Notes and other receivables, long-term

242,452

^[1]

235,677

^[2]

363,289

^[1]

193,840

^[2]

Long-term deferred tax assets

25,096

^[1]

6,700

^[2]

Other assets

7,521

^[1]

^[2]

Total assets

979,869

^[1]

543,955

^[2]

Current liabilities:

Accounts payable

1,079

^[1]

287

^[2]

Accrued liabilities

35,677

^[1]

11,857

^[2]

Accrued Income Taxes, Current

6,494

^[1]

^[2]

Term loan payable

18,720

^[1]

74,397

^[1]

Convertible Notes Payable, Current

199,669

^[1]

320,883

^[2]

Total current liabilities

261,639

^[1]

407,424

^[2]

Convertible notes payable

274,512

^[1]

^[2]

Other long-term liabilities

41,712

^[1]

23,042

^[2]

Total liabilities

577,863

^[1]

430,466

^[2]

Commitments and contingencies (Note 8)

^[1]

^[2]

Stockholders' deficit:

Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding

^[1]

^[2]

Common stock, par value $0.01 per share, 350,000 shares authorized; 160,228 and 139,935 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively

1,603

^[1]

1,399

^[2]

Additional paid-in capital

(120,180)

^[1]

(233,173)

^[2]

Accumulated other comprehensive loss

(393)

^[1]

(4,888)

^[2]

Retained earnings

520,976

^[1]

350,151

^[2]

Total stockholders' equity

402,006

^[1]

113,489

^[2]

Total liabilities and stockholders' equity

$ 979,869

^[1]

$ 543,955

^[2]

[1]	unaudited
[2]	Note 1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
In Thousands, except Per Share data, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Statement of Financial Position [Abstract]

Preferred stock par value (in Dollars per Share)

$ 0.01

^[1]

$ 0.01

^[2]

Preferred stock, shares authorized (in Shares)

10,000

^[1]

10,000

^[2]

Preferred stock, shares issued (in Shares)

^[1]

^[2]

Preferred stock, shares outstanding (in Shares)

^[1]

^[2]

Common stock par value (in Dollars per Share)

$ 0.01

^[1]

$ 0.01

^[2]

Common stock, shares authorized (in Shares)

350,000

^[1]

350,000

^[2]

Common stock, shares issued (in Shares)

160,276

^[1]

139,935

^[2]

Common stock, shares outstanding (in Shares)

160,276

^[1]

139,935

^[2]

[1]	unaudited
[2]	Note 1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands, unless otherwise specified

9 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Cash flows from operating activities

Net income

$ 267,173

$ 203,438

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of convertible notes and term loan offering costs

13,473

9,921

Change in fair value of acquired royalty rights

(72,992)

Losses on Extinguishment of Debt

(6,143)

Depreciation, Amortization and Accretion, Net

(144)

(360)

Hedge ineffectiveness on foreign exchange contracts

(5)

(9)

Stock-based compensation expense

1,026

559

Deferred Tax Expense from Stock Options Exercised

(15)

Deferred income taxes

(6,493)

(663)

Changes in assets and liabilities:

Receivables from licensees and other

(534)

Prepaid and other current assets

1,959

3,298

Accrued interest on notes receivable

(8,367)

(6,573)

Other assets

(29)

Accounts payable

792

395

Accrued liabilities

3,325

1,302

Increase (Decrease) in Income Taxes Payable

6,494

3,231

Other long-term liabilities

10,834

(5,483)

Net cash provided by operating activities

223,239

208,535

Cash flows from investing activities

Payments to Acquire Available-for-sale Securities

9,875

Maturities of investments

42,098

Purchase of royalty rights

(15,500)

Payments for (Proceeds from) Productive Assets

81,717

Issuance of notes receivable

(215,000)

(48,708)

Repayment of notes receivable

59,279

Payments to Acquire Property, Plant, and Equipment

Net cash used in investing activities

(148,832)

42,792

Cash flows from financing activities

Repurchase of Convertible Notes

29,906

Proceeds from the issuance of Convertible Notes, net

300,000

Payment of debt issuance costs

(9,287)

Purchase of purchased call options, net of tax

(30,951)

Proceeds from Issuance of Warrants

11,427

Repayments of Notes Payable

(56,250)

Cash dividends paid

(72,135)

(62,943)

Net cash provided by/(used in) financing activities

112,898

(62,943)

Net increase in cash and cash equivalents

187,305

188,384

Cash and cash equivalents at beginning of the period

94,302

^[1]

131,212

Cash and cash equivalents at end of period

281,607

^[2]

Supplemental cash flow information

Cash paid for income taxes

134,000

101,000

Cash paid for interest (including convertible debt inducement)

15,217

8,086

Other Significant Noncash Transaction, Value of Consideration Given

$ 157,591

$ 0

[1]	Note 1
[2]	unaudited

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), except as discussed under "Correction of Immaterial Error" below, that management of PDL believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.

The accompanying Condensed Consolidated Financial Statements and related financial information should be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC. The Condensed Consolidated Balance Sheet at December 31, 2013, has been derived from the audited Consolidated Financial Statements at that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of PDL and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Our Condensed Consolidated Financial Statements are prepared in accordance with GAAP and the rules and regulations of the SEC.

Use of Estimates

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

Notes Receivable and Other Long-Term Receivables

We account for our notes receivable at both amortized cost, net of unamortized origination fees, if any, and as collateral dependent when a loan for which repayment is expected to be provided solely by the underlying collateral. For loans accounted for at their amortized cost, related fees and costs are recorded net of any amounts reimbursed. Interest is accreted or accrued to "Interest revenue" using the interest method. When and if supplemental royalties are received from certain of these notes and other long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively.

Royalty Rights - At Fair Value

We have elected to account for our investments in royalty rights at fair value with changes in fair value presented in earnings. The fair value of the investments in royalty rights is determined by using a discounted cash flow analysis related to the expected future cash flows to be received. These assets are classified as Level 3 assets within the fair value hierarchy as our valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Transaction related fees and costs are expensed as incurred.

Realized and unrealized gains and losses from investments in royalty rights are presented together on our Condensed Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.”

Correction of Immaterial Error

As disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014, PDL was engaged in ongoing discussions with the SEC staff after receiving a comment letter regarding our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The comment letter requested additional information about the Company’s accounting for the Depomed Royalty Agreement. The Company was asked to support its position and explain why the transaction was accounted for as the acquisition of intangible assets as opposed to that of financial assets. While significant judgment is required to account for this transaction, as either the acquisition of intangible assets or financial assets, we concluded that it is most appropriate to account for the asset as a Level 3 financial asset, which was a change to the previously reported accounting for this transaction. For the quarterly period ended June 30, 2014, PDL elected to measure this asset at fair value each reporting period. The change in the estimated fair value of this asset at each reporting period will be shown on a single caption, “Royalty rights - change in fair value” in our Condensed Consolidated Statements of Income. The purchase of this asset will be reported as an investing activity in our Condensed Consolidated Statements of Cash Flows. The revenue recognized each period related to this asset will be reported as an adjustment to net income in order to determine net cash provided by (used in) operating activities in our Condensed Consolidated Statements of Cash Flows. Actual cash received will be reported as an investing cash inflow in our Condensed Consolidated Statements of Cash Flows, separate from cash used in investing activities to purchase the asset in 2013. The Company reviewed the impact of this change in accounting on prior annual and interim periods in accordance with SAB no. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined that the changes were not material for the period from October 18, 2013 (acquisition date), through March 31, 2014, and did not represent a material impact to our Condensed Consolidated Financial Statements in either our previously filed Annual Report on Form 10-K for the fiscal year ended December 31, 2013, or our previously filed Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014.

We evaluated the materiality of correcting the cumulative error in the period ended June 30, 2014. Based on such evaluation, we concluded that the correction was not material to that period. Accordingly, we corrected the cumulative error in our Condensed Consolidated Statement of Income for the nine months ended September 30, 2014 as follows: (i) $5.8 million increase in total revenues, (ii) $5.0 million increase in pre-tax income, (iii) $3.2 million increase in net income. The impacts to our Condensed Consolidated Balance Sheet and Statements of Cash Flows were not material.

We determined that a retrospective revision due to the correction of an error was not required. The prospective change is reflected in the current period as a component of “Royalty rights - change in fair value” in our Condensed Consolidated Statements of Income. Intangible assets that were presented in historical periods have been reclassified to "Royalty rights - at fair value" for all periods presented. Such reclassifications did not have an impact on our results of operations, cash flows or financial position.

Reclassifications

Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Condensed Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Condensed Consolidated statements of Income.

Customer Concentration

The percentage of total revenue recognized, which individually accounted for 10% or more of our total revenues, was as follows:



		Three Months Ended September 30,				Nine Months Ended September 30,
Licensee	Product Name	2014		2013		2014		2013
Genentech	Avastin^®	24	%	32	%	25	%	33	%
	Herceptin^®	24	%	31	%	25	%	32	%
	Lucentis^®	10	%	14	%	11	%	16	%

Biogen Idec¹	Tysabri^®	10	%	12	%	9	%	11	%

Depomed	Glumetza^®	14	%	0	%	13	%	0	%

______________________

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.

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 royalties associated with 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. The last of these contracts expires in the fourth quarter of 2015. We designate foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated licensee product sales as cash flow hedges.

At the inception of each 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 as "Accumulated other comprehensive 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 portion of our hedge contracts is reported in "Interests and other income, net" in the period the ineffectiveness occurs.

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

+ References+ Details

Net Income per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income per Share

2. Net Income per Share



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Net Income per Basic and Diluted Share:	2014		2013		2014		2013
(in thousands except per share amounts)
Numerator
Net income used to compute net income per basic share	$	102,235	$	56,225	$	267,173	$	203,438
Add back interest expense for convertible notes, net of estimated tax of approximately $0 and $7 for the three months ended September 30, 2014 and 2013, respectively, and $0 and $13 for the nine months ended September 30, 2014 and 2013, respectively.	—		12		—		25
Net income used to compute net income per diluted share	$	102,235	$	56,237	$	267,173	$	203,463

Denominator
Weighted-average shares used to compute net income per basic share	160,268		139,848		157,274		139,830
Restricted stock outstanding	96		80		113		76
Effect of dilutive stock options	22		20		22		19
Assumed conversion of Series 2012 Notes	2,247		9,674		3,301		10,141
Assumed conversion of May 2015 Notes	4,261		4,910		4,431		5,160
Assumed conversion of February 2015 Notes	—		61		—		140
Weighted-average shares used to compute net income per diluted share	166,894		154,593		165,141		155,366

Net income per share - basic	$	0.64	$	0.40	$	1.70	$	1.45
Net income per share - diluted	$	0.61	$	0.36	$	1.62	$	1.31

We compute diluted net income per share using the sum of the weighted-average number of common and common equivalents shares outstanding. Common equivalent shares used in the computation of diluted net income per share include shares that may be issued under our stock options and restricted stock awards, our February 2018 Notes, 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, 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, and in the first quarter of 2014, $131.7 million aggregate principal of our Series 2012 Notes was retired in a privately negotiated exchange and purchase agreements.

In May 2011, we issued our May 2015 Notes, in January and February 2012, we issued our Series 2012 Notes, and in February 2014, we issued our February 2018 Notes. The February 2018 Notes, 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 February 2018 Notes, Series 2012 Notes and May 2015 Notes, shown in the table above, include the shares issuable in respect of such excess.

May 2015 Notes Purchase Call Option and Warrant Potential Dilution

We excluded from our calculations of diluted net income per share 22.2 million and 20.8 million shares for the three months ended September 30, 2014 and 2013, respectively, and 22.2 million and 20.8 million shares for the nine months ended September 30, 2014 and 2013, for warrants issued in 2011, because conversion of the underlying May 2015 Notes is not assumed. These securities could be dilutive in future periods. Our purchased call options, issued in 2011, will always be anti-dilutive and therefore 26.1 million and 24.4 million shares were excluded from our calculations of net income per diluted share for the three months ended September 30, 2014 and 2013, respectively, and 26.1 million and 24.4 million shares were excluded from our calculation of diluted net income per share for the nine months ended September 30, 2014 and 2013, 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 9.

February 2018 Notes Purchase Call Option and Warrant Potential Dilution

We excluded from our calculation of net income per diluted share 29.0 million shares for the three months ended September 30, 2014, 29.0 million shares for the nine months ended September 30, 2014, for warrants issued in February 2014, because the exercise price of the warrants exceeded the VWAP of our common stock and conversion of the underlying February 2018 Notes is not assumed, no stock would be issuable upon conversion. These securities could be dilutive in future periods. Our purchased call options, issued in February 2014, will always be anti-dilutive and therefore 32.7 million shares were excluded from our calculation of net income per diluted share for the three months ended September 30, 2014, and 32.7 million shares were excluded from our calculation of net income per diluted share for the nine months ended September 30, 2014, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 9.

Anti-Dilutive Effect of Stock Options and Restricted Stock Awards

For the three and nine months ended September 30, 2014, we excluded approximately 4,000 and 47,000 shares underlying outstanding stock options, respectively, calculated on a weighted average basis, from our net income per diluted share calculations because their effect was anti-dilutive.

For the three months ended September 30, 2013, we excluded approximately 121,000 and 10,000 shares underlying outstanding stock options and restricted stock awards, respectively, calculated on a weighted average basis, from our net income per diluted share calculations because their effect was anti-dilutive. For the nine months ended September 30, 2013, we excluded approximately 133,000 and zero shares underlying outstanding stock options and restricted stock awards, respectively, 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.

+ References+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

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

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

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

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

The following tables present the fair value of our financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy.



	September 30, 2014								December 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(In thousands)
Financial assets:
Money market funds	$	173,340	$	—	$	—	$	173,340	$	85,970	$	—	$	—	$	85,970
Corporate securities	—		2,847		—		2,847		—		5,238		—		5,238
Foreign currency hedge contracts	—		252				252		—		—		—		—
Royalty rights - at fair value	—		—		242,452		242,452		—		—		235,677		235,677
Total	$	173,340	$	3,099	$	242,452	$	418,891	$	85,970	$	5,238	$	235,677	$	326,885

Financial liabilities:
Foreign currency hedge contracts	$	—	$	9	$	—	$	9	$	—	$	8,871	$	—	$	8,871

There have been no transfers between levels during the three months ended September 30, 2014, and December 31, 2013. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

Corporate Securities

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

Royalty Rights - At Fair Value

Depomed Royalty Agreement

On October 18, 2013, PDL entered into the Depomed Royalty Agreement, whereby the Company acquired the rights to receive royalties and milestones payable on sales of Type 2 diabetes products licensed by Depomed in exchange for a $240.5 million cash payment. Total arrangement consideration was $241.3 million, which was comprised of the $240.5 million cash payment to Depomed and $0.8 million in transaction costs.

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

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

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

As of September 30, 2014, and December 31, 2013, the Company determined that its royalty purchase interest in Depo DR Sub represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Depo DR Sub that most significantly impact Depo DR Sub's economic performance and is not the primary beneficiary of Depo DR Sub; therefore, Depo DR Sub is not subject to consolidation by the Company.

The asset acquired represents a single unit of accounting. The fair value of the asset acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. This asset is classified as a Level 3 asset within the fair value hierarchy, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by the FDA or other regulatory agencies. The discounted cash flow is based upon expected royalties from sales of licensed products over a nine year period. The discount rates utilized range from approximately 21% to 25%. Significant judgment is required in selecting appropriate discount rates. Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $25.6 million or increase by $21.0 million, respectively. Should the expected royalties increase or decrease by 10%, the fair value of the asset could increase by $18.1 million or decrease by $19.4 million, respectively. A third-party expert is engaged to assist management with the assessment of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should cash flows vary significantly from our estimates. An evaluation of those estimates, discount rates utilized and general market conditions effecting fair market value is performed in each reporting period.

As of September 30, 2014, and December 31, 2013, the carrying value of the asset acquired and reported in our Condensed Consolidated Balance Sheets was approximately $226.6 million and $235.7 million, respectively. As of September 30, 2014, the maximum loss exposure was $226.6 million.

VB Royalty Agreement

On June 26, 2014, PDL entered into the VB Royalty Agreement, whereby VB conveyed to the Company the right to receive royalties payable on sales of a spinal implant that has received PMA, in exchange for a $15.5 million cash payment, less fees.

The royalty acquired includes royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company will receive all royalty payments due to VB pursuant to certain technology transfer agreements between VB and Paradigm Spine until the Company has received payments equal to two and three tenths times the cash payment made to VB, after which all rights to receive royalties will be returned to VB. VB may repurchase the royalty right at any time on or before June 26, 2018, for a specified amount. The acting chief executive officer of Paradigm Spine is one of the owners of VB. The Paradigm Spine Credit Agreement and the VB Royalty Agreement were negotiated separately.

The fair value of the royalty right at September 30, 2014 was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a nine year period. The discount rate utilized was approximately 17.5%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $0.8 million or decrease by $0.8 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from our estimates. An evaluation of those estimates, discount rates utilized and general market conditions effecting fair market value is performed in each reporting period.

As of September 30, 2014, the carrying value of the asset acquired as reported in our Condensed Consolidated Balance Sheets was $15.8 million. As of September 30, 2014, the maximum loss exposure was $15.8 million.

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the nine months ending September 30, 2014:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

(in thousands)				Royalty Rights - At Fair Value
Beginning Balance at December 31, 2013							$	—

	Transfer into Level 3						235,677
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	72,992
		Proceeds from royalty rights - at fair value		$	(81,717	)
			Total net change in fair value for the period				(8,725		)
	Purchases, issues, sales, and settlements
		Purchases					15,500

Ending Balance at September 30, 2014							$	242,452

The correction of the immaterial error as described in Note 1 resulted in accounting for the Depomed Royalty Agreement as a Level 3 financial asset. That correction has been identified above as a transfer into Level 3.

Gains and losses included in earnings for each period are presented in "Royalty rights - change in fair value" as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2014		2013		2014		2013

Total change in fair value for the period included in earnings for assets held at the end of the reporting period	$	26,787	$	—	$	72,992	$	—

Foreign Currency Hedge Contracts

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

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



	September 30, 2014						December 31, 2013
	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	50,191	$	47,694	$	—	$	46,042
Hyperion	1,200		—		1,200		1,194		—		1,195
AxoGen note receivable and embedded derivative	30,192		—		29,303		26,544		—		25,785
Avinger note receivable	20,516		—		19,746		20,250		—		19,061
LENSAR note receivable	39,645		—		40,000		39,572		—		39,572
Durata note receivable	40,000		—		40,000		24,995		—		24,995
Direct Flow Medical note receivable	35,212		—		36,752		34,799		—		34,799
Paradigm Spine note receivable	49,544		—		50,791		—		—		—
kaléo note receivable	152,078		—		152,140		—		—		—
Total	$	418,578	$	—	$	420,123	$	195,048	$	—	$	191,449

Liabilities:
Series 2012 Notes	$	47,564	$	69,172	$	—	$	172,630	$	277,650	$	—
May 2015 Notes	152,105		197,354		—		148,253		212,304		—
February 2018 Notes	274,512		292,560		—		—		—		—
Term loan	18,720		18,750		—		74,397		75,000		—
Total	$	492,901	$	577,836	$	—	$	395,280	$	564,954	$	—

As of September 30, 2014, the estimated fair value of our Paradigm Spine note receivable and kaléo note receivable, as of September 30, 2014 and December 31, 2013, the estimated fair values of our Wellstat Diagnostics note receivable, Hyperion note receivable, AxoGen note receivable and embedded derivative, Avinger note receivable, LENSAR note receivable, Durata note receivable and Direct Flow Medical note receivable, were determined using one or more discounted cash flow models, incorporating expected payments and the interest rate extended on the notes receivable with fixed interest rates and incorporating expected payments for notes receivable with a variable rate of return. 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 assist in evaluating our investments and the related inputs needed for us to estimate the fair value of certain investments. We determined our notes receivable assets are Level 3 assets as our valuations utilized significant unobservable inputs, including estimates of future revenues, discount rates, expectations about settlement, terminal values and required yield. To provide support for the estimated fair value measurements, we considered forward looking performance related to the investment and current measures associated with high yield indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in similar sectors.

The carrying value and estimated fair value of the AxoGen note include the value of a change of control embedded derivative valued at $1.2 million and $1.1 million at September 30, 2014, and December 31, 2013, respectively. We utilized discounted cash flows and probability analysis to estimate the fair value of the embedded derivative.

The Wellstat Diagnostics Note Receivable and Credit Agreement is collateralized by all assets and equity interest in Wellstat Diagnostics. The estimated fair value of the collateral was determined by using a discounted cash flow analysis related to the underlying technology included in the collateral. On September 30, 2014, the discounted cash flow was based upon expected income from estimated sales of planned products over a period of 15 years. The terminal value was estimated using selected market multiples based on sales and EBITDA. On December 31, 2013, the estimated fair value of Wellstat Diagnostics Note Receivable and Credit Agreement was determined by using a discounted cash flow that was based upon expected income from estimated sales through December 31, 2016.

On September 30, 2014, the carrying value of the Avinger and AxoGen notes exceeded their fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. We determined these notes to be Level 3 assets, as our valuations utilized significant unobservable inputs, including discount rates of 22.5% and 20.0%, respectively, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurement, we considered forward looking performance, and current measures associated with high yield and Standard & Poor's Leveraged Commentary & Data indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in a similar sector.

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

Cash 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

9 Months Ended

Sep. 30, 2014

Cash Equivalents and Investments

4. Cash Equivalents and Investments

As of September 30, 2014, and December 31, 2013, we had invested our excess cash balances primarily in money market funds, and a corporate equity security. Our securities are classified as available-for-sale and are carried at estimated fair value, with unrealized gains and losses reported in "Accumulated other comprehensive loss" in stockholders’ equity, net of estimated taxes. See Note 3 for fair value measurement information. The cost of securities sold is based on the specific identification method. To date, we have not experienced credit losses on investments in these instruments and we do not require collateral for our investment activities.



Summary of Cash and Available-For-Sale Securities	Adjusted Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments
(In thousands)
September 30, 2014
Cash	$	108,267	$	—	$	—		$	108,267	$	108,267	$	—
Money market funds	173,340		—		—			173,340		173,340		—
Corporate security	3,500		—		(653		)	2,847		—		2,847
Total	$	285,107	$	—	$	(653	)	$	284,454	$	281,607	$	2,847

December 31, 2013
Cash	$	8,332	$	—	$	—		$	8,332	$	8,332	$	—
Money market funds	85,970		—		—			85,970		85,970		—
Corporate security	3,500		1,738		—			5,238		—		5,238
Total	$	97,802	$	1,738	$	—		$	99,540	$	94,302	$	5,238

No gains or losses on sales of available-for-sale securities were recognized for the three and nine months ended September 30, 2014 and 2013.

The unrealized gain (loss) on investments included in "Other comprehensive income (loss), net of tax" was approximately ($425) thousand and $1.1 million as of September 30, 2014, and December 31, 2013, respectively. No significant facts or circumstances have arisen to indicate that there has been any deterioration in the creditworthiness of the issuers of these securities. Based on our review of these securities, we believe we had no other-than-temporary impairments on these securities as of September 30, 2014, and December 31, 2013.

Foreign Currency Hedging

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

5. Foreign Currency Hedging

We designate the foreign currency exchange contracts used to hedge our royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on our Condensed Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of September 30, 2014, and December 31, 2013, all outstanding Euro forward contracts were classified as cash flow hedges.

In January 2012, we modified our existing Euro forward and option contracts related to our licensees’ sales through December 2012 into Euro forward contracts with more favorable rates. Additionally, we entered into a series of Euro forward contracts covering the quarters in which our licensees’ sales occur through December 2014. In October 2014, we entered an additional series of Euro forward contracts covering the quarters in which our licensees' sales occurred through December 2015.

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



Euro Forward Contracts			September 30, 2014				December 31, 2013
			(In thousands)				(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value		Notional Amount		Fair Value
Euro	1.240	Sell Euro	$	—	$	—	$	10,850	$	(1,207	)
Euro	1.270	Sell Euro	17,780		35		44,450		(3,760		)
Euro	1.281	Sell Euro	20,488		208		36,814		(2,785		)
Euro	1.300	Sell Euro	—		—		19,500		(1,119		)
Total			$	38,268	$	243	$	111,614	$	(8,871	)

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



Cash Flow Hedge	Location	September 30, 2014		December 31, 2013
(In thousands)
Euro contracts	Prepaid and other current assets	$	252	$	—
Euro contracts	Accrued liabilities	$	9	$	7,355
Euro contracts	Other long-term liabilities	$	—	$	1,516

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



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	1,974		$	(3,359	)	$	2,305		$	(1,056	)
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	(989	)	$	(32	)	$	(3,744	)	$	(1,011	)
Net gain (loss) recognized in interest and other income, net -- cash flow hedges ⁽³⁾	$	2		$	4		$	5		$	9

_______________________________

(1) Net change in the fair value of the effective portion of cash flow hedges classified in OCI.

(2) Effective portion classified as royalty revenue.

(3) Ineffectiveness from excess hedge was approximately ($2) and ($4) for the three months ended September 30, 2014 and 2013, respectively, and ($5) and ($9) for the nine months ended September 30, 2014 and 2013, respectively.

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	9 Months Ended
Notes Receivable and Other Long-term Receivables	Sep. 30, 2014
Receivables [Abstract]
Notes and Other Long-term Receivables	6. Notes Receivable and Other Long-term Receivables Notes receivable 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 Wellstat Diagnostics amended the note receivable, providing a senior secured note receivable of $10.0 million, bearing interest at 12% per annum, to replace the original $7.5 million note. This $10.0 million note was repaid on November 2, 2012, using the proceeds of the $40.0 million credit facility entered into with the Company on the same date. On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company was to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL was to receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics' products, if any, commencing upon the commercialization of its products. In January 2013, the Company was informed that, as of December 31, 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. PDL sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, PDL exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to PDL and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby PDL agreed to refrain from exercising additional remedies for 120 days while Wellstat Diagnostics raised funds to capitalize the business and the parties attempted to negotiate a revised credit agreement. PDL agreed to provide up to $7.9 million to Wellstat Diagnostics to fund the business for the 120-day forbearance period under the terms of the forbearance agreement. Following the conclusion of the forbearance period that ended on June 28, 2013, the Company agreed to forbear its exercise of remedies for additional periods of time to allow the owners and affiliates of Wellstat Diagnostics to complete a pending financing transaction. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement, and no further advances have been provided by the Company to Wellstat Diagnostics during the nine months ended September 30, 2014. On August 15, 2013, the owners and affiliates of Wellstat Diagnostics completed a financing transaction to fulfill Wellstat Diagnostics' obligations under the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. Except as otherwise described here, the material terms of the amended and restated credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL was to continue to receive quarterly royalty payments based on a low double digit royalty rate of Wellstat Diagnostics' net revenues. However, pursuant to the amended and restated credit agreement: (i) the principal amount was reset to approximately $44.1 million which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics' obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics were required to contribute additional capital to Wellstat Diagnostics upon the sale of an affiliate entity. The amended and restated credit agreement had an ultimate maturity date of December 31, 2021 (but has subsequently been accelerated as described below). When the principal amount was reset, a $2.5 million reduction of the carrying value was recorded as a financing cost as a component of "Interest and other income, net". The new carrying value is lower as a function of the variable nature of the internal rate of return to be realized by the Company based on when the note is repaid. The internal rate of return calculation, although increased, was reset when the credit agreement was amended and restated. In June of 2014, the Company received information from Wellstat Diagnostics that showed that it was generally unable to pay its debts as they became due. This constituted an event of default under the amended and restated credit agreement. Wellstat Diagnostics entered into a transaction involving another lender, pursuant to which Wellstat Diagnostics obtained additional short term funding for its operations. At the same time, the Company entered into the First Amendment to Amended and Restated Credit Agreement with Wellstat Diagnostics. The material terms of the amendment include the following: (1) Wellstat Diagnostics acknowledged that an event of default had occurred, (2) the Company agreed to forbear from immediately enforcing its rights for up to sixty (60) days, so long as the other lender provided agreed levels of interim funding to Wellstat Diagnostics; and (3) the Company obtained specified additional information rights with regard to Wellstat Diagnostics’ financial matters and investment banking activities. On August 5, 2014, the Company received notice that the short term funding being provided pursuant to the agreement with the other lender entered into during June 2014, was being terminated. Wellstat Diagnostics remained in default because it was still unable to pay its debts as they became due. Accordingly, the Company delivered a notice of default to Wellstat Diagnostics, due to, inter alia, its ongoing failure to pay its debts as they become due and Wellstat Diagnostics' failure to comply with certain covenants included in the First Amendment to Amended and Restated Credit Agreement by the deadlines to which the parties had agreed ("Borrower Notice"). The Borrower Notice accelerated all obligations under the Amended and Restated Credit Agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, includes an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered a notice to each of the guarantors of Wellstat Diagnostic's obligations to the Company under the credit agreement ("the Guarantor Notice"). The Guarantor Notice included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ shareholders. On September 24, 2014, the Company filed an Ex Parte Petition for Appointment of Receiver with the Circuit Court of Montgomery County, Maryland (the “Petition”), which was granted on the same day. The Order granting the Petition authorizes the receiver to take immediate possession of the physical assets of Wellstat Diagnostics, with the purpose of holding, protecting, insuring, managing and preserving the business of Wellstat Diagnostics and the value of the Company’s collateral. Wellstat Diagnostics has remained in operation during the period of the receivership with incremental additional funding from the Company. The Company continues to assess its options with respect to collecting on the loan, including determining whether and when it will foreclose on the collateral and proceed with a sale of Wellstat Diagnostics’ assets, whether providing further capital to the receiver to fund Wellstat Diagnostics’ operations for a period of time prior to sale will best position Wellstat Diagnostics’ assets for sale, and assessing the value of the guarantees obtained by the Company from Wellstat Diagnostics’ guarantors, including Wellstat Diagnostics’ shareholders and Wellstat Therapeutics. On November 4, 2014, the Company entered into the Third Amendment to the Amended and Restated Credit Agreement with Wellstat Diagnostics. The amendment provides that additional funding, if any, to be made by the Company are conditioned upon agreement by Wellstat Diagnostics to effecting certain operational changes within Wellstat Diagnostics, which the Company believes will allow the receiver to more efficiently optimize the value of the collateral. While the Company believes the value of the collateral securing Wellstat Diagnostics’ obligations exceeds the carrying value of the asset and is sufficient to enable the Company to recoup the full amount owed under the credit agreement. There can be no assurances that this in fact will be the case in the event of the Company’s foreclosure on the collateral or the timing in realizing on the value of such collateral. As of September 30, 2014, 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 Diagnostic's economic performance and is not the primary beneficiary of Wellstat Diagnostics; therefore, Wellstat Diagnostics is not subject to consolidation. Hyperion Agreement On January 27, 2012, PDL and Hyperion entered into an agreement whereby Hyperion sold to PDL the royalty streams due from SDK related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. The agreement assigned the patent license agreement royalty stream accruing from January 1, 2012 through December 31, 2013 to PDL in exchange for the lump sum payment to Hyperion of $2.3 million. In exchange for the lump sum payment, PDL was to receive two equal payments of $1.2 million on both March 5, 2013 and March 5, 2014. The first payment of $1.2 million was paid on March 5, 2013. The second and final payment of $1.2 million was due on March 5, 2014. Hyperion has not made the payment due on March 5, 2014. The inability to make this payment constitutes a breach of the purchase agreement. The Company completed an impairment analysis as of September 30, 2014. The estimated fair value of the collateral was determined to be in excess of that of the carrying value. Hyperion is considering other sources of financing and strategic alternatives, including selling the company. Depending on the outcome of its efforts and PDL's assessment of Hyperion's financial viability, we may recognize an impairment in a future period. Merus Labs Note Receivable and Credit Agreement In July 2012, PDL loaned $35.0 million to Merus Labs in connection with its acquisition of a commercial-stage pharmaceutical product and related assets. In addition, PDL agreed to provide a $20.0 million letter of credit on behalf of Merus Labs for the seller of the assets to draw upon to satisfy the remaining $20.0 million purchase price obligation. The seller made this draw on the letter of credit in July 2013 and an additional loan to Merus Labs for $20.0 million was recorded for an aggregate of $55.0 million in total borrowings. Outstanding borrowings under the July 2012 loan bore interest at the rate of 13.5% per annum and outstanding borrowings as a result of the draw on the letter of credit bore interest at the rate of 14.0% per annum. Merus Labs was required to make four periodic principal payments in respect of the July 2012 loan, with repayment of the remaining principal balance of all loans due on March 31, 2015. The borrowings were subject to mandatory prepayments upon certain asset dispositions or debt issuances as set forth in the credit agreement. Merus Labs made the first of these payments in December 2012 in the amount of $5.0 million, and made the second payment in June 2013 in the amount of $7.5 million. In September 2013, Merus Labs prepaid in full its obligations under the credit agreement, including accrued interest through the payment date and a prepayment fee of 1% of the aggregate principal amount outstanding at the time of repayment. There was no outstanding balance owed as of September 30, 2014. AxoGen Note Receivable and AxoGen Royalty Agreement In October 2012, PDL entered into the AxoGen Royalty Agreement with AxoGen pursuant to which the Company will receive specified royalties on AxoGen’s net revenues (as defined in the AxoGen Royalty Agreement) generated by the sale, distribution or other use of AxoGen’s products. The AxoGen Royalty Agreement has an eight year term and provides PDL with royalties of 9.95% based on AxoGen's net revenues, subject to agreed-upon guaranteed quarterly minimum payments of approximately $1.3 to $2.5 million beginning in the fourth quarter of 2014, and the right to require AxoGen to repurchase the royalties under the AxoGen Royalty Agreement at the end of the fourth year. AxoGen has been granted certain rights to call the contract in years five through eight. The total consideration PDL paid to AxoGen for the royalty rights was $20.8 million, including an interim funding of $1.8 million in August 2012. AxoGen was required to use a portion of the proceeds from the AxoGen Royalty Agreement to pay the outstanding balance under its existing credit facility. AxoGen plans to use the remainder of the proceeds to support the business plan for its products. The royalty rights are secured by the cash and accounts receivable of AxoGen. Under the AxoGen Royalty Agreement, beginning on October 1, 2016, or in the event of the occurrence of a material adverse event, AxoGen's bankruptcy or material breach of the AxoGen Royalty Agreement, the Company may require AxoGen to repurchase the royalty rights at a price that, together with payments already made by AxoGen, would generate a specified internal rate of return to the Company. The Company has concluded that the repurchase option is an embedded derivative that should be bifurcated and separately accounted for at fair value. 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 $1.2 million and $1.1 million as of September 30, 2014, and December 31, 2013, respectively. The estimated fair value of this embedded derivative is included in the carrying value of the AxoGen note receivable. The Company recognized gains of approximately $0.1 million and $0.0 million related to the change in the estimated fair value of the embedded derivative during the three month periods ended September 30, 2014 and 2013, respectively. The Company recognized gains of approximately $0.2 million and $0.4 million related to the change in the estimated fair value of the embedded derivative during the nine month periods ended September 30, 2014 and 2013, respectively. At any time after September 30, 2016, AxoGen, at its option, can repurchase the assigned interests under the AxoGen Royalty Agreement for a price applicable in a change of control. During the term of the AxoGen Royalty Agreement, the Company was entitled to designate an individual to be a member of AxoGen's board of directors. The Company exercised this right and on October 5, 2012, upon the close of the transactions contemplated by the AxoGen Royalty Agreement, the Company's President and Chief Executive Officer was elected to AxoGen's board of directors. On August 20, 2014, the Company's President and Chief Executive Officer resigned as a member of the board of directors of AxoGen. The resignation was not the result of any disagreement with AxoGen relating to its operations, policies or practices. PDL informed AxoGen that it does not intend to appoint a replacement board member at this time. 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 balance sheet. As of September 30, 2014, the shares were valued at $2.8 million, which resulted in an unrealized loss of $0.7 million and is recorded in "Other comprehensive loss, net of tax." As of September 30, 2014, and December 31, 2013, the Company determined that its royalty purchase interest in AxoGen represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of AxoGen that most significantly impact AxoGen's economic performance and is not the primary beneficiary of AxoGen; therefore, AxoGen is not subject to consolidation by the Company. Avinger Note Receivable and Royalty Agreement On April 18, 2013, PDL entered into a credit agreement with Avinger, under which we made available to Avinger up to $40.0 million to be used by Avinger in connection with the commercialization of its lumivascular catheter devices and the development of Avinger's lumivascular atherectomy device. Of the $40.0 million initially available to Avinger, we funded an initial $20.0 million, net of fees, at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to Avinger. Outstanding borrowings under the initial loan bear interest at a stated rate of 12% per annum. Avinger is required to make quarterly interest and principal payments. Principal repayment will commence on the eleventh interest payment date. The principal amount outstanding at commencement of repayment, after taking into account any payment-in-kind, will be repaid in equal installments until final maturity of the loan. The loan will mature in April 2018. In connection with entering into the credit agreement, the Company will receive a low, single-digit royalty on Avinger's net revenues through April 2018. Avinger may prepay the outstanding principal and accrued interest on the note receivable at any time. If Avinger repays the note receivable prior to April 2018, the royalty on Avinger's net revenues will be reduced by 50% and will be subject to certain minimum payments from the prepayment date through April 2018. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Avinger and any of its subsidiaries (other than controlled foreign corporations, if any). The credit agreement provides for a number of standard events of default, including payment, bankruptcy, covenant, representation and warranty and judgment defaults. LENSAR Credit Agreement On October 1, 2013, PDL entered into a credit agreement with LENSAR, under which PDL made available to LENSAR up to $60.0 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR™ Laser System. Of the $60.0 million available to LENSAR, an initial $40.0 million, net of fees, was funded by the Company at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to LENSAR under the terms of the credit agreement. Outstanding borrowings under the loans bear interest at the rate of 15.5% per annum, payable quarterly in arrears. Principal repayment will commence on the thirteenth interest payment date or December 31, 2016. The principal amount outstanding at the commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on October 1, 2018. LENSAR may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The loans are secured by all of the assets of LENSAR. Durata Credit Agreement On October 31, 2013, PDL entered into a credit agreement with Durata, under which the Company made available to Durata up to $70.0 million. Of the $70.0 million available to Durata, an initial $25.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. On May 27, 2014, the Company funded Durata an additional $15.0 million (tranche two) as a result of Durata's marketing approval of dalbavancin in the United States, which occurred on May 23, 2014, and was the milestone needed to receive the tranche two funding. Within nine months after the occurrence of the tranche two milestone, Durata may request up to a single additional $30.0 million borrowing. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bore interest at the rate of 14.0% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans decreased to 12.75%. 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 of control. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Durata. On October 5, 2014, Durata entered into an agreement to be acquired by a wholly-owned subsidiary of Actavis plc pursuant to a tender offer. In connection with the acquisition, Durata has informed PDL that they expect to terminate the credit agreement and pay-off the loans (plus any accrued and unpaid interest, applicable fees or premiums). There can be no assurance that the acquisition will be consummated or that the credit agreement will be paid-off. Direct Flow Credit Agreement On November 5, 2013, PDL entered into a credit agreement with Direct Flow Medical, under 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 funded 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 fund 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. On November 10, 2014, PDL and Direct Flow Medical agreed to an amendment to the credit agreement to permit Direct Flow Medical to borrow the $15.0 million second tranche upon receipt by Direct Flow Medical of a specified minimum amount of proceeds from a contemporaneous equity offering prior to December 31, 2014. In exchange, Direct Flow Medical agreed to amend the Credit Agreement to provide for additional fees associated with certain liquidity events, such as a change of control or the consummation of an initial public offering, and granted PDL certain board of director observation rights. Upon occurrence of the borrowing of the second tranche, the interest rate applicable to all loans under the credit agreement will be 13.5% per annum. Principal repayment will commence on the twelfth interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on November 5, 2018. Direct Flow Medical may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Direct Flow Medical and any of its subsidiaries. Paradigm Spine Credit Agreement On February 14, 2014, the Company entered into a credit agreement with Paradigm Spine, under which it made available to Paradigm Spine up to $75.0 million to be used by Paradigm Spine to refinance its existing credit facility and expand its domestic commercial operations. Of the $75.0 million available to Paradigm Spine, an initial $50.0 million, net of fees, was funded by the Company at the close of the transaction. Upon the attainment of specified sales and other milestones before December 31, 2014, the Company will fund Paradigm Spine between an additional $6.25 million and $12.5 million, at Paradigm Spine’s discretion. Upon the attainment of specified sales and other milestones before June 30, 2015, the Company will fund Paradigm Spine up to an additional $12.5 million, also at Paradigm Spine’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 twelfth interest payment date, December 31, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on February 14, 2019, or, if Paradigm Spine has achieved the first milestone and the additional loan amount is provided to Paradigm, the loans will mature on August 14, 2019. Paradigm Spine may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Paradigm Spine and its domestic subsidiaries and, initially, certain assets of Paradigm Spine’s German subsidiaries. kaléo Note Purchase Agreement On April 1, 2014, PDL entered into a note purchase agreement with Accel 300, a wholly-owned subsidiary of kaléo, pursuant to which the Company acquired $150.0 million of secured notes due 2029. The secured notes were issued pursuant to an indenture between Accel 300 and U.S. Bank, National Association, as trustee, and are secured by 100% of the royalties from kaléo’s first approved product, Auvi-Q™ (epinephrine auto-injection, USP) (known as Allerject in Canada), 10% of net sales of kaléo’s second proprietary auto-injector based product, EVZIO (naloxone hydrochloride injection) (collectively, the "Revenue Interests"), and by a pledge of kaléo’s equity ownership in Accel 300. The secured notes bear interest at 13% per annum, paid quarterly in arrears on principal outstanding. The principal balance of the secured notes is repaid to the extent that the Revenue Interests exceed the quarterly interest payment, as limited by a quarterly payment cap. The final maturity of the secured notes is March 2029. Kaléo may redeem the secured notes at any time, subject to a redemption premium. As of September 30, 2014, the Company determined that its royalty purchase interest in Accel 300 represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Accel 300 that most significantly impact Accel 300's economic performance and is not the primary beneficiary of Accel 300; therefore, Accel 300 is not subject to consolidation by the Company. For carrying value and fair value information related to our notes receivable and other long-term receivables, see Note 3.

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.

+ References+ Details

Accrued Liabilities

9 Months Ended

Sep. 30, 2014

Payables and Accruals [Abstract]

Accrued Liabilities

. Accrued Liabilities



	September 30, 2014		December 31, 2013
(In thousands)
Compensation	$	2,409	$	768
Interest	4,603		2,925
Deferred tax liability	2,576		—
Deferred revenue	1,052		—
Foreign currency hedge	9		7,355
Dividend payable	24,272		59
Legal	535		324
Other	221		426
Total	$	35,677	$	11,857

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	. Commitments and Contingencies Legal Proceedings Resolution of Past Challenges to the Queen et al. Patents in the United States and Europe 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 European Patent Office 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. Genentech / Roche Matter Settlement Agreement On January 31, 2014, we entered into the Settlement Agreement with Genentech and Roche that 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% on worldwide sales of Avastin^®, Herceptin^®, Xolair^®, Perjeta^® and Kadcyla^® occurring on or before December 31, 2015, as compared to the previous tiered royalty rate in the United States and the fixed rate on all ex-U.S.-based Manufacturing and Sales. Pursuant to the agreement, Genentech and Roche confirmed that Avastin^®, Herceptin^®, Lucentis^®, Xolair^® and Perjeta^® are licensed products as defined in the relevant license agreements between the parties, and further agreed that Kadcyla^® and Gazyva^™ are licensed products. With respect to Lucentis^®, Genentech owes no royalties on U.S. sales occurring after June 30, 2013, and will pay a royalty of 2.125% on all ex-U.S.-based Sales occurring on or before December 28, 2014. The royalty term for Gazyva^™ remains unchanged from the existing license agreement pertaining thereto. The agreement precludes Genentech and Roche from challenging the validity of PDL’s patents, including its SPCs in Europe, from contesting their obligation to pay royalties, from contesting patent coverage for Avastin^®, Herceptin^®, Lucentis^®, Xolair^®, Perjeta^®, Kadcyla^® and Gazyva^™ and from assisting or encouraging any third party in challenging PDL’s patents and SPCs. The agreement further outlines the conduct of any audits initiated by PDL of the books and records of Genentech in an effort to ensure a full and fair audit procedure. Finally, the agreement clarifies that the sales amounts from which the royalties are calculated does not include certain taxes and discounts. Other Legal Proceedings In addition, from time to time, we are subject to various other legal proceedings and claims that arise in the ordinary course of business and that we do not expect to materially impact our financial statements. The Company, its directors, and certain of its officers are parties to two related lawsuits filed by shareholders of the Company in federal court in Nevada. The first lawsuit, which purports to be brought on behalf of a class of purchasers of the Company’s securities from November 6, 2013 to September 16, 2014, alleges that the Company and certain of its officers violated federal securities laws by allegedly making misstatements or omissions concerning, among other things, the Company’s financial condition. This action is entitled Hampe v. PDL Biopharma, Inc., et al., No. 2:14-cv-01526 (D. Nev. filed Sept. 18, 2014). The second lawsuit, which purports to be brought derivatively on behalf of the Company, seeks to assert claims on behalf of the Company against the Company’s directors for, among other things, breach of fiduciary duty (for disseminating allegedly false and misleading information). This action is entitled Freely v. Lindell, et al., No. 2:14-cv-01738 (D. Nev. filed Oct. 20, 2014). Lease Guarantee In connection with the Spin-Off, we entered into amendments to the leases for our former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify us for all matters related to the leases attributable to the period after the Spin-Off date. Should Facet default under its lease obligations, we could be held liable by the landlord as a co-tenant and, thus, we have in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of September 30, 2014, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $81.8 million. In April 2010, Abbott acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. If AbbVie Biotherapeutics, Inc.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 September 30, 2014, and December 31, 2013, related to this guarantee. In future periods, we may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable.

Convertible and Non-Recourse Notes

The entire disclosure for commitments and contingencies.

+ References+ Details

Convertible Notes

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

. Convertible Notes and Term Loans



		Principal Balance Outstanding		Carrying Value
		September 30,		September 30,		December 31,
Description	Maturity Date	2014		2014		2013
(In thousands)
Convertible Notes
Series 2012 Notes	February 15, 2015	$	48,311	$	47,564	$	172,630
May 2015 Notes	May 1, 2015	$	155,250	152,105		148,253
February 2018 Notes	February 1, 2018	$	300,000	274,512		—
Term Loan	October 28, 2014	$	18,750	18,720		74,397
Total				$	492,901	$	395,280

As of September 30, 2014, PDL was in compliance with all applicable debt covenants, and embedded features of all debt agreements were evaluated and did not need to be accounted for separately.

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 was outstanding.

On February 6, 2014, the Company entered into exchange and purchase agreements with certain holders of approximately $131.7 million aggregate principal amount of outstanding Series 2012 Notes. The exchange agreement provided for the issuance by the Company of shares of common stock and a cash payment for the Series 2012 Notes being exchanged, and the purchase agreement provided for a cash payment for the Series 2012 Notes being repurchased. The total consideration given was approximately $191.8 million. The Company issued to the participating holders of the February 2015 Notes, a total of approximately 20.3 million shares of its common stock with a fair value of approximately $157.6 million and made an aggregate cash payment of approximately $34.2 million pursuant to the exchange and purchase agreements. Of the $34.2 million cash payment, $2.5 million is attributable to an inducement fee, $1.8 million is attributable to interest accrued through the date of settlement and $29.9 million is attributable to the repurchase of the Series 2012 Notes. It was determined that the exchange and purchase agreement represented an extinguishment of the related notes. As a result, a loss on extinguishment of $6.1 million was recorded. The $6.1 million loss on extinguishment included the derecognition of the original issuance discount of $5.8 million and a $0.3 million charge resulting from the difference of the face value of the notes and the fair value of the notes. Immediately following the exchange, $48.3 million principal amount of the Series 2012 Notes was outstanding with approximately $2.1 million of remaining original issuance discount to be amortized over the remaining life of the Series 2012 Notes.

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

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



(In thousands)	September 30, 2014			December 31, 2013
Principal amount of the Series 2012 Notes	$	48,311		$	180,000
Unamortized discount of liability component	(747		)	(7,370		)
Total	$	47,564		$	172,630

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	347	$	1,290	$	1,455	$	3,864
Amortization of debt issuance costs	64		289		996		860
Amortization of debt discount	404		1,538		1,783		4,538
Total	$	815	$	3,117	$	4,234	$	9,262

As of September 30, 2014, our Series 2012 Notes are convertible into 191.671 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.22 per common share, subject to further adjustment upon certain events including dividend payments. As of September 30, 2014, the remaining discount amortization period was 0.4 years.

Our common stock price exceeded the conversion threshold price of $6.89 per common share for at least 20 days during the 30 consecutive trading days ended June 30, 2014; accordingly, the Series 2012 Notes were convertible at the option of the holder during the quarter ended September 30, 2014. Our common stock price exceeded the conversion threshold price of $6.78 per common share for at least 20 days during the 30 consecutive trading days ended September 30, 2014; accordingly, the Series 2012 Notes are convertible at the option of the holder during the quarter ending December 31, 2014. The Series 2012 Notes have been classified as current as the notes will be due upon demand within one year of the quarter ended September 30, 2014. At September 30, 2014, the if-converted value of our Series 2012 Notes exceeded their principal amount by approximately $20.9 million.

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 September 30, 2014, the remaining discount amortization period is 0.6 years.

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



(In thousands)	September 30, 2014			December 31, 2013
Principal amount of the May 2015 Notes	$	155,250		$	155,250
Unamortized discount of liability component	(3,145		)	(6,997		)
Total	$	152,105		$	148,253

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	1,455	$	1,456	$	4,366	$	4,366
Amortization of debt issuance costs	320		309		952		920
Amortization of debt discount	1,308		1,215		3,852		3,582
Total	$	3,083	$	2,980	$	9,170	$	8,868

As of September 30, 2014, our May 2015 Notes are convertible into 167.9812 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.95 per common share, subject to further adjustment upon certain events including dividend payments.

Our common stock exceeded the conversion threshold price of $7.86 for at least 20 days during the 30 consecutive trading days ended June 30, 2014; accordingly, the May 2015 Notes were convertible at the option of the holder during the quarter ended September 30, 2014. Our common stock price exceeded the conversion threshold price of $7.74 per common share for at least 20 days during the 30 consecutive trading days ended September 30, 2014; accordingly, the May 2015 Notes are convertible at the option of the holder during the quarter ending December 31, 2014. At September 30, 2014, the if-converted value of our May 2015 exceeded their principal amount by approximately $39.6 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 26.1 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 on the date of conversion, 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 $5.95 and $7.00, subject to further adjustment upon certain events including dividend payments, for the purchased call options and warrants, respectively.

If the share price is above $5.95, but below $7.00, 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 $7.00, 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 $7.00. For example, a 10% increase in the share price above $7.00 would result in the issuance of 2.0 million incremental shares upon exercise of the warrants. If 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 September 30, 2014, and December 31, 2013, the market price condition for convertibility of our May 2015 Notes was not met, and 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 September 30, 2014, and December 31, 2013. The purchased call options cost, including legal fees, of $20.8 million, less deferred taxes of $7.2 million, and the $10.9 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

February 2018 Notes

On February 12, 2014, we issued $300.0 million in aggregate principal amount, at par, of our February 2018 Notes in an underwritten public offering, for net proceeds of $290.2 million. Our February 2018 Notes are due February 1, 2018, and we pay interest at 4.0% on our February 2018 Notes semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2014. A portion of the proceeds from our February 2018 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem $131.7 million of our Series 2012 Notes. Upon the occurrence of a fundamental change, as defined in the indenture, holders have the option to require PDL to repurchase their February 2018 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

Our February 2018 Notes are convertible under any of the following circumstances:


•	During any fiscal quarter ending after the quarter ending June 30, 2014, if the last reported sale price of our common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 130% of the conversion price for the notes on the last day of such preceding fiscal quarter;


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


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


•	At any time on or after August 1, 2017.

The initial conversion rate for the February 2018 Notes is 109.1048 shares of the Company's common stock per $1,000 principal amount of February 2018 Notes, which is equivalent to an initial conversion price of approximately $9.17 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the indenture. Upon conversion, the Company will be required to pay cash and, if applicable, deliver shares of the Company's common stock as described in the indenture.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of our February 2018 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.0%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, we recorded a total debt discount of $29.7 million, allocated $19.3 million to additional paid-in capital and allocated $10.4 million to deferred tax liability. The discount is being amortized to interest expense over the term of our February 2018 Notes and increases interest expense during the term of our February 2018 Notes from the 4.0% cash coupon interest rate to an effective interest rate of 6.9%. As of September 30, 2014, the remaining discount amortization period is 3.3 years.

The carrying value and unamortized discount of our February 2018 Notes were as follows:



(In thousands)	September 30, 2014
Principal amount of the February 2018 Notes	$	300,000
Unamortized discount of liability component	(25,488		)
Total	$	274,512

Interest expense for our February 2018 Notes on our Condensed Consolidated Statements of Income was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	3,000	$	—	$	7,633	$	—
Amortization of debt issuance costs	536		—		1,358		—
Amortization of debt discount	1,688		—		4,238		—
Total	$	5,224	$	—	$	13,229	$	—

As of September 30, 2014, our February 2018 Notes are not convertible. At September 30, 2014, the if-converted value of our February 2018 Notes did not exceed the principal amount.

Purchased Call Options and Warrants

In connection with the issuance of our February 2018 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $31.0 million for the purchased call options with terms substantially similar to the embedded conversion options in our February 2018 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in our February 2018 Notes, approximately 32.7 million shares of our common stock. We may exercise the purchased call options upon conversion of our February 2018 Notes and require the hedge counterparty to deliver shares to the Company in an amount equal to the shares required to be delivered by the Company to the note holder for the excess conversion value. The purchased call options expire on February 1, 2018, or the last day any of our February 2018 Notes remain outstanding.

In addition, we sold to the hedge counterparties warrants exercisable, on a cashless basis, for the sale of rights to receive shares of common stock that will initially underlie our February 2018 Notes at a strike price of $10.3610 per share, which represents a premium of approximately 30% over the last reported sale price of the Company's common stock of $7.97 on February 6, 2014. The warrant transactions could have a dilutive effect to the extent that the market price of the Company's common stock exceeds the applicable strike price of the warrants on the date of conversion. We received an aggregate amount of $11.4 million for the sale from the two counterparties. The warrant counterparties may exercise the warrants on their specified expiration dates that occur over a period of time. If the VWAP of our common stock, as defined in the warrants, exceeds the strike price of the warrants, we will deliver to the warrant counterparties shares equal to the spread between the VWAP on the date of exercise or expiration and the strike price. If the VWAP is less than the strike price, neither party is obligated to deliver anything to the other.

The purchased call option transactions and warrant sales effectively serve to reduce the potential dilution associated with conversion of our February 2018 Notes. The strike price is subject to further adjustment in the event that future quarterly dividends exceed $0.15 per share.

The purchased call options and warrants are considered indexed to PDL stock, require net-share settlement, and met all criteria for equity classification at inception and at September 30, 2014. The purchased call options cost of $31.0 million, less deferred taxes of $10.8 million, and the $11.4 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

Term Loan

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

The interest rates per annum applicable to amounts outstanding under the Term Loan were, at the Company’s option, either (a) the base rate plus 1.00%, or (b) the Eurodollar rate plus 2.00% per annum. As of September 30, 2014, the interest rate was 2.22%. Interest and principal payment associated with the Term Loan were paid on the interest payment date of July 30, 2014. The principal balance outstanding as of September 30, 2014, was $18.8 million. This principal balance and outstanding interest was paid in full on October 28, 2014.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

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

Stock-Based Compensation

11. Stock-Based Compensation

The Company grants stock options and restricted stock awards pursuant to a stockholder approved stock-based incentive plan. This incentive plan is described in further detail in Note 15, Stock-Based Compensation, of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

The following table summarizes the Company’s stock option and restricted stock award activity during the nine months ended September 30, 2014:



			Stock Options				Restricted Stock Awards
(In thousands except per share amounts)	Shares Available for Grant		Number of Shares Outstanding		Weighted Average Exercise Price		Number of Shares Outstanding		Weighted Average Grant-date Fair Value Per Share
Balance December 31, 2013	4,478		172		$	16.52	114		$	7.45
Granted	(312	)	—				312		8.39
Shares released	—		—				(48	)	8.27
Forfeited or canceled	115		(115	)	22.08		—
Plan shares expired	(115	)	—				—
Balance at September 30, 2014	4,166		57		$	5.41	378		$	8.12

Stockholders' Equity Note [Abstract]

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

9 Months Ended

Sep. 30, 2014

Cash Dividends

12. 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.

In connection with the September 12, 2014, dividend payment, the conversion rates for our convertible notes adjusted as follows:



Convertible Notes	Conversion Rate per $1,000 Principal Amount	Approximate Conversion Price Per Common Share		Effective Date
Series 2012 Notes	191.671	$	5.22	September 3, 2014
May 2015 Notes	167.9812	$	5.95	September 3, 2014

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.

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+ Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes For the three and nine months ended September 30, 2014 and 2013, income tax expense was primarily derived by applying the federal statutory rate of 35% to operating income before income taxes. The uncertain tax positions increased during the three months ended September 30, 2014, by $4.4 million resulting from an increase in tax uncertainties and estimated tax liabilities, partially offset by the release of $7.2 million in federal credits taken with respect to our 2009 income tax return. The uncertain tax positions increased during the nine months ended September 30, 2014, by $10.0 million as a result of the increase in tax uncertainties and estimated tax liabilities accrued in the nine months ended September 30, 2014, partially offset by the release of $7.2 million in federal credits taken with respect to our 2009 income tax return. In general, our income tax returns are subject to examination by tax authorities for tax years 1996 forward. The California Franchise Tax Board is currently examining the Company’s 2008, 2009 and 2010 tax returns. Although the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year, we do not anticipate any material change to the amount of our unrecognized tax benefits over the next 12 months, except as described above.

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)

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss)

14. Accumulated Other Comprehensive Income (Loss)

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

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



	Unrealized gains (losses) on available-for-sale securities			Unrealized gains (losses) on cash flow hedges			Total Accumulated Other Comprehensive Income (Loss)
(In thousands)
Beginning Balance at December 31, 2013	$	1,129		$	(6,017	)	$	(4,888	)
Activity for the nine months ended September 30, 2014	(1,554		)	6,049			4,495
Ending Balance at September 30, 2014	$	(425	)	$	32		$	(393	)

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.

Basis of Presentation, Policy

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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events [Abstract]
Subsequent Events [Text Block]	15. Subsequent Events Convertible Note Exchange Agreement On October 20, 2014, the Company entered into a privately negotiated exchange agreement under which it will retire approximately $26.0 million in principal of the Company’s outstanding Series 2012 Notes. The exchange agreement provides for the issuance, by the Company, of shares of common stock and a cash payment for the Series 2012 Notes being exchanged. The Company will issue a number of shares of its common stock and pay a cash payment, in each case as determined pursuant to the terms of the exchange agreement, which utilizes substantially the same calculation for a conversion of the Series 2012 Notes as provided for in the indenture governing the Series 2012 Notes. Such shares of common stock being issued in exchange for the Series 2012 Notes will be issued in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended, under Section 3(a)(9) thereof. The Company anticipates the closing of this transaction to occur on or about November 24, 2014, following completion of a 20-day averaging period similar to that required under the indenture. Consummation of this transaction is conditioned on customary closing conditions and there is no assurance the Company will ultimately consummate the acquisition of any of its Series 2012 Notes. Royalty Acquisition On November 6, 2014, PDL acquired a portion of all royalty payments of the University of Michigan’s (“U-M”) worldwide royalty interest in Cerdelga™ (eliglustat) for $65.6 million. Under the terms of the Michigan Royalty Agreement, PDL will receive 75% of all royalty payments due under U-M’s license agreement with Genzyme until expiration of the licensed patents, excluding any patent term extension. Cerdelga, an oral therapy for adult patients with Gaucher disease type 1, was developed by Genzyme, a Sanofi company. Cerdelga was approved by the U.S. Food and Drug Administration (FDA) on August 19, 2014. In addition to the recent FDA approval, marketing applications for Cerdelga are under review by the European Medicines Agency and other regulatory authorities.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation, Policy

Principles of Consolidation

Reclassification, Policy [Policy Text Block]

Reclassifications

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Notes Receivable and Other Long-Term Receivables, Policy

Notes Receivable and Other Long-Term Receivables

Acquired Royalty Rights [Policy Text Block]

Royalty Rights - At Fair Value

Accounting Changes and Error Corrections [Text Block]

Correction of Immaterial Error

Customer Concentration, Policy

Customer Concentration

The percentage of total revenue recognized, which individually accounted for 10% or more of our total revenues, was as follows:



		Three Months Ended September 30,				Nine Months Ended September 30,
Licensee	Product Name	2014		2013		2014		2013
Genentech	Avastin^®	24	%	32	%	25	%	33	%
	Herceptin^®	24	%	31	%	25	%	32	%
	Lucentis^®	10	%	14	%	11	%	16	%

Biogen Idec¹	Tysabri^®	10	%	12	%	9	%	11	%

Depomed	Glumetza^®	14	%	0	%	13	%	0	%

______________________

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.

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.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Schedule of Revenue by Major Customers



		Three Months Ended September 30,				Nine Months Ended September 30,
Licensee	Product Name	2014		2013		2014		2013
Genentech	Avastin^®	24	%	32	%	25	%	33	%
	Herceptin^®	24	%	31	%	25	%	32	%
	Lucentis^®	10	%	14	%	11	%	16	%

Biogen Idec¹	Tysabri^®	10	%	12	%	9	%	11	%

Depomed	Glumetza^®	14	%	0	%	13	%	0	%

Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Net Income per Basic and Diluted Share:	2014		2013		2014		2013
(in thousands except per share amounts)
Numerator
Net income used to compute net income per basic share	$	102,235	$	56,225	$	267,173	$	203,438
Add back interest expense for convertible notes, net of estimated tax of approximately $0 and $7 for the three months ended September 30, 2014 and 2013, respectively, and $0 and $13 for the nine months ended September 30, 2014 and 2013, respectively.	—		12		—		25
Net income used to compute net income per diluted share	$	102,235	$	56,237	$	267,173	$	203,463

Denominator
Weighted-average shares used to compute net income per basic share	160,268		139,848		157,274		139,830
Restricted stock outstanding	96		80		113		76
Effect of dilutive stock options	22		20		22		19
Assumed conversion of Series 2012 Notes	2,247		9,674		3,301		10,141
Assumed conversion of May 2015 Notes	4,261		4,910		4,431		5,160
Assumed conversion of February 2015 Notes	—		61		—		140
Weighted-average shares used to compute net income per diluted share	166,894		154,593		165,141		155,366

Net income per share - basic	$	0.64	$	0.40	$	1.70	$	1.45
Net income per share - diluted	$	0.61	$	0.36	$	1.62	$	1.31

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the nine months ending September 30, 2014:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

(in thousands)				Royalty Rights - At Fair Value
Beginning Balance at December 31, 2013							$	—

	Transfer into Level 3						235,677
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	72,992
		Proceeds from royalty rights - at fair value		$	(81,717	)
			Total net change in fair value for the period				(8,725		)
	Purchases, issues, sales, and settlements
		Purchases					15,500

Ending Balance at September 30, 2014							$	242,452

Schedule of fair value of financial instruments measured on recurring basis



	September 30, 2014								December 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(In thousands)
Financial assets:
Money market funds	$	173,340	$	—	$	—	$	173,340	$	85,970	$	—	$	—	$	85,970
Corporate securities	—		2,847		—		2,847		—		5,238		—		5,238
Foreign currency hedge contracts	—		252				252		—		—		—		—
Royalty rights - at fair value	—		—		242,452		242,452		—		—		235,677		235,677
Total	$	173,340	$	3,099	$	242,452	$	418,891	$	85,970	$	5,238	$	235,677	$	326,885

Financial liabilities:
Foreign currency hedge contracts	$	—	$	9	$	—	$	9	$	—	$	8,871	$	—	$	8,871

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

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



	September 30, 2014						December 31, 2013
	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	50,191	$	47,694	$	—	$	46,042
Hyperion	1,200		—		1,200		1,194		—		1,195
AxoGen note receivable and embedded derivative	30,192		—		29,303		26,544		—		25,785
Avinger note receivable	20,516		—		19,746		20,250		—		19,061
LENSAR note receivable	39,645		—		40,000		39,572		—		39,572
Durata note receivable	40,000		—		40,000		24,995		—		24,995
Direct Flow Medical note receivable	35,212		—		36,752		34,799		—		34,799
Paradigm Spine note receivable	49,544		—		50,791		—		—		—
kaléo note receivable	152,078		—		152,140		—		—		—
Total	$	418,578	$	—	$	420,123	$	195,048	$	—	$	191,449

Liabilities:
Series 2012 Notes	$	47,564	$	69,172	$	—	$	172,630	$	277,650	$	—
May 2015 Notes	152,105		197,354		—		148,253		212,304		—
February 2018 Notes	274,512		292,560		—		—		—		—
Term loan	18,720		18,750		—		74,397		75,000		—
Total	$	492,901	$	577,836	$	—	$	395,280	$	564,954	$	—

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

Foreign Currency Hedging (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Euro forward contracts

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



Euro Forward Contracts			September 30, 2014				December 31, 2013
			(In thousands)				(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value		Notional Amount		Fair Value
Euro	1.240	Sell Euro	$	—	$	—	$	10,850	$	(1,207	)
Euro	1.270	Sell Euro	17,780		35		44,450		(3,760		)
Euro	1.281	Sell Euro	20,488		208		36,814		(2,785		)
Euro	1.300	Sell Euro	—		—		19,500		(1,119		)
Total			$	38,268	$	243	$	111,614	$	(8,871	)

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

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



Cash Flow Hedge	Location	September 30, 2014		December 31, 2013
(In thousands)
Euro contracts	Prepaid and other current assets	$	252	$	—
Euro contracts	Accrued liabilities	$	9	$	7,355
Euro contracts	Other long-term liabilities	$	—	$	1,516

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

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



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	1,974		$	(3,359	)	$	2,305		$	(1,056	)
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	(989	)	$	(32	)	$	(3,744	)	$	(1,011	)
Net gain (loss) recognized in interest and other income, net -- cash flow hedges ⁽³⁾	$	2		$	4		$	5		$	9

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.

Schedule of convertible and non-recourse notes activity

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+ Details

Convertible Notes (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]



		Principal Balance Outstanding		Carrying Value
		September 30,		September 30,		December 31,
Description	Maturity Date	2014		2014		2013
(In thousands)
Convertible Notes
Series 2012 Notes	February 15, 2015	$	48,311	$	47,564	$	172,630
May 2015 Notes	May 1, 2015	$	155,250	152,105		148,253
February 2018 Notes	February 1, 2018	$	300,000	274,512		—
Term Loan	October 28, 2014	$	18,750	18,720		74,397
Total				$	492,901	$	395,280

Schedule of carrying value and unamortized discount on Series 2012 Notes

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



(In thousands)	September 30, 2014			December 31, 2013
Principal amount of the Series 2012 Notes	$	48,311		$	180,000
Unamortized discount of liability component	(747		)	(7,370		)
Total	$	47,564		$	172,630

Schedule of interest expense on Series 2012 Notes

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	347	$	1,290	$	1,455	$	3,864
Amortization of debt issuance costs	64		289		996		860
Amortization of debt discount	404		1,538		1,783		4,538
Total	$	815	$	3,117	$	4,234	$	9,262

Schedule of carrying value and unamortized discount on May 2015 Notes

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



(In thousands)	September 30, 2014			December 31, 2013
Principal amount of the May 2015 Notes	$	155,250		$	155,250
Unamortized discount of liability component	(3,145		)	(6,997		)
Total	$	152,105		$	148,253

Schedule of interest expense for May 2015 Notes

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	1,455	$	1,456	$	4,366	$	4,366
Amortization of debt issuance costs	320		309		952		920
Amortization of debt discount	1,308		1,215		3,852		3,582
Total	$	3,083	$	2,980	$	9,170	$	8,868

Schedule of carrying value and unamortized discount on February 2018 Notes [Table Text Block]

The carrying value and unamortized discount of our February 2018 Notes were as follows:



(In thousands)	September 30, 2014
Principal amount of the February 2018 Notes	$	300,000
Unamortized discount of liability component	(25,488		)
Total	$	274,512

Schedule of interest expense for February 2018 Notes [Table Text Block]

Interest expense for our February 2018 Notes on our Condensed Consolidated Statements of Income was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Contractual coupon interest	$	3,000	$	—	$	7,633	$	—
Amortization of debt issuance costs	536		—		1,358		—
Amortization of debt discount	1,688		—		4,238		—
Total	$	5,224	$	—	$	13,229	$	—

Summary of Significant Accounting Policies (Schedule of Revenue by Major Customers) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Genentech [Member] \| Avastin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	24.00%	32.00%	25.00%	33.00%
Genentech [Member] \| Herceptin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	24.00%	31.00%	25.00%	32.00%
Genentech [Member] \| Lucentis [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	10.00%	14.00%	11.00%	16.00%
Elan [Member] \| Tysabri [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	10.00%	12.00%	9.00%	11.00%
Depomed [Member] \| Glumetza [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	14.00%	0.00%	13.00%	0.00%

Net Income per Share (Narrative) (Detail) (USD $)	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended							3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
Net Income per Share (Narrative) (Detail) (USD $)	Sep. 30, 2013 Warrants [Member]	Sep. 30, 2013 Warrants [Member]	Sep. 30, 2013 Purchased Call Options [Member]	Sep. 30, 2013 Purchased Call Options [Member]	Sep. 30, 2014 Stock Options [Member]	Sep. 30, 2013 Stock Options [Member]	Sep. 30, 2014 Stock Options [Member]	Sep. 30, 2013 Stock Options [Member]	Sep. 30, 2013 Restricted Stock [Member]	Sep. 30, 2013 Restricted Stock [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Mar. 31, 2012 February 2015 Notes [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Feb. 07, 2014 Series 2012 Notes [Member]	Feb. 06, 2014 Series 2012 Notes [Member]	Feb. 29, 2012 Series 2012 Notes [Member]	Sep. 30, 2014 May 2015 Notes [Member] [Member] Warrants [Member]	Sep. 30, 2014 May 2015 Notes [Member] [Member] Warrants [Member]	Sep. 30, 2014 May 2015 Notes [Member] [Member] Purchased Call Options [Member]	Sep. 30, 2014 May 2015 Notes [Member] [Member] Purchased Call Options [Member]	Sep. 30, 2014 February 2018 Notes [Member]	Feb. 12, 2014 February 2018 Notes [Member]	Sep. 30, 2014 February 2018 Notes [Member] Warrants [Member]	Sep. 30, 2014 February 2018 Notes [Member] Warrants [Member]	Sep. 30, 2014 February 2018 Notes [Member] Purchased Call Options [Member]	Sep. 30, 2014 February 2018 Notes [Member] Purchased Call Options [Member]
Debt Instrument [Line Items]
Amount of convertible notes payable												$ 179,000,000
Convertible notes											$ 1,000,000		$ 169,000,000	$ 131,700,000	$ 131,700,000	$ 10,000,000					$ 274,512,000	$ 300,000,000
Antidilutive securities excluded from computation of earnings per share (in Shares)	20,800,000	20,800,000	24,400,000	24,400,000	4,000	121,000	47,000	133,000	10,000	0							22,200,000	22,200,000	26,100,000	26,100,000			29,000,000	29,000,000	32,700,000	32,700,000

Cash payment for purchase of royalty right

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		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Net income	$ 102,235	$ 56,225	$ 267,173	$ 203,438
Add back interest expense for convertible notes, net of estimated tax of approximately $0 and $3 for the three months ended June 30, 2014 and 2013, respectively, and $0 and $7 for the six months ended June 30, 2014 and 2013, respectively.	0	12	0	25
Income used to compute net income per diluted share	$ 102,235	$ 56,237	$ 267,173	$ 203,463
Total weighted-average shares used to compute net income per basic share (in Shares)	160,268	139,848	157,274	139,830
Diluted (in Shares)	166,894	154,593	165,141	155,366
Basic (in Dollars per Share)	$ 0.64	$ 0.40	$ 1.70	$ 1.45
Net income per diluted share (in Dollars per Share)	$ 0.61	$ 0.36	$ 1.62	$ 1.31
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	2,247	9,674	3,301	10,141
May 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	4,261	4,910	4,431	5,160
February 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	0	61	0	140
Stock Options [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	22	20	22	19
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	96	80	113	76

Fair Value Measurements (Narrative) (Detail) (USD $)

9 Months Ended

1 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Sep. 30, 2014

Nov. 06, 2014

Dec. 31, 2013

Sep. 30, 2014

AxoGen Note Receivable [Member]

Dec. 31, 2013

AxoGen Note Receivable [Member]

Apr. 30, 2013

Avinger Note Receivable [Member]

Sep. 30, 2014

Depomed [Member]

Dec. 31, 2013

Depomed [Member]

Oct. 18, 2013

Depomed [Member]

Sep. 30, 2014

VB [Member]

Sep. 30, 2014

VB [Member]

Jun. 26, 2014

VB [Member]

$ 65,600,000

$ 240,500,000

Purchase of royalty rights

241,300,000

15,500,000

Embedded Derivative, Fair Value of Embedded Derivative Asset

1,200,000

1,100,000

Fair value inputs, discount rate (in Percent)

22.50%

17.50%

Royalty right purchase transaction costs

800,000

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, Low End

21.00%

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate, High End

25.00%

Fair Value Measurements, Sensitivity Analysis, Description

Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $25.6 million or increase by $21.0 million, respectively. Should the expected royalties increase or decrease by 10%, the fair value of the asset could increase by $18.1 million or decrease by $19.4 million, respectively.

Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $0.8 million or decrease by $0.8 million, respectively.

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

242,452,000

^[1]

235,677,000

^[2]

226,600,000

235,700,000

15,800,000

226,600,000

15,800,000

Period over which revenue is expected for valuation (in years)

15 years

Transfers from level 1 to level 2, amount

Transfers from level 2 to level 1, amount

$ 0

[1]	unaudited
[2]	Note 1

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) (USD $)
In Thousands, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

$ 242,452

^[1]

$ 235,677

^[2]

Foreign Currency Contract, Asset, Fair Value Disclosure

418,891

326,885

252

Financial liabilites:

Foreign currency hedge contracts

8,871

Money Market Funds [Member]

Cash and Cash Equivalents, Fair Value

173,340

85,970

Equity Securities [Member]

Available for Sale Securities, Fair Value

2,847

5,238

Fair Value Level 1 [Member]

Foreign Currency Contract, Asset, Fair Value Disclosure

173,340

85,970

Financial liabilites:

Foreign currency hedge contracts

Fair Value Level 1 [Member] | Money Market Funds [Member]

Cash and Cash Equivalents, Fair Value

173,340

85,970

Fair Value Level 1 [Member] | Equity Securities [Member]

Available for Sale Securities, Fair Value

Fair Value Level 2 [Member]

Foreign Currency Contract, Asset, Fair Value Disclosure

3,099

5,238

252

Financial liabilites:

Foreign currency hedge contracts

8,871

Fair Value Level 2 [Member] | Money Market Funds [Member]

Cash and Cash Equivalents, Fair Value

Fair Value Level 2 [Member] | Equity Securities [Member]

Available for Sale Securities, Fair Value

2,847

5,238

Fair Value Level 3 [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

242,452

235,677

Schedule of Available-For-Sale Securities [Line Items]

$ 242,452

$ 235,677

[1]	unaudited
[2]	Note 1

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Assets
Notes receivable, Carrying Value	$ 418,578,000	$ 195,048,000
Liabilities:
Convertible Notes Payable, Carrying Value	492,901,000	395,280,000
Series 2012 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	47,564,000	172,630,000
May 2015 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	152,105,000	148,253,000
February 2018 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	274,512,000	0
Term Loan. [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	18,720,000	74,397,000
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,191,000	47,694,000
Hyperion [Member]
Assets
Notes receivable, Carrying Value	1,200,000	1,194,000
AxoGen Note Receivable [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset	1,200,000	1,100,000
Assets
Notes receivable, Carrying Value	30,192,000	26,544,000
Avinger Note Receivable [Member]
Assets
Notes receivable, Carrying Value	20,516,000	20,250,000
LENSAR Note Receivable [Member]
Assets
Notes receivable, Carrying Value	39,645,000	39,572,000
Durata Note Receivable [Member]
Assets
Notes receivable, Carrying Value	40,000,000	24,995,000
Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Carrying Value	35,212,000	34,799,000
Paradigm Spine [Member]
Assets
Notes receivable, Carrying Value	49,544,000	0
kaleo Note Receivable [Member]
Assets
Notes receivable, Carrying Value	152,078,000	0
Notes receivable, Fair Value		0
Fair Value Level 2 [Member]
Liabilities:
Notes payable, Fair Value	577,836,000	564,954,000
Fair Value Level 2 [Member] \| Series 2012 Notes [Member]
Liabilities:
Notes payable, Fair Value	69,172,000	277,650,000
Fair Value Level 2 [Member] \| May 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	197,354,000	212,304,000
Fair Value Level 2 [Member] \| February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value	292,560,000
Fair Value Level 2 [Member] \| Term Loan. [Member]
Liabilities:
Notes payable, Fair Value	18,750,000	75,000,000
Fair Value Level 2 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Durata Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Paradigm Spine [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| kaleo Note Receivable [Member]
Assets
Notes receivable, Fair Value	0
Fair Value Level 3 [Member]
Assets
Notes receivable, Fair Value	420,123,000	191,449,000
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value	50,191,000	46,042,000
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	1,200,000	1,195,000
Fair Value Level 3 [Member] \| AxoGen Note Receivable [Member]
Assets
Notes receivable, Fair Value	29,303,000	25,785,000
Fair Value Level 3 [Member] \| Avinger Note Receivable [Member]
Assets
Notes receivable, Fair Value	19,746,000	19,061,000
Fair Value Level 3 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	40,000,000	39,572,000
Fair Value Level 3 [Member] \| Durata Note Receivable [Member]
Assets
Notes receivable, Fair Value	40,000,000	24,995,000
Fair Value Level 3 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	36,752,000	34,799,000
Fair Value Level 3 [Member] \| Paradigm Spine [Member]
Assets
Notes receivable, Fair Value	50,791,000	0
Fair Value Level 3 [Member] \| kaleo Note Receivable [Member]
Assets
Notes receivable, Fair Value	$ 152,140,000

Fair Value Measurements Level 3 Unobservable Input Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of acquired royalty rights			$ 72,992
Beginning balance			0
Transfer into Level 3			235,677
Gains (losses) included in earnings			(8,725)
Purchases			15,500
Ending balance	242,452		242,452
Payments for (Proceeds from) Productive Assets			(81,717)	0
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Unrealized Gains (Losses), Changes in Assets and Liabilities, Continued to be Held, Amount	$ 26,787	$ 0	$ 72,992	$ 0

Cash Equivalents and Investments (Narrative) (Detail) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Cash and Cash Equivalents [Abstract]
Gains (losses) on sales of available-for-sale securities	$ 0		$ 0	$ 0	$ 0
Unrealized Gain (Loss) on Investments		$ 1,129,000		$ (425,000)

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Mar. 31, 2013

Dec. 31, 2012

$ 285,107

$ 97,802

1,738

Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value

(653)

284,454

99,540

281,607

^[1]

94,302

^[2]

319,596

131,212

Schedule of Available-For-Sale Securities [Line Items]

2,847

^[1]

5,238

^[2]

Cash [Member]

108,267

8,332

Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value

108,267

8,332

108,267

8,332

Schedule of Available-For-Sale Securities [Line Items]

Money Market Funds [Member]

173,340

85,970

Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value

173,340

85,970

173,340

85,970

Schedule of Available-For-Sale Securities [Line Items]

Equity Securities [Member]

3,500

1,738

Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value

(653)

2,847

5,238

$ 2,847

$ 5,238

[1]	unaudited
[2]	Note 1

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

Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Derivative [Line Items]
Fair Value	$ 243	$ (8,871)
Derivative, Notional Amount	38,268	111,614
Eurodollar Sell Forward Contract 1.240 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.240
Eurodollar Sell Forward Contract 1.270 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.270
Eurodollar Sell Forward Contract 1.281 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.281
Eurodollar Sell Forward Contract 1.300 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.300
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.240 [Member]
Derivative [Line Items]
Fair Value	0	(1,207)
Derivative, Notional Amount	0	10,850
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.270 [Member]
Derivative [Line Items]
Fair Value	35	(3,760)
Derivative, Notional Amount	17,780	44,450
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.281 [Member]
Derivative [Line Items]
Fair Value	208	(2,785)
Derivative, Notional Amount	20,488	36,814
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.300 [Member]
Derivative [Line Items]
Fair Value	0	(1,119)
Derivative, Notional Amount	$ 0	$ 19,500

Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Current	$ 252	$ 0
Euro contracts, Accrued liabilities	9	7,355
Euro contracts, Other long-term liabilities	$ 0	$ 1,516

Fair value, after the effects of master netting arrangements, of a financial asset or other 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

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

Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net

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

3 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Derivative [Line Items]

$ (2)

$ (4)

$ (5)

$ (9)

Cash Flow Hedges [Member]

Derivative [Line Items]

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

1,974

^[1]

(3,359)

^[1]

2,305

^[1]

(1,056)

^[1]

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

(989)

^[2]

(32)

^[2]

(3,744)

^[2]

(1,011)

^[2]

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

$ 2

^[3]

$ 4

^[3]

$ 5

^[3]

$ 9

^[3]

[1]	Net change in the fair value of the effective portion of cash flow hedges classified in OCI.
[2]	Effective portion classified as royalty revenue.
[3]	Ineffectiveness from excess hedge was approximately ($2) and ($4) for the three months ended September 30, 2014 and 2013, respectively, and ($5) and ($9) for the nine months ended September 30, 2014 and 2013, respectively.

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended					0 Months Ended	3 Months Ended			0 Months Ended			0 Months Ended				0 Months Ended				3 Months Ended						1 Months Ended			1 Months Ended	3 Months Ended		0 Months Ended	1 Months Ended		9 Months Ended			0 Months Ended				0 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended			58 Months Ended	0 Months Ended				3 Months Ended
	Oct. 31, 2013	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Feb. 06, 2014	Sep. 30, 2014 Wellstat Diagnostics [Member]	Aug. 15, 2013 Wellstat Diagnostics [Member]	Jul. 31, 2012 Merus Labs [Member]	Sep. 30, 2014 Merus Labs [Member]	Dec. 31, 2012 Merus Labs [Member]	Sep. 24, 2013 Merus Labs [Member]	Sep. 30, 2013 AxoGen [Member]	Sep. 30, 2014 AxoGen [Member]	Aug. 14, 2013 AxoGen [Member]	Oct. 03, 2013 LENSAR [Member]	Nov. 02, 2013 Durata [Member]	May 27, 2014 Durata [Member]	Oct. 31, 2013 Durata [Member]	Nov. 10, 2014 DirectFlow [Member]	Nov. 05, 2013 DirectFlow [Member]	Nov. 09, 2014 DirectFlow [Member]	Nov. 06, 2013 DirectFlow [Member]	Sep. 30, 2014 Paradigm Spine [Member]	Feb. 14, 2014 Paradigm Spine [Member]	Mar. 05, 2014 Hyperion [Member]	Mar. 05, 2013 Hyperion [Member]	Jan. 27, 2012 Hyperion [Member]	Apr. 01, 2014 kaleo Note Receivable [Member]	Mar. 31, 2012 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]	Sep. 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]	Sep. 30, 2014 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, 2014 Initial Loan [Member] Merus Labs [Member]	Jun. 28, 2013 Additional Loan [Member] Wellstat Diagnostics [Member]	Sep. 30, 2014 Additional Loan [Member] Merus Labs [Member]	Oct. 03, 2013 Additional Loan [Member] LENSAR [Member]	Oct. 31, 2012 Royalty Agreement [Member] AxoGen [Member]	Sep. 30, 2014 Royalty Agreement [Member] AxoGen [Member]	Sep. 30, 2013 Royalty Agreement [Member] AxoGen [Member]	Sep. 30, 2014 Royalty Agreement [Member] AxoGen [Member]	Sep. 30, 2013 Royalty Agreement [Member] AxoGen [Member]	Dec. 31, 2013 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]	Sep. 30, 2014 Tranche two [Member] Paradigm Spine [Member]	Oct. 31, 2013 Tranche three [Member] Durata [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross									$ 0						$ 40,000,000		$ 15,000,000	$ 25,000,000				$ 35,000,000		$ 50,000,000			$ 2,300,000	$ 150,000,000	$ 7,500,000	$ 10,000,000	$ 35,000,000			$ 20,000,000					$ 40,000,000				$ 1,300,000													$ 15,000,000		$ 30,000,000
Number of payments to be received																											2
Periodic contractual payments																										1,200,000
First minimum payment																										1,200,000
Second minimum payment																									1,200,000
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
Financing Receivable, Net						53,900,000
Term of receivable (in Duration)																													2 years																	8 years
Royalty rate on AxoGen net revenues (in percent)																																														9.95%
Guaranteed quarterly minimum payment-low																																														1.3
Guaranteed quarterly minimum payment-high																																														2,500,000
Interest rate of note receivable (in Percent)							5.00%								15.50%			14.00%			13.50%	15.50%		13.00%				13.00%	10.00%	12.00%				12.00%								13.50%		14.00%											12.75%
Reduction in royalty rate (in percent)																																																				50.00%
Repayment of notes receivable			0	59,279,000					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			15,000,000	50,000,000			75,000,000									40,000,000				7,900,000		8,700,000							20,000,000												12,500,000
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																																															1,200,000		1,200,000		1,100,000
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net																																															100,000	0	200,000	400,000
Investment Owned, Balance, Shares														1,166,666
Share Price					$ 7.97									$ 3.00
Investment Owned, at Cost														3,500,000
Investment Owned, at Fair Value													2,800,000
Unrealized Gain (Loss) on Investments		1,129,000	(425,000)									700,000
Maximum amount of additional funds, upon attainment of milestones																																	20,000,000
Debt Instrument, Date of First Required Payment															Dec. 31, 2016
Period after occurence of milestone, additional funding available [months]	9 months
Low end of amount company has agreed to advance under credit agreement																								$ 6,250,000
Securitization of notes receivable from first approved product (in percent)																												100.00%
Securitization of notes receivable from second approved product (in percent)																												10.00%

Accrued Liabilities (Accrued Liabilities) (Detail) (USD $)
In Thousands, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Payables and Accruals [Abstract]

Compensation

$ 2,409

$ 768

Interest

4,603

2,925

Deferred Tax Liabilities, Net, Current

2,576

Deferred Revenue, Current

1,052

Foreign currency hedge

7,355

Dividend payable

24,272

Legal

535

324

Other

221

426

Total

$ 35,677

^[1]

$ 11,857

^[2]

[1]	unaudited
[2]	Note 1

Commitments and Contingencies (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Retroactive royalty rate on past U.S.-based sales to be paid by Genentech (in Percent)	2.125%
Total lease payments for the duration of the guarantee	$ 81,800,000
Accrued lease liability	$ 10,700,000	$ 10,700,000

Convertible Notes (Narrative) (Detail) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended			0 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended							0 Months Ended	3 Months Ended			3 Months Ended	1 Months Ended	3 Months Ended	1 Months Ended			0 Months Ended	3 Months Ended		0 Months Ended		0 Months Ended
	Nov. 24, 2014	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Feb. 06, 2014	May 16, 2011	Feb. 05, 2014 Series 2012 Notes [Member]	Jan. 31, 2012 Series 2012 Notes [Member]	Sep. 30, 2014 Series 2012 Notes [Member]	Sep. 30, 2013 Series 2012 Notes [Member]	Sep. 30, 2014 Series 2012 Notes [Member]	Feb. 12, 2014 Series 2012 Notes [Member]	Feb. 07, 2014 Series 2012 Notes [Member]	Feb. 06, 2014 Series 2012 Notes [Member]	Dec. 31, 2013 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]	Sep. 30, 2014 May 2015 Notes [Member]	Sep. 30, 2013 May 2015 Notes [Member]	Dec. 31, 2013 May 2015 Notes [Member]	Sep. 30, 2014 Purchased Call Options [Member]	Jan. 31, 2013 Warrants [Member]	Sep. 30, 2014 Warrants [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Sep. 30, 2014 February 2015 Notes [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Feb. 11, 2014 February 2018 Notes [Member]	Sep. 30, 2014 February 2018 Notes [Member]	Feb. 12, 2014 February 2018 Notes [Member]	Feb. 11, 2014 February 2018 Note Purchase Call Option [Member]	Sep. 30, 2014 February 2018 Note Purchase Call Option [Member]	Feb. 05, 2014 February 2018 Note Warrant [Member]	Sep. 30, 2014 February 2018 Note Warrant [Member]	Sep. 30, 2014 Term Loan. [Member]	Oct. 28, 2013 Term Loan. [Member]	Sep. 30, 2014 Term Loan. [Member] Base Rate [Member]	Oct. 28, 2013 Term Loan. [Member] Base Rate [Member]
Debt Instrument [Line Items]
Convertible notes																$ 131,700,000	$ 131,700,000			$ 10,000,000	$ 155,300,000							$ 169,000,000		$ 1,000,000		$ 274,512,000	$ 300,000,000
Total consideration given for convertible note exchange																	191,800,000
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
Deferred issue costs, incentive payment allocated											765,000
Adjustments to additional paid in capital, equity component of convertible debt											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%											4.00%							2.22%	1.00%
Convertible note rate conversion trading days (in days)	20	0
Convertible Notes rate conversion consecutive trading days (in days)		30
Convertible notes due upon demand within (in years)							1
Total debt discount																						18,900,000							16,800,000
Unamortized discount of liability component											(2,300,000)	(747,000)		(747,000)	(2,100,000)			(7,370,000)				(3,145,000)		(6,997,000)								(25,488,000)	(29,700,000)
Debt discount recorded to additional paid in capital																																	19,300,000
Debt discount recorded to deferred tax liability																																	10,400,000
Minimum conversion price percent for note conversion (in Percent)											130.00%											130.00%
Convertible Notes rate conversion business day period (in days)		5
Convertible Notes rate conversion consecutive trading day period (in days)		0
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%												6.90%
Convertible notes, conversion price (in Dollars per Share)												$ 5.22		$ 5.22								$ 5.95					$ 7.00						$ 9.17				$ 10.3610
Estimated market interest rate for similar nonconvertible instrument																																	7.00%
Debt instrument, convertible, remaining amortization period (in Duration)														4 months 18 days								7 months 3 days										3 years 4 months 5 days
Debt instrument, convertible, conversion threshold (in Dollars per Share)												$ 6.78	$ 6.89									$ 7.74	$ 7.86
Debt instrument, convertible, if-converted value														20,900,000								39,600,000
Net proceeds from the issuance of convertible notes					300,000,000	0															149,700,000										290,200,000
Convertible notes repurchase price as a percentage of principal (in Percent)																					100.00%
Debt Instrument, Face Amount												48,311,000		48,311,000			48,300,000	180,000,000	180,000,000			155,250,000		155,250,000					0			300,000,000	300,000,000					18,750,000
Conversion Rate per $1,000 Principal Amount (in Ratio)												191.6710										167.9812									109.1048
Number of hedge counterparties (in Counterparties)																																			2
Purchased call options cost																									20,800,000									31,000,000
Number of shares of common stock covered by the purchased call options purchased (in Shares)																									26.1		27.5								32.7
Proceeds from Issuance of Warrants					11,427,000	0																				10,900,000	10,900,000									11,400,000
Debt conversion, shares issued (in Shares)										20.3																	2.0
Debt Conversion, Converted Instrument, Amount										157,600,000
Cash paid to exchange convertible note																	34,200,000
Inducement fee																	2,500,000
Interest Payable																	1,800,000
Deferred Income Tax Expense (Benefit)										29,900,000
Deferred taxes included in purchased call options cost																									7,200,000									10,800,000
Gain on conversion of convertible notes		0	6,143,000	0	6,143,000	0
Debt discount, derecognition on exchange																	5,800,000
Debt Exchange cost other																	300,000
Share Price								$ 7.97
Dividends Payable, Amount Per Share		$ 0.15			$ 0.15
Short-term Debt		$ 18,800,000			$ 18,800,000																																		$ 75,000,000

Convertible Notes (Summary of Convertible Notes) (Detail) (USD $)

3 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

0 Months Ended

9 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Jan. 31, 2012

Series 2012 Notes [Member]

Sep. 30, 2014

Series 2012 Notes [Member]

Sep. 30, 2014

Series 2012 Notes [Member]

Feb. 06, 2014

Series 2012 Notes [Member]

Dec. 31, 2013

Series 2012 Notes [Member]

Aug. 01, 2013

Series 2012 Notes [Member]

Sep. 30, 2014

May 2015 Notes [Member]

Sep. 30, 2014

May 2015 Notes [Member]

Dec. 31, 2013

May 2015 Notes [Member]

Jan. 31, 2012

February 2015 Notes [Member]

Sep. 30, 2014

February 2015 Notes [Member]

Feb. 11, 2014

February 2018 Notes [Member]

Sep. 30, 2014

February 2018 Notes [Member]

Feb. 12, 2014

February 2018 Notes [Member]

Dec. 31, 2013

February 2018 Notes [Member]

Sep. 30, 2014

Term Loan. [Member]

Dec. 31, 2013

Term Loan. [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.875%

3.75%

4.00%

Debt Instrument, Convertible, Conversion Ratio

191.671

167.9812

109.1048

Convertible notes, conversion price (in Dollars per Share)

$ 5.22

$ 5.95

$ 9.17

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

$ 1,000

Convertible Notes, Maturity Date (Date)

Feb. 15, 2015

May 01, 2015

Feb. 01, 2018

Oct. 28, 2014

Convertible Notes, Principal Balance Outstanding

48,311,000

48,300,000

180,000,000

155,250,000

300,000,000

18,750,000

Term loan payable

18,720,000

^[1]

74,397,000

^[1]

Convertible Notes Payable, Carrying Value

$ 492,901,000

$ 395,280,000

$ 47,564,000

$ 172,630,000

$ 152,105,000

$ 148,253,000

$ 274,512,000

$ 0

$ 18,720,000

$ 74,397,000

[1]

unaudited

Other Liabilities Disclosure [Abstract]

Ratio applied to the conversion of debt instrument into equity with equity shares divided by debt principal amount.

+ References+ Details

Convertible Notes (Summary of Series 2012 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Feb. 12, 2014	Feb. 06, 2014	Dec. 31, 2013	Aug. 01, 2013	Jan. 31, 2012
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 492,901			$ 395,280
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding	48,311		48,300	180,000	180,000
Unamortized discount of liability component	(747)	(2,100)		(7,370)		(2,300)
Convertible Notes Payable, Carrying Value	$ 47,564			$ 172,630

Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) (Series 2012 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 347	$ 1,290	$ 1,455	$ 3,864
Amortization of debt issuance costs	64	289	996	860
Amortization of debt discount	404	1,538	1,783	4,538
Total	$ 815	$ 3,117	$ 4,234	$ 9,262

Convertible Notes (Summary of May 2015 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 492,901	$ 395,280
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	155,250	155,250
Unamortized discount of liability component	(3,145)	(6,997)
Convertible Notes Payable, Carrying Value	$ 152,105	$ 148,253

Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) (May 2015 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
May 2015 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 1,455	$ 1,456	$ 4,366	$ 4,366
Amortization of debt issuance costs	320	309	952	920
Amortization of debt discount	1,308	1,215	3,852	3,582
Total	$ 3,083	$ 2,980	$ 9,170	$ 8,868

Convertible Notes Convertible Notes (Summary of February 2018 Notes) (Detail) (Details) (February 2018 Notes [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Feb. 12, 2014
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ (25,488)	$ (29,700)
Convertible notes	274,512	300,000
Debt Instrument, Face Amount	$ 300,000	$ 300,000

Convertible Notes Convertible Notes (Interest Expense for February 2018 Notes) (Detail) (Details) (February 2018 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
February 2018 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 3,000	$ 0	$ 7,633	$ 0
Amortization of debt issuance costs	536	0	1,358	0
Amortization of debt discount	1,688	0	4,238	0
Total	$ 5,224	$ 0	$ 13,229	$ 0

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) (USD $)
In Thousands, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Accrued lease liability

$ 10,700

Accrued Bonuses

1,249

Uncertain tax position

19,359

10,826

Long-term Deferred Tax Liabilities

10,404

Foreign currency hedge, long-term

1,516

Total

$ 41,712

^[1]

$ 23,042

^[2]

[1]	unaudited
[2]	Note 1

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(48)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(115)
Stock-Based Incentive Plan [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations	115
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	(312)
Shares Available for Grant, Balance beginning of period (in Shares)	4,478
Shares Available for Grant, Balance end of period (in Shares)	4,166
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Stock Options [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(115)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 22.08
Stock Options, Number of Shares, Balance at beginning of period (in Shares)	172
Stock Options, Number of Shares Granted (in Shares)	0
Stock Options, Number of Shares, Balance at end of period (in Shares)	57
Stock Options, Weighted Average Exercise Price, Balance at beginning of period (in Dollars per Share)	$ 16.52
Stock Options, Weighted Average Exercise Price, Balance at end of period (in Dollars per Share)	$ 5.41
Restricted Stock [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations	0
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	114
Restricted Stock Awards, Number of Shares Granted (in Shares)	312
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	378
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 7.45
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	$ 8.39
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	$ 8.12
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 8.27

Cash Dividends (Narrative) (Detail) (USD $)	3 Months Ended
Cash Dividends (Narrative) (Detail) (USD $)	Sep. 30, 2014
Stockholders' Equity Note [Abstract]
Dividends payable quarterly (in Dollars per Share)	$ 0.15
Dividends payable, date declared (Date)	Jan. 29, 2014

Cash Dividends (Summary of Conversion Rates for Convertible Notes) (Detail) (USD $)	3 Months Ended
	Sep. 30, 2014
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Conversion Rate per $1,000 Principal Amount (in Ratio)	191.671
Approximate Conversion Price Per Common Share (in Dollars per Share)	$ 5.22
Effective Date (Date)	Sep. 03, 2014
May 2015 Notes [Member]
Debt Instrument [Line Items]
Conversion Rate per $1,000 Principal Amount (in Ratio)	167.9812
Approximate Conversion Price Per Common Share (in Dollars per Share)	$ 5.95
Effective Date (Date)	Sep. 03, 2014

Accumulated Other Comprehensive Income (Loss) [Abstract]

Ratio applied to the conversion of debt instrument into equity with equity shares divided by debt principal amount.

+ References+ Details

Income Taxes (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Investments, Owned, Federal Income Tax Note [Line Items]
Release of tax reserve against federal tax credits taken in prior years	$ 7.2	$ 7.2
Federal statutory income tax rate (in Percent)	35.00%
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	$ 4.4	$ 10.0

Accumulated Other Comprehensive Income (Loss) (Schedule of Balances of Accumulated Other Comprehensive Income (Loss)) (Detail) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Unrealized gains (losses) on available-for-sale securities, beginning balance

$ 1,129

Unrealized losses on cash flow hedges, beginning balance

(6,017)

Total Accumulated Other Comprehensive Loss, beginning balance

(4,888)

^[1]

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

(258)

1,091

(1,554)

1,085

Unrealized gains (losses) on cash flow hedges

2,963

^[2]

(3,327)

^[2]

6,049

(45)

Total Accumulated Other Comprehensive Loss

2,705

(2,236)

4,495

1,040

Unrealized gains (losses) on available-for-sale securities, ending balance

(425)

Unrealized losses on cash flow hedges, ending balance

Total Accumulated Other Comprehensive Loss, ending balance

$ (393)

^[3]

$ (393)

^[3]

[1]	Note 1
[2]	Net of tax of $1,595 and ($1,791) for the three months ended September 30, 2014 and 2013, respectively,
[3]	unaudited

Accumulated change, net of tax, in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Includes an entity's share of an equity investee's Increase or Decrease in deferred hedging gains or losses.

+ References+ Details