ 53,471

$ 49,408

$ 48,575

$ 73,502

$ 40,184

$ 264,530

$ 211,669

$ 199,389

Unrealized gains (losses) on investments in available-for-sale securities

1,122

^[1]

(22)

^[1]

Unrealized gains (losses) on cash flow hedges

(922)

^[2]

(3,181)

^[2]

(5,134)

^[2]

Total other comprehensive income (loss), net of tax

200

(3,203)

(5,104)

Comprehensive income

$ 264,730

$ 208,466

$ 194,285

[1]	Net of tax of $604, ($12) and $16 for the years ended December 31, 2013, 2012 and 2011, respectively.
[2]	Net of tax of ($496), ($1,713) and ($2,764) for the years ended December 31, 2013, 2012 and 2011, respectively.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Beginning Balance at Dec. 31, 2010

Amount after tax of increase (decrease) in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges and an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

+ References+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities, tax	$ 604	$ (12)	$ 16
Unrealized gains (losses) on cash flow hedges, tax	$ (496)	$ (1,713)	$ (2,764)

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 94,302	$ 131,212
Restricted investment	0	20,000
Short-term investments	5,238	17,477
Receivables from licensees	300	366
Deferred tax assets	377	1,613
Notes receivable	13	7,504
Prepaid and other current assets	7,467	4,813
Total current assets	107,697	182,985
Property and equipment, net	41	59
Notes and other receivables, long-term	193,840	85,704
Long-term deferred tax assets	6,700	4,552
Other assets	0	6,666
Indefinite-Lived Intangible Assets (Excluding Goodwill)	235,677	0
Total assets	543,955	279,966
Current liabilities:
Accounts payable	287	1,074
Accrued liabilities	11,857	9,400
Term loan payable	74,397	0
Convertible Notes Payable, Current	320,883	0
Total current liabilities	407,424	10,474
Convertible notes payable	0	309,952
Other long-term liabilities	23,042	27,662
Total liabilities	430,466	348,088
Commitments and contingencies (Note 12)
Stockholders' equity (deficit):
Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.01 per share, 350,000 shares authorized; 139,935 and 139,816 shares issued and outstanding at December 31, 2013 and 2012, respectively	1,399	1,398
Additional paid-in capital	(233,173)	(234,066)
Accumulated other comprehensive loss	(4,888)	(5,088)
Retained earnings	350,151	169,634
Total stockholders' equity (deficit)	113,489	(68,122)
Total liabilities and stockholders' equity (deficit)	$ 543,955	$ 279,966

CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in Shares)	10,000	10,000
Preferred stock, shares issued (in Shares)	0	0
Preferred stock, shares outstanding (in Shares)		0
Common stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Common stock, shares authorized (in Shares)	350,000	250,000
Common stock, shares issued (in Shares)	139,935	139,816
Common stock, shares outstanding (in Shares)	139,935	139,816

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities
Net income	$ 264,530	$ 211,669	$ 199,389
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible notes and term loan offering costs	13,320	12,481	5,386
Amortization of Intangible Assets	5,637	0	0
Amortization of non-recourse notes offering costs	0	1,226	4,533
Other amortization, depreciation and accretion of embedded derivative	(404)	946	1,405
Loss on retirement or conversion of convertible notes	0	0	766
Hedge ineffectiveness on foreign exchange contracts	(11)	(257)	0
Stock-based compensation expense	872	937	387
Tax benefit (expense) from stock-based compensation arrangements	0	0	(120)
Net excess tax benefit from stock-based compensation	(22)	(27)	0
Deferred taxes	(999)	11,338	31,217
Changes in assets and liabilities:
Receivables from licensees	66	234	(131)
Prepaid and other current assets	442	4,138	(199)
Accrued interest on notes receivable	(9,585)	(2,882)	0
Other assets	1,409	(1,162)	(6,639)
Accounts payable	(787)	546	(2,012)
Accrued legal settlement	0	(27,500)	(37,500)
Accrued liabilities	(1,447)	62	239
Other long-term liabilities	(2,131)	(1,533)	(26,939)
Net cash provided by operating activities	270,890	210,216	169,782
Cash flows from investing activities
Purchases of investments	(9,875)	(29,898)	(74,744)
Maturities of investments	43,780	50,831	50,696
Purchase of intangible asset	(241,314)	0	0
Issuance of notes receivable	(148,708)	(95,300)	0
Repayment of notes receivable	58,134	5,000	0
Acquisition of property and equipment	(2)	(51)	0
Net cash provided by/(used in) investing activities	(297,985)	(69,418)	(24,048)
Cash flows from financing activities
Proceeds from term loan	74,169	0	0
Retirement of convertible notes	0	0	(133,851)
Repayment of non-recourse notes	0	(93,370)	(110,900)
Payment of debt issuance costs	0	(845)	0
Net proceeds from the issuance of convertible notes	0	0	149,712
Purchased call options	0	0	(20,765)
Proceeds from issuance of warrants	0	0	10,868
Cash dividends paid	(84,006)	(83,942)	(83,828)
Excess tax benefit from stock-based compensation	22	27	0
Net cash used in financing activities	(9,815)	(178,130)	(188,764)
Net increase/(decrease) in cash and cash equivalents	(36,910)	(37,332)	(43,030)
Cash and cash equivalents at beginning of the period	131,212	168,544	211,574
Cash and cash equivalents at end of period	94,302	131,212	168,544
Supplemental cash flow information
Cash paid for income taxes	139,000	99,000	83,000
Cash paid for interest	$ 10,997	$ 15,754	$ 25,627

Consolidated Statements of Stockholders' Equity (Deficit) Statement (USD $)

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings (Accumulated Deficit) [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

$ (324,182,000)

$ 1,396,000

$ (87,373,000)

$ (241,424,000)

$ 3,219,000

Beginning Balance (in shares) at Dec. 31, 2010

139,640,152

Issuance of common stock under employee benefit plans (in Shares)

39,600

Issuance of common stock under employee benefit plans

(1,000)

Issuance of convertible debt

11,870,000

Purchase of purchased call options, net of tax

(13,522,000)

Proceeds from the sale of warrants

10,868,000

Stock-based compensation expense

387,000

Tax benefit (expense) from employee stock options

(120,000)

Dividends declared, APIC adjustment

(83,860,000)

Change in unrealized gains (losses) on available-for-sale securities, net of tax

199,389,000

30,000

^[1]

30,000

Changes in unrealized gains and losses on cash flow hedges, net of tax

(5,134,000)

^[2]

(5,134,000)

Total comprehensive income

194,285,000

Ending Balance at Dec. 31, 2011

(204,273,000)

1,397,000

(161,750,000)

(42,035,000)

(1,885,000)

Ending Balance (in shares) at Dec. 31, 2011

139,679,752

Issuance of common stock under employee benefit plans (in Shares)

136,507

Issuance of common stock under employee benefit plans

(1,000)

Issuance of convertible debt

10,692,000

Stock-based compensation expense

937,000

Dividends declared, APIC adjustment

(83,944,000)

Change in unrealized gains (losses) on available-for-sale securities, net of tax

211,669,000

(22,000)

^[1]

(22,000)

Changes in unrealized gains and losses on cash flow hedges, net of tax

(3,181,000)

^[2]

(3,181,000)

Total comprehensive income

208,466,000

Ending Balance at Dec. 31, 2012

(68,122,000)

1,398,000

(234,066,000)

169,634,000

(5,088,000)

Ending Balance (in shares) at Dec. 31, 2012

139,816,259

Issuance of common stock under employee benefit plans (in Shares)

118,310

Issuance of common stock under employee benefit plans

(1,000)

Stock-based compensation expense

872,000

Tax benefit (expense) from employee stock options

22,000

Dividends declared, Retained Earnings adjustment

(84,013,000)

Change in unrealized gains (losses) on available-for-sale securities, net of tax

264,530,000

1,122,000

^[1]

1,122,000

Changes in unrealized gains and losses on cash flow hedges, net of tax

(922,000)

^[2]

(922,000)

Total comprehensive income

264,730,000

Ending Balance at Dec. 31, 2013

$ 113,489,000

$ 1,399,000

$ (233,173,000)

$ 350,151,000

$ (4,888,000)

Ending Balance (in shares) at Dec. 31, 2013

139,934,569

[1]	Net of tax of $604, ($12) and $16 for the years ended December 31, 2013, 2012 and 2011, respectively.
[2]	Net of tax of ($496), ($1,713) and ($2,764) for the years ended December 31, 2013, 2012 and 2011, respectively.

Organization and Business

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. Organization and Business

PDL BioPharma manages a portfolio of patents and royalty assets, consisting primarily of its Queen et al. antibody humanization patents and license agreements with various biotechnology and pharmaceutical companies. PDL pioneered the humanization of monoclonal antibodies and, by doing so, enabled the discovery of a new generation of targeted treatments for cancer and immunologic diseases for which it receives significant royalty revenue. PDL is currently focused on intellectual property asset management, acquiring in new income generating assets and maximizing value for its shareholders.

The company was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006. PDL was founded in 1986 and is headquartered in Incline Village, Nevada.

In 2011, PDL initiated a strategy to bring in new income generating assets from the healthcare sector. To accomplish this goal, PDL seeks to provide non-dilutive growth capital and financing solutions to late stage public and private healthcare companies and offers immediate financial monetization of royalty streams to companies, academic institutions and inventors. PDL continues to pursue this strategic initiative for which it has already invested approximately $500 million to date. PDL is focused on the quality of the income generating assets and potential returns on investment.

In the year ended December 31, 2013, we received Queen et al. patent royalties on sales of the eight humanized antibody products listed below, all of which are currently approved for use by the FDA and other regulatory agencies outside the United States.



Licensee		Product Names
Genentech		Avastin^®
		Herceptin^®
		Xolair^®
		Lucentis^®
		Perjeta^®
		Kadcyla^®

Biogen Idec¹		Tysabri^®

Chugai		Actemra^®

____________________

¹ In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan.

We have also entered into licensing agreements under which we have licensed certain rights under our patents for development-stage products that have not yet reached commercialization including products that are currently in Phase 3 clinical trials.

Until December 2008, our business included biotechnology operations which were focused on the discovery and development of novel antibodies which we spun off to Facet Biotech Corporation. In April 2010, Abbott Laboratories acquired Facet and later renamed the company Abbott Biotherapeutics Corp., and in January 2013, Abbott Biotherapeutics, Corp. was renamed AbbVie Biotherapeutics, Inc. and spun off from Abbott as a subsidiary of AbbVie Inc.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Summary of Significant Accounting Policies

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and under the rules and regulations of the Securities and Exchange Commission.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, QHP Royalty Sub LLC. All material intercompany balances and transactions are eliminated in consolidation.

Management Estimates

The preparation of financial statements in conformity with GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Segment Disclosures

Our chief operating decision-maker consists of our executive management. Our chief operating decision-maker reviews our operating results and operating plans and makes resource allocation decisions on a company-wide basis; therefore, we operate as one segment.

Cash Equivalents and Investments

We consider all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and, by policy, limit the amount of credit exposure in any one financial instrument. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). See Note 5.

Fair Value Measurements

The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or we paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories:

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on quoted market prices for similar assets and liabilities, using observable market based inputs or unobservable market based inputs corroborated by market data, and

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

We do not estimate the fair value of our royalty assets for financial statement reporting purposes.

Notes and Other Long-Term Receivables

Notes receivable and loans originated by us are initially recorded at the amount advanced to the borrower. Notes receivable and loan origination and commitment fees, net of certain origination costs, are recorded as an adjustment to the carrying value of the notes receivable and loans and are amortized over the term of the related financial asset using the effective interest rate method. Certain of our notes receivable and loans require the borrower to make variable payments which are dependent upon the borrower's sales of specific products. We have elected to use the prospective interest method to account for these notes receivable and loans subsequent to their initial recognition. Under this approach, we recognize the impact of any variations from the expected returns in the period when received. From time to time, we will re-evaluate the expected cash flows and may adjust the effective interest rate with effect prospective from the date of assessment, if the impact of such adjustment could be material to our financial statements. Determining the initial effective interest rates and subsequent re-assessment of the effective interest rates for notes receivable and loans with variable cash flows requires judgment and is based on significant assumptions related to estimates of the amounts and timing of future product sales by the borrowers.

We evaluate the collectability of both interest and principal for each note receivable and loan to determine whether it is impaired. A note receivable or loan is considered to be impaired when, based on current information and events, we determine it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a note receivable or loan is considered to be impaired, the amount of loss is calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan's effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan is collateralized and we expect repayment to be provided solely by the collateral. Impairment assessments require significant judgments and are based on significant assumptions related to the borrower's credit risk, financial performance, expected sales, and fair value of the collateral.

Intangible Assets

Amortization of definite-lived intangible royalty assets is computed using a units of production method over the estimated useful lives of the assets. The related amortization is recognized as a cost of royalty revenues. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If the fair value is less than the carrying amount of the asset, a loss is recognized for the difference.

Foreign Currency Hedging

We enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes.

We hedge certain Euro-denominated currency exposures related to our licensees’ product sales with Euro forward contracts. In general, these contracts are intended to offset the underlying Euro market risk in our royalty revenues. These contracts extend through the fourth quarter of 2014. We designate foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated sales as cash flow hedges.

At the inception of the hedging relationship and on a quarterly basis, we assess hedge effectiveness. The fair value of the Euro contracts is estimated using pricing models with readily observable inputs from actively quoted markets and is disclosed on a gross basis. The aggregate unrealized gain or loss, net of tax, on the effective component of the hedge is recorded in stockholders’ equity (deficit) as accumulated other comprehensive income (loss). Gains or losses on cash flow hedges are recognized as an adjustment to royalty revenue in the same period that the hedged transaction impacts earnings as royalty revenue. Any gain or loss on the ineffective portions is reported in other income in the period the ineffectiveness occurs.

During the third quarter of 2012, we de-designated and terminated a portion of our cash flow hedges. The gain realized was reclassified from other comprehensive income (loss) to other income in the third quarter. See Note 6 for additional information on our foreign currency hedge transactions.

Revenue Recognition

Licensed Royalty Revenues

Under most of our patent license agreements, we receive royalty payments based upon our licensees’ net sales of covered products. Generally, under these agreements we receive royalty reports from our licensees approximately one quarter in arrears, that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the quarter reported to us by our licensees, that is, royalty revenues are generally recognized one quarter following the quarter in which sales by our licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from our licensees.

We may also receive annual maintenance fees from licensees of our Queen et al. patents prior to patent expiry as well as periodic milestone payments. We have no performance obligations with respect to such fees. Maintenance fees are recognized as they are due and when payment is reasonably assured. Total annual milestone payments in each of the last several years have been less than 1% of total revenue.

Acquired Royalty Revenues

We receive royalty payments based upon Depomed's licensees’ net sales of covered products. Generally, under these agreement we receive royalty reports from Depomed approximately one month in arrears, that is, generally in the month after Depomed's licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured. As such, we generally recognize royalty revenues in the month reported to us by Depomed, that is, royalty revenues are generally recognized one month following the month in which sales by Depomed's licensees occurred. Under this accounting policy, the royalty revenues we report are not based upon our estimates and such royalty revenues are typically reported in the same period in which we receive payment from Depomed licensees.

Comprehensive Income (Loss)

Comprehensive income (loss) comprises net income adjusted for other comprehensive income (loss), using the specific identification method, which includes the changes in unrealized gains and losses on cash flow hedges and changes in unrealized gains and losses on our investments in available-for-sale securities, all net of tax, which are excluded from our net income.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight-line method over the following estimated useful lives:



Leasehold improvements		Shorter of asset life or term of lease
Computer and office equipment		3 years
Furniture and fixtures		7 years

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Net Income per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Net Income per Share

3. Net Income per Share



	Year Ended December 31,
(In thousands, except per share amounts)	2013		2012		2011
Numerator
Net income	$	264,530	$	211,669	$	199,389
Add back interest expense for convertible notes, net of estimated tax of $13,000, $25,000 and $3.0 million, for the years ended December 31, 2013, 2012 and 2011, respectively	25		46		5,544
Income used to compute net income per diluted share	$	264,555	$	211,715	$	204,933
Denominator
Total weighted-average shares used to compute net income per basic share	139,842		139,711		139,663
Effect of dilutive stock options	83		95		13
Restricted stock awards	20		17		25
Assumed conversion of Series 2012 notes	12,373		4,944		—
Assumed conversion of 2012 notes	—		—		9,790
Assumed conversion of February 2015 notes	106		631		27,950
Assumed conversion of May 2015 notes	6,919		1,005		—
Shares used to compute net income per diluted share	159,343		146,403		177,441
Net income per basic share	$	1.89	$	1.52	$	1.43
Net income per diluted share	$	1.66	$	1.45	$	1.15

We compute net income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net income per diluted share include shares that may be issued under our stock options and restricted stock awards, our Series 2012 Notes and our May 2015 Notes on a weighted average basis for the period that the notes were outstanding, including the effect of adding back interest expense and the underlying shares using the if converted method. In the first quarter of 2012, $179.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes, and in the third quarter of 2013, $1.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes, and the February 2015 Notes were retired.

In May 2011, we issued our May 2015 Notes, and in January and February 2012 we issued our Series 2012 Notes. The Series 2012 Notes and May 2015 Notes are net share settled, with the principal amount settled in cash and the excess settled in our common stock. The weighted-average share adjustments related to our Series 2012 Notes and May 2015 Notes include the shares issuable in respect of such excess.

We excluded from our calculations of net income per diluted share 21.1 million and 19.6 million shares for the years ended December 31, 2013 and 2012, respectively, for our warrants issued in 2011, because the exercise price of the warrants exceeded the average market price of our common stock and thus, for the periods presented, no stock was issuable upon conversion. These securities could be dilutive in future periods. Our purchased call options, issued in 2011, will always be anti-dilutive and therefore 24.8 million and 23.0 million shares were excluded from our calculations of net income per diluted share for the years ended December 31, 2013 and 2012, respectively, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 13.

For the years ended December 31, 2013, 2012 and 2011, we excluded approximately 115,000, 157,000 and 193,000 shares, respectively, underlying outstanding stock options, and for the years ended December 31, 2013, 2012 and 2011, we excluded approximately zero, 1,000, and zero shares, respectively, underlying restricted stock awards, calculated on a weighted average basis, from our net income per diluted share calculations because their effect was anti-dilutive.

The entire disclosure for earnings per share.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The following table presents the fair value of our financial instruments measured at fair value on a recurring basis by level of input within the fair value hierarchy defined in Note 2:



	December 31, 2013						December 31, 2012
(In thousands)	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Money market funds	$	85,970	$	—	$	85,970	$	121,095	$	—	$	121,095
Certificates of deposit	—		—		—		—		26,128		26,128
Corporate securities	—		5,238		5,238		—		—		—
Corporate debt securities	—		—		—		—		13,572		13,572
Total	$	85,970	$	5,238	$	91,208	$	121,095	$	39,700	$	160,795

Liabilities:
Foreign currency hedge contracts	$	—	$	8,871	$	8,871	$	—	$	7,581	$	7,581

The fair value of the certificates of deposit is determined using quoted market prices for similar instruments and non-binding market prices that are corroborated by observable market data. At December 31, 2012, the certificates of deposit include a $20 million certificate of deposit that was restricted as it was purchased to collateralize the line of credit for Merus Labs; see Note 7.

Corporate securities consist primarily of U.S. corporate equity holdings. The fair value of corporate securities is estimated using recently executed transactions or market quoted prices, where observable. Independent pricing sources are also used for valuation.

Corporate debt securities consisted primarily of U.S. corporate bonds. The fair value of corporate debt securities is estimated using recently executed transactions or market quoted prices, where observable. Independent pricing sources are also used for valuation.

The fair value of the foreign currency hedging contracts is estimated based on pricing models using readily observable inputs from actively quoted markets and are disclosed on a gross basis.

There have been no transfers between levels during the years ended December 31, 2013 and 2012. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy:



	December 31, 2013						December 31, 2012
	Carrying Value		Level 2		Level 3		Carrying Value		Level 2		Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	47,694	$	—	$	46,042	$	41,098	$	—	$	41,098
Merus Labs note receivable	—		—		—		30,000		30,000		—
AxoGen note receivable and embedded derivative	26,544		—		25,785		22,110		—		22,110
Avinger note receivable	20,250		—		19,061		—		—		—
LENSAR note receivable	39,572		—		39,572		—		—		—
Durata note receivable	24,995		—		24,995		—		—		—
Direct Flow Medical note receivable	34,799		—		34,799		—		—		—
Total	$	193,854	$	—	$	190,254	$	93,208	$	30,000	$	63,208
Liabilities:
Series 2012 Notes	$	172,630	$	277,650	$	—	$	165,528	$	227,187	$	—
May 2015 Notes	148,253		212,304		—		143,433		182,031		—
February 2015 Notes	—		—		—		991		1,269		—
Term loan	74,397		75,000		—		—		—		—
Total	$	395,280	$	564,954	$	—	$	309,952	$	410,487	$	—

As of December 31, 2013, the estimated fair value of our Wellstat Diagnostic note receivable, AxoGen note receivable, Avinger note receivable, LENSAR note receivable, Durata note receivable and Direct Flow Medical note receivable, and as of December 31, 2012, the estimated fair value of our Axogen note receivable and Merus Labs note receivable were determined using one or more discounted cash flow models, incorporating expected payments and the interest rate extended on the notes receivable with fixed interest rates and incorporating expected payments for notes receivable with a variable rate of return. In some instances the carrying values of certain notes receivable exceed their estimated fair market values. This is generally the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. In all cases, the undiscounted expected future cash flows exceed the related carrying value.

When deemed necessary we engage a third party valuation expert to evaluate our investments and the related inputs needed for us to estimate the fair value of certain investments. We determined our notes receivable of our assets to be Level 3 assets as our valuations utilized significant unobservable inputs, including estimates of future revenues, discount rates, expectations about settlement, terminal values and required yield. To provide support for the estimated fair value measurements, we considered forward looking performance related to the investment and current measures associated with high yield indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in similar sectors.

The carrying value and estimated fair value of the AxoGen note receivable include the value of a change of control embedded derivative valued at $1.1 million and $0.6 million at December 31, 2013 and 2012, respectively. We utilized discounted cash flows and probability analysis to estimate the fair value of the embedded derivative.

On December 31, 2013, the estimated fair value of Wellstat was determined by using a discounted cash flow that was based upon expected income from estimated sales through December 31, 2016. Due to breach of the credit agreement as of December 31, 2012, as discussed in Note 7, we considered the estimated fair value of the collateral when estimating fair value of the note. The note is collateralized by all assets and equity interest in Wellstat Diagnostics. The estimated fair value of the collateral was determined by using a discounted cash flow analysis related to the underlying technology included in the collateral. The discounted cash flow was based upon expected income from sales of planned products over a period of 15 years. The terminal value was estimated using selected market multiples based on sales and EBITDA.

The fair values of our convertible notes were determined using quoted market pricing or dealer quotes.

Cash and Cash Equivalents [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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Cash Equivalents and Investments

12 Months Ended

Dec. 31, 2013

Cash Equivalents and Investments

5. Cash, Cash Equivalents and Investments

As of December 31, 2013, we had invested our excess cash balances primarily in money market funds, certificates of deposit, and a corporate security, and in 2012, money market funds, certificates of deposit, and corporate debt securities. Our securities are classified as available-for-sale and are carried at estimated fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss) in stockholders’ equity (deficit), net of estimated taxes. See Note 4 for fair value measurement information. The cost of securities sold is based on the specific identification method. To date, we have not experienced credit losses on investments in these instruments and we do not require collateral for our investment activities.



Summary of Cash and Available-For-Sale Securities	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Restricted Investment		Short-Term Investments
(In thousands)
December 31, 2013
Cash	$	8,332	$	—	$	—	$	8,332	$	8,332	$	—	$	—
Money market funds	85,970		—		—		85,970		85,970		—		—
Corporate securities	3,500		1,738		—		5,238		—		—		5,238
Total	$	97,802	$	1,738	$	—	$	99,540	$	94,302	$	—	$	5,238

December 31, 2012
Cash	$	7,894	$	—	$	—	$	7,894	$	7,894	$	—	$	—
Money market funds	121,095		—		—		121,095		121,095		—		—
Certificates of deposit	26,128		—		—		26,128		2,223		20,000		3,905
Corporate debt securities	13,562		10		—		13,572		—		—		13,572
Total	$	168,679	$	10	$	—	$	168,689	$	131,212	$	20,000	$	17,477

We recognized approximately zero and $13,000, respectively, of gains on sales of available-for-sale securities in the years ended December 31, 2013 and 2012. We did not recognize any gains or losses on sales of available-for-sale securities during 2011.



Cash and Available-For-Sale Securities by Contractual Maturity	December 31, 2013				December 31, 2012
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than one year	$	97,802	$	99,540	$	168,679	$	168,689
Greater than one year but less than five years	—		—		—		—
Total	$	97,802	$	99,540	$	168,679	$	168,689

The unrealized gain on investments included in other comprehensive income (loss), net of estimated taxes, was approximately $1,129,000 and $7,000 as of December 31, 2013 and 2012, respectively.

Foreign Currency Hedging

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

6. Foreign Currency Hedging

We designate the foreign currency exchange contracts used to hedge our royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on our Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of December 31, 2013 and 2012, all outstanding Euro forward contracts and option contracts were classified as cash flow hedges.

In January 2012, we modified our existing Euro forward and option contracts related to our licensees’ sales through December 2012 into Euro forward contracts with more favorable rates. Additionally, we entered into a series of Euro forward contracts covering the quarters in which our licensees’ sales occur through December 2014.

During the third quarter of 2012, we reduced our forecasted exposure to the Euro for 2013 royalties. We de-designated and terminated certain forward contracts, due to our determination that certain cash flows under the de-designated contracts were not probable to occur, and recorded a gain of approximately $391,000 to interest and other income, net, which was reclassified from other comprehensive income (loss) net of tax effects. The termination of these contracts was effected through a reduction in the notional amount of the original hedge contracts.

The notional amounts, Euro exchange rates, fair values of our Euro forward contracts designated as cash flow hedges were as follows:



Euro Forward Contracts			December 31, 2013					December 31, 2012
			(In thousands)					(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value			Notional Amount		Fair Value
Euro	1.230	Sell Euro	$	—	$	—		$	27,553	$	(2,036	)
Euro	1.240	Sell Euro	10,850		(1,207		)	10,850		(726		)
Euro	1.270	Sell Euro	44,450		(3,760		)	44,450		(1,950		)
Euro	1.281	Sell Euro	36,814		(2,785		)	36,814		(1,331		)
Euro	1.300	Sell Euro	19,500		(1,119		)	91,000		(1,538		)
Total			$	111,614	$	(8,871	)	$	210,667	$	(7,581	)

The location and fair values of our Euro contracts in our Consolidated Balance Sheets were as follows:



		December 31,
Cash Flow Hedge	Location	2013		2012
(In thousands)
Euro contracts	Accrued liabilities	$	7,355	$	3,574
Euro contracts	Other long-term liabilities	$	1,516	$	4,007

The effect of our derivative instruments in our Consolidated Statements of Income and our Consolidated Statements of Comprehensive Income were as follows:



	Year Ended December 31,
	2013			2012			2011
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	(2,432	)	$	(5,040	)	$	(4,470	)
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	(1,510	)	$	(1,859	)	$	664
Net gain (loss) recognized in interest and other income, net -- cash flow hedges ⁽³⁾	$	11		$	(169	)	$	(19	)
Net gain recognized in interest and other income, net -- non-designated contracts ⁽⁴⁾	$	—		$	391		$	—

_________________________

(1) Net change in the fair value of the effective portion of cash flow hedges classified in other comprehensive income (loss) (OCI)

(2) Effective portion classified as royalty revenue

(3) Ineffectiveness from excess hedge was approximately ($11), $8 and $19 for the years ended December 31, 2013, 2012 and 2011, respectively. Net loss from restructuring hedges was approximately zero, $161 and zero for the years ended December 31, 2013, 2012 and 2011, respectively

(4) Gain on de-designation classified as interest and other income, net

A loss of approximately $4.8 million, net of tax, is expected to be reclassified from other comprehensive income (loss) against earnings in the next 12 months.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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+ Details

Notes Receivable and Other Long-term Receivables	12 Months Ended
Notes Receivable and Other Long-term Receivables	Dec. 31, 2013
Receivables [Abstract]
Notes and Other Long-term Receivables	Notes and Other Long-term Receivables Notes and other long-term receivables included the following significant agreements: Wellstat Diagnostics Note Receivable and Credit Agreement In March 2012, the Company executed a $7.5 million two-year senior secured note receivable with the holders of the equity interests in Wellstat Diagnostics. In addition to bearing interest at 10% per annum, the note gave PDL certain rights to negotiate for certain future financing transactions. In August 2012, PDL and the borrowers amended the note receivable, providing a senior secured note receivable of $10.0 million, bearing interest at 12% per annum, to replace the original $7.5 million note. This $10.0 million note was repaid on November 2, 2012. On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company is to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). The full amount available under this agreement was drawn by Wellstat Diagnostics in November 2012. In addition, PDL will receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics' products, if any, commencing upon the commercialization of its products. In January 2013, the Company was informed that, as of November 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. PDL sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, PDL exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to PDL and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby PDL agreed to refrain from exercising additional remedies for 120 days while Wellstat Diagnostics raised funds to capitalize the business and the parties attempted to negotiate a revised credit agreement. PDL agreed to provide up to $7.9 million to Wellstat Diagnostics to fund the business for the 120-day forbearance period under the terms of the forbearance agreement. Following the conclusion of the June 28 forbearance period, the Company agreed to forbear in its exercise of remedies for additional periods of time to allow the owners and affiliates of Wellstat Diagnostics to complete a pending financing transaction. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. On August 15, 2013, the owners and affiliates of Wellstat Diagnostics completed a financing transaction to fulfill its obligations under the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. Except as otherwise described here, the material terms of the amended credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL will receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues upon successful commercialization. However, pursuant to the amended credit agreement: (i) the principal amount was reset to approximately $44.1 million which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics' obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics are required to contribute additional capital to Wellstat Diagnostics upon the sale, if any, of an affiliated entity. The restated credit agreement continues to have an ultimate maturity date of December 31, 2021 (but may mature earlier upon certain specified events). When the principal amount was reset it resulted in a $2.5 million reduction of the carrying value of the note receivable which was recorded as a financing cost as a component of interest and other income, net. The new carrying value is lower as a function of the variable nature of the internal rate of return to be realized by the Company based on when the note is repaid. The internal rate of return calculation, although increased, was reset when the credit agreement was amended and restated. Wellstat Diagnostics may prepay the amended credit agreement at a price that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company. In the event of a change of control, bankruptcy or certain other customary events of defaults, or Wellstat Diagnostics' failure to achieve a specified annual revenue threshold in 2017, Wellstat Diagnostics will be required to prepay the amended credit agreement at a price that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company. The amended credit agreement is secured by a pledge of all of the assets of Wellstat Diagnostics, a pledge of all of Wellstat Diagnostics’ equity interests by the holders thereof, and a second lien on the assets of the affiliates of Wellstat Diagnostics. At December 31, 2013, and 2012, the carrying value of the note was included in non-current assets. As of December 31, 2013, the Company determined that its interest in Wellstat Diagnostics represented a variable interest in a Variable Interest Entity since Wellstat Diagnostics' equity was not sufficient to finance its operations without amounts advanced to it under the Company's note and forbearance agreement. However, the Company does not have the power to direct the activities of Wellstat Diagnostics that most significantly impacts Wellstat Diagnostics's economic performance and is not the primary beneficiary of Wellstat Diagnostics; therefore, Wellstat Diagnostics is not subject to consolidation. As of December 31, 2013, the carrying value of all amounts advanced to Wellstat Diagnostics was $47.7 million, which was recorded in notes receivable. As of December 31, 2013, the maximum loss exposure was $47.7 million. Merus Labs Note Receivable and Credit Agreement In July 2012, PDL loaned $35.0 million to Merus Labs in connection with its acquisition of a commercial-stage pharmaceutical product and related assets. In addition, PDL agreed to provide a $20.0 million letter of credit on behalf of Merus Labs for the seller of the assets to draw upon to satisfy the remaining $20.0 million purchase price obligation. The seller made this draw on the letter of credit in July 2013 and an additional loan to Merus Labs for $20.0 million was recorded for an aggregate of $55.0 million in total borrowings. Outstanding borrowings under the July 2012 loan bore interest at the rate of 13.5% per annum and outstanding borrowings as a result of the draw on the letter of credit bore interest at the rate of 14.0% per annum. Merus Labs was required to make four periodic principal payments in respect of the July 2012 loan, with repayment of the remaining principal balance of all loans due on March 31, 2015. The borrowings were subject to mandatory prepayments upon certain asset dispositions or debt issuances as set forth in the credit agreement. Merus Labs made the first of these payments in December 2012 in the amount of $5.0 million, and made the second payment in June 2013 in the amount of $7.5 million. In September 2013, Merus Labs made two additional payments totaling $43.3 million, including the prepayment fee, in order to pay its remaining outstanding balance. In September 2013, Merus Labs prepaid in full its obligations under the credit agreement , including accrued interest through the payment date and a prepayment fee of 1% of the aggregate principal amount outstanding at the time of repayment. There was no outstanding balance owed as of December 31, 2013. AxoGen Royalty Agreement In October 2012, PDL entered into the Royalty Agreement with AxoGen pursuant to which the Company will receive specified royalties on AxoGen’s net revenues (as defined in the Royalty Agreement) generated by the sale, distribution or other use of AxoGen’s products (assigned interests). The Royalty Agreement has an eight years term and provides PDL with royalties of 9.95% based on AxoGen net revenues, subject to agreed-upon guaranteed quarterly minimum payments of approximately $1.3 to $2.5 million beginning in the fourth quarter of 2014, and the right to require AxoGen to repurchase the Royalty Agreement at the end of the fourth year. AxoGen has been granted certain rights to call the contract in years five through eight. The total consideration PDL paid to AxoGen for the assigned interests was $20.8 million, including the termination of an interim funding of $1.8 million in August 2012. AxoGen was required to use a portion of the proceeds from the Royalty Agreement to pay the outstanding balance under its existing credit facility with a third party. The royalty rights are secured by the cash and accounts receivable of AxoGen. Under the Royalty Agreement, beginning on October 1, 2016, or in the event of the occurrence of a material adverse event or AxoGen's bankruptcy or material breach of the Royalty Agreement, the Company may require AxoGen to repurchase the assigned interests at a price that, together with payments already made by AxoGen, would generate a specified internal rate of return to the Company. The Company has concluded that the repurchase option is an embedded derivative which should be bifurcated and separately accounted for at fair value. In the event of a change of control, AxoGen must repurchase the assigned interests from the Company for a repurchase price equal to an amount that, together with payments already made by AxoGen, would generate a 32.5% internal rate of return to the Company. The Company has concluded that the change of control provision is an embedded derivative that should be bifurcated and separately recorded at its estimated fair value. The estimated fair value of the change of control provision was approximately $1.1 million and $0.6 million as of December 31, 2013, and December 31, 2012, respectively. The estimated fair value of this embedded derivative is included in the carrying value of the AxoGen Note Receivable. The Company recognized approximately $0.5 million related to the change in the estimated fair value of embedded derivative during the year ended December 31, 2013. At any time after September 30, 2016, AxoGen, at its option, can repurchase the assigned interests under the Royalty Agreement for a price applicable in a change of control. During the term of the Royalty Agreement, the Company is entitled to designate an individual to be a member of AxoGen's board of directors. The Company has exercised this right and on October 5, 2012, upon close of the transaction, the Company's President and Chief Executive Officer was elected to AxoGen's board of directors. On August 14, 2013, PDL purchased 1,166,666 shares of AXGN at $3.00 per share, totaling $3.5 million. The shares are classified as available-for-sale and recorded as short term investments on the consolidated balance sheet. As of December 31, 2013, the shares were valued at $5.2 million, which results in an unrealized gain of $1.7 million and is recorded in other comprehensive income (loss). Avinger Note Receivable and Royalty Agreement On April 18, 2013, PDL entered into a credit agreement with Avinger, under which we made available to Avinger up to $40.0 million to be used by Avinger in connection with the commercialization of its currently marketed lumivascular catheter devices and in the development of Avinger's lumivascular atherectomy device. Of the $40.0 million available to Avinger, we funded an initial $20.0 million, net of fees, at close of the transaction. Upon the attainment by Avinger of a certain revenue milestone to be accomplished no later than the end of the first half of 2014, we will fund them an additional amount between $10.0 million and $20.0 million (net of fees) at Avinger's election. Outstanding borrowings under the initial loan bear interest at a stated rate of 12% per annum, and any future outstanding borrowings as a result of an additional amount funded upon reaching the revenue milestone will bear interest at the rate of 14% per annum. Avinger is required to make quarterly interest and principal payments. Principal repayment will commence on: (i) the eleventh interest payment date if the revenue milestone is not achieved or (ii) the thirteenth interest payment date if the revenue milestone is achieved. The principal amount outstanding at commencement of repayment, after taking into account any payment-in-kind, will be repaid in equal installments until final maturity of the loans. The loans will mature in April 2018. In connection with entering into the credit agreement, the Company will receive a low, single-digit royalty on Avinger's net revenues through April 2018. Avinger may prepay the outstanding principal and accrued interest on the notes receivable at any time. If Avinger repays the notes receivable prior to April 2018, the royalty on Avinger's net revenues will be reduced by 50% and will be subject to certain minimum payments from the prepayment date through April 2018. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Avinger and any of its subsidiaries (other than controlled foreign corporations, if any). The credit agreement provides for a number of standard events of default, including payment, bankruptcy, covenant, representation and warranty and judgment defaults. LENSAR Credit Agreement On October 1, 2013, PDL entered into a credit agreement with LENSAR, under which PDL made available to LENSAR up to $60 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR Laser System. Of the $60 million available to LENSAR, an initial $40 million, net of fees, was funded by PDL at close of the transaction. Upon the attainment by LENSAR of a specified sales milestone to be accomplished no later than September 30, 2014, PDL will fund LENSAR an additional $20 million. Outstanding borrowings under the loans bear interest at the rate of 15.5% per annum, payable quarterly in arrears. Principal repayment will commence on the thirteenth interest payment date or December 30, 2016. The principal amount outstanding at the commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on October 1, 2018. LENSAR may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The loans are secured by all of the assets of LENSAR. Durata Credit Agreement On October 31, 2013, PDL entered into a credit agreement with Durata, whereby the Company made available to Durata up to $70.0 million. Of the $70.0 million available to Durata, an initial $25.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. Upon marketing approval of dalbavancin in the United States, to be accomplished no later than December 31, 2014 (the tranche two milestone), the Company will fund Durata an additional $15 million (tranche two). Within 9 months after the occurrence of the tranche two milestone, Durata may request up to a single additional $30 million borrowing. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bear interest at the rate of 14.0% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans will decrease to 12.75%. Principal repayment will commence on the fifth interest payment date, March 31, 2015. The principal amount outstanding will be repaid quarterly over the remainder of the loans in an increasing percentage of the principal outstanding at commencement of repayment. The loans will mature on October 31, 2018. Durata may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The Company is entitled to receive a fee in addition to the prepayment penalty in the event that Durata undergoes a change in control. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Durata. Direct Flow Credit Agreement On November 5, 2013, PDL entered into a credit agreement with Direct Flow Medical, in which PDL will provide up to $50.0 million to Direct Flow Medical. Of the $50.0 million available to Direct Flow Medical, an initial $35.0 million (tranche one), net of fees, was provided by the Company at the close of the transaction. Upon the attainment of a specified revenue milestone to be accomplished no later than December 31, 2014 (the tranche two milestone), the Company will loan to Direct Flow Medical an additional $15.0 million, net of fees. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bear interest at the rate of 15.5% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans will decrease to 13.5%. Principal repayment will commence on the twelfth interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on November 5, 2018. Direct Flow Medical may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Direct Flow Medical and any of its subsidiaries. For carrying value and fair value information related to our Notes and Other Long-term Receivables, see Note 4.

Property, Plant and Equipment [Abstract]

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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Property and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment



	December 31,
(In thousands)	2013			2012
Leasehold improvements	$	127		$	127
Computer and office equipment	9,028			8,993
Furniture and fixtures	38			38
Total	9,193			9,158
Less accumulated depreciation and amortization	(9,152		)	(9,131		)
Construction in progress	—			32
Property and equipment, net	$	41		$	59

Intangible Assets Disclosure [Text Block]

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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Intangible Asset (Notes)

12 Months Ended

Dec. 31, 2013

Intangible Asset [Abstract]

Intangible Assets

Depomed Royalty Purchase and Sales Agreement

On October 18, 2013, PDL entered into a royalty purchase and sale agreement with Depomed, Inc. and Depo DR Sub, LLC, a wholly owned subsidiary of Depomed, whereby the Company acquired the rights to receive royalties and milestones payable on sales of Type 2 diabetes products licensed by Depomed in exchange for a $240.5 million cash payment. Total arrangement consideration was $241.3 million which was comprised of the $240.5 million cash payment to Depomed and $0.8 million in transaction costs.

The rights acquired include Depomed’s royalty and milestone payments accruing from and after October 1, 2013: (a) from Santarus with respect to sales of Glumetza^® (metformin HCL extended-release tablets) in the United States; (b) from Merck with respect to sales of Janumet^® XR (sitagliptin and metformin HCL extended-release); (c) from Janssen Pharmaceutica with respect to potential future development milestones and sales of its investigational fixed-dose combination of Invokana^® (canagliflozin) and extended-release metformin; (d) from Boehringer Ingelheim with respect to potential future development milestones and sales of the investigational fixed-dose combinations of drugs and extended-release metformin subject to Depomed’s license agreement with Boehringer Ingelheim; and (e) from LG Life Sciences and Valeant Pharmaceuticals for sales of extended-release metformin in Korea and Canada, respectively.

Under the terms of the royalty agreement, the Company will receive all royalty and milestone payments due under license agreements between Depomed and its licensees until the Company has received payments equal to two times the cash payment it made to Depomed, after which all net payments received by Depomed will be shared evenly between the Company and Depomed.

The royalty agreement terminates on the third anniversary following the date upon which the later of the following occurs: (a) October 25, 2021, or (b) at such time as no royalty payments remain payable under any license agreement and each of the license agreements has expired by its terms.

This transaction has been accounted for as the acquisition of intangible assets. An income approach was used for the purpose of allocating the purchase price based on the relative fair value of each intangible asset and in the determination of the useful life of each intangible asset. The intangible assets have finite lives ranging from three to nine years and will be amortized to cost of royalty revenues over the related periods. During the fourth quarter of 2013, we began receiving royalty revenues related to Glumetza and commenced amortization of the carrying value of the related intangible asset of $164.5 million. The intangible assets related to the other licensed products with a carrying value of $76.8 million were not being amortized as of December 31, 2013 as no revenues were recognized related to those intangible assets in 2013. We will commence amortization of those intangible assets when the Company receives royalty revenues related to sales of the related products.

The fair value of the intangible assets acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. The discounted cash flow was based upon expected royalties from sales of licensed products over periods up to nine years. We determined that the intangible assets were Level 3 assets, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by the FDA or other regulatory agencies.

As of December 31, 2013, the carrying value of the intangible assets acquired in our consolidated balance sheet was approximately $235.7 million. As of December 31, 2013, the maximum loss exposure was $235.7 million.

The following table summarizes the components of gross and net intangible assets balances as of December 31, 2013:



(In thousands)	December 31, 2013
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite lived intangible assets	$	241,314	$	(5,637	)	$	235,677

Amortization expense related to the acquired intangible assets was $5.6 million for the year ended December 31, 2013. As of December 31, 2013, the remaining weighted-average amortization period for acquired intangible asset is 8.0 years. The expected annual amortization expense related to the acquired intangible assets is as follows for the years ended December 31, (in thousands):



2014	$	33,880
2015	44,940
2016	33,184
2017	19,028
2018	18,096
Thereafter	86,549
Total	$	235,677

On October 18, 2013 and as of December 31, 2013, the Company determined that its royalty purchase interest in Depo DR Sub, LLC represented a variable interest in a variable interest entity since the equity in Depo DR Sub, LLC was not sufficient to finance its operations without additional financing. However, the Company does not have the power to direct the activities of

Depo DR Sub, LLC that most significantly impacts the Depo DR Sub, LLC's economic performance and is not the primary beneficiary of Depo DR Sub, LLC therefore, it is not subject to consolidation by the Company.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

We currently occupy a leased facility in Incline Village, Nevada, with a lease term through May 2014. We also lease certain office equipment under operating leases. Rental expense under these arrangements totaled $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Future minimum operating lease payments for the years ended December 31, were as follows:



(In thousands)
2014	$	102
2015	16
2016	16
Total	$	134

Convertible and Non-Recourse Notes

The entire disclosure for commitments and contingencies.

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Convertible Notes

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Convertible Notes, Non-recourse Notes and Term Loans

Convertible, Non-recourse Notes, and Term Loan activity for the years ended December 31, 2013 and 2012:



(In thousands)	Series 2012 Notes			May 2015 Notes		February 2015 Notes			Non-recourse Notes			Term Loan			Total
Balance at December 31, 2011	$	—		$	138,952	$	177,663		$	93,370		$	—		$	409,985
Issuance and exchange	176,679			—		(176,679		)	—			—			—
Payment	—			—		—			(93,370		)	—			(93,370		)
Non-cash discount	(16,833		)	—		—			—			—			(16,833		)
Discount amortization	5,682			4,481		7			—			—			10,170
Balance at December 31, 2012	165,528			143,433		991			—			—			309,952
Issuance and exchange	1,000			—		(1,000		)	—			75,000			75,000
Non-cash discount	—			—		—			—			(831		)	(831		)
Discount amortization	6,102			4,820		9			—			228			11,159
Balance at December 31, 2013	$	172,630		$	148,253	$	—		$	—		$	74,397		$	395,280

Series 2012 Notes

In January 2012, we exchanged $169.0 million aggregate principal of new Series 2012 Notes for an identical principal amount of our February 2015 Notes, plus a cash payment of $5.00 for each $1,000 principal amount tendered, totaling approximately $845,000. The cash incentive payment was allocated to deferred issue costs of $765,000, additional paid-in capital of $52,000 and deferred tax assets of $28,000. The deferred issue costs will be recognized over the life of the Series 2012 Notes as interest expense. In February 2012, we entered into separate privately negotiated exchange agreements under which we exchanged an additional $10.0 million aggregate principal amount of the new Series 2012 Notes for an identical principal amount of our February 2015 Notes. In August 2013, the Company entered into a separate privately negotiated exchange agreement under which it retired the final $1.0 million aggregate principal amount of the Company's outstanding February 2015 Notes. Pursuant to the exchange agreement, the holder of the February 2015 Notes received $1.0 million aggregate principal amount of the Company's Series 2012 Notes. Immediately following the exchange, no principal amount of the February 2015 Notes remained outstanding and $180.0 million principal amount of the Series 2012 Notes is outstanding.

The terms of the Series 2012 Notes are governed by the indenture dated as of January 5, 2012, and include a net share settlement feature, meaning that if a conversion occurs, the principal amount will be settled in cash and the excess, if any, will be settled in the Company’s common stock. The Series 2012 Notes may not be redeemed by the Company prior to their stated maturity date. Our Series 2012 Notes are due February 15, 2015, and bear interest at a rate of 2.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year.

Holders may convert their Series 2012 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Series 2012 Notes under the following circumstances:

•

During any fiscal quarter commencing after the fiscal quarter ending December 31, 2011, if the closing price of the Company’s common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 130% of the conversion price for the Series 2012 Notes on the last day of such preceding fiscal quarter;


•	During the five business-day period immediately after any five consecutive trading-day period in which the trading price per $1,000 principal amount of the Series 2012 Notes for each trading day of that measurement period was less than 98% of the product of the closing price of the Company’s common stock and the conversion rate for the Series 2012 Notes for that trading day;


•	Upon the occurrence of certain corporate transactions as provided in the indenture; or


•	Anytime, at the holder’s option, beginning on August 15, 2014.

Holders of our Series 2012 Notes who convert their Series 2012 Notes in connection with a fundamental change resulting in the

reclassification, conversion, exchange or cancellation of our common stock may be entitled to a make-whole premium in the form of an increase in the conversion rate. Such fundamental change is generally defined to include a merger involving PDL, an acquisition of a majority of PDL’s outstanding common stock and a change of a majority of PDL’s board of directors without the approval of the board of directors.

We allocated $2.3 million of the remaining February 2015 Notes original issue discount as of the date of the exchange to the Series 2012 Notes based on the percentage of the February 2015 Notes exchanged. In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of the Series 2012 Notes, net of the allocated original issue discount, between the fair value of the debt component and the common stock conversion feature. Using an assumed borrowing rate of 7.3%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us during the period of the exchange transactions, we recorded a total debt discount of $16.8 million, allocated $10.9 million to additional paid-in capital and $5.9 million to deferred tax liability. The discount is being amortized to interest expense over the term of the Series 2012 Notes and increases interest expense during the term of the Series 2012 Notes from the 2.875% cash coupon interest rate to an effective interest rate of 7.3%. The common stock conversion feature is recorded as a component of stockholders’ equity (deficit).

The principal amount, carrying value and unamortized discount of our Series 2012 Notes were as follows:



	December 31,
(In thousands)	2013			2012
Principal amount of the Series 2012 Notes	$	180,000		$	179,000
Unamortized discount of liability component	(7,370		)	(13,472		)
Net carrying value of the Series 2012 Notes	$	172,630		$	165,528

Interest expense for our Series 2012 Notes on the Consolidated Statements of Income was as follows:



	Year ended December 31,
(In thousands)	2013		2012		2011
Contractual coupon interest	$	5,158	$	5,122	$	—
Amortization of debt issuance costs	1,152		1,107		—
Amortization of debt discount	6,102		5,682		—
Total	$	12,412	$	11,911	$	—

As of December 31, 2013, our Series 2012 Notes are convertible into 182.598 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.48 per common share, subject to further adjustment upon certain events including dividend payments. As of December 31, 2013, the remaining discount amortization period was 1.1 years.

Our common stock exceeded the conversion threshold price of $7.23 per common share for at least 20 days during the 30 consecutive trading days ended September 30, 2013; accordingly, the Series 2012 Notes were convertible at the option of the holder during the quarter ended December 31, 2013. Our common stock price exceeded the conversion threshold price of $7.12 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2013; accordingly, the Series 2012 Notes are convertible at the option of the holder during the quarter ending March 31, 2014. The Series 2012 Notes have been classified as current as the notes will be due upon demand within one year of the year ended December 31, 2013. At December 31, 2013, the if-converted value of our Series 2012 Notes exceeded their principal amount by approximately $97.4 million.

See Note 21 for subsequent event transactions related to convertible notes.

May 2015 Notes

On May 16, 2011, we issued $155.3 million in aggregate principal amount, at par, of our May 2015 Notes in an underwritten public offering, for net proceeds of $149.7 million. Our May 2015 Notes are due May 1, 2015, and we pay interest at 3.75% on our May 2015 Notes semiannually in arrears on May 1 and November 1 of each year, beginning November 1, 2011. Proceeds from our May 2015 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem our 2012 Notes. Upon the occurrence of a fundamental change, as defined in the indenture, holders have the option to require PDL to repurchase their May 2015 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

Our May 2015 Notes are convertible under any of the following circumstances:


•	During any fiscal quarter ending after the quarter ending June 30, 2011, if the last reported sale price of our common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 130% of the conversion price for the notes on the last day of such preceding fiscal quarter;


•	During the five business-day period immediately after any five consecutive trading-day period, which we refer to as the measurement period, in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the notes for each such day;


•	Upon the occurrence of specified corporate events as described further in the indenture; or


•	At any time on or after November 1, 2014.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of our May 2015 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.5%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, we recorded a total debt discount of $18.9 million, allocated $12.3 million to additional paid-in capital and allocated $6.6 million to deferred tax liability. The discount is being amortized to interest expense over the term of our May 2015 Notes and increases interest expense during the term of our May 2015 Notes from the 3.75% cash coupon interest rate to an effective interest rate of 7.5%. As of December 31, 2013, the remaining discount amortization period is 1.3 years.

The carrying value and unamortized discount of our May 2015 Notes were as follows:



	December 31,
(In thousands)	2013			2012
Principal amount of the May 2015 Notes	$	155,250		$	155,250
Unamortized discount of liability component	(6,997		)	(11,817		)
Net carrying value of the May 2015 Notes	$	148,253		$	143,433

Interest expense for our May 2015 Notes on the Condensed Consolidated Statements of Income was as follows:



	Year Ended December 31,
(In thousands)	2013		2012		2011
Contractual coupon interest	$	5,822	$	5,822	$	3,639
Amortization of debt issuance costs	1,232		1,193		727
Amortization of debt discount	4,820		4,481		2,639
Total	$	11,874	$	11,496	$	7,005

As of December 31, 2013, our May 2015 Notes are convertible into 159.9165 shares of the Company’s common stock per $1,000 of principal amount, or approximately $6.25 per common share, subject to further adjustment upon certain events including dividend payments.

Our common stock did not exceed the conversion threshold price of $8.26 for at least 20 days during the 30 consecutive trading days ended September 30, 2013; accordingly, the May 2015 Notes were not convertible at the option of the holder during the quarter ended December 31, 2013. Our common stock price did exceed the conversion threshold price of $8.13 per common share for at least 20 days during the 30 consecutive trading days ended December 31, 2013; accordingly, the May 2015 Notes are convertible at the option of the holder during the quarter ending March 31, 2014. The May 2015 Notes have been classified as current as the notes will be due upon demand within one year of the year ended December 31, 2013. At December 31, 2013, the if-converted value of our May 2015 exceeded their principal amount by approximately $54.3 million.

Purchased Call Options and Warrants

In connection with the issuance of our May 2015 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $20.8 million, plus legal fees, for the purchased call options with terms substantially similar to the embedded conversion options in our May 2015 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in our May 2015 Notes, approximately 24.8 million shares of our common stock. We may exercise the purchased call options upon conversion of our May 2015 Notes and require the hedge counterparty to deliver shares to the Company in an amount equal to the shares required to be delivered by the Company to the note holder for the excess conversion value. The purchased call options expire on May 1, 2015, or the last day any of our May 2015 Notes remain outstanding.

In addition, we sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive up to 27.5 million shares of common stock underlying our May 2015 Notes. We received an aggregate amount of $10.9 million for the sale from the two counterparties. The warrant counterparties may exercise the warrants on their specified expiration dates that occur over a period of time ending on January 20, 2016. If the VWAP of our common stock, as defined in the warrants, exceeds the strike price of the warrants, we will deliver to the warrant counterparties shares equal to the spread between the VWAP on the date of exercise or expiration and the strike price. If the VWAP is less than the strike price, neither party is obligated to deliver anything to the other.

The purchased call option transactions and warrant sales effectively serve to reduce the potential dilution associated with conversion of our May 2015 Notes. The strike prices are approximately $6.25 and $7.50, subject to further adjustment upon certain events including dividend payments, for the purchased call options and warrants, respectively.

If the share price is above $6.25, but below $7.50, upon conversion of our May 2015 Notes, the purchased call options will offset the share dilution, because the Company will receive shares on exercise of the purchased call options equal to the shares that the Company must deliver to the note holders. If the share price is above $7.50, upon exercise of the warrants, the Company will deliver shares to the counterparties in an amount equal to the excess of the share price over $7.50. For example, a 10% increase in the share price above $7.50 would result in the issuance of 1.9 million incremental shares upon exercise of the warrants. As our share price continues to increase, additional dilution would occur.

While the purchased call options are expected to reduce the potential equity dilution upon conversion of our May 2015 Notes, prior to conversion or exercise, our May 2015 Notes and the warrants could have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the respective exercise prices of those instruments. As of December 31, 2013, and 2012, there were no related purchased call options or warrants exercised.

The purchased call options and warrants are considered indexed to PDL stock, require net-share settlement, and met all criteria for equity classification at inception and at December 31, 2013, and 2012. The purchased call options cost, including legal fees, of $20.8 million, less deferred taxes of $7.2 million, and the $10.9 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

February 2015 Notes

On November 1, 2010, we completed an exchange of $92.0 million in aggregate principal of our 2012 Notes in separate, privately negotiated transactions with the note holders. In the exchange transactions, the note holders received $92.0 million in aggregate principal of our February 2015 Notes, and we recorded a net gain of $1.1 million. As part of the transaction, we placed an additional $88.0 million in aggregate principal of our February 2015 Notes. In January 2012, we completed an exchange transaction where we exchanged and subsequently retired approximately $169.0 million aggregate principal amount of our February 2015 Notes for approximately $169.0 million aggregate principal amount of new Series 2012 Notes, plus a cash payment of $5.00 for each $1,000 principal amount tendered for a total cash incentive payment of approximately $0.8 million. In February 2012, we entered into separate privately negotiated exchange agreements under which we retired an additional $10.0 million aggregate principal amount of our February 2015 Notes for $10.0 million aggregate principal amount of our Series 2012 Notes. In August 2013, the Company entered into a separate privately negotiated exchange agreement under which it retired the final $1.0 million aggregate principal amount of the Company's outstanding February 2015 Notes. Pursuant to the exchange agreement, the holder of the February 2015 Notes received $1.0 million aggregate principal amount of the Company's Series 2012 Notes. Immediately following the exchange, no principal amount of the February 2015 Notes remained outstanding. Our February 2015 Notes bore interest at 2.875% per annum.

Non-recourse Notes Retirement

In November 2009, we completed a $300.0 million securitization transaction in which we monetized 60% of the net present value of the estimated 5 years royalties from sales of Genentech products including Avastin®, Herceptin®, Lucentis®, Xolair® and future products, if any, under which Genentech may take a license under our related agreements with Genentech. Our QHP PhaRMA^SM Senior Secured Notes due 2015 bore interest at 10.25% per annum and were issued in a non-registered offering by QHP, a Delaware limited liability company, and a newly formed, wholly-owned subsidiary of PDL. Concurrent with the securitization transaction and under the terms of a purchase and sale agreement, we sold, transferred, conveyed, assigned, contributed and granted to QHP, certain rights under our non-exclusive license agreements with Genentech including the right to receive the Genentech Royalties in exchange for QHP’s proceeds from our Non-recourse Notes issuance. As of December 31, 2012, there was no remaining balance on our Non-recourse Notes, as they were fully repaid and retired on September 17, 2012. The indenture has ceased to be of further effect and all of the security interests in the collateral have terminated, including the pledge by PDL to the trustee of its equity interest in QHP. There are no further restrictions on the Genentech Royalties.

Term Loan

On October 28, 2013, PDL entered into a credit agreement among the Company, the lenders party, and Royal Bank of Canada as administrative agent. The initial Term Loan amount was for $75 million, with a term of one year.

The interest rates per annum applicable to amounts outstanding under the Term Loan are, at the Company’s option, either (a) the base rate plus 1.00%, or (b) the Eurodollar rate plus 2.00% per annum. As of December 31, 2013, the interest rate was 2.24%. Interest and principal payments associated with the Term Loan are due on the interest payment dates of January 31, April 30, and July 31 of 2014, with the remaining outstanding balance due on October 28, 2014.

Any future material domestic subsidiaries of the Company are required to guarantee the obligations of the Company under the Term Loan, except as otherwise provided. The Company’s obligations under the Term Loan are secured by a lien on a substantial portion of its assets.

The Term Loan contains affirmative and negative covenants that the Company believes are usual and customary for a senior secured credit agreement. The Term loan also requires compliance with certain financial covenants, including a maximum total leverage ratio and a debt service coverage ratio, in each case calculated as set forth in the Term Loan and compliance with which may be necessary to take certain corporate actions. The Term Loan contains events of default that the Company believes are usual and customary for a senior secured credit agreement.

As of December 31, 2013 and 2012, PDL was in compliance with all applicable debt covenants.

As of December 31, 2013, the future minimum principal payments under our Series 2012 Notes, May 2015 Notes and Term Loan were:



(In thousands)	Series 2012 Notes		May 2015 Notes		Term Loan		Total
2014	$	—	$	—	$	75,000	$	75,000
2015	180,000		155,250		—		335,250
Total	$	180,000	$	155,250	$	75,000	$	410,250

Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2013

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities



	December 31,
(In thousands)	2013		2012
Accrued lease liability	$	10,700	$	10,700
Uncertain tax position	10,826		12,955
Foreign currency hedge	1,516		4,007
Total	$	23,042	$	27,662

In connection with the Spin-Off, we entered into amendments to the leases for our former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify us for all matters related to the leases attributable to the period after the Spin-Off date. Should Facet default under its lease obligations, we could be held liable by the landlord as a co-tenant and, thus, we have in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of December 31, 2013, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $90.2 million. If Facet were to default, we could also be responsible for lease related costs including utilities, property taxes and common area maintenance which may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Condensed Consolidated Balance Sheets as of December 31, 2013, and 2012, related to this guarantee.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

We recognize compensation expense using a fair-value based method for costs associated with all share-based awards issued to our directors, employees and outside consultants under our stock plan. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our Consolidated Statements of Income.

We have adopted the simplified method to calculate the beginning balance of the additional paid-in capital pool of the excess tax benefit and to determine the subsequent effect on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that were outstanding upon our adoption.

We calculate stock-based compensation expense based on the number of awards ultimately expected to vest, net of estimated forfeitures. We estimate forfeiture rates at the time of grant and revise such rates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation expense was determined using the Black-Scholes option valuation model.

Stock-based compensation expense for employees and directors and non-employees for the years ended December 31, 2013, 2012 and 2011, is presented below:



	Year Ended December 31,
Stock-based Compensation	2013		2012		2011
(In thousands)
Employees and directors	$	655	$	650	$	337
Non-employees	217		287		50
Total	$	872	$	937	$	387

Stock-Based Incentive Plans

We currently have one active stock-based incentive plan under which we may grant stock-based awards to our employees, directors and non-employees.

The total number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock, shares of common stock subject to outstanding awards and available for grant under this plan as of December 31, 2013, is as follows:



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Subject to Outstanding Awards	Total Shares of Common Stock Available for Grant
2005 Equity Incentive Plan⁽¹⁾	5,200,000	722,335	—	4,477,665
2002 Outside Directors Stock Option Plan⁽²⁾	157,000	140,750	16,250	—
1999 Non-statutory Stock Option Plan⁽²⁾	5,071,183	4,966,183	105,000	—
1999 Stock Option Plan⁽²⁾	3,704,376	3,653,150	51,226	—

_________________________


(1)	As of December 31, 2013, there were 113,882 shares of unvested restricted stock awards outstanding.


(2)	Plan terminated in 2009, subject to options outstanding under the plan.

Under our 2005 Equity Incentive Plan, we are authorized to issue a variety of incentive awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance share and performance unit awards, deferred compensation awards and other stock-based or cash-based awards.

In 2009, our Compensation Committee terminated the 1991 Nonstatutory Stock Option Plan. Additionally our Compensation Committee terminated the 1999 Outside Director Stock Option Plan, the 1999 Nonstatutory Stock Option Plan and the 2002 Outside Directors Stock Option Plan, subject to any outstanding options. Also in June 2009, our stockholders approved amendments to the Company’s 2005 Equity Incentive Plan to expand persons eligible to participate in the plan to include our outside directors.

Stock Option Activity

A summary of our stock option activity is presented below:



	2013				2012				2011
	Number of shares (in thousands)		Weighted-Average Exercise Price		Number of shares (in thousands)		Weighted-Average Exercise Price		Number of shares (in thousands)		Weighted-Average Exercise Price
Outstanding at beginning of year	196		$	16.22	231		$	16.62	274		$	17.25
Expired	(24	)	$	14.07	(35	)	$	18.83	(43	)	$	20.67
Outstanding at end of year	172		$	16.52	196		$	16.22	231		$	16.62
Exercisable at end of year	172		$	16.52	196		$	16.22	231		$	16.62

As of December 31, 2013, the aggregate intrinsic value of our outstanding and exercisable stock options was $0.2 million and the weighted-average remaining contractual life was 0.8 years. The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the closing prices of our common stock of $8.44 on December 31, 2013, which would have been received by the option holders had option holders exercised their options as of that date. All stock options were fully vested as of 2010 and at December 31, 2013, had a range of exercise price of $5.41 to $22.60.

Restricted Stock

Restricted stock has the same rights as other issued and outstanding shares of the Company’s common stock, including, in some cases, the right to accrue dividends, which are held in escrow until the award vests. The compensation expense related to these awards is determined using the fair market value of the Company’s common stock on the date of the grant, and the compensation expense is recognized ratably over the vesting period. Restricted stock awards typically vest over twelve to twenty-four months. In addition to service requirements, vesting of restricted stock awards may be subject to the achievement of specified performance goals set by the Compensation Committee of the Company’s Board of Directors. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed.

A summary of our restricted stock activity is presented below:



	2013				2012				2011
	Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted- average grant-date fair value per share
Nonvested at beginning of year	120		$	6.51	137		$	6.09	40		$	5.05
Awards granted	127		$	7.50	139		$	6.49	155		$	6.15
Awards vested	(118	)	$	6.59	(137	)	$	6.09	(40	)	$	5.05
Forfeited	(15	)	$	7.07	(19	)	$	6.35	(18	)	$	6.59
Nonvested at end of year	114		$	7.45	120		$	6.51	137		$	6.09

Stock-based compensation expense associated with our restricted stock for the years ended December 31, 2013, 2012 and 2011, was $0.9 million, $0.9 million and $0.4 million, respectively. As of December 31, 2013, the aggregate intrinsic value of non-vested restricted stock was $1.0 million. Total unrecognized compensation costs associated with non-vested restricted stock as of December 31, 2013, was $0.4 million, excluding forfeitures, which we expect to recognize over a weighted-average period of 10 months.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Cash Dividends	12 Months Ended
Cash Dividends	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Cash Dividends	Cash Dividends On January 29, 2014, our board of directors declared that the regular quarterly dividends to be paid to our stockholders in 2014 will be $0.15 per share of common stock, payable on March 12, June 12, September 12 and December 12 of 2014 to stockholders of record on March 5, June 5, September 5 and December 5 of 2014, the record dates for each of the dividend payments, respectively. On January 23, 2013, our board of directors declared a regular quarterly dividend of $0.15 per share of common stock, which were paid on March 12, June 12, September 12 and December 12 of 2013 to stockholders of record on March 5, June 5, September 5 and December 5 of 2013, the record dates for each of the dividend payments, respectively. We paid $84.0 million in dividends in 2013. On January 18, 2012, our board of directors declared regular quarterly dividends of $0.15 per share of common stock, which were paid on March 14, June 14, September 14 and December 14 of 2012 to stockholders of record on March 7, June 7, September 7 and December 7 of 2012, the record dates for each of the dividend payments, respectively. We paid $83.9 million in dividends in 2012. On February 25, 2011, our board of directors declared regular quarterly dividends of $0.15 per share of common stock, which were paid on March 15, June 15, September 15 and December 15 of 2011 to stockholders of record on March 8, June 8, September 8 and December 8 of 2011, the record dates for each of the dividend payment dates, respectively. We paid $83.8 million in dividends in 2011.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

Concentration Risk Disclosure [Text Block]

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+ Details

Customer Concentration

12 Months Ended

Dec. 31, 2013

Risks and Uncertainties [Abstract]

Customer Concentration

The percentage of total revenue earned from licensees net sales, which individually accounted for 10% or more of our total revenues:



	Year Ended December 31,
	2013		2012		2011
Licensees
Genentech	83	%	85	%	86	%
Biogen Idec¹	11	%	13	%	12	%

____________________

¹ In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan.

Total revenues by geographic area are based on the country of domicile of the counterparty to the agreement:



	Year Ended December 31,
(In thousands)	2013		2012		2011
United States	$	165,412	$	133,824	$	137,269
Europe	277,434		240,626		224,472
Other	75		75		300
Total revenues	$	442,921	$	374,525	$	362,041

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References+ Details

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

The provision for income taxes for the years ended December 31, 2013, 2012 and 2011 consisted of the following:



	Year Ended December 31,
(In thousands)	2013			2012		2011
Current income tax expense
Federal	$	134,619		$	104,152	$	83,569
State	3,726			1		1
Total current	138,345			104,153		83,570
Deferred income tax expense (benefit)
Federal	(416		)	11,311		24,469
State	(583		)	—		—
Total deferred	(999		)	11,311		24,469
Total provision	$	137,346		$	115,464	$	108,039

A reconciliation of the income tax provision computed using the U.S. statutory federal income tax rate compared to the income tax provision for income included in the Consolidated Statements of Income is as follows:



	Year Ended December 31,
(In thousands)	2013			2012		2011
Tax at U.S. statutory rate on income before income taxes	$	140,656		$	114,496	$	107,600
Change in valuation allowance	(2,055		)	—		—
State taxes	1			1		1
Change in uncertain tax positions	(2,082		)	—		—
Other	826			967		438
Total	$	137,346		$	115,464	$	108,039

Deferred tax assets and liabilities are determined based on the differences between financial reporting and income tax bases of assets and liabilities, as well as net operating loss carryforwards and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The significant components of our net deferred tax assets and liabilities are as follows:



	December 31,
(In thousands)	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	6,063		$	6,686
Research and other tax credits	2,259			15,205
Intangible assets	3,559			5,487
Stock-based compensation	215			222
Accruals	255			229
Debt modifications	330			—
Unrealized losses on foreign currency hedge contracts	2,632			2,740
Other	47			227
Total deferred tax assets	15,360			30,796
Valuation allowance	(5,390		)	(20,392		)
Total deferred tax assets, net of valuation allowance	9,970			10,404
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	(953		)	(954		)
Debt modifications	(1,779		)	(3,285		)
Other	(161		)	—
Total deferred tax liabilities	(2,893		)	(4,239		)
Net deferred tax assets	$	7,077		$	6,165

As of December 31, 2013 and 2012, we had federal net operating loss carryforwards of $39.4 million and $41.1 million, respectively. We also had California net operating loss carryforwards of $215.5 million as of December 31, 2013 and 2012. The federal net operating loss carryforwards will expire in the year 2023 and the California net operating loss carryforwards will expire between 2014 and 2019, if not utilized. As of December 31, 2013 and 2012, we had $20.0 million of state tax credit carryforwards that do not expire and can be carried forward indefinitely. The net operating loss carryforwards and tax credit carryforwards which resulted from exercises of stock options were not recorded on the Consolidated Balance Sheet.

Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of net operating losses and credits before utilization. We have an annual limitation on the utilization of our federal operating losses of $1.8 million for each of the years ending December 31, 2014 to 2022, and $1.3 million for the year ending December 31, 2023. As of December 31, 2013, we estimate that at least $22.0 million of the $39.4 million of federal net operating loss carryforwards and $18.7 million of the $215.5 million state net operating losses will expire unutilized.

During 2013, as a result of changes in our business model and increased forecasted earnings, we determined that it was more likely than not that certain net operating losses, tax credits and other deferred tax assets would be realized in the near future. As a result, our valuation allowance against deferred tax assets was decreased by $15 million. We continue to believe it is more likely than not that the benefit from certain net operating losses and deferred tax assets will not be realized in the near future, and have provided a valuation allowance of $5.4 million against these deferred tax assets.

A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, for 2013, 2012 and 2011 is:



	December 31,
(In thousands)	2013			2012		2011
Balance at the beginning of the year	$	32,647		$	23,061	$	23,061
Increases related to tax positions from prior fiscal years	—			4,029		—
Increases related to tax positions taken during current fiscal year	5,490			5,557		—
Expiration of statute of limitations for the assessment of taxes from prior fiscal years	(5,718		)	—		—
Balance at the end of the year	$	32,419		$	32,647	$	23,061

The future impact of the unrecognized tax benefit of $32.4 million, if recognized, is as follows: $9.3 million would affect the effective tax rate and $23.1 million would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. We periodically evaluate our exposures associated with our tax filing positions. During 2013, as a result of the evaluation of our uncertain tax positions, we increased the unrecognized tax benefits by $5.5 million primarily related to state items and decreased the unrecognized tax benefits by $5.7 million due to expiration of statute of limitation for our tax attributes. The Company expects its unrecognized tax benefits to decrease by $6.5 million due to the expiration of statute of limitations within the next twelve months, substantially all of which would affect the effective income tax rate.

Estimated interest and penalties associated with unrecognized tax benefits decreased income tax expense in the Consolidated Statements of Income by $0.7 million during the year ended December 31, 2013, and increased income tax expense by $0.2 million, and $0.5 million during the year ended December 31, 2012, and 2011, respectively. In general, our income tax returns are subject to examination by U.S. federal, state, and local tax authorities for tax years 1996 forward. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $1.5 million and $0.7 million as of December 31, 2013 and 2012, respectively. In May 2012, PDL received a “no-change” letter from the IRS upon completion of an examination of the Company's 2008 Federal tax return. We are currently under income tax examination in the state of California for tax years 2010, 2009 and 2008.

Although the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year, except as noted above, we do not anticipate any material change to the amount of our unrecognized tax benefits related to the California audit over the next twelve months.

Accumulated Other Comprehensive Income (Loss) [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income (Loss)

Comprehensive income is comprised of net income and other comprehensive income (loss). We include unrealized net gains on investments held in our available-for-sale securities and unrealized gains (losses) on our cash flow hedges in other comprehensive income (loss), and present the amounts net of tax. Our other comprehensive income (loss) is included in our Consolidated Statements of Comprehensive Income.

The balance of accumulated other comprehensive income (loss), net of tax, was as follows:



	Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on cash flow hedges			Total Accumulated Other Comprehensive Income (Loss)
(In thousands)
Beginning Balance at December 31, 2010	$	(1	)	$	3,220		$	3,219
Activity for the year ended December 31, 2011	30			(5,134		)	(5,104		)
Balance at December 31, 2011	29			(1,914		)	(1,885		)

Activity for the year ended December 31, 2012	(22		)	(3,181		)	(3,203		)
Balance at December 31, 2012	7			(5,095		)	(5,088		)

Activity for the year ended December 31, 2013	1,122			(922		)	200
Ending Balance at December 31, 2013	$	1,129		$	(6,017	)	$	(4,888	)

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

Quarterly Financial Information [Text Block]

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-Glossary Reclassification Adjustments

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+ Details

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2013
Legal Proceedings [Abstract]
Legal Matters and Contingencies [Text Block]	Legal Proceedings Resolution of Past Challenges to the Queen et al. Patents in the United States and Europe MedImmune Settlement On February 10, 2011, we entered into a definitive settlement agreement with MedImmune resolving all legal disputes with them, including those relating to MedImmune’s product Synagis^® and PDL’s patents known as the Queen et al. patents. Under the settlement agreement, PDL paid MedImmune $65.0 million on February 15, 2011, and an additional $27.5 million on February 9, 2012, for a total of $92.5 million. No further payments will be owed by MedImmune to PDL under its license to the Queen et al. patents as a result of past or future Synagis sales and MedImmune will cease any support, financial or otherwise, of any party involved in the appeal proceeding before the European Patent Office relating to the opposition against our '216B Patent including the opposition owned by BioTransplant. Settlement with UCB On February 2, 2011, we reached a settlement with UCB. Under the settlement agreement, PDL provided UCB a covenant not to sue UCB for any royalties regarding UCB’s Cimzia^® product under the Queen et al. patents in return for a lump sum payment of $10.0 million to PDL and termination of pending patent interference proceedings before the U.S. Patent and Trademark office involving our U.S. Patent No. 5,585,089 patent and our U.S. Patent No. 6,180,370 in PDL’s favor. UCB also agreed to formally withdraw its opposition appeal challenging the validity of the ‘216B Patent. Settlement with Novartis On February 25, 2011, we reached a settlement with Novartis. Under the settlement agreement, PDL agreed to dismiss its claims against Novartis in its action in Nevada state court which also includes Genentech and Roche as defendants. Novartis agreed to withdraw its opposition appeal in the EPO challenging the validity of the ‘216B Patent. Under the settlement agreement with Novartis, we will pay Novartis certain amounts based on net sales of Lucentis made by Novartis during calendar year 2011 and beyond. The settlement does not affect our claims against Genentech and Roche in the Nevada state court action. We do not currently expect such amount to materially impact our total annual revenues. European Opposition to ‘216B Patent Termination of European Opposition to ‘216B Patent Pursuant to our settlements with UCB, MedImmune and Novartis, and as a result of our acquisition of BioTransplant and subsequent withdrawal of BioTransplant’s appeal, all of the active appellants in the EPO opposition have formally withdrawn their participation in the appeal proceeding. Accordingly, the EPO has canceled the appeal proceeding and terminated the opposition proceeding in its entirety, with the result that the 2007 EPO decision upholding the claims of our ‘216B Patent as valid will become the final decision of the EPO. In the year ending December 31, 2013, approximately 43% of our royalty revenues were derived from sales of products that were made in Europe and sold outside of the United States. Genentech / Roche Matter Settlement Agreement On January 31, 2014, we entered into a settlement agreement with Genentech and Roche which resolves all outstanding legal disputes between the parties, including our Nevada litigation with Genentech relating to an August 2010 facsimile sent by Genentech on behalf of Roche and Novartis asserting its products do not infringe on PDL’s SPC’s, and our arbitration proceedings with Genentech related to the audit of royalties on sales. Under the terms of the settlement agreement, effective retroactively to August 15, 2013, Genentech will pay a fixed royalty rate of 2.125 percent on worldwide sales of all its licensed products, as compared to the previous tiered royalty rate in the U.S and the fixed rate on all ex-U.S. based manufactured and sold licensed products. Pursuant to the agreement, Genentech and Roche confirmed that Avastin, Herceptin, Lucentis, Xolair and Perjeta are licensed products as defined in the relevant license agreements between the parties, and further agreed that Kadcyla and Gazyva are licensed products. Genentech will pay these royalties on all worldwide sales of Avastin, Herceptin, Xolair, Perjeta and Kadcyla occurring on or before December 31, 2015. With respect to Lucentis, Genentech owes no royalties on U.S. sales occurring after June 30, 2013, and will pay a royalty of 2.125 percent on all ex-U.S. sales occurring on or before December 28, 2014. The royalty term for Gazyva remains unchanged from the existing license agreement pertaining thereto. The agreement precludes Genentech and Roche from challenging the validity of PDL’s patents, including its SPCs in Europe, from contesting their obligation to pay royalties, from contesting patent coverage for Avastin, Herceptin, Lucentis, Xolair, Perjeta, Kadcyla and Gazyva and from assisting or encouraging any third party in challenging PDL’s patents and SPCs. The agreement further outlines the conduct of any audits initiated by PDL of the books and records of Genentech in an effort to ensure a full and fair audit procedure. Finally, the agreement clarifies that the sales amounts from which the royalties are calculated does not include certain taxes and discounts. The settlement and the related agreements are conditional upon entry of a proposed order dismissing the underlying litigation and dismissal of the AAA arbitration filed by PDL. Other Legal Proceedings In addition, from time to time, we may be subject to various other legal proceedings and claims that arise in the ordinary course of business and which we do not expect to materially impact our financial statements.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2013
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events February 2018 Notes On February 6, 2014, the Company agreed to sell $260.87 million aggregate principal amount of its February 2018 Notes in an underwritten public offering. The conversion rate of the February 2018 Notes will initially be 109.1048 shares of common stock per $1,000 principal amount of the February 2018 Notes equivalent to an initial conversion price of approximately $9.17 per share of common stock. The Company granted the underwriters an option to purchase up to an additional $39.13 million aggregate principal amount of the February 2018 Notes solely to cover overallotments (or $300 million principal amount in the aggregate). The conversion rate, subject to increase under certain circumstances, will not be increased in respect of regular quarterly cash dividends paid by us that do not exceed $0.15 per share. On February 12, 2014, we issued $300 million aggregate principal amount of February 2018 Notes, which included $39.13 million aggregate principal amount of February 2018 Notes issued pursuant to the exercise of the underwriters’ overallotment option to purchase additional February 2018 Notes. In connection with the offering of the February 2018 Notes, the Company has entered into privately negotiated convertible note hedge transactions with RBC Capital Markets and Wells Fargo Securities. The convertible note hedge transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that will initially underlie the February 2018 Notes, and are intended to reduce the dilutive impact of the conversion feature of the February 2018 Notes on the Company’s outstanding shares of common stock. The Company has also entered into privately negotiated warrant transactions with the hedge counterparties relating to the same number of shares of the Company’s common stock. The warrant transactions could separately have a dilutive effect to the extent that the market price per share of the Company’s common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants. Series 2012 Notes Exchange On February 6, 2014, the Company entered into exchange and purchase agreements with certain holders of approximately $131.7 million aggregate principal amount of outstanding Series 2012 Notes. The exchange agreements provide for the issuance, by the Company, of shares of common stock and a cash payment for the Series 2012 Notes being exchanged, and the purchase agreement provides for a cash payment for the Series 2012 Notes being repurchased. The Company issued a total of approximately 20.3 million shares of its common stock and paid an aggregate cash payment of approximately $34.2 million pursuant to the exchange and purchase agreements. Paradigm Spine On February 14, 2014, the Company entered into a credit agreement with Paradigm Spine, LLC, under which it made available to Paradigm up to $75 million to be used by Paradigm to refinance its existing credit facility and expand its domestic commercial operations. A portion of the amount available under the agreement in an aggregate principal amount equal to $50 million, net of fees, was funded at the close of the transaction. In the event that certain specified sales and other milestones occur before December 31, 2014, the Company will fund Paradigm between an additional $6.25 million and $12.5 million, at Paradigm’s discretion. In the event that additional specified sales and other milestones occur before June 30, 2015, the Company will fund up to an additional $12.5 million also at Paradigm’s discretion. Borrowings under the credit agreement bear interest at the rate of 13.0% per annum, payable quarterly in arrears. Principal repayment will commence on the eleventh interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on February 14, 2019, or, if Paradigm has achieved the first milestone and the additional loan amount is provided to Paradigm, the loans will mature on August 14, 2019. Paradigm may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Paradigm and its domestic subsidiaries and, initially, certain assets of Paradigm’s German subsidiaries.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Data [Abstract]

Quarterly Financial Data (Unaudited)



	2013 Quarter Ended
(In thousands, except per share data)	December 31		September 30		June 30		March 31
Total revenues	$	110,143	$	97,314	$	143,617	$	91,847
Net income	$	61,092	$	56,225	$	93,742	$	53,471
Net income per basic share	$	0.44	$	0.40	$	0.67	$	0.38
Net income per diluted share	$	0.39	$	0.36	$	0.62	$	0.36



	2012 Quarter Ended
(In thousands, except per share data)	December 31		September 30		June 30		March 31
Total revenues	$	86,046	$	85,231	$	125,904	$	77,344
Net income	$	49,408	$	48,575	$	73,502	$	40,184
Net income per basic share	$	0.35	$	0.35	$	0.53	$	0.29
Net income per diluted share	$	0.34	$	0.32	$	0.52	$	0.29

Basis of Presentation, Policy

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation, Policy

Principles of Consolidation

Management Estimates, Policy

Management Estimates

Segment Disclosures, Policy

Segment Disclosures

Cash Equivalents and Investments, Policy

Cash Equivalents and Investments

Fair Value Measurements, Policy

Fair Value Measurements

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on quoted market prices for similar assets and liabilities, using observable market based inputs or unobservable market based inputs corroborated by market data, and

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

We do not estimate the fair value of our royalty assets for financial statement reporting purposes.

Notes Receivable and Other Long-Term Receivables, Policy

Notes and Other Long-Term Receivables

Intangible Asset, Policy

Intangible Assets

Foreign Currency Hedging, Policy

Foreign Currency Hedging

We enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes.

Revenue Recognition, Policy

Revenue Recognition

Licensed Royalty Revenues

Acquired Royalty Revenues

Comprehensive Income, Policy

Comprehensive Income (Loss)

Property and Equipment, Policy

Property and Equipment



Leasehold improvements		Shorter of asset life or term of lease
Computer and office equipment		3 years
Furniture and fixtures		7 years

Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share



	Year Ended December 31,
(In thousands, except per share amounts)	2013		2012		2011
Numerator
Net income	$	264,530	$	211,669	$	199,389
Add back interest expense for convertible notes, net of estimated tax of $13,000, $25,000 and $3.0 million, for the years ended December 31, 2013, 2012 and 2011, respectively	25		46		5,544
Income used to compute net income per diluted share	$	264,555	$	211,715	$	204,933
Denominator
Total weighted-average shares used to compute net income per basic share	139,842		139,711		139,663
Effect of dilutive stock options	83		95		13
Restricted stock awards	20		17		25
Assumed conversion of Series 2012 notes	12,373		4,944		—
Assumed conversion of 2012 notes	—		—		9,790
Assumed conversion of February 2015 notes	106		631		27,950
Assumed conversion of May 2015 notes	6,919		1,005		—
Shares used to compute net income per diluted share	159,343		146,403		177,441
Net income per basic share	$	1.89	$	1.52	$	1.43
Net income per diluted share	$	1.66	$	1.45	$	1.15

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of fair value of financial instruments measured on recurring basis



	December 31, 2013						December 31, 2012
(In thousands)	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Money market funds	$	85,970	$	—	$	85,970	$	121,095	$	—	$	121,095
Certificates of deposit	—		—		—		—		26,128		26,128
Corporate securities	—		5,238		5,238		—		—		—
Corporate debt securities	—		—		—		—		13,572		13,572
Total	$	85,970	$	5,238	$	91,208	$	121,095	$	39,700	$	160,795

Liabilities:
Foreign currency hedge contracts	$	—	$	8,871	$	8,871	$	—	$	7,581	$	7,581

Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy



	December 31, 2013						December 31, 2012
	Carrying Value		Level 2		Level 3		Carrying Value		Level 2		Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	47,694	$	—	$	46,042	$	41,098	$	—	$	41,098
Merus Labs note receivable	—		—		—		30,000		30,000		—
AxoGen note receivable and embedded derivative	26,544		—		25,785		22,110		—		22,110
Avinger note receivable	20,250		—		19,061		—		—		—
LENSAR note receivable	39,572		—		39,572		—		—		—
Durata note receivable	24,995		—		24,995		—		—		—
Direct Flow Medical note receivable	34,799		—		34,799		—		—		—
Total	$	193,854	$	—	$	190,254	$	93,208	$	30,000	$	63,208
Liabilities:
Series 2012 Notes	$	172,630	$	277,650	$	—	$	165,528	$	227,187	$	—
May 2015 Notes	148,253		212,304		—		143,433		182,031		—
February 2015 Notes	—		—		—		991		1,269		—
Term loan	74,397		75,000		—		—		—		—
Total	$	395,280	$	564,954	$	—	$	309,952	$	410,487	$	—

Cash Equivalents and Investments (Tables)

12 Months Ended

Dec. 31, 2013

Cash and Cash Equivalents [Abstract]

Summary of cash and available-for-sale securities



Summary of Cash and Available-For-Sale Securities	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Restricted Investment		Short-Term Investments
(In thousands)
December 31, 2013
Cash	$	8,332	$	—	$	—	$	8,332	$	8,332	$	—	$	—
Money market funds	85,970		—		—		85,970		85,970		—		—
Corporate securities	3,500		1,738		—		5,238		—		—		5,238
Total	$	97,802	$	1,738	$	—	$	99,540	$	94,302	$	—	$	5,238

December 31, 2012
Cash	$	7,894	$	—	$	—	$	7,894	$	7,894	$	—	$	—
Money market funds	121,095		—		—		121,095		121,095		—		—
Certificates of deposit	26,128		—		—		26,128		2,223		20,000		3,905
Corporate debt securities	13,562		10		—		13,572		—		—		13,572
Total	$	168,679	$	10	$	—	$	168,689	$	131,212	$	20,000	$	17,477

Cash and available-for-sale securities classified by contractual maturity date



Cash and Available-For-Sale Securities by Contractual Maturity	December 31, 2013				December 31, 2012
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Less than one year	$	97,802	$	99,540	$	168,679	$	168,689
Greater than one year but less than five years	—		—		—		—
Total	$	97,802	$	99,540	$	168,679	$	168,689

Foreign Currency Hedging (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Euro forward contracts



Euro Forward Contracts			December 31, 2013					December 31, 2012
			(In thousands)					(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value			Notional Amount		Fair Value
Euro	1.230	Sell Euro	$	—	$	—		$	27,553	$	(2,036	)
Euro	1.240	Sell Euro	10,850		(1,207		)	10,850		(726		)
Euro	1.270	Sell Euro	44,450		(3,760		)	44,450		(1,950		)
Euro	1.281	Sell Euro	36,814		(2,785		)	36,814		(1,331		)
Euro	1.300	Sell Euro	19,500		(1,119		)	91,000		(1,538		)
Total			$	111,614	$	(8,871	)	$	210,667	$	(7,581	)

Schedule of location and fair values of Euro contracts in Consolidated Balance Sheets



		December 31,
Cash Flow Hedge	Location	2013		2012
(In thousands)
Euro contracts	Accrued liabilities	$	7,355	$	3,574
Euro contracts	Other long-term liabilities	$	1,516	$	4,007

Schedule of the effect of derivative instruments in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income



	Year Ended December 31,
	2013			2012			2011
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	(2,432	)	$	(5,040	)	$	(4,470	)
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	(1,510	)	$	(1,859	)	$	664
Net gain (loss) recognized in interest and other income, net -- cash flow hedges ⁽³⁾	$	11		$	(169	)	$	(19	)
Net gain recognized in interest and other income, net -- non-designated contracts ⁽⁴⁾	$	—		$	391		$	—

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Property, Plant and Equipment [Abstract]

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+ Details

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Table Text Block]



	December 31,
(In thousands)	2013			2012
Leasehold improvements	$	127		$	127
Computer and office equipment	9,028			8,993
Furniture and fixtures	38			38
Total	9,193			9,158
Less accumulated depreciation and amortization	(9,152		)	(9,131		)
Construction in progress	—			32
Property and equipment, net	$	41		$	59

Intangible Asset (Tables)

12 Months Ended

Dec. 31, 2013

Finite-Lived Intangible Assets [Line Items]

Schedule of Finite-Lived Intangible Assets [Table Text Block]



(In thousands)	December 31, 2013
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite lived intangible assets	$	241,314	$	(5,637	)	$	235,677

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]



2014	$	33,880
2015	44,940
2016	33,184
2017	19,028
2018	18,096
Thereafter	86,549
Total	$	235,677

Commitments and Contingencies (Tables) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Future minimum operating lease payments [Abstract]
Operating Leases, Future Minimum Payments Due	$ 102
Operating Leases, Future Minimum Payments, Due in Two Years	16
Operating Leases, Future Minimum Payments, Due in Three Years	16
Operating Leases, Future Minimum Payments Due	$ 134

Convertible Notes (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Schedule of convertible and non-recourse notes activity



(In thousands)	Series 2012 Notes			May 2015 Notes		February 2015 Notes			Non-recourse Notes			Term Loan			Total
Balance at December 31, 2011	$	—		$	138,952	$	177,663		$	93,370		$	—		$	409,985
Issuance and exchange	176,679			—		(176,679		)	—			—			—
Payment	—			—		—			(93,370		)	—			(93,370		)
Non-cash discount	(16,833		)	—		—			—			—			(16,833		)
Discount amortization	5,682			4,481		7			—			—			10,170
Balance at December 31, 2012	165,528			143,433		991			—			—			309,952
Issuance and exchange	1,000			—		(1,000		)	—			75,000			75,000
Non-cash discount	—			—		—			—			(831		)	(831		)
Discount amortization	6,102			4,820		9			—			228			11,159
Balance at December 31, 2013	$	172,630		$	148,253	$	—		$	—		$	74,397		$	395,280

Schedule of carrying value and unamortized discount on Series 2012 Notes



	December 31,
(In thousands)	2013			2012
Principal amount of the Series 2012 Notes	$	180,000		$	179,000
Unamortized discount of liability component	(7,370		)	(13,472		)
Net carrying value of the Series 2012 Notes	$	172,630		$	165,528

Schedule of interest expense on Series 2012 Notes



	Year ended December 31,
(In thousands)	2013		2012		2011
Contractual coupon interest	$	5,158	$	5,122	$	—
Amortization of debt issuance costs	1,152		1,107		—
Amortization of debt discount	6,102		5,682		—
Total	$	12,412	$	11,911	$	—

Schedule of carrying value and unamortized discount on May 2015 Notes



	December 31,
(In thousands)	2013			2012
Principal amount of the May 2015 Notes	$	155,250		$	155,250
Unamortized discount of liability component	(6,997		)	(11,817		)
Net carrying value of the May 2015 Notes	$	148,253		$	143,433

Schedule of interest expense for May 2015 Notes



	Year Ended December 31,
(In thousands)	2013		2012		2011
Contractual coupon interest	$	5,822	$	5,822	$	3,639
Amortization of debt issuance costs	1,232		1,193		727
Amortization of debt discount	4,820		4,481		2,639
Total	$	11,874	$	11,496	$	7,005

Schedule of Maturities of Long-term Debt [Table Text Block]



(In thousands)	Series 2012 Notes		May 2015 Notes		Term Loan		Total
2014	$	—	$	—	$	75,000	$	75,000
2015	180,000		155,250		—		335,250
Total	$	180,000	$	155,250	$	75,000	$	410,250

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block]



	Year Ended December 31,
Stock-based Compensation	2013		2012		2011
(In thousands)
Employees and directors	$	655	$	650	$	337
Non-employees	217		287		50
Total	$	872	$	937	$	387

Schedule of common stock activity available under share-based compensation plans



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Subject to Outstanding Awards	Total Shares of Common Stock Available for Grant
2005 Equity Incentive Plan⁽¹⁾	5,200,000	722,335	—	4,477,665
2002 Outside Directors Stock Option Plan⁽²⁾	157,000	140,750	16,250	—
1999 Non-statutory Stock Option Plan⁽²⁾	5,071,183	4,966,183	105,000	—
1999 Stock Option Plan⁽²⁾	3,704,376	3,653,150	51,226	—

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]



	2013				2012				2011
	Number of shares (in thousands)		Weighted-Average Exercise Price		Number of shares (in thousands)		Weighted-Average Exercise Price		Number of shares (in thousands)		Weighted-Average Exercise Price
Outstanding at beginning of year	196		$	16.22	231		$	16.62	274		$	17.25
Expired	(24	)	$	14.07	(35	)	$	18.83	(43	)	$	20.67
Outstanding at end of year	172		$	16.52	196		$	16.22	231		$	16.62
Exercisable at end of year	172		$	16.52	196		$	16.22	231		$	16.62

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]



	2013				2012				2011
	Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted- average grant-date fair value per share
Nonvested at beginning of year	120		$	6.51	137		$	6.09	40		$	5.05
Awards granted	127		$	7.50	139		$	6.49	155		$	6.15
Awards vested	(118	)	$	6.59	(137	)	$	6.09	(40	)	$	5.05
Forfeited	(15	)	$	7.07	(19	)	$	6.35	(18	)	$	6.59
Nonvested at end of year	114		$	7.45	120		$	6.51	137		$	6.09

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Tabular disclosure of an equity-based arrangement (such as stock or unit options and stock or unit awards) with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain equity-based awards at future dates, sometimes including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares or units issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

+ References+ Details

Customer Concentration (Tables)

12 Months Ended

Dec. 31, 2013

Risks and Uncertainties [Abstract]



	Year Ended December 31,
	2013		2012		2011
Licensees
Genentech	83	%	85	%	86	%
Biogen Idec¹	11	%	13	%	12	%

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]



	Year Ended December 31,
(In thousands)	2013		2012		2011
United States	$	165,412	$	133,824	$	137,269
Europe	277,434		240,626		224,472
Other	75		75		300
Total revenues	$	442,921	$	374,525	$	362,041

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]



	Year Ended December 31,
(In thousands)	2013			2012		2011
Current income tax expense
Federal	$	134,619		$	104,152	$	83,569
State	3,726			1		1
Total current	138,345			104,153		83,570
Deferred income tax expense (benefit)
Federal	(416		)	11,311		24,469
State	(583		)	—		—
Total deferred	(999		)	11,311		24,469
Total provision	$	137,346		$	115,464	$	108,039

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]



	Year Ended December 31,
(In thousands)	2013			2012		2011
Tax at U.S. statutory rate on income before income taxes	$	140,656		$	114,496	$	107,600
Change in valuation allowance	(2,055		)	—		—
State taxes	1			1		1
Change in uncertain tax positions	(2,082		)	—		—
Other	826			967		438
Total	$	137,346		$	115,464	$	108,039

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]



	December 31,
(In thousands)	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	6,063		$	6,686
Research and other tax credits	2,259			15,205
Intangible assets	3,559			5,487
Stock-based compensation	215			222
Accruals	255			229
Debt modifications	330			—
Unrealized losses on foreign currency hedge contracts	2,632			2,740
Other	47			227
Total deferred tax assets	15,360			30,796
Valuation allowance	(5,390		)	(20,392		)
Total deferred tax assets, net of valuation allowance	9,970			10,404
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	(953		)	(954		)
Debt modifications	(1,779		)	(3,285		)
Other	(161		)	—
Total deferred tax liabilities	(2,893		)	(4,239		)
Net deferred tax assets	$	7,077		$	6,165

Summary of Income Tax Contingencies [Table Text Block]



	December 31,
(In thousands)	2013			2012		2011
Balance at the beginning of the year	$	32,647		$	23,061	$	23,061
Increases related to tax positions from prior fiscal years	—			4,029		—
Increases related to tax positions taken during current fiscal year	5,490			5,557		—
Expiration of statute of limitations for the assessment of taxes from prior fiscal years	(5,718		)	—		—
Balance at the end of the year	$	32,419		$	32,647	$	23,061

Schedule of Quarterly Financial Information [Table Text Block]

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Data [Abstract]



	2013 Quarter Ended
(In thousands, except per share data)	December 31		September 30		June 30		March 31
Total revenues	$	110,143	$	97,314	$	143,617	$	91,847
Net income	$	61,092	$	56,225	$	93,742	$	53,471
Net income per basic share	$	0.44	$	0.40	$	0.67	$	0.38
Net income per diluted share	$	0.39	$	0.36	$	0.62	$	0.36



	2012 Quarter Ended
(In thousands, except per share data)	December 31		September 30		June 30		March 31
Total revenues	$	86,046	$	85,231	$	125,904	$	77,344
Net income	$	49,408	$	48,575	$	73,502	$	40,184
Net income per basic share	$	0.35	$	0.35	$	0.53	$	0.29
Net income per diluted share	$	0.34	$	0.32	$	0.52	$	0.29

Summary of Significant Accounting Policies (Narrative) (Detail)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]
Number of Operating Segments (in segments)	1
Maximum maturity period of investments considered as cash equivalents (in duration)	3 months
Maximum total annual milestone payments as a percentage of total revenue (in percent)	1.00%

Summary of Significant Accounting Policies (Schedule of Property and Equipment of Estimated Useful Lives) (Detail)	12 Months Ended
	Dec. 31, 2013
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	Shorter of asset life or term of lease

Net Income per Share (Narrative) (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Warrants [Member]	Dec. 31, 2012 Warrants [Member]	Dec. 31, 2013 Purchased Call Options [Member]	Dec. 31, 2012 Purchased Call Options [Member]	Dec. 31, 2013 Stock Options [Member]	Dec. 31, 2012 Stock Options [Member]	Dec. 31, 2011 Stock Options [Member]	Dec. 31, 2013 Restricted Stock [Member]	Dec. 31, 2012 Restricted Stock [Member]	Dec. 31, 2011 Restricted Stock [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Mar. 31, 2012 February 2015 Notes [Member]	Feb. 29, 2012 February 2015 Notes [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Nov. 01, 2010 February 2015 Notes [Member]
Debt Instrument [Line Items]
Amount of convertible notes payable												$ 179.0
Convertible Debt											$ 1.0		$ 10.0	$ 169.0	$ 92.0
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	21,100,000	19,600,000	24,800,000	23,000,000	115,000	157,000	193,000	0	1,000	0

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Net income	$ 61,092	$ 56,225	$ 93,742	$ 53,471	$ 49,408	$ 48,575	$ 73,502	$ 40,184	$ 264,530	$ 211,669	$ 199,389
Add back interest expense for convertible notes, net of estimated tax of approximately $7 and $4 for the three months ended September 30, 2013 and 2012, respectively, and $13 and $21 for the nine months ended September 30, 2013 and 2012, respectively (see Note 9)									25	46	5,544
Income used to compute net income per diluted share									$ 264,555	$ 211,715	$ 204,933
Total weighted-average shares used to compute net income per basic share (in Shares)									139,842	139,711	139,663
Diluted (in Shares)									159,343	146,403	177,441
Net income per basic share (in Dollars per Share)	$ 0.44	$ 0.40	$ 0.67	$ 0.38	$ 0.35	$ 0.35	$ 0.53	$ 0.29	$ 1.89	$ 1.52	$ 1.43
Net income per diluted share (in Dollars per Share)	$ 0.39	$ 0.36	$ 0.62	$ 0.36	$ 0.34	$ 0.32	$ 0.52	$ 0.29	$ 1.66	$ 1.45	$ 1.15
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)									12,373	4,944	0
2012 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)									0	0	9,790
February 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)									106	631	27,950
May 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)									6,919	1,005	0
Stock Options [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)									83	95	13
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)									20	17	25

Fair Value Measurements (Narrative) (Detail) (USD $)			12 Months Ended
Fair Value Measurements (Narrative) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Depomed [Member]
Embedded Derivative, Fair Value of Embedded Derivative Asset	$ 1,100,000	$ 600,000
Fair Value Assumptions, Expected Term			15 years
Restricted investment	0	20,000,000
Transfers from level 1 to level 2, amount	0	0
Transfers from level 2 to level 1, amount	$ 0	$ 0

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial assets:
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	$ 99,540	$ 168,689
Assets, Fair Value	91,208	160,795
Financial liabilites:
Foreign currency hedge contracts	8,871	7,581
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	85,970	121,095
Certificate of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	26,128
Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	5,238	0
Corporate Debt Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	13,572
Fair Value Level 1 [Member]
Financial assets:
Assets, Fair Value	85,970	121,095
Financial liabilites:
Foreign currency hedge contracts	0	0
Fair Value Level 1 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	85,970	121,095
Fair Value Level 1 [Member] \| Certificate of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	0
Fair Value Level 1 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	0
Fair Value Level 1 [Member] \| Corporate Debt Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	0
Fair Value Level 2 [Member]
Financial assets:
Assets, Fair Value	5,238	39,700
Financial liabilites:
Foreign currency hedge contracts	8,871	7,581
Fair Value Level 2 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	0	0
Fair Value Level 2 [Member] \| Certificate of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	26,128
Fair Value Level 2 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value		0
Fair Value Level 2 [Member] \| Corporate Debt Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	13,572
Equity Securities [Member]
Financial assets:
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	$ 5,238

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value by Balance Sheet Grouping [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	$ 1,100,000	$ 600,000
Assets
Intangible Asset, Carrying Value	235,677,000
Assets, Fair Value Disclosure	91,208,000	160,795,000
Liabilities:
Notes Payable, Carrying Value	395,280,000	309,952,000	409,985,000
Series 2012 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	172,630,000	165,528,000	0
May 2015 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	148,253,000	143,433,000	138,952,000
February 2015 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	0	991,000	177,663,000
Term Loan [Member]
Liabilities:
Notes Payable, Carrying Value	74,397,000	0
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	47,694,000	41,098,000
Merus Labs Note Receivable [Member]
Assets
Notes receivable, Carrying Value	0	30,000,000
AxoGen Note Receivable [Member]
Assets
Notes receivable, Carrying Value	26,544,000	22,110,000
Avinger Note Receivable [Member]
Assets
Notes receivable, Carrying Value	20,250,000	0
LENSAR Note Receivable [Member]
Assets
Notes receivable, Carrying Value	39,572,000	0
Durata Note Receivable [Member]
Assets
Notes receivable, Carrying Value	24,995,000	0
Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Carrying Value	34,799,000	0
Fair Value Level 2 [Member]
Assets
Assets, Fair Value Disclosure	5,238,000	39,700,000
Liabilities:
Notes payable, Fair Value	564,954,000	410,487,000
Fair Value Level 2 [Member] \| Series 2012 Notes [Member]
Liabilities:
Notes payable, Fair Value	277,650,000	227,187,000
Fair Value Level 2 [Member] \| May 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	212,304,000	182,031,000
Fair Value Level 2 [Member] \| February 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	1,269,000
Fair Value Level 2 [Member] \| Term Loan [Member]
Liabilities:
Notes payable, Fair Value	75,000,000	0
Fair Value Level 2 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Merus Labs Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	30,000,000
Fair Value Level 2 [Member] \| AxoGen Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Avinger Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Durata Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 3 [Member]
Assets
Assets, Fair Value Disclosure	190,254,000	63,208,000
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| Series 2012 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| May 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| February 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| Term Loan [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value	46,042,000	41,098,000
Fair Value Level 3 [Member] \| Merus Labs Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 3 [Member] \| AxoGen Note Receivable [Member]
Assets
Notes receivable, Fair Value	25,785,000	22,110,000
Fair Value Level 3 [Member] \| Avinger Note Receivable [Member]
Assets
Notes receivable, Fair Value	19,061,000	0
Fair Value Level 3 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	39,572,000	0
Fair Value Level 3 [Member] \| Durata Note Receivable [Member]
Assets
Notes receivable, Fair Value	24,995,000	0
Fair Value Level 3 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	34,799,000	0
Assets [Member]
Assets
Assets, Fair Value Disclosure	193,854,000	93,208,000
Assets [Member] \| Fair Value Level 2 [Member]
Assets
Assets, Fair Value Disclosure	$ 0	$ 30,000,000

Cash Equivalents and Investments (Narrative) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Abstract]
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	$ 1,129,000	$ 7,000
Gains (losses) on sales of available-for-sale securities	0	13,000	0
Other-than-temporary impairments on available-for-sale securities	$ 0	$ 0

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	$ 97,802	$ 168,679
Unrealized Gains	1,738	10
Unrealized Losses	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	99,540	168,689
Cash and Cash Equivalents	94,302	131,212	168,544	211,574
Restricted Investment	0	20,000
Short-Term Marketable Securities	5,238	17,477
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	8,332	7,894
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	8,332	7,894
Cash and Cash Equivalents	8,332	7,894
Restricted Investment	0	0
Short-Term Marketable Securities	0	0
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	85,970	121,095
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	85,970	121,095
Cash and Cash Equivalents	85,970	121,095
Restricted Investment	0	0
Short-Term Marketable Securities	0	0
Certificate of Deposit [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost		26,128
Unrealized Gains		0
Unrealized Losses		0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value		26,128
Cash and Cash Equivalents		2,223
Restricted Investment		20,000
Short-Term Marketable Securities		3,905
Equity Securities [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	3,500
Unrealized Gains	1,738
Unrealized Losses	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	5,238
Cash and Cash Equivalents	0
Restricted Investment	0
Short-Term Marketable Securities	5,238
Corporate Debt Securities [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost		13,562
Unrealized Gains		10
Unrealized Losses		0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value		13,572
Cash and Cash Equivalents		0
Restricted Investment		0
Short-Term Marketable Securities		$ 13,572

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References+ Details

Cash Equivalents and Investments (Summary of Available-For-Sale Securities by Contractual Maturity) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash and Cash Equivalents [Abstract]
Less than one year, Amortized Cost	$ 97,802	$ 168,679
Less than one year, Fair Value	99,540	168,689
Greater than one year but less than five years, Amortized Cost	0	0
Greater than one year but less than five years, Fair Value	0	0
Total, Amortized Cost	97,802	168,679
Total, Fair Value	$ 99,540	$ 168,689

Foreign Currency Hedging (Narrative) (Detail) (USD $)	12 Months Ended
Foreign Currency Hedging (Narrative) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative Instrument Gain Loss [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	$ (4,800,000)
Gain recognized in other comprehensive income (loss) net of tax effects		391,000
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net	(11,000)	8	19
Restructuring hedges, net loss	$ 0	$ 161,000	$ 0

Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Derivative [Line Items]
Derivative, Notional Amount	$ 111,614	$ 210,667
Fair Value	(8,871)	(7,581)
Eurodollar Sell Forward Contract 1.230 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.230
Derivative, Notional Amount	0	27,553
Fair Value	0	(2,036)
Eurodollar Sell Forward Contract 1.240 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.240
Derivative, Notional Amount	10,850	10,850
Fair Value	(1,207)	(726)
Eurodollar Sell Forward Contract 1.270 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.270
Derivative, Notional Amount	44,450	44,450
Fair Value	(3,760)	(1,950)
Eurodollar Sell Forward Contract 1.281 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.281
Derivative, Notional Amount	36,814	36,814
Fair Value	(2,785)	(1,331)
Eurodollar Sell Forward Contract 1.300 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.300
Derivative, Notional Amount	19,500	91,000
Fair Value	$ (1,119)	$ (1,538)

Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Euro contracts, Accrued liabilities	$ 7,355	$ 3,574
Euro contracts, Other long-term liabilities	$ 1,516	$ 4,007

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References+ Details

Net gain (loss) recognized in OCI, net of tax

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled after one year or the normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References+ Details

Foreign Currency Hedging (Schedule of Effect of Derivative Instruments in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income) (Detail) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Derivative [Line Items]

$ (2,432)

^[1]

$ (5,040)

^[1]

$ (4,470)

^[1]

Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax

(1,510)

^[2]

(1,859)

^[2]

664

^[2]

Cash Flow Hedges [Member]

Derivative [Line Items]

Net gain (loss) recognized in interest and other income, net

^[3]

(169)

^[3]

(19)

^[3]

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Net gain (loss) recognized in interest and other income, net

$ 0

^[4]

$ 391

^[4]

$ 0

^[4]

[1]	Net change in the fair value of the effective portion of cash flow hedges classified in other comprehensive income (loss) (OCI)
[2]	Effective portion classified as royalty revenue
[3]	Ineffectiveness from excess hedge was approximately ($11), $8 and $19 for the years ended December 31, 2013, 2012 and 2011, respectively. Net loss from restructuring hedges was approximately zero, $161 and zero for the years ended December 31, 2013, 2012 and 2011, respectively
[4]	Gain on de-designation classified as interest and other income, net

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) (USD $)	12 Months Ended					0 Months Ended		3 Months Ended			12 Months Ended		0 Months Ended			0 Months Ended		1 Months Ended				1 Months Ended	3 Months Ended		0 Months Ended	1 Months Ended		12 Months Ended			0 Months Ended					0 Months Ended	1 Months Ended	12 Months Ended			58 Months Ended	0 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Oct. 31, 2013	Aug. 15, 2013 Wellstat Diagnostics [Member]	Sep. 23, 2013 Merus Labs [Member]	Jul. 31, 2012 Merus Labs [Member]	Sep. 30, 2013 Merus Labs [Member]	Dec. 31, 2012 Merus Labs [Member]	Sep. 24, 2013 Merus Labs [Member]	Dec. 31, 2013 AxoGen [Member]	Aug. 14, 2013 AxoGen [Member]	Oct. 03, 2013 LENSAR [Member]	Nov. 02, 2013 Durata [Member]	Oct. 31, 2013 Durata [Member]	Nov. 05, 2013 DirectFlow [Member]	Nov. 06, 2013 DirectFlow [Member]	Mar. 31, 2012 Notes Receivable [Member] Wellstat Diagnostics [Member]	Dec. 31, 2013 Notes Receivable [Member] Wellstat Diagnostics [Member]	Aug. 31, 2012 Notes Receivable [Member] Wellstat Diagnostics [Member]	Jul. 31, 2012 Notes Receivable [Member] Merus Labs [Member]	Apr. 30, 2013 Notes Receivable [Member] Avinger [Member]	Jun. 30, 2014 Notes Receivable [Member] Avinger [Member]	Apr. 18, 2013 Notes Receivable [Member] Avinger [Member]	Aug. 15, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Feb. 28, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Jan. 31, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Dec. 31, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Nov. 02, 2012 Credit Agreement [Member] Wellstat Diagnostics [Member]	Jul. 31, 2012 Credit Agreement [Member] Merus Labs [Member]	Aug. 15, 2013 Initial Loan [Member] Wellstat Diagnostics [Member]	Sep. 30, 2013 Initial Loan [Member] Merus Labs [Member]	Jun. 28, 2013 Additional Loan [Member] Wellstat Diagnostics [Member]	Sep. 30, 2013 Additional Loan [Member] Merus Labs [Member]	Apr. 18, 2013 Additional Loan [Member] Avinger [Member]	Oct. 03, 2013 Additional Loan [Member] LENSAR [Member]	Oct. 31, 2012 Royalty Agreement [Member] AxoGen [Member]	Dec. 31, 2013 Royalty Agreement [Member] AxoGen [Member]	Sep. 30, 2013 Royalty Agreement [Member] AxoGen [Member]	Dec. 31, 2012 Royalty Agreement [Member] AxoGen [Member]	Apr. 30, 2018 Royalty Agreement [Member] Avinger [Member]	Aug. 15, 2013 Term loan and interest [Member] Wellstat Diagnostics [Member]	Aug. 15, 2013 Forbearance principal and interest [Member] Wellstat Diagnostics [Member]	Oct. 31, 2013 Tranche two [Member] Durata [Member]	Nov. 06, 2013 Tranche two [Member] DirectFlow [Member]	Oct. 31, 2013 Tranche three [Member] Durata [Member]	Dec. 31, 2013 Notes Receivable [Member] Merus Labs [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross													$ 40,000,000		$ 25,000,000		$ 35,000,000	$ 7,500,000	$ 47,700,000	$ 10,000,000	$ 35,000,000			$ 20,000,000					$ 40,000,000				$ 1,300,000											$ 15,000,000	$ 15,000,000	$ 30,000,000	$ 0
Period after occurence of milestone, additional funding available [months]				9 months
Financing Receivable, Modifications, Pre-Modification Recorded Investment																															33,700,000											1,300,000	9,100,000
Financing receivable, modification, cost as a component of interest and other income, net					2,500,000
Term of receivable (in Duration)																		2 years																			8 years
Royalty rate on AxoGen net revenues (in percent)																																					9.95%
Guaranteed quarterly minimum payment-low																																					1,300,000
Guaranteed quarterly minimum payment-high																																					2,500,000
Interest rate of note receivable (in Percent)					5.00%								15.50%		14.00%		15.50%	10.00%		12.00%				12.00%								13.50%		14.00%	14.00%									12.75%	13.50%
Reduction in royalty rate (in percent)																																									50.00%
Repayment of notes receivable	58,134,000	5,000,000	0			43,300,000		7,500,000	5,000,000
Financing receivable, prepayment fee										0.01
Credit agreement, stated interest rate (in Percent)																													5.00%
Proceeds received under remedies available for borrower's breach of terms credit agreement																											8,100,000
Amount company has agreed to advance under agreement							55,000,000						60,000,000	70,000,000		50,000,000						40,000,000				7,900,000		8,700,000								20,000,000
Financing Receivable, Modifications, Post-Modification Recorded Investment																									44,100,000
Forbearance period under terms of credit agreement (in Duration)																										120 days
Letter of credit extended																														20,000,000
Term of royalty agreement (in Duration)																																					8 years
Total consideration paid to AxoGen for the royalty rights																																					20,800,000
Initial interim funding for royalty rights																																					1,800,000
Internal rate of return (in percent)																																					32.50%
fair value change of control																																							1,100,000	600,000
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net																																						500,000
Investment Owned, Balance, Shares												1,166,666
Share Price	$ 8.44											$ 3.00
Investment Owned, at Cost												3,500,000
Investment Owned, at Fair Value											5,200,000
Unrealized Gain (Loss) on Investments											1,700,000
Minimum amount of additional funds, upon attainment of milestones																							10,000,000
Maximum amount of additional funds, upon attainment of milestones																							$ 20,000,000
Debt Instrument, Date of First Required Payment													Dec. 30, 2016

Prepaid and Other Current Assets (Prepaid and Other Current Assets) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Convertible notes issuance costs	$ 3,097	$ 0
Prepaid Taxes	1,877	3,351
Other Assets, Current	2,493	1,462
Prepaid Expense and Other Assets, Current	$ 7,467	$ 4,813

Amount of asset related to consideration paid in advance for income and other taxes that provide economic benefits within a future period of one year or the normal operating cycle, if longer.

+ References+ Details

Property and Equipment (Property and Equipment) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Leasehold Improvements, Gross	$ 127	$ 127
Computer and office equipment	9,028	8,993
Furniture and Fixtures, Gross	38	38
Property, Plant and Equipment, Gross	9,193	9,158
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(9,152)	(9,131)
Construction in Progress, Gross	0	32
Property, Plant and Equipment, Net	$ 41	$ 59

Intangible Asset (Details) (USD $)	0 Months Ended	12 Months Ended
Intangible Asset (Details) (USD $)	Oct. 17, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Oct. 18, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets		$ 5,637,000	$ 0	$ 0
Payments to Acquire Intangible Assets	240,500,000	241,314,000	0	0
Total consideration paid to purchase intangible assets, plus transaction costs					241,300,000
Business Acquisition, Transaction Costs					800,000
Finite-Lived Intangible Asset, Useful Life		9 years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months		33,880,000
Finite-Lived Intangible Assets, Gross		241,314,000
Finite-Lived Intangible Assets, Accumulated Amortization		(5,637,000)
Finite-Lived Intangible Assets, Net		235,677,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two		44,940,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three		33,184,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four		19,028,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five		18,096,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five		86,549,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount		235,700,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		8 years
Glumetza [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible purchase price being amortized					164,500,000
Other Depomed Products [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible purchase price being amortized					$ 76,800,000

Accrued Liabilities (Accrued Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Payables and Accruals [Abstract]
Compensation	$ 768	$ 594
Interest	2,925	2,925
Foreign currency hedge	7,355	3,574
Dividend payable	59	53
Legal	324	2,020
Other	426	234
Total	$ 11,857	$ 9,400

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

Carrying value as of the balance sheet date of [accrued] interest payable on all forms of debt, including trade payables, that has been incurred and is unpaid. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References+ Details

Convertible Notes (Narrative) (Detail) (USD $)	3 Months Ended		12 Months Ended				1 Months Ended	3 Months Ended		9 Months Ended	12 Months Ended				0 Months Ended	3 Months Ended		12 Months Ended		3 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended	0 Months Ended	1 Months Ended					12 Months Ended			12 Months Ended				12 Months Ended
Convertible Notes (Narrative) (Detail) (USD $)	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	May 16, 2011	Jan. 31, 2012 Series 2012 Notes [Member]	Dec. 31, 2013 Series 2012 Notes [Member]	Sep. 30, 2013 Series 2012 Notes [Member]	Sep. 30, 2013 Series 2012 Notes [Member]	Dec. 31, 2013 Series 2012 Notes [Member]	Dec. 31, 2012 Series 2012 Notes [Member]	Aug. 01, 2013 Series 2012 Notes [Member]	Feb. 29, 2012 Series 2012 Notes [Member]	May 16, 2011 May 2015 Notes [Member]	Dec. 31, 2013 May 2015 Notes [Member]	Sep. 30, 2013 May 2015 Notes [Member]	Dec. 31, 2013 May 2015 Notes [Member]	Dec. 31, 2012 May 2015 Notes [Member]	Sep. 30, 2013 Purchased Call Options [Member]	Dec. 31, 2013 Purchased Call Options [Member]	Jan. 31, 2013 Warrants [Member]	Sep. 30, 2013 Warrants [Member]	Dec. 31, 2013 Warrants [Member]	Nov. 01, 2010 February 2015 Notes [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Dec. 31, 2013 February 2015 Notes [Member]	Sep. 30, 2013 February 2015 Notes [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Feb. 29, 2012 February 2015 Notes [Member]	Dec. 31, 2013 Non-recourse Notes [Member]	Dec. 31, 2012 Non-recourse Notes [Member]	Nov. 02, 2009 Non-recourse Notes [Member]	Dec. 31, 2013 Term Loan. [Member]	Dec. 31, 2012 Term Loan. [Member]	Oct. 28, 2013 Term Loan. [Member]	Oct. 28, 2013 Term Loan. [Member] Base Rate [Member]	Dec. 31, 2013 Purchased Call Options [Member]	Dec. 31, 2012 Purchased Call Options [Member]
Debt Instrument [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount																																						24,800,000	23,000,000
Convertible notes														$ 10,000,000	$ 155,300,000										$ 92,000,000	$ 169,000,000			$ 1,000,000	$ 10,000,000			$ 300,000,000
Incentive fee per each $1,000 principal amount tendered to convert debt																										5.00
Principal amount a $5 incentive cash payment per each to convert debt	1,000							1,000			1,000															1,000
Induced conversion of convertible debt expense							845,000																			800,000
Deferred issue costs, incentive payment allocated							765,000
Adjustments to additional paid in capital, equity component of convertible debt				10,692,000	11,870,000		52,000			10,900,000								12,300,000
Noted obligation allocated to deferred tax assets							28,000			5,900,000								6,600,000
Debt instrument, interest rate (in Percent)							2.875%									3.75%	3.75%	3.75%								2.875%							10.25%			2.24%	1.00%
Convertible note rate conversion trading days (in days)	0	0	0
Convertible Notes rate conversion consecutive trading days (in days)	30	30	30
Convertible notes due upon demand within (in years)			1
Total debt discount																18,900,000		18,900,000										16,800,000
Unamortized discount of liability component							(2,300,000)	(7,370,000)			(7,370,000)	(13,472,000)				(6,997,000)		(6,997,000)	(11,817,000)
Minimum conversion price percent for note conversion (in Percent)								130.00%								130.00%
Convertible Notes rate conversion business day period (in days)	5		5
Convertible Notes rate conversion consecutive trading day period (in days)	0		5
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)											98.00%					98.00%
Debt Instrument, Interest Rate, Effective Percentage						7.50%	7.30%		7.30%	7.30%					7.50%
Convertible notes, conversion price (in Dollars per Share)								$ 5.48			$ 5.48					$ 6.25		$ 6.25						$ 7.50
Debt instrument, convertible, remaining amortization period (in Duration)											1 year 1 month							1 year 4 months
Debt instrument, convertible, conversion threshold (in Dollars per Share)								$ 7.12	$ 7.23							$ 8.13	$ 8.26
Debt instrument, convertible, if-converted value											97,400,000					54,300,000
Net proceeds from the issuance of convertible notes			0	0	149,712,000										149,700,000
Convertible notes repurchase price as a percentage of principal (in Percent)															100.00%
Debt Instrument, Face Amount								180,000,000			180,000,000	179,000,000	180,000,000			155,250,000		155,250,000	155,250,000								0	0
Conversion Rate per $1,000 Principal Amount (in Ratio)								182.598								159.9165
Number of hedge counterparties (in Counterparties)																					2
Purchased call options cost			0	0	(20,765,000)															7,200,000	20,800,000
Number of shares of common stock covered by the purchased call options purchased (in Shares)																							27,500,000
Proceeds from issuance of warrants			0	0	10,868,000																	10,900,000	10,900,000
Debt conversion, shares issued (in Shares)																								1,900,000
Gain on conversion of convertible notes			0	0	(766,000)																				1,100,000
Debt instrument, increase, additional borrowings			75,000,000	0							1,000,000	176,679,000						0	0						88,000,000						0	0		75,000,000	0
Securitization of royalties (in percent)																																	60.00%
Securitization of royalties (in years)																																	5 years
Short-term Debt																																				$ 75,000,000

Convertible Notes (Summary of Convertible Notes) (Detail) (USD $)	3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended					3 Months Ended	12 Months Ended				0 Months Ended	1 Months Ended	12 Months Ended			12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Series 2012 Notes [Member]	Dec. 31, 2013 Series 2012 Notes [Member]	Dec. 31, 2012 Series 2012 Notes [Member]	Dec. 31, 2011 Series 2012 Notes [Member]	Aug. 01, 2013 Series 2012 Notes [Member]	Jan. 31, 2012 Series 2012 Notes [Member]	Dec. 31, 2013 May 2015 Notes [Member]	Dec. 31, 2013 May 2015 Notes [Member]	Dec. 31, 2012 May 2015 Notes [Member]	Dec. 31, 2011 May 2015 Notes [Member]	Sep. 30, 2013 May 2015 Notes [Member]	Nov. 01, 2010 February 2015 Notes [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Dec. 31, 2013 February 2015 Notes [Member]	Dec. 31, 2012 February 2015 Notes [Member]	Sep. 30, 2013 February 2015 Notes [Member]	Dec. 31, 2013 Non-recourse Notes [Member]	Dec. 31, 2012 Non-recourse Notes [Member]	Nov. 02, 2009 Non-recourse Notes [Member]	Dec. 31, 2013 Term Loan. [Member]	Dec. 31, 2012 Term Loan. [Member]	Oct. 28, 2013 Term Loan. [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									2.875%	3.75%	3.75%			3.75%		2.875%						10.25%			2.24%
Debt Instrument, Convertible, Conversion Ratio				182.598						159.9165
Convertible notes, conversion price (in Dollars per Share)				$ 5.48	$ 5.48					$ 6.25	$ 6.25
Principal amount a $5 incentive cash payment per each to convert debt	$ 1,000			$ 1,000	$ 1,000											$ 1,000
Convertible Notes, Principal Balance Outstanding				180,000,000	180,000,000	179,000,000		180,000,000		155,250,000	155,250,000	155,250,000					0		0
Convertible Notes and Term Loans, Beginning Balance		309,952,000	409,985,000		165,528,000	0					143,433,000	138,952,000				177,663,000	991,000	177,663,000		0	93,370,000		0	0
Issuance and exchange of Debt		75,000,000	0		1,000,000	176,679,000					0	0			88,000,000					0	0		75,000,000	0
Exchange of debt																	(1,000,000)	(176,679,000)
Repayments of Debt			(93,370,000)			0						0						0			(93,370,000)			0
Non-cash discount		(831,000)	(16,833,000)		0	(16,833,000)					0	0					0	0		0	0		(831,000)	0
Amortization of Debt Discount (Premium)		11,159,000	10,170,000		6,102,000	5,682,000	0				4,820,000	4,481,000	2,639,000				9,000	7,000		0	0		228,000	0
Convertible Notes and Term Loans, Ending Balance	$ 395,280,000	$ 395,280,000	$ 309,952,000	$ 172,630,000	$ 172,630,000	$ 165,528,000	$ 0			$ 148,253,000	$ 148,253,000	$ 143,433,000	$ 138,952,000				$ 0	$ 991,000		$ 0	$ 0		$ 74,397,000	$ 0

Convertible Notes (Summary of Series 2012 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Aug. 01, 2013	Dec. 31, 2012	Jan. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 395,280		$ 309,952		$ 409,985
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding	180,000	180,000	179,000
Unamortized discount of liability component	(7,370)		(13,472)	(2,300)
Convertible Notes Payable, Carrying Value	$ 172,630		$ 165,528		$ 0

Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Amortization of debt discount	$ 11,159	$ 10,170
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	5,158	5,122	0
Amortization of debt issuance costs	1,152	1,107	0
Amortization of debt discount	6,102	5,682	0
Total	$ 12,412	$ 11,911	$ 0

Convertible Notes (Summary of May 2015 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 395,280	$ 309,952	$ 409,985
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	155,250	155,250
Unamortized discount of liability component	(6,997)	(11,817)
Convertible Notes Payable, Carrying Value	$ 148,253	$ 143,433	$ 138,952

Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Amortization of debt discount	$ 11,159	$ 10,170
May 2015 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	5,822	5,822	3,639
Amortization of debt issuance costs	1,232	1,193	727
Amortization of debt discount	4,820	4,481	2,639
Total	$ 11,874	$ 11,496	$ 7,005

Convertible Notes Schedule of Maturities of Long-term Debt (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 75,000
Long-term Debt, Maturities, Repayments of Principal in Year Two	335,250
Long-term Debt	410,250
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	180,000
Long-term Debt	180,000
May 2015 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	155,250
Long-term Debt	155,250
Term Loan. [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	75,000
Long-term Debt, Maturities, Repayments of Principal in Year Two	0
Long-term Debt	$ 75,000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Carrying amount of long-term debt, net of unamortized discount or premium, including current and noncurrent amounts. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References+ Details

Other Long-Term Liabilities (Narrative) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Other Liabilities Disclosure [Abstract]
Total lease payments for the duration of the guarantee	$ 90,200,000
Accrued lease liability	$ 10,700,000	$ 10,700,000

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Other Liabilities Disclosure [Abstract]
Accrued lease liability	$ 10,700	$ 10,700
Uncertain tax position	10,826	12,955
Foreign currency hedge, long-term	1,516	4,007
Total	$ 23,042	$ 27,662

Stock-Based Compensation (Narrative) (Detail) (USD $)	12 Months Ended
Stock-Based Compensation (Narrative) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense, Net of Tax	$ 872,000	$ 937,000	$ 387,000
Aggregate intrinsic value, non-vested restricted stock	1,000,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	10 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	114,000	120,000	137,000	40,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	10 months
Share Price	$ 8.44
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 5.41
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 22.60
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	24 months
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense, Net of Tax	$ 900,000	$ 900,000	$ 400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	113,882

Stock-Based Compensation (Shares of Company Common Stock Available Under Share-Based Plans) (Detail)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2013

2005 Equity Incentive Plan [Member]

Dec. 31, 2013

2002 Outside Directors Stock Option Plan [Member]

Dec. 31, 2013

1999 Non-statutory Stock Option Plan [Member]

Dec. 31, 2013

1999 Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

5,200,000

^[1]

157,000

^[2]

5,071,183

^[2]

3,704,376

^[2]

Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period

722,335

^[1]

140,750

^[2]

4,966,183

^[2]

3,653,150

^[2]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

172,000

196,000

231,000

274,000

^[1]

16,250

^[2]

105,000

^[2]

51,226

^[2]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

4,477,665,000

^[1]

^[2]

[1]	As of December 31, 2013, there were 113,882 shares of unvested restricted stock awards outstanding.
[2]	Plan terminated in 2009, subject to options outstanding under the plan.

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	172	196	231
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 16.52	$ 16.22	$ 16.62
Stock Options, Number of Shares, Balance at beginning of period (in Shares)	196	231	274
Stock Options, Number of Shares, Balance at end of period (in Shares)	172	196	231
Stock Options, Weighted Average Exercise Price, Balance at beginning of period (in Dollars per Share)	$ 16.22	$ 16.62	$ 17.25
Stock Options, Weighted Average Exercise Price, Balance at end of period (in Dollars per Share)	$ 16.52	$ 16.22	$ 16.62
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	120	137	40
Restricted Stock Awards, Number of Shares Granted (in Shares)	127	139	155
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	114	120	137
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 6.51	$ 6.09	$ 5.05
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	$ 7.50	$ 6.49	$ 6.15
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	118	137	40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 7.07	$ 6.35	$ 6.59
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	$ 7.45	$ 6.51	$ 6.09
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(24)	(35)	(43)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 14.07	$ 18.83	$ 20.67

Stock-Based Compensation (Restricted Stock Activity) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	114	120	137	40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 7.45	$ 6.51	$ 6.09	$ 5.05
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	127	139	155
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 7.50	$ 6.49	$ 6.15
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(118)	(137)	(40)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 6.59	$ 6.09	$ 5.05
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 7.07	$ 6.35	$ 6.59
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(15)	(19)	(18)

Cash Dividends (Narrative) (Detail) (USD $)	0 Months Ended				12 Months Ended
Cash Dividends (Narrative) (Detail) (USD $)	Jan. 29, 2014	Jan. 24, 2013	Jan. 19, 2012	Feb. 26, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stockholders' Equity Note [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.60	$ 0.60	$ 0.60
Payments of Dividends					$ 84,006,000	$ 83,942,000	$ 83,828,000
Payments of Ordinary Dividends, Common Stock						$ 83,900,000	$ 83,800,000

Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Genentech [Member]

Concentration Risk [Line Items]

Royalty by Licensee as a percentage of revenue, Percentage

83.00%

85.00%

86.00%

Biogen Idec [Member]

Concentration Risk [Line Items]

Royalty by Licensee as a percentage of revenue, Percentage

11.00%

^[1]

13.00%

^[1]

12.00%

^[1]

[1]	In April 2013, Biogen Idec completed its purchase of Elan's interest in Tysabri. Prior to this our licensee for Tysabri was identified as Elan.

Customer Concentration (Total Revenues by Geographic Area) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Revenues	$ 110,143	$ 97,314	$ 143,617	$ 91,847	$ 86,046	$ 85,231	$ 125,904	$ 77,344	$ 442,921	$ 374,525	$ 362,041
UNITED STATES
Concentration Risk [Line Items]
Revenues									165,412	133,824	137,269
Europe [Member]
Concentration Risk [Line Items]
Revenues									277,434	240,626	224,472
Other geographic location [Member]
Concentration Risk [Line Items]
Revenues									$ 75	$ 75	$ 300

Income Taxes (Narrative) (Detail) (USD $)	12 Months Ended
Income Taxes (Narrative) (Detail) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014	Dec. 31, 2010
Operating Loss Carryforwards [Line Items]
Unrecognized Tax Benefits	$ 32,419,000	$ 32,647,000	$ 23,061,000		$ 23,061,000
Valuation Allowance, Deferred Tax Asset, Change in Amount	15,000,000
Deferred Tax Assets, Valuation Allowance	5,390,000	20,392,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	9,300,000			6,500,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	700,000	200,000	500,000
Unrecognized tax benefits resulting in adjustment to deferred tax assets	23,100,000
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	5,490,000	5,557,000	0
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	5,718,000	0	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	1,500,000	700,000
Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	39,400,000	41,100,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	22,000,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	215,500,000	215,500,000
Deferred Tax Assets, Tax Credit Carryforwards	20,000,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 18,700,000
For the years ending December 31, 2014 to 2022 [Member] \| Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Limitations on Use	1.8
For the year ending December 31, 2023 [Member] \| Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Limitations on Use	1.3

Income Taxes (Provision for Income Taxes) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Contingency [Line Items]
Current Federal Tax Expense (Benefit)	$ 134,619	$ 104,152	$ 83,569
Current State and Local Tax Expense (Benefit)	3,726	1	1
Current Income Tax Expense (Benefit)	138,345	104,153	83,570
Deferred Federal Income Tax Expense (Benefit)	(416)	11,311	24,469
Deferred State and Local Income Tax Expense (Benefit)	(583)	0	0
Deferred Income Tax Expense (Benefit)	(999)	11,311	24,469
Income Tax Expense (Benefit)	$ 137,346	$ 115,464	$ 108,039

Amount of current federal tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.

+ References+ Details

Amount of current state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of deferred federal income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of deferred state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 6,063	$ 6,686
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	140,656	114,496	107,600
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(2,055)	0	0
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	1	1	1
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	(2,082)
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions		0	0
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	826	967	438
Income Tax Expense (Benefit)	137,346	115,464	108,039
Deferred Tax Assets, Tax Credit Carryforwards, Research	2,259	15,205
Deferred Tax Liabilities, Intangible Assets	3,559	5,487
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	215	222
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves	255	229
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	330	0
Deferred Tax Assets, Unrealized Currency Losses	2,632	2,740
Deferred Tax Assets, Other	47	227
Deferred Tax Assets, Gross	15,360	30,796
Deferred Tax Assets, Valuation Allowance	(5,390)	(20,392)
Deferred Tax Assets, Net of Valuation Allowance	9,970	10,404
Deferred Tax Liabilities, Financing Arrangements	(953)	(954)
Deferred Tax Liabilities, Unrealized Currency Transaction Gains	(1,779)	(3,285)
Deferred Tax Liabilities, Other	(161)	0
Deferred Tax Liabilities, Gross	(2,893)	(4,239)
Deferred Tax Assets, Net	$ 7,077	$ 6,165

Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Beginning Balance	$ 32,647	$ 23,061	$ 23,061
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	0	4,029	0
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	5,490	5,557	0
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	(5,718)	0	0
Unrecognized Tax Benefits, Ending Balance	$ 32,419	$ 32,647	$ 23,061

Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	$ (5,088)
Other Comprehensive Income (Loss), Net of Tax	200	(3,203)	(5,104)
Total Accumulated Other Comprehensive Loss, ending balance	(4,888)	(5,088)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	(5,088)	(1,885)	3,219
Other Comprehensive Income (Loss), Net of Tax	200	(3,203)	(5,104)
Total Accumulated Other Comprehensive Loss, ending balance	(4,888)	(5,088)	(1,885)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	7	29	(1)
Other Comprehensive Income (Loss), Net of Tax	1,122	(22)	30
Total Accumulated Other Comprehensive Loss, ending balance	1,129	7	29
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	(5,095)	(1,914)	3,220
Other Comprehensive Income (Loss), Net of Tax	(922)	(3,181)	(5,134)
Total Accumulated Other Comprehensive Loss, ending balance	$ (6,017)	$ (5,095)	$ (1,914)

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References+ Details

Legal Proceedings (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended	0 Months Ended
	Dec. 31, 2013	Feb. 12, 2012 MedImmune [Member]	Feb. 10, 2012 MedImmune [Member]	Feb. 16, 2011 MedImmune [Member]	Feb. 03, 2011 UCB [Member]	Aug. 16, 2013 Genentech [Member]
Loss Contingencies [Line Items]
Proceeds from Legal Settlements					$ 10.0
Royalty revenue from sales of products made in Europe and sold outside US (in Percent)	43.00%
Fixed royalty rate as a percentage of sales						212.50%
Payments for Legal Settlements		$ 92.5	$ 27.5	$ 65.0

Subsequent Events (Narrative) (Detail) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	3 Months Ended			3 Months Ended			3 Months Ended	12 Months Ended						3 Months Ended
	Dec. 31, 2013	Mar. 31, 2014 Paradigm Spine [Member]	Feb. 14, 2014 Paradigm Spine [Member]	Mar. 31, 2014 Tranche two [Member] Paradigm Spine [Member]	Mar. 31, 2014 February 2018 Notes [Member]	Feb. 06, 2014 February 2018 Notes [Member]	Dec. 31, 2013 Series 2012 Notes [Member]	Dec. 31, 2013 Series 2012 Notes [Member]	Aug. 01, 2013 Series 2012 Notes [Member]	Dec. 31, 2012 Series 2012 Notes [Member]	Feb. 29, 2012 Series 2012 Notes [Member]	Feb. 06, 2014 Underwritten public offering [Member] February 2018 Notes [Member]	Feb. 06, 2014 Option to underwriters to purchase an amount of principal of convertible notes [Member] February 2018 Notes [Member]	Mar. 31, 2014 Exchange of convertible debt [Member] Series 2012 Notes [Member]	Feb. 07, 2014 Exchange of convertible debt [Member] Series 2012 Notes [Member]
Subsequent Event [Line Items]
Principal amount a $5 incentive cash payment per each to convert debt	$ 1,000				$ 1,000		$ 1,000	$ 1,000
Debt Instrument, Convertible, Conversion Price						$ 9.17	$ 5.48	$ 5.48
Interest rate of note receivable (in Percent)			13.00%
Amount company has agreed to advance under credit agreement		75,000,000		12,500,000
Financing Receivable, Gross			50,000,000
Low end of amount company has agreed to advance under credit agreement			6,250,000
Debt Instrument, Face Amount						300,000,000	180,000,000	180,000,000	180,000,000	179,000,000		260,870,000	39,130,000
Conversion Rate per $1,000 Principal Amount (in Ratio)					109.1048		182.5980
Dividends Payable, Amount Per Share						$ 0.15
Convertible notes											10,000,000				131,700,000
Stock Issued During Period, Shares, Conversion of Convertible Securities														20.3
Cash paid to exchange convertible note															$ 34,200,000

Quarterly Financial Data (Unaudited) (Narrative) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Data [Abstract]
Revenues	$ 110,143	$ 97,314	$ 143,617	$ 91,847	$ 86,046	$ 85,231	$ 125,904	$ 77,344	$ 442,921	$ 374,525	$ 362,041
Net income	$ 61,092	$ 56,225	$ 93,742	$ 53,471	$ 49,408	$ 48,575	$ 73,502	$ 40,184	$ 264,530	$ 211,669	$ 199,389
Net income per basic share (in Dollars per Share)	$ 0.44	$ 0.40	$ 0.67	$ 0.38	$ 0.35	$ 0.35	$ 0.53	$ 0.29	$ 1.89	$ 1.52	$ 1.43
Net income per diluted share (in Dollars per Share)	$ 0.39	$ 0.36	$ 0.62	$ 0.36	$ 0.34	$ 0.32	$ 0.52	$ 0.29	$ 1.66	$ 1.45	$ 1.15

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.