Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

$ 110,701

$ 63,659

$ 332,795

Other comprehensive income (loss), net of tax

Change in unrealized gains on investments in available-for-sale securities

1,181

122

783

Adjustment for net (gains) losses realized and included in net income, net of tax

(557)

(712)

Total change in unrealized gains on investments in available-for-sale securities, net of tax

^[1]

1,181

(435)

Unrealized gains (losses) on cash flow hedges

4,626

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax

(1,821)

(5,390)

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

^[2]

(1,821)

(764)

Total other comprehensive income (loss), net of tax

1,181

(2,256)

(693)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

111,882

61,403

332,102

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest

(47)

Comprehensive income

$ 111,929

$ 61,350

$ 332,102

[1]	Net of tax of $314, ($234) and $38 for the years ended December 31, 2017, 2016 and 2015, respectively.
[2]	Net of tax of zero, ($981) and ($411) for the years ended December 31, 2017, 2016 and 2015, respectively.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities, tax	$ 314	$ (234)	$ 38
Unrealized gains (losses) on cash flow hedges, tax	$ 0	$ (981)	$ (411)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued Income Taxes, Current	$ 1,377	$ 4,723
Current assets:
Cash and cash equivalents	527,266	147,154
Short-term investments	4,848	19,987
Receivables from licensees	31,183	40,120
Notes receivable	53,613	111,182
Investments-other	0	75,000
Inventory, net	9,147	2,884
Prepaid and other current assets	14,386	1,704
Total current assets	640,443	398,031
Property, Plant and Equipment, Net	7,222	38
Royalty rights - at fair value	349,223	402,318
Notes and other receivables, long-term	17,124	159,768
Long-term deferred tax assets	2,432	19,257
Intangible assets, net	215,823	228,542
Other assets	10,856	7,433
Total assets	1,243,123	1,215,387
Current liabilities:
Accounts payable	19,785	7,016
Accrued liabilities	45,881	30,575
Anniversary payment	0	88,001
Convertible Notes Payable, Current	126,066	0
Total current liabilities	193,109	130,315
Convertible notes payable	117,415	232,443
Contingent consideration	42,000	42,650
Other long-term liabilities	44,709	54,556
Total liabilities	397,233	459,964
Commitments and Contingencies
Stockholders' equity (deficit):
Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.01 per share, 350,000 shares authorized; 165,538 and 164,287 shares issued and outstanding at December 31, 2016 and 2015, respectively	1,538	1,655
Additional paid-in capital	(102,443)	(107,628)
Accumulated other comprehensive income	1,181	0
Retained earnings	945,614	857,116
Total stockholders' equity	845,890	751,143
Noncontrolling Interest in Variable Interest Entity	0	4,280
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	845,890	755,423
Total liabilities and stockholders' equity	$ 1,243,123	$ 1,215,387

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands	Dec. 31, 2017	Dec. 31, 2016
Preferred stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in Shares)	10,000	10,000
Preferred stock, shares issued (in Shares)	0	0
Preferred stock, shares outstanding (in Shares)		0
Common stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Common stock, shares authorized (in Shares)	350,000	350,000
Common stock, shares issued (in Shares)	153,775	165,538
Common stock, shares outstanding (in Shares)	153,775	165,538

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Proceeds from Sale of Productive Assets	$ 108,169	$ 0	$ 0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	110,701	63,659	332,795
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed	0
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible notes and term loan offering costs	11,038	10,009	12,963
Amortization of Intangible Assets	24,689	12,028	0
Goodwill, Impairment Loss	0	3,735	0
Change in fair value of acquired royalty rights	(162,327)	(16,196)	(68,367)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss)	49	906	(985)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	349	(3,716)	0
Other amortization, depreciation and accretion of embedded derivative	2,366	18	40
Inventory Write-down	2,012	342	0
Provision for Doubtful Accounts	76	0	0
Loss on extinguishment of notes receivable	0	51,075	3,979
Gains (Losses) on Extinguishment of Debt	0	2,353	(6,450)
Gain (Loss) on Sale of Investments	(108)	(882)	(997)
Increase (Decrease) in Other Receivables	(1,400)	0	0
Business Combination, Bargain Purchase, Gain Recognized, Amount	(9,309)	0	0
Stock-based compensation expense	3,138	3,742	2,045
Deferred taxes	39,172	(10,676)	17,251
Changes in assets and liabilities:
Receivables from licensees	5,877	(34,120)	0
Increase (Decrease) in Accounts and Other Receivables	(5,055)	6,000	(300)
Prepaid and other current assets	(9,100)	(1,526)	(42)
Accrued interest on notes receivable	1,475	(2,764)	(2,246)
Increase (Decrease) in Inventories	(1,120)	(3,227)	0
Other assets	(1,400)	(757)	(865)
Accounts payable	10,840	6,621	76
Accrued liabilities	13,120	22,729	(1,048)
Increase (Decrease) in Income Taxes Payable	(3,346)	1,352	79
Increase (Decrease) in Other Deferred Liability	0	(787)	0
Other long-term liabilities	(1,223)	3,800	12,937
Net cash provided by operating activities	40,624	101,718	301,465
Cash flows from investing activities
Purchase consideration paid in advance	0	(109,938)	0
Purchases of investments	(23,213)	(22,952)	0
Payments to Acquire Other Investments	0	(75,000)	0
Proceeds from Sale and Maturity of Other Investments	75,000	0	0
Maturities of investments	39,956	4,680	1,947
Purchase of royalty rights	0	(59,500)	(115,000)
Payments for (Proceeds from) Productive Assets	107,253	72,582	43,407
Issuance of notes receivable	0	(9,010)	(35,235)
Proceeds from Sale and Collection of Notes Receivable	144,829	54,653	25,242
Repayment of notes receivable	8,190	0	0
Acquisition of property and equipment	(1,297)	(25)	(9)
Net cash provided by/(used in) investing activities	458,887	(144,510)	(79,648)
Cash flows from financing activities
Proceeds from term loan	0	0	100,000
Repayments of Notes Payable	0	(25,000)	(75,000)
Payments for Repurchase of Convertible Preferred Stock	0	(120,000)	(220,397)
Payment of debt issuance costs	0	(3,204)	(607)
Net proceeds from the issuance of convertible notes	0	150,000	0
Purchased call options cost	0	(14,400)	0
Other Payments to Acquire Businesses	(87,007)	0	0
Proceeds from Noncontrolling Interests	0	250	0
Cash paid for purchase of noncontrolling interest	(2,170)	0	0
Payments for Repurchase of Common Stock	(30,000)	0	0
Cash dividends paid	(222)	(16,583)	(98,307)
Net cash used in financing activities	(119,399)	(28,937)	(294,311)
Net increase/(decrease) in cash and cash equivalents	380,112	(71,729)	(72,494)
Cash and cash equivalents at beginning of the period	147,154	218,883	291,377
Cash and cash equivalents at end of period	527,266	147,154	218,883
Supplemental cash flow information
Cash paid for income taxes	43,366	50,000	168,000
Interest Paid	9,286	11,410	16,987
Supplemental disclosures of non-cash financing activities
Other Significant Noncash Transaction, Value of Consideration Given	0	0	$ 9,794
Other Significant Noncash Transaction, Value of Consideration Received	0	$ 0
Noncash or Part Noncash Acquisition, Value of Assets Acquired	0
Noncash or Part Noncash Acquisition, Other Liabilities Assumed	$ 0

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

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings (Accumulated Deficit) [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

February 2018 Notes [Member]

Additional Paid-in Capital [Member]

Noncontrolling Interest in Variable Interest Entity

$ 0

Beginning Balance (in shares) at Dec. 31, 2014

162,186,482

Beginning Balance at Dec. 31, 2014

$ 460,437

$ 1,622

$ (119,874)

$ 575,740

$ 2,949

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

758,533

Issuance of common stock under employee benefit plans

$ 0

$ (8)

(8)

Stock Issued During Period, Shares, Conversion of Convertible Securities

1,341,600

Stock Issued During Period, Value, Conversion of Convertible Securities

$ 13

Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature

100

Stock-based compensation expense

2,045

Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation

(233)

Dividends declared, Retained Earnings adjustment

(98,499)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

332,102

Net Income (Loss) Attributable to Parent

332,795

Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax

^[1]

Total comprehensive income

332,102

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

(764)

^[2]

(764)

Ending Balance (in shares) at Dec. 31, 2015

164,286,615

Ending Balance at Dec. 31, 2015

695,952

$ 1,643

(117,983)

810,036

2,256

Noncontrolling Interest in Variable Interest Entity

$ 0

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

1,251,832

Issuance of common stock under employee benefit plans

$ 0

(12)

Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature

620

Issuance of convertible debt

$ 25,465

Purchase of purchased call options, net of tax

14,400

Adjustments to Additional Paid in Capital, Other

(3,977)

Stock-based compensation expense

3,741

Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation

(462)

Dividends declared, Retained Earnings adjustment

(16,526)

Proceeds from Divestiture of Interest in Subsidiaries and Affiliates

250

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

4,227

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

61,403

Net Income (Loss) Attributable to Parent

63,606

Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest

Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest

63,659

Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax

(435)

^[1]

(435)

Total comprehensive income

61,350

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

$ (1,821)

^[2]

(1,821)

Ending Balance (in shares) at Dec. 31, 2016

165,538,447

Ending Balance at Dec. 31, 2016

$ 751,143

1,655

(107,628)

857,116

Noncontrolling Interest in Variable Interest Entity

4,280

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 755,423

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

1,582,698

Issuance of common stock under employee benefit plans

(16)

Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature

$ 5,967

Adjustments to Additional Paid in Capital, Other

2,063

Other Noncontrolling Interests

(4,233)

Stock-based compensation expense

$ 3,138

Stock Repurchased During Period, Shares

(13,346,389)

Treasury Stock, Retired, Par Value Method, Amount

$ (133)

Treasury Stock, Retired, Cost Method, Amount

(29,867)

Stock Repurchased and Retired During Period, Value

(30,000)

Payments to Acquire Additional Interest in Subsidiaries

(2,170)

Cumulative Effect on Retained Earnings, Net of Tax

7,617

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

111,882

Net Income (Loss) Attributable to Parent

110,748

Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest

(47)

Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest

110,701

Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax

1,181

^[1]

1,181

Total comprehensive income

111,929

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

^[2]

$ 0

Ending Balance (in shares) at Dec. 31, 2017

153,774,756

Ending Balance at Dec. 31, 2017

$ 845,890

$ 1,538

$ (102,443)

$ 945,614

$ 1,181

Noncontrolling Interest in Variable Interest Entity

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 845,890

[1]	Net of tax of $314, ($234) and $38 for the years ended December 31, 2017, 2016 and 2015, respectively.
[2]	Net of tax of zero, ($981) and ($411) for the years ended December 31, 2017, 2016 and 2015, respectively.

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization and Business PDL BioPharma, Inc. and its subsidiaries (collectively, the “Company”) seeks to provide a significant return for its stockholders by acquiring and managing a portfolio of companies, products, royalty agreements and debt facilities in the biotechnology, pharmaceutical and medical device industries. In 2012, the Company began providing alternative sources of capital through royalty monetizations and debt facilities, and in 2016, the Company began acquiring commercial-stage products and launching specialized companies dedicated to the commercialization of these products. To date, the Company has consummated seventeen of such transactions, of which nine are active and outstanding. At December 31, 2017, one debt transaction is outstanding, representing deployed capital of $20.0 million: CareView Communications, Inc. (“CareView”); one hybrid royalty/debt transaction is outstanding, representing deployed capital of $44.0 million: Wellstat Diagnostics, LLC (a/k/a/ Defined Diagnostics, LLC (“Wellstat Diagnostics”); and five royalty transactions are outstanding, representing deployed capital of $396.1 million, respectively: KYBELLA^®, AcelRx Pharmaceuticals, Inc. (“AcelRx”), The Regents of the University of Michigan (“U-M”), Viscogliosi Brothers, LLC (“VB”) and Depomed, Inc. and Depo DR Sub, LLC (together, “Depomed”). The Company’s equity and loan investments in Noden Pharma DAC, Inc. and Noden Pharma USA, Inc. (together, and including their respective subsidiaries, “Noden”) represent deployed capital of $179.0 million, respectively, and its converted equity and loan investment in LENSAR, Inc. (“LENSAR”) represents deployed capital of $40.0 million. The Company operates in three segments designated as Income Generating Assets, Pharmaceutical and Medical Devices. The Company’s Income Generating Assets segment consists of revenue derived from (i) notes and other long-term receivables, (ii) royalty rights - at fair value, (iii) equity investments and (iv) royalties from issued patents in the United States and elsewhere, covering the humanization of antibodies, which the Company refers to as the Queen et al. patents. The Company’s Pharmaceutical segment consists of revenue derived from branded prescription medicine product sold under the name Tekturna^® and Tekturna HCT^® in the United States and Rasilez^® and Rasilez HCT^® in the rest of the world (collectively, the “Noden Products” or “Tekturna”) sales. The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors; to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the stockholders or equity holders.

The Company applies the guidance codified in Accounting Standard Codification (“ASC”) 810, Consolidations, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. The Company identifies an entity as a variable interest entity if either: (1) the entity does not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support, or (2) the entity’s equity investors lack the essential characteristics of a controlling financial interest. The Company performs ongoing qualitative assessments of its variable interest entities to determine whether the Company has a controlling financial interest in any variable interest entity and therefore is the primary beneficiary, and if it has the power to direct activities that impact the activities of the entity.

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 Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include the valuation of royalty rights - at fair value, revenue recognition and allowance for customer credits, the valuation of inventory, the assessment of recoverability of goodwill and intangible assets and their estimated useful lives, the valuation and recognition of share-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and contingent consideration estimates. Actual results could differ from those estimates.

Segment Reporting

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the entity’s chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company has evaluated its operating segments in accordance with ASC 280, and has identified three reportable segments: Income Generating Assets, Pharmaceutical and Medical Devices at December 31, 2017.

Cash Equivalents

The Company considers all highly liquid investments with initial maturities of three months or less at the date of purchase to be cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions and, by policy, limit the amount of credit exposure in any one financial instrument.

Accounts Receivable

As of December 31, 2017 and 2016, the Company had $76,000 and zero allowance for doubtful accounts, respectively. The Company provides an allowance for doubtful accounts based on experience and specifically identified risks. Accounts receivable are carried at fair value and charged off against the allowance for doubtful accounts when the Company determines that recovery is unlikely and the Company cease collection efforts.

Investments

The Company’s investments include available-for-sale investments, equity method investments and cost method investments in certain publicly traded companies and privately-held companies.

All marketable securities are classified as available-for-sale. Available-for-sale securities are carried at fair value, based on quoted market prices and observable inputs, with unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. The Company classify marketable securities that are available for use in current operations as current assets in the Consolidated Balance Sheets. Realized gains and losses and declines in value judged to be other than temporary for available-for-sale securities are included in “Interest and other income, net.” The cost of securities sold is based on the specific identification method.

On July 1, 2016, Noden Pharma DAC entered into an asset purchase agreement (“Noden Purchase Agreement”) where by it purchased from Novartis Pharma AG (“Novartis”) the exclusive worldwide rights to manufacture, market, and sell the Noden Products and certain related assets and assumed certain related liabilities (the “Noden Transaction”). Upon the consummation of the Noden Transaction, a noncontrolling interest holder acquired a 6% equity interest in Noden. The equity interest of the noncontrolling interest holder was subject to vesting and repurchase rights over a four-year period. In May 2017, such equity interest was repurchased for $2.2 million in cash by the Company. The Company accounted for the repurchase in accordance with ASC 810 and recognized the difference between the fair value of the consideration paid and the amount by which the noncontrolling interest is adjusted for in equity attributable to the Company. The Company consolidates Noden under the voting interest model as of December 31, 2017 and 2016. For additional information about the consolidation of Noden see Note 21.

Fair Value Measurements

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

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

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

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

Notes Receivable and Other Long-Term Receivables

The Company accounts for its notes receivable at amortized cost, net of unamortized origination fees, if any, and adjusted for any allowance for loan losses. Interest is accreted or accrued to “Interest revenue” using the effective interest method. When and if supplemental payments are received from certain of these notes and other long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively.

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

The Company records interest on an accrual basis and recognizes it as earned in accordance with the contractual terms of the credit agreement, to the extent that such amounts are expected to be collected. When a note receivable or loan becomes past due, or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the note receivable or loan on non-accrual status and cease recognizing interest income on that note receivable or loan until all principal and interest due has been paid or until such time that the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest related to prior periods is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection.

At December 31, 2017, the Company had three notes receivable investments on non-accrual status with a cumulative investment cost and fair value of approximately $70.7 million and $71.3 million, respectively, compared to four note receivable investments on non-accrual at December 31, 2016 with a cumulative investment cost and fair value of approximately $105.3 million and $107.4 million, respectively. During the years ended December 31, 2017, 2016 and 2015, the Company recognized losses of zero, $51.1 million and $4.0 million, respectively, on extinguishment of notes receivable. For the year ended December 31, 2017, the Company recognized $3.1 million of interest revenue for the CareView note receivable investment as result of cash interest payments made during fiscal year of 2017. For the years ended December 31, 2016 and 2015, the Company did not recognize any interest for note receivable investments on non-accrual status.

Inventory

Inventory, which consists of raw material, work-in-process and finished goods, is stated at the lower of cost or market value. The Company determines cost using the first-in, first-out method. Inventory levels are analyzed periodically and written down to their net realizable value if they have become obsolete, have a cost basis in excess of its expected net realizable value or are in excess of expected requirements. The Company evaluates for potential excess inventory by analyzing current and future product demand relative to the remaining product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company classifies inventory as current on the Consolidated Balance Sheets when the Company expects inventory to be consumed for commercial use within the next twelve months.

During the years ended December 31, 2017 and 2016, the Company recognized an inventory write-down of $2.0 million and $0.3 million for the Noden Products that the Company would not be able to sell prior to their expiration. There were no inventory write-downs related to excess and obsolete inventory recorded in the year ended December 31, 2015.

Intangible Assets

Intangible assets with finite useful lives consist primarily of acquired product rights and acquired technology and are amortized on a straight-line basis over their estimated useful lives, over 10 to 15 years. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset.

Goodwill

Goodwill represents the excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed. The annual test for goodwill impairment is a two-step process. The first step is a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If this step indicates impairment, then, in the second step, the loss is measured as the excess of recorded goodwill over its implied fair value. Implied fair value is the excess of the fair value of the reporting unit over the fair value of all identified assets and liabilities. The Company tests goodwill for impairment annually in December and when events or changes in circumstances indicate that the carrying value may not be recoverable. After completing the Company’s impairment review for the Noden reporting unit during the fourth quarter of 2016, the Company concluded that the goodwill of the Noden reporting unit was impaired. The Company recognized a goodwill impairment loss of $3.7 million as of December 31, 2016.

Property and Equipment

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



Leasehold improvements		Lesser of useful life or term of lease
Manufacturing equipment		3-5 years
Computer and office equipment		3 years
Furniture and fixtures		7 years
Equipment under lease		Greater of lease term or 5-10 years

Convertible Notes

The Company issued the February 2018 Notes with a net share settlement feature, meaning that upon any conversion, the principal amount will be settled in cash and the remaining amount, if any, will be settled in shares of the Company’s common stock. The Company issued the December 2021 Notes with a settlement feature that allows the Company to settle the notes by paying or delivering, as applicable, cash, shares of the Company’s common stock or a combination of cash and shares of our common stock, at the Company’s election, although it is the current intention that they will be net-share settled. In accordance with accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, the Company separated the principal balance between the fair value of the liability component and the common stock conversion feature using a market interest rate for a similar nonconvertible instrument at the date of issuance.

Financing Costs Related to Long-term Debt

Costs associated with obtaining long-term debt are deferred and amortized over the term of the related debt using the effective interest method. Such costs are presented as a direct deduction from the carrying amount of the long-term debt liability, consistent with debt discounts, on the Company’s Consolidated Balance Sheets.

Product Revenue

General

The Company recognizes revenue from the sale of its products when (i) delivery has occurred, (ii) title has transferred, (iii) the selling price is fixed or determinable, (iv) collectability is reasonably assured and the Company has no further performance obligations. The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company exercises judgment in determining that collectability is reasonably assured or that services have been delivered in accordance with the arrangement. The Company assesses collectability based primarily on the customer’s payment history and on the creditworthiness of the customer.

Revenues from LENSAR product sales contain multiple elements, including LENSAR^® Laser system(s), disposable consumables, procedures, training, installation, warranty and maintenance services. The LENSAR^® Laser system, training and installation services is one unit of accounting. All other elements are separate units of accounting. Disposable consumables, warranty and maintenance services are also sold on a stand-alone basis.

For multiple-element arrangements, revenue is allocated to each unit of accounting based on their relative selling prices. Relative selling prices are based first on vendor specific objective evidence of fair value (“VSOE”), then on third-party evidence of selling price (“TPE”) when VSOE does not exist, and then on management's best estimate of the selling price (“ESP”) when VSOE and TPE do not exist.

Because the Company has neither VSOE nor TPE for the LENSAR^® Laser systems, the allocation of revenue is based on ESP for the systems sold. The objective of ESP is to determine the price at which the Company would transact a sale, had the product been sold on a stand-alone basis. The Company determines ESP for the LENSAR^® Laser systems by considering multiple factors, including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintain internal controls over establishing and updating these estimates.

Revenues from Noden Products sales are recognized when shipped to the customer, which includes wholesalers, distributors and pharmacies. Revenues are recorded net of allowances for customer credits, including estimated chargebacks, rebates, discounts, returns, distribution service fees, patient assistance programs, and government rebates, such as Medicare Part D coverage gap reimbursements in the United States and other deductions and returns in the same period the related sales are recorded. Product shipping and handling costs are included in cost of product revenues.

For the period from July 1, 2016 through October 4, 2016, all of the Noden Products were distributed by Novartis under the terms of the Noden Purchase Agreement while transfer of the marketing authorization rights were pending. The Company presents revenue under the Novartis transition arrangement on a “net” basis and established a reserve for retroactive adjustment to the profit split with Novartis.

For the period from October 5, 2016 to December 31, 2017, Noden Pharma USA, Inc. distributed the Noden Products in the United States. The Company presented revenue for all sales in the United States on a “gross” basis and established a reserve for allowances.

For the period from October 5, 2016 to August 31, 2017, Novartis continued to distribute the Noden products outside of the United States. Beginning on September 1, 2017, Noden Pharma DAC began distributing the Noden Products to select countries outside the United States. The Company presents revenue for Noden Products sold by Novartis outside of the United States on a “net” basis.

Provisions

Customer Credits: The Company’s customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company expects the customers will earn prompt payment discounts and, therefore, the Company deducts the full amount of these discounts from total product sales when revenues are recognized. Service fees are also deducted from total product sales as they are earned.

Rebates and Discounts: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program in the United States and mandated discounts in the European Union in markets where government-sponsored healthcare systems are the primary payers for healthcare. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The accrual for rebates is based on statutory discount rates and expected utilization as well as historical data. The Company’s estimates for expected utilization of rebates are based on data received from the customers. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment.

Chargebacks: Chargebacks are discounts that occur when certain contracted customers, which currently consist primarily of group purchasing organizations, Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, purchase directly from the Company’s wholesalers. Contracted customers generally purchase the product at a discounted price. The wholesalers, in turn, charges back to the Company the difference between the price initially paid by the wholesalers and the discounted price paid by the contracted customers. In addition to actual chargebacks received, the Company maintains an accrual for chargebacks based on the estimated contractual discounts on the inventory levels on hand in the distribution channel. If actual future chargebacks vary from these estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment.

Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. The Company’s estimates for the expected Medicare Part D coverage gap are based on historical invoices received and in part from data received from the Company’s customers. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters. If actual future funding varies from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment.

Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators.

Returns: Returns are generally estimated and recorded based on historical sales and returns information. Products that exhibit unusual sales or return patterns due to dating, competition or other marketing matters are specifically investigated and analyzed as part of the accounting for sales returns accruals.

Queen et al. Royalty Revenues

Under the Company’s license agreements related to patents covering the humanization of antibodies, which it refers to as the Queen et al. patents, the Company receives royalty payments based upon its licensees’ net sales of covered products. Generally, under these agreements, the Company receives royalty reports from its licensees approximately one quarter in arrears; that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. The Company recognizes royalty revenues when it can reliably estimate such amounts and collectability is reasonably assured. Under this accounting policy, the royalty revenues the Company reports are not based upon estimates, and such royalty revenues are typically reported in the same period in which the Company receives payment from its licensees.

Although the last of the Queen et al. patents expired in December 2014, the Company has received royalties beyond expiration based on the terms of its licenses and its legal settlement. Under the terms of the legal settlement between Genentech, Inc. (“Genentech”) and the Company, the first quarter of 2016 was the last period for which Genentech paid royalties to the Company for Avastin, Herceptin, Xolair, Kadcyla and Perjeta. Other products from the Queen et al. patent licenses, such as Tysabri^®, entitle the Company to royalties following the expiration of its patents with respect to sales of licensed product manufactured prior to patent expiry in jurisdictions providing patent protection licenses. In November 2017, the Company was notified by Biogen, Inc. (“Biogen”) that product supply for Tysabri^® that was manufactured prior to patent expiry, and for which the Company would receive royalties on, had been extinguished in the United States and was rapidly being reduced in other countries. As a result, the Company anticipates royalties from product sales of Tysabri to be substantially lower in 2018 and are expected to cease after the first quarter of 2019.

Royalty Rights - At Fair Value

Currently, the Company accounts for its 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 the Company’s valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Transaction-related fees and costs are expensed as incurred.

The changes in the estimated fair value from investments in royalty rights along with cash receipts in each reporting period are presented together on the Company’s Consolidated Statements of Income as a component of revenue under the caption, “Royalty rights - change in fair value.”

Realized gains and losses on royalty rights are recognized as they are earned and when collection is reasonably assured. Royalty Rights revenue is recognized over the respective contractual arrangement period. Critical estimates may include product demand and market growth assumptions, inventory target levels, product approval and pricing assumptions. Factors that could cause a change in estimates of future cash flows include a change in estimated market size, a change in pricing strategy or reimbursement coverage, a delay in obtaining regulatory approval, a change in dosage of the product, and a change in the number of treatments. For each arrangement, the Company is entitled to royalty payments based on revenue generated by the net sales of the product.

Foreign Currency Hedging

From time to time, the Company may enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes.

The Company hedged certain Euro-denominated currency exposures related to royalties associated with its licensees’ product sales with Euro forward contracts. In general, those contracts are intended to offset the underlying Euro market risk in the Company’s royalty revenues. The last of those contracts expired in the fourth quarter of 2015 and was settled in the first quarter of 2016. The Company designated foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated licensee product sales as cash flow hedges.

The fair value of the Euro forward contracts was estimated using pricing models with readily observable inputs from actively quoted markets and was disclosed on a gross basis. The aggregate unrealized gains or losses, net of tax, on the effective component of the hedge was recorded in stockholders’ equity as “Accumulated other comprehensive income.” Realized gains or losses on cash flow hedges are recognized as an adjustment to royalty revenue in the same period that the hedged transaction impacts earnings as royalty revenue. Any gain or loss on the ineffective portion of these hedge contracts is reported in “Interest and other income, net” in the period the ineffectiveness occurs.

Foreign Currency Translation

The Company uses the U.S. dollar predominately as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included in the Consolidated Statements of Income. The aggregate net gains (losses) resulting from foreign currency transactions and remeasurement of foreign currency balances into U.S. dollars that were included in the Consolidated Statements of Income was insignificant for all periods presented.

Comprehensive Income (Loss)

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

Income Taxes

The provision for income taxes is determined using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the consolidated financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any interest and penalties on uncertain tax positions are included within the tax provision.

The 2017 Tax Cuts Act made significant changes to the Internal Revenue Code. These changes include a federal corporate tax rate decrease from a top rate of 35% to a flat rate of 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a partial territorial system, and temporary full expensing of certain business assets. The Company recognized in its Consolidated Financial Statements for the year ended December 31, 2017 estimated tax impacts related to the revaluation of deferred tax assets and liabilities. The ultimate impact may differ from these provisional amounts due to additional analysis, changes in interpretations and assumptions the Company has made and additional regulatory guidance that may be issued. The accounting is expected to be complete when the Company’s 2017 U.S. corporate income tax return is filed in 2018.

Business Combination

The Company applies ASC 805, Business combinations, pursuant to which the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of the (i) the total of cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of an acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the Consolidated Statements of Income.

Lease Accounting and Lease Guarantee

The Company accounts for operating leases by recording rent expense on a straight-line basis over the expected life of the lease, commencing on the date the Company gains possession of leased property. The Company includes tenant improvement allowances and rent holidays received from landlords and the effect of any rent escalation clauses as adjustments to straight-line rent expense over the expected life of the lease.

Capital leases are reflected as a liability at the inception of the lease based on the present value of the minimum lease payments or, if lower, the fair value of the property. Assets under capital leases are recorded in property and equipment, net on the Company’s Consolidated Balance Sheets and depreciated in a manner similar to other property and equipment.

Upon the Spin-Off, the Company’s facility leases in Redwood City, California were assigned to Facet. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. (“AbbVie”). However, if AbbVie were to default on its lease obligations, the Company has in substance guaranteed the lease payments for this facility. The Company would also be responsible for lease-related payments including utilities, property taxes, and common area maintenance, which may be as much as the actual lease payments. As of December 31, 2017, the total remaining lease payments, which run through December 2021, were $45.1 million. The carrying value of this lease guarantee was $10.7 million as of December 31, 2017 and is reflected in other long-term liabilities in the Company’s Consolidated Balance Sheet (see Note 15).

Adopted Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, intended to improve the accounting for share-based payment transactions as part of its simplification initiative. The ASU requires entities to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the statement of income. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, the Company recorded a $7.7 million cumulative-effect adjustment in retained earnings as of the beginning of 2017, the year of adoption. The Company applied the presentation changes for excess tax benefits from financing activities to operating activities in the statement of cash flows using a prospective transition method. The guidance allows for an election to recognize forfeitures as they occur rather than on an estimated basis. The Company will continue to account for forfeitures on an estimated basis. During the year ended December 31, 2017, there were $0.3 million excess tax benefits recognized in the Consolidated Statement of Income and classified as an operating activity in the Consolidated Statement of Cash Flows.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, included in ASC 805, Business Combinations, which revises the definition of a business. The revised definition clarifies that outputs must be the result of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is permitted. The Company adopted the new definition of a business during the first quarter of 2017, and it did not have a material impact on its business practices, financial condition, results of operations, or disclosures.

On February 14, 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). Under current accounting guidance, the income tax effects for changes in income tax rates and certain other transactions are recognized in income from continuing operations resulting in income tax effects recognized in accumulated other comprehensive income that don’t reflect the current tax rate of the entity (“stranded tax effects”). ASU 2018-02 allows the Company the option to reclassify these stranded tax effects related to the change in the federal income tax rate as a result of the Tax Cuts and Jobs Act to retained earnings.

We adopted the provisions of ASU 2018-02 in the fourth quarter of 2017 and elect to reclassify the stranded tax effects related to the Tax Cuts and Job Act from accumulated comprehensive income to retained earnings in the year ended December 31, 2017. As a result of the adoption of ASU 2018-02, the Company’s retained earnings and accumulated other comprehensive loss increased by approximately $0.2 million.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This guidance requires quantitative and qualitative disclosures covering the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including disclosures on significant judgments made when applying the guidance. The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of adopting the guidance being recognized at the date of initial application (modified retrospective method). The new standard will be effective as of January 1, 2018 and will be adopted using the modified retrospective method.

Based on an assessment performed, the Company concluded that for the Income Generating Asset segment revenue from financial instruments which are accounted for in accordance with ASC 825, Fair Value Option, and will not be subject to the application of ASU 2014-09. As a result, the Company believes that Royalty Rights - At Fair Value are financial instruments that continue to be within the scope of Subtopic 825 and will be specifically exempted from the new revenue standard. Further, revenue from note receivable investments which are accounted for in accordance with ASC 310, Receivables, will not be subject to the application of ASU 2014-09. As a result, the Company believes that note receivable investments are contractual rights and obligations that continue to be within the scope of Subtopic 310 and will be specifically exempted from the new revenue standard.

For the Pharmaceutical segment, the Company will accelerate the recognition of revenues that have been recognized on a sell through method to the periods in which the sales occur, subject to the constraint on variable consideration. Except for transactions with third party logistic providers, the change is not expected to have a material impact on the Company’s Consolidated Financial Statements.

The Company continues to evaluate the impact of the new guidance to the Medical Devices segment.

The Company expects the new disclosure requirements to have an impact to the Company’s existing disclosures, as well as require new disclosures, which will impact the information reported in the Company’s Consolidated Financial Statements.

The Company is currently finalizing its evaluation of the effect of the guidance on the Company’s historical financial statements and disclosures. The Company will finalize its accounting assessment and quantitative impact of the adoption of the guidance during the first quarter of fiscal year 2018. As the Company completes its evaluation of this new standard, new information may arise that could change the Company’s current understanding of the impact to revenue and expense recognized and required disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. ASU No. 2016-02 becomes effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the provisions of ASU No. 2016-02 and assessing the impact, it may have on the Company’s Consolidated Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. ASU No. 2016-13 has an effective date of the fiscal years beginning December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating ASU 2016-13 and assessing the impact, it may have to the Company’s consolidated results of operations, financial position and cash flows.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new standard provides for specific guidance how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods with those years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating ASU 2016-15 and assessing the impact, it may have to the Company’s Consolidated Statement of Cash Flows.

In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The new standard is effective for public business entities for annual periods beginning after December 15, 2017 (i.e. 2018 for a calendar-year entity). Early adoption is permitted for all entities as of the beginning of an annual period. The guidance is to be applied using a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The Company is currently analyzing the impact of ASU No. 2016-16 on the Company’s Consolidated Financial Statements.

In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which requires entities to show the changes in total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions on the balance sheet. The reconciliation can either be presented either on the face of the statement of cash flows or in the notes to the consolidated financial statements. The new standard is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods therein and is to be applied retrospectively. Early adoption is permitted. The Company is currently analyzing the impact of ASU No. 2016-18 on the Company’s Consolidated Financial Statements.

Net Income per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net Income per Share

3. Net Income per Share



Net Income per Basic and Diluted Share	Year Ended December 31,
(in thousands, except per share amounts)	2017		2016		2015
Numerator
Income attributable to the Company’s stockholders used to compute net income per diluted share	$	110,748	$	63,606	$	332,795

Denominator
Total weighted-average shares used to compute net income per basic share	155,394		163,805		163,386
Effect of dilutive stock options	—		—		16
Restricted stock awards	863		387		152
Shares used to compute net income per diluted share	156,257		164,192		163,554

Net income per basic share	$	0.71	$	0.39	$	2.04
Net income per diluted share	$	0.71	$	0.39	$	2.03

The Company computes net income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net income per diluted share include shares that may be issued pursuant to outstanding stock options and restricted stock awards, the 4.0% Convertible Senior Notes due February 1, 2018 (the “February 2018 Notes”) and the 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”), in each case, 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.

February 2018 Notes Purchased Call Option and Warrant Potential Dilution

The Company excluded from its calculation of net income per diluted share 12.2 million, 12.2 million and 23.8 million shares for the years ended December 31, 2017, 2016 and 2015, for warrants issued in February 2014, because the exercise price of the warrants exceeded the volume-weighted average share price (“VWAP”) of the Company’s common stock and conversion of the underlying February 2018 Notes is not assumed, therefore no stock would be issuable upon conversion; however, these securities could be dilutive in future periods. The purchased call options, issued in February 2014, will always be anti-dilutive; therefore 13.8 million, 13.8 million and 26.9 million shares were excluded from the Company’s calculation of net income per diluted share for the years ended December 31, 2017, 2016 and 2015 (see Note 14).

December 2021 Notes Capped Call Potential Dilution

In November 2016, the Company issued $150.0 million in aggregate principal of 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”), which provide in certain situations for the conversion of the outstanding principal amount of the December 2021 Notes into shares of the Company’s common stock at a predefined conversion rate. See Note 14, “Convertible Notes and Term Loans”, for additional information on the conversion rates on the Company’s convertible debt. In conjunction with the issuance of the December 2021 Notes, the Company entered into capped call transaction, with certain counterparties. The capped call transaction is expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion of the December 2021 Notes. The Company has excluded the capped call transaction from the diluted EPS computation as such securities would have an antidilutive effect and those securities should be considered separately rather than in the aggregate in determining whether their effect on diluted EPS would be dilutive or antidilutive. For additional information regarding the capped call transaction related to the Company’s December 2021 Notes; see Note 14.

Anti-Dilutive Effect of Stock Options and Restricted Stock Awards

For the years ended December 31, 2017, 2016 and 2015, the Company excluded approximately 502,000, zero and 41,000 shares underlying outstanding stock options, respectively, calculated on a weighted-average basis, from the Company’s net income per diluted share calculations because their effect was anti-dilutive. For the years ended December 31, 2017, 2016 and 2015, the Company excluded approximately 1,830,000, 1,107,000, and 450,000 shares, respectively, underlying restricted stock awards, calculated on a weighted-average basis, from the Company’s net income per diluted share calculations because their effect was anti-dilutive.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company 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 table presents the fair value of the Company’s financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy:



	December 31, 2017								December 31, 2016
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	417,563	$	—	$	—	$	417,563	$	4	$	—	$	—	$	4
Certificates of deposit	—		—		—		—		—		75,000		—		75,000
Corporate securities	4,848		—		—		4,848		—		—		—		—
Commercial paper	—		—		—		—		—		19,987		—		19,987
Warrants	—		29		—		29		—		78		—		78
Royalty rights - at fair value	—		—		349,223		349,223		—		—		402,318		402,318
Total	$	422,411	$	29	$	349,223	$	771,663	$	4	$	95,065	$	402,318	$	497,387

Financial liabilities:
Anniversary payment	$	—	$	—	$	—	$	—	$	—	$	—	$	88,001	$	88,001
Contingent consideration	—		—		42,000		42,000		—		—		42,650		42,650
Total	$	—	$	—	$	42,000	$	42,000	$	—	$	—	$	130,651	$	130,651

As of December 31, 2016, the Company held $75.0 million in a short-term certificate of deposit, which was designated as cash collateral for the letter of credit issued with respect to the anniversary payment under the Noden Purchase Agreement (as defined in Note 21 below). On July 3, 2017, the anniversary payment of $89.0 million was paid pursuant to the Noden Purchase Agreement and on July 31, 2017, the certificate of deposit matured.

There have been no transfers between levels during the years ended December 31, 2017 and 2016. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

Certificates of Deposit

The fair value of the certificates of deposit was determined using quoted market prices for similar instruments and non-binding market prices that were corroborated by observable market data.

Corporate Securities

Corporate securities consist primarily of U.S. corporate equity holdings. The fair value of corporate securities is estimated using market quoted prices.

Commercial Paper

Commercial paper securities consisted primarily of U.S. corporate debt holdings. The fair value of commercial paper securities was estimated using recently executed transactions or market quoted prices, where observable. Independent pricing sources were also used for valuation.

Warrants

Warrants consist primarily of purchased call options to buy U.S. corporate equity holdings and derivative assets acquired as part of note receivable investments. The fair value of the warrants is estimated using recently quoted market prices or estimated fair value of the underlying equity security and the Black-Scholes option pricing model.

Royalty Rights - At Fair Value

Depomed Royalty Agreement

On October 18, 2013, the Company entered into the Royalty Purchase and Sale Agreement (the “Depomed Royalty Agreement”) with Depomed, whereby the Company acquired the rights to receive royalties and milestones payable on sales of Type 2 diabetes products licensed by Depomed in exchange for a $240.5 million cash payment. Total 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, Inc. (“Santarus”) (which was subsequently acquired by Salix Pharmaceuticals, Inc. (“Salix”), which itself was acquired by Valeant Pharmaceuticals International, Inc. (“Valeant”) with respect to sales of Glumetza (metformin HCL extended-release tablets) in the United States; (b) from Merck & Co., Inc. with respect to sales of Janumet^® XR (sitagliptin and metformin HCL extended-release tablets); (c) from Janssen Pharmaceutica N.V. with respect to potential future development milestones and sales of its recently approved fixed-dose combination of Invokana^® (canagliflozin) and extended-release metformin tablets, marketed as Invokamet XR^®; (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, including its recently approved products, Jentadueto XR^® and Synjardy XR^®; and (e) from LG Life Sciences and Valeant for sales of extended-release metformin tablets in Korea and Canada, respectively.

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

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

As of December 31, 2017 and 2016, the Company determined that its royalty purchase interest in Depo DR Sub, LLC 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, LLC’s economic performance and is not the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC is not subject to consolidation by the Company.

The financial asset acquired represents a single unit of accounting. The fair value of the financial asset acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. This financial asset is classified as a Level 3 asset within the fair value hierarchy, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by regulatory agencies outside of the United States. The discounted cash flows are based upon expected royalties from sales of licensed products over a nine-year period. The discount rates utilized range from 10% to 24%. Significant judgment is required in selecting appropriate discount rates. At December 31, 2017, an evaluation was performed to assess those rates and general market conditions potentially affecting the fair market value of the financial asset. Should these discount rates increase or decrease by 2.5%, the fair value of the asset could decrease by $14.1 million or increase by $16.2 million, respectively. A third-party expert was engaged to assist management develop its original estimate of the expected future cash flows. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. The Company periodically assesses the expected future cash flows and to the extent such payments are greater or less than its initial estimates, or the timing of such payments is materially different than the original estimates, the Company will adjust the estimated fair value of the asset. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $5.8 million or decrease by $5.8 million, respectively.

When the Company acquired the Depomed royalty rights, Glumetza was marketed by Santarus. In January 2014, Salix acquired Santarus and assumed responsibility for commercializing Glumetza, which was generally perceived to be a positive development because of Salix’s larger sales force and track record in the successful commercialization of therapies. In late 2014, Salix made a number of disclosures relating to an excess of supply at the distribution level of Glumetza and other drugs that it commercialized and the practices leading to this excess of supply which were under review by Salix’s audit committee in relation to the related accounting practices. Because of these disclosures and the Company’s lack of direct access to information as to the levels of inventory of Glumetza in the distribution channels, the Company commenced a review of all public statements by Salix, publicly available historical third-party prescription data, analyst reports and other relevant data sources. The Company also engaged a third-party expert to specifically assess estimated inventory levels of Glumetza in the distribution channel and to ascertain the potential effects those inventory levels may have on expected future cash flows. Salix was acquired by Valeant in early April 2015. In mid-2015, Valeant implemented two price increases on Glumetza. At year-end 2015, a third-party expert was engaged by the Company to assess the impact of the Glumetza price adjustments and near-term market entrance of generic equivalents to the expected future cash flows. Based on the analysis performed, management revised the underlying assumptions used in the discounted cash flow analysis at year-end 2015. In February and August of 2016, a total of three generic equivalents to Glumetza were approved to enter the market. In February 2016, Lupin Pharmaceuticals, Inc. and in August 2017, Teva Pharmaceutical Industries Ltd., launched a generic equivalent approved product. To date, the third generic equivalent to Glumetza has not launched.

In May 2017, the Company received notification that a subsidiary of Valeant had launched an authorized generic equivalent product in February 2017, and the Company received royalties on such authorized generic equivalent product under the same terms as the branded Glumetza product, retroactive to February 2017.

At December 31, 2017, management re-evaluated, with assistance of a third-party expert, the market share data, the gross-to-net revenue adjustment assumptions and Glumetza demand data, including the delay in launch of additional generic equivalent products and the entry of an authorized generic product by Valeant. These data and assumptions are based on available but limited information. At December 31, 2017, management updated the expected future cash flows based on the current period demand and supply data of Glumetza and the authorized generic equivalent product launched by Valeant.

As of December 31, 2017, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date, including future cash flows for the authorized generic equivalent product. The Company continues to monitor whether the generic competition further affects sales of Glumetza and thus royalties on such sales paid to the Company, and the impact of the launched authorized generic equivalent. Due to the uncertainty around Valeant’s marketing and pricing strategy, as well as the recent generic competition and limited historical demand data after generic market entrance, the Company may need to further evaluate future cash flows in the event of more rapid reduction or increase in market share of Glumetza and its authorized generic equivalent product and/or a further erosion in net pricing. In February 2016, at the Company’s request and pursuant to the Depomed Royalty Agreement, Depomed exercised its audit right with respect to Glumetza royalties. The independent auditor engaged to perform the royalty audit completed it in July 2017, and based upon the results of the audit, Depomed, on behalf of the Company, filed a lawsuit on September 7, 2017, against Valeant and one of its subsidiaries, claiming damages for unpaid royalties, fees and interest. Valeant, Depomed and the Company entered into a settlement agreement on October 27, 2017 whereby the parties agreed to dismiss the litigation, with prejudice, and Valeant agreed to pay to Depomed $13.0 million. The full amount of the settlement payment was transferred to the Company under the terms of the Depomed Royalty Agreement in November of 2017.

On May 31, 2016, the Company obtained a notification indicating that the U.S. Food and Drug Administration (“FDA”) approved Jentadueto XR for use in patients with Type 2 diabetes. In June 2016, the Company received a $6.0 million FDA approval milestone pursuant to the terms of the Depomed Royalty Agreement. The product approval was earlier than initially expected. Based on the FDA approval and anticipated timing of the product launch, the Company adjusted the timing of future cash flows and discount rate used in the discounted cash flow model at June 30, 2016. At year-end 2017, management re-evaluated, with assistance of a third-party expert, the cash flow assumptions for Jentadueto XR and revised the discounted cash flow model. As of December 31, 2017, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date.

On September 21, 2016, the Company obtained a notification indicating that the FDA approved Invokamet XR for use in patients with Type 2 diabetes. The product approval triggered a $5.0 million approval milestone payment to the Company pursuant to the terms of the Depomed Royalty Agreement. Based on the FDA approval and timing of the product launch, the Company adjusted the timing of future cash flows and discount rate used in the discounted cash flow model at December 31, 2017.

On December 13, 2016, the Company obtained a notification indicating that the FDA approved Synjardy XR for use in patients with Type 2 diabetes. The product approval triggered a $6.0 million approval milestone payment to the Company pursuant to the terms of the Depomed Royalty Agreement. Based on the FDA approval and the April 2017 launch of Synjardy XR by Boehringer Ingelheim, the Company adjusted the timing of future cash flows and discount rate used in the discounted cash flow model at December 31, 2017.

As of December 31, 2017, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $232.0 million and the maximum loss exposure was $232.0 million.

Viscogliosi Brothers Royalty Agreement

On June 26, 2014, the Company entered into a Royalty Purchase and Sale Agreement (the “VB Royalty Agreement”) with VB, whereby VB conveyed to the Company the right to receive royalties payable on sales of a spinal implant that has received pre-market approval from the FDA, in exchange for a $15.5 million cash payment, less fees.

The royalty rights acquired includes royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company receives all royalty payments due to VB pursuant to certain technology transfer agreements between VB and Paradigm Spine until the Company has received payments equal to 2.3 times the cash payment made to VB, after which all rights to receive royalties will be returned to VB. VB may repurchase the royalty right at any time on or before June 26, 2018, for a specified amount. The chief executive officer of Paradigm Spine is one of the owners of VB. The Paradigm Spine Credit Agreement and the VB Royalty Agreement were negotiated separately.

The fair value of the royalty right at December 31, 2017, 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 the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a ten-year period. The discount rate utilized was 15.0%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.7 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively. A third-party expert was engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. At each reporting period, an evaluation is performed to assess those estimates, discount rates utilized and general market conditions affecting fair market value.

As of December 31, 2017, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $14.4 million and the maximum loss exposure was $14.4 million.

University of Michigan Royalty Agreement

On November 6, 2014, the Company acquired a portion of all royalty payments of the U-M worldwide royalty interest in Cerdelga (eliglustat) for $65.6 million pursuant to the Royalty Purchase and Sale Agreement with U-M (the “U-M Royalty Agreement”). Under the terms of the U-M Royalty Agreement, the Company receives 75% of all royalty payments due under U-M’s license agreement with Genzyme Corporation, a Sanofi company (“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. Cerdelga was approved in the United States in August 2014, in the European Union in January 2015, and in Japan in March 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities. While marketing applications have been approved in the United States, the European Union and Japan, national pricing and reimbursement decisions are delayed in some countries. At December 31, 2017, a third party expert was engaged by the Company to assess the impact of the delayed pricing and reimbursement decisions to Cerdelga’s expected future cash flows. Based on the analysis performed, management revised the underlying assumptions used in the discounted cash flow analysis at December 31, 2017.

The fair value of the royalty right at December 31, 2017, 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 the Company’s 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 four-year period. The discount rate utilized was approximately 12.8%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.7 million or decrease by $0.7 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 the Company’s estimates. An evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period.

As of December 31, 2017, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $26.8 million and the maximum loss exposure was $26.8 million.

ARIAD Royalty Agreement

On July 28, 2015, the Company entered into the revenue interest assignment agreement (the “ARIAD Royalty Agreement”) with ARIAD, whereby the Company acquired the rights to receive royalties from ARIAD’s net revenues generated by the sale, distribution or other use of Iclusig^® (ponatinib), a cancer medicine for the treatment of adult patients with chronic myeloid leukemia, in exchange for up to $200.0 million in cash payments. The purchase price of $100.0 million was payable in two tranches of $50.0 million each, with the first tranche having been funded on July 28, 2015 and the second tranche having been funded on July 28, 2016. Upon the occurrence of certain events, including a change of control of ARIAD, the Company had the right to require ARIAD to repurchase the royalty rights for a specified amount. The Company elected the fair value option to account for the hybrid instrument in its entirety. Any embedded derivative shall not be separated from the host contract. The asset acquired pursuant to the ARIAD Royalty Agreement represents a single unit of accounting.

In February 2017, Takeda Pharmaceutical Company Limited (“Takeda”) acquired ARIAD and the Company exercised its put option on the same day, which resulted in an obligation by Takeda to pay the Company a 1.2x multiple of the $100.0 million funded by the Company under the ARIAD Royalty Agreement, less royalty payments already received by the Company.

On March 30, 2017, Takeda fulfilled its obligations under the put option and paid the Company the repurchase price of $108.2 million for the royalty rights under the ARIAD Royalty Agreement.

AcelRx Royalty Agreement

On September 18, 2015, the Company entered into a royalty interest assignment agreement (the “AcelRx Royalty Agreement”) with ARPI LLC, a wholly owned subsidiary of AcelRx, whereby the Company acquired the rights to receive a portion of the royalties and certain milestone payments on sales of Zalviso^® (sufentanil sublingual tablet system) in the European Union, Switzerland and Australia by AcelRx’s commercial partner, Grünenthal, in exchange for a $65.0 million cash payment. Under the terms of the AcelRx Royalty Agreement, the Company will receive 75% of all royalty payments and 80% of the first four commercial milestone payments due under AcelRx’s license agreement with Grünenthal until the earlier to occur of (i) receipt by the Company of payments equal to three times the cash payments made to AcelRx and (ii) the expiration of the licensed patents. Zalviso received marketing approval by the European Commission in September 2015. Grünenthal launched Zalviso in the second quarter of 2016 and the Company started to receive royalties in the third quarter of 2016.

As of December 31, 2017 and 2016, the Company determined that its royalty rights under the AcelRx Royalty Agreement represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of ARPI LLC that most significantly impact ARPI LLC’s economic performance and is not the primary beneficiary of ARPI LLC; therefore, ARPI LLC is not subject to consolidation by the Company.

The fair value of the royalty right at December 31, 2017, 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 the Company’s 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 fourteen-year period. The discount rate utilized was approximately 13.4%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $9.9 million or increase by $12.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.8 million or decrease by $1.8 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. At year-end 2017, management performed an evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value. Based on the number of treated patients to date, management adjusted the timing of the expected future cash flows used in the discounted cash flow model at December 31, 2017.

As of December 31, 2017, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $72.9 million and the maximum loss exposure was $72.9 million.

Kybella Royalty Agreement

On July 8, 2016, the Company entered into a royalty purchase and sales agreement with an individual, whereby the Company acquired that individual’s rights to receive certain royalties on sales of KYBELLA^® by Allergan plc in exchange for a $9.5 million cash payment and up to $1.0 million in future milestone payments based upon product sales targets. The Company started to receive royalty payments during the third quarter of 2016.

The fair value of the royalty right at December 31, 2017, 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 the Company’s 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 a licensed product over an eight-year period. The discount rate utilized was approximately 14.4%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $0.2 million or increase by $0.3 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $69,000 or decrease by $69,000, 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 the Company’s estimates. At each reporting period, an evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period. Management re-evaluated the cash flow projections during the current period, concluding that lower demand data resulted in a reduction of expected future cash flows, which warranted a revision of the assumptions used in the discounted cash flow model at December 31, 2017.

As of December 31, 2017, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $2.7 million and the maximum loss exposure was $2.7 million.

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the year ended December 31, 2017:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

(in thousands)				Royalty Rights - At Fair Value
Fair value as of December 31, 2016							$	402,318

	Financial instruments settled						(108,169		)
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	162,327
		Proceeds from royalty rights - at fair value		$	(107,253	)
			Total net change in fair value for the period				55,074

Fair value as of December 31, 2017							$	349,223



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets
	Fair Value as of		Change of			Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2016		Ownership			Change in Fair Value			December 31, 2017
Depomed	$	164,070	$	—		$	67,968		$	232,038
VB	14,997		—			(617		)	14,380
U-M	35,386		—			(8,617		)	26,769
ARIAD	108,631		(108,169		)	(462		)	—
AcelRx	67,483		—			5,411			72,894
Avinger	1,638		—			(1,242		)	396
KYBELLA	10,113		—			(7,367		)	2,746
	$	402,318	$	(108,169	)	$	55,074		$	349,223



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities
(in thousands)		Anniversary Payment			Contingent Consideration
Fair value as of December 31, 2016		$	(88,001	)	$	(42,650	)

	Total net change in fair value for the period	(999		)	650
	Settlement of financial instrument	89,000			—

Fair value as of December 31, 2017		$	—		$	(42,000	)

The fair value of the contingent consideration was determined using an income approach derived from the Noden Products (as defined in Note 21 below) revenue estimates and a probability assessment with respect to the likelihood of achieving (a) the level of net sales or (b) generic product launch that would trigger the milestone payments. The key assumptions in determining the fair value are the discount rate and the probability assigned to the potential milestones being achieved. The fair value of the contingent consideration is remeasured each reporting period, with changes in fair value recorded in the Consolidated Statements of Income. The change in fair value of the contingent consideration during the year ending December 31, 2017 is due primarily to the passage of time and a reduction in probability to achieve the generic milestone payments as determined during the current period.

Gains and losses from changes in Level 3 assets included in earnings for each period are presented in “Royalty rights - change in fair value” and gains and losses from changes in Level 3 liabilities included in earnings for each period are presented in “Change in fair value of anniversary payment and contingent consideration” as follows:



	Year Ended December 31,
(in thousands)	2017			2016

Total change in fair value for the period included in earnings for royalty right assets held at the end of the reporting period	$	162,327		$	16,196

Total change in fair value for the period included in earnings for liabilities held at the end of the reporting period	$	(349	)	$	3,716

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



	December 31, 2017						December 31, 2016
(in thousands)	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	51,308	$	50,191	$	—	$	52,260
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
LENSAR note receivable ⁽¹⁾	—		—		—		43,909		—		43,900
Direct Flow Medical note receivable ⁽²⁾	—		—		—		10,000		—		10,000
kaléo note receivable ⁽³⁾	—		—		—		146,685		—		142,539
CareView note receivable	19,346		—		18,750		18,965		—		19,200
Total	$	70,737	$	—	$	71,258	$	270,950	$	—	$	269,099
Liabilities:
February 2018 Notes	$	126,066	$	126,131	$	—	$	121,595	$	123,918	$	—
December 2021 Notes	117,415		148,028		—		110,848		122,063		—
Total	$	243,481	$	274,159	$	—	$	232,443	$	245,981	$	—

__________________

⁽¹⁾ As a result of the Company receiving 100% of LENSAR’s equity interests in exchange for the cancellation of the Company’s claims as a secured creditor in the Chapter 11 case (as defined in Note 21 of these consolidated financial statements), LENSAR became a wholly-owned subsidiary of the Company on May 11, 2017. For further discussion of the LENSAR transaction and the Chapter 11 case, see Note 21.

⁽²⁾ As a result of the foreclosure proceedings, the Company obtained ownership of most of the Direct Flow Medical assets through the Company’s wholly-owned subsidiary, DFM, LLC. Those assets are held for sale and carried at the lower of carrying amount or fair value, less estimated selling cost, as of December 31, 2017. For further discussion on this topic, see Note 8.

⁽³⁾ On September 21, 2017, the Company entered into a note purchase agreement whereby it sold to a third party the kaléo, Inc. note receivable for an aggregate cash purchase price of $141.7 million, subject to an 18-months escrow hold back of $1.4 million against certain potential contingencies.

As of December 31, 2017 and 2016, the estimated fair values of the Hyperion Catalysis International, Inc. note receivable and CareView 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. As of December 31, 2016, the estimated fair values of the kaléo, Inc. note receivable, LENSAR, Inc. note receivable, and Direct Flow Medical note receivable were also determined using the same method.

When deemed necessary the Company engages a third-party valuation expert to assist in evaluating its investments and the related inputs needed to estimate the fair value of certain investments. The Company determined its notes receivable assets are Level 3 assets as the Company’s 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, the Company 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 CareView note receivable is secured by substantially all assets and equity interests in CareView Communications, Inc. The Wellstat Diagnostics note receivable is supported by a guaranty from the Wellstat Diagnostics Guarantors. The estimated fair value of the collateral assets was determined by using an asset approach and discounted cash flow model related to the underlying collateral and was adjusted to consider estimated costs to sell the assets.

On December 31, 2017, the carrying values of several of the Company’s notes receivable differed from their estimated fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. The Company determined these notes receivable to be Level 3 assets, as its valuations utilized significant unobservable inputs, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurements, the Company considered forward-looking performance, and current measures associated with high yield and published indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in a similar sector.

The fair values of the Company’s convertible notes were determined using quoted market pricing or dealer quotes.

The following table represents significant unobservable inputs used in determining the estimated fair value of impaired notes receivable investments:



Asset	Valuation Technique	Unobservable Input	December 31, 2017	December 31, 2016

Wellstat Diagnostics
Wellstat Guarantors Intellectual Property	Income Approach
		Discount rate	12%	13%
		Royalty amount	$21 million	$55-74 million
Settlement Amount	Income Approach
		Discount rate	15%	-
		Settlement amount	$32 million	-
Real Estate Property	Market Approach
		Annual appreciation rate	4%	4%
		Estimated realtor fee	6%	6%
		Estimated disposal date	6/30/2019	12/31/2017

CareView
Note receivable cash flows	Income Approach
		Discount rate	17.5%	N/A

Direct Flow Medical
All Assets	Income Approach Market Approach
		Discount rate	N/A	27%
		Implied revenue multiple	N/A	6.9
LENSAR
All Assets	Income Approach
		Discount rate	N/A	25%
		Implied revenue multiple	N/A	2.5

At December 31, 2017, the Company had three notes receivable investments on non-accrual status with a cumulative investment cost and fair value of approximately $70.7 million and $71.3 million, respectively, compared to four note receivable investments on non-accrual status at December 31, 2016 with a cumulative investment cost and fair value of approximately $105.3 million and $107.4 million, respectively. For the year ended December 31, 2017, the Company recognized $3.1 million of interest revenue for the CareView note receivable investment as result of cash payments made during fiscal 2017. For the years ended December 31, 2016 and 2015, the Company did not recognize any interest for note receivable investments on non-accrual status. During the years ended December 31, 2017, 2016 and 2015, the Company recognized losses on extinguishment of notes receivable of zero, $51.1 million and $4.0 million, respectively.

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.

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Investments

12 Months Ended

Dec. 31, 2017

Cash Equivalents and Investments

5. Cash, Cash Equivalents and Short-term Investments

As of December 31, 2017, the Company had invested its excess cash balances primarily in money market funds and corporate equity securities, and as of December 31, 2016, the Company had invested its excess cash balances primarily in money market funds and commercial paper. The Company’s securities are classified as available-for-sale and are carried at estimated fair value, with unrealized gains and losses reported in “Accumulated other comprehensive income” in stockholders’ equity, net of estimated taxes (for fair value information, see Note 4). The cost of securities sold is based on the specific identification method. To date, the Company has not experienced credit losses on investments in these instruments, and it does not require collateral for its investment activities.

The following tables summarize the Company’s cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents, or short-term investments as of December 31, 2017 and 2016:



							Reported as:
Summary of Cash and Available-For-Sale Securities (in thousands)	Adjusted Cost		Unrealized Gains		Fair Value		Cash and Cash Equivalents		Short-Term Investments
December 31, 2017
Cash	$	109,703	$	—	$	109,703	$	109,703	$	—
Money market funds	417,563		—		417,563		417,563		—
Corporate securities	3,353		1,495		4,848		—		4,848
Total	$	530,619	$	1,495	$	532,114	$	527,266	$	4,848

December 31, 2016
Cash	$	147,150	$	—	$	147,150	$	147,150	$	—
Money market funds	4		—		4		4		—
Commercial paper	19,987		—		19,987		—		19,987
Total	$	167,141	$	—	$	167,141	$	147,154	$	19,987

The Company recognized approximately zero and $882,000, respectively, of gains on sales of available-for-sale securities in the years ended December 31, 2017 and 2016.

The unrealized gain on investments included in “Other comprehensive income (loss), net of tax,” was approximately $1.2 million and zero as of December 31, 2017 and 2016, respectively.

Foreign Currency Hedging

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

. Foreign Currency Hedging

The Company designates the foreign currency exchange contracts used to hedge its royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on the Company’s Consolidated Balance Sheets as it has entered into a netting arrangement with the counterparty. As of December 31, 2015, all outstanding Euro forward contracts were classified as cash flow hedges and settled during the first quarter of 2016. There were no Euro forward contracts outstanding as of December 31, 2017.

The effect of the Company’s derivative instruments in its Consolidated Statements of Income and its Consolidated Statements of Comprehensive Income were as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015

Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	—	$	—	$	4,626
Gain (loss) reclassified from accumulated OCI into “Queen et al. royalty revenue,” net of tax ⁽²⁾	$	—	$	1,821	$	5,390

_________________________

(1) Net change in the fair value of the effective portion of cash flow hedges classified in Other Comprehensive Income (“OCI”)

(2) Effective portion classified as royalty revenue

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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Notes Receivable and Other Long-term Receivables	12 Months Ended
Notes Receivable and Other Long-term Receivables	Dec. 31, 2017
Receivables [Abstract]
Notes and Other Long-term Receivables	Notes and Other Long-Term Receivables Notes and other long-term receivables included the following significant agreements: Wellstat Diagnostics Note Receivable and Credit Agreement and Related Litigation 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, the Company 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. A portion of the proceeds of the $40.0 million credit agreement were used to repay certain notes receivable which Wellstat Diagnostics entered into in March 2012. 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. The Company 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, the Company exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to the Company and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby the Company agreed to refrain from exercising additional remedies for 120 days. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. On August 15, 2013, the 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 herein, 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, the Company 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). In June 2014, the Company received information from Wellstat Diagnostics showing that it was generally unable to pay its debts as they became due, constituting an event of default under the amended and restated credit agreement. On August 5, 2014, the Company delivered a notice of default (the “Wellstat Diagnostics Borrower Notice”) to Wellstat Diagnostics, which accelerated all obligations under the amended and restated credit agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, included an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered a notice (the “Wellstat Diagnostics Guarantor Notice”) to each of the guarantors of Wellstat Diagnostics’ obligations to the Company (collectively, the “Wellstat Diagnostics Guarantors”) under the credit agreement, which included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ stockholders. On September 24, 2014, the Company filed an ex-parte petition for appointment of receiver with the Circuit Court of Montgomery County, Maryland (the “Wellstat Diagnostics Petition”), which was granted on the same day. Wellstat Diagnostics remained in operation during the period of the receivership with incremental additional funding from the Company. On May 24, 2017, Wellstat Diagnostics transferred substantially all of its assets to the Company pursuant to a credit bid. The credit bid reduced the outstanding balance of the loan by an immaterial amount. On September 4, 2015, the Company filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against certain of the Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On September 23, 2015, the Company filed in the same court an ex parte application for a temporary restraining order and order of attachment of the Wellstat Diagnostics Guarantor defendants’ assets. Although the court denied the Company’s request for a temporary restraining order at a hearing on September 24, 2015, it ordered that assets of the Wellstat Diagnostics Guarantor defendants should be held in status quo ante and only used in the normal course of business pending the outcome of the matters under consideration at the hearing. On July 29, 2016, the Supreme Court of New York granted the Company’s motion for summary judgment and held that the Wellstat Diagnostics Guarantor defendants are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. After appeal by the Wellstat Diagnostics Guarantor defendants on February 14, 2017, the Appellate Division of the Supreme Court of New York reversed on procedural grounds a portion of the Memorandum of Decision granting the Company summary judgment in lieu of complaint, but affirmed the portion of the Memorandum of Decision denying the Wellstat Diagnostics Guarantor defendants’ motion for summary judgment in which they sought a determination that the guarantees had been released. As a result, the litigation has been remanded to the Supreme Court of New York to proceed on the Company’s claims as a plenary action. On June 21, 2017, the Supreme Court of New York ordered the Company to file a Complaint, which was filed by the Company on July 20, 2017. The Wellstat Diagnostics Guarantors filed their answer on August 9, 2017, including counterclaims against the Company alleging breach of contract breach of fiduciary duty, and tortious interference with prospective economic advantage. This case is currently pending and in the pre-trial phase. On October 14, 2016, the Company sent a notice of default and reference to foreclosure proceedings to certain of the Wellstat Diagnostics Guarantors which are not defendants in the New York action, but which are owners of real estate assets over which a deed of trust in favor of the Company securing the guarantee of the loan to Wellstat Diagnostics had been executed. On March 2, 2017, the Company sent a second notice to foreclose on the real estate assets, and noticed the sale for March 29, 2017. The sale was taken off the calendar by the trustee under the deed of trust and has not been re-scheduled yet. On March 6, 2017, the Company sent a letter to the Wellstat Diagnostics Guarantors seeking information in preparation for a UCC Article 9 sale of some or all of the intellectual property-related collateral of the Wellstat Diagnostics Guarantors. The Wellstat Diagnostics Guarantors did not respond to the Company’s letter, but on March 17, 2017, filed an order to show cause with the New York Supreme Court to enjoin the Company’s sale of the real estate or enforcing its security interests in the Wellstat Diagnostics Guarantors’ intellectual property during the pendency of any action involving the guarantees at issue. In October 2017, the Company filed a motion with the New York Supreme Court requesting an attachment of a potential $55.8 million damages award, plus interest, entered against BTG International, Inc. in favor of Wellstat Therapeutics in Delaware Chancery Court on September 19, 2017. The New York Supreme Court has not yet considered the Company’s motion. On February 6, 2018, the NY Court issued an order from the bench which enjoins the Guarantors from selling, encumbering, removing, transferring or altering the collateral pending the outcome of the proceedings before it. The NY Court also issued an order precluding the Company from foreclosing on certain of the Guarantors’ collateral pending the outcome of the proceedings before it. On October 22, 2015, certain of the Wellstat Diagnostics Guarantors filed a separate complaint against the Company in the Supreme Court of New York seeking a declaratory judgment that certain contractual arrangements entered into between the parties subsequent to Wellstat Diagnostics’ default, and which relate to a split of proceeds in the event that the Wellstat Diagnostics Guarantors voluntarily monetize any assets that are the Company’s collateral, is of no force or effect. This case is currently pending and the Supreme Court has instructed the Parties to coordinate this case with the pending case filed by the Company against the Wellstat Diagnostics Guarantors’ discussed above with respect to pre-trial activities. Effective April 1, 2014, and as a result of the event of default, the Company determined the loan to be impaired and it ceased to accrue interest revenue. At that time and as of December 31, 2017, it has been determined that an allowance on the carrying value of the note was not necessary, as the Company believes the value of the collateral securing Wellstat Diagnostics’ obligations exceeds the carrying value of the asset and is sufficient to enable the Company to recover the current carrying value of $50.2 million. The Company continues to closely monitor the timing and expected recovery of amounts due, including litigation and other matters related to Wellstat Diagnostics Guarantors’ assets. There can be no assurance that an allowance on the carrying value of the notes receivable investment will not be necessary in a future period depending on future developments. Hyperion Agreement On January 27, 2012, the Company and Hyperion Catalysis International, Inc. (“Hyperion”) (which is also a Wellstat Diagnostics Guarantor) entered into an agreement whereby Hyperion sold to the Company 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 the Company in exchange for the lump sum payment to Hyperion of $2.3 million. In exchange for the lump sum payment, the Company was to receive two equal payments of $1.2 million on each of March 5, 2013 and 2014. The first payment of $1.2 million was paid on March 5, 2013, but Hyperion has not made the second payment that was due on March 5, 2014. Effective as of this date and as a result of the event of default, the Company ceased to accrue interest revenue. As of December 31, 2017, the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance that this will be true in the event of the Company’s foreclosure on the collateral, nor can there be any assurance of realizing value from such collateral. Avinger Credit and Royalty Agreement Under the terms of the Avinger Credit and Royalty Agreement, the Company receives a low, single-digit royalty on Avinger’s net revenues until April 2018. Commencing in October 2015, after Avinger repaid $21.4 million pursuant to its note receivable prior to its maturity date, the royalty on Avinger’s net revenues reduced by 50%, subject to certain minimum payments from the prepayment date until April 2018. The Company has accounted for the royalty rights in accordance with the fair value option. LENSAR Credit Agreement On October 1, 2013, the Company entered into a credit agreement with LENSAR, pursuant to which the Company made available to LENSAR up to $60.0 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR™ Laser System. Of the $60.0 million available to LENSAR, an initial $40.0 million, net of fees, was funded by the Company at the close of the transaction. The remaining $20.0 million was never funded. Outstanding borrowings under the loans bore interest at the rate of 15.5% per annum, payable quarterly in arrears. On May 12, 2015, the Company entered into a forbearance agreement with LENSAR, pursuant to which the Company agreed to refrain from exercising certain remedies available to it resulting from the failure of LENSAR to comply with a liquidity covenant and make interest payments due under the credit agreement. Under the forbearance agreement, the Company agreed to provide LENSAR with up to an aggregate of $8.5 million in weekly increments through the period ended September 30, 2015 plus employee retention amounts of approximately $0.5 million in the form of additional loans, subject to LENSAR meeting certain milestones related to LENSAR obtaining additional capital to fund the business or sell the business and repay outstanding amounts under the credit agreement. In exchange for the forbearance, LENSAR agreed to additional reporting covenants, the engagement of a chief restructuring officer and an increase on the interest rate to 18.5%, applicable to all outstanding amounts under the credit agreement. On September 30, 2015, the Company agreed to extend the forbearance agreement until October 9, 2015 and provide for up to an additional $0.8 million in funding while LENSAR negotiated a potential sale of its assets. On October 9, 2015, the forbearance agreement expired, but the Company agreed to fund LENSAR’s operations while LENSAR continued to negotiate a potential sale of its assets. On November 15, 2015, LENSAR, LLC (“LENSAR/Alphaeon”), a wholly owned subsidiary of Alphaeon Corporation (“Alphaeon”), and LENSAR entered into the Asset Purchase Agreement whereby LENSAR/Alphaeon agreed to acquire certain assets of LENSAR and assumed certain liabilities of LENSAR. The acquisition was consummated on December 15, 2015. In connection with the closing of the acquisition, LENSAR/Alphaeon entered into an amended and restated credit agreement with the Company, assuming $42.0 million in loans as part of the borrowings under the Company’s prior credit agreement with LENSAR. In addition, Alphaeon issued 1.7 million shares of its Class A common stock to the Company. The Company has estimated a fair value of $3.84 per share for the 1.7 million shares of Alphaeon Class A common stock received in connection with the transactions and recognized this investment as a cost-method investment of $6.6 million included in other long-term assets. The Alphaeon Class A common stock is subject to other-than-temporary impairment assessments in future periods. There is no other-than-temporary impairment charge incurred as of December 31, 2017. In December 2016, LENSAR, re-acquired the assets from LENSAR/Alphaeon and the Company entered into a second amended and restated credit agreement with LENSAR whereby LENSAR assumed all obligations under the amended and restated credit agreement with LENSAR/Alphaeon. Also in December, LENSAR filed for a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11 case”) with the support of the Company. In January 2017, the Company agreed to provide debtor-in-possession financing of up to $2.8 million in new advances to LENSAR so that it could continue to operate its business during the Chapter 11 case. LENSAR filed a Chapter 11 plan of reorganization with the Company’s support under which LENSAR would issue 100% of its equity interests to the Company in exchange for the cancellation of the Company’s claims as a secured creditor in the Chapter 11 case, other than with respect to the debtor-in-possession financing, and would thereby become an operating wholly-owned subsidiary of the Company. On April 26, 2017, the bankruptcy court approved the plan of reorganization. Pursuant to the plan of reorganization, LENSAR emerged from bankruptcy on May 11, 2017 as a wholly-owned subsidiary of the Company, and the Company started to consolidate LENSAR’s financial statements under the voting interest model beginning May 11, 2017. For additional information on LENSAR please refer to Note 11 under “Intangible Assets,” Note 21 under “Business Combinations” and Note 22 under “Segment Information.” Direct Flow Medical Credit Agreement On November 5, 2013, the Company entered into a credit agreement with Direct Flow Medical, Inc. (“Direct Flow Medical”) under which the Company agreed to provide up to $50.0 million to Direct Flow Medical. Of the $50.0 million available to Direct Flow Medical, an initial $35.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. On November 10, 2014, the Company and Direct Flow Medical agreed to an amendment to the credit agreement to permit Direct Flow Medical to borrow the $15.0 million second tranche upon receipt by Direct Flow Medical of a specified minimum amount of proceeds from an equity offering prior to December 31, 2014. In exchange, the parties amended the credit agreement to provide for additional fees associated with certain liquidity events, such as a change of control or the consummation of an initial public offering, and granted the Company certain board of director observation rights. On November 19, 2014, upon Direct Flow Medical satisfying the amended tranche two milestone, the Company funded the $15.0 million second tranche to Direct Flow Medical, net of fees. Outstanding borrowings under tranche one bore interest at the rate of 15.5% per annum, payable quarterly in arrears, until the occurrence of the second tranche. Upon occurrence of the borrowing of this second tranche, the interest rate applicable to all loans under the credit agreement was decreased to 13.5% per annum, payable quarterly in arrears. Under the terms of the credit agreement, Direct Flow Medical’s obligation to repay loan principal commenced on the twelfth interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment was required to be repaid in equal installments until final maturity of the loans. The loans were to mature on November 5, 2018. The obligations under the credit agreement were secured by a pledge of substantially all of the assets of Direct Flow Medical and any of its subsidiaries. On December 21, 2015, Direct Flow Medical and the Company entered into a waiver to the credit agreement in anticipation of Direct Flow Medical being unable to comply with the liquidity covenant and make interest payments due under the credit agreement, which was subsequently extended on January 14, 2016, and further delayed the timing of the interest payments through the period ending September 30, 2016 while Direct Flow Medical sought additional financing to operate its business. On January 28, 2016, the Company funded an additional $5.0 million to Direct Flow Medical in the form of a short-term secured promissory note. On February 26, 2016, the Company and Direct Flow Medical entered into the fourth amendment to the credit agreement that, among other things, (i) converted the $5.0 million short-term secured promissory note into a loan under the credit agreement with substantially the same interest and payment terms as the existing loans, (ii) added a conversion feature whereby the $5.0 million loan would convert into equity of Direct Flow Medical upon the occurrence of certain events and (iii) provided for a second $5.0 million convertible loan tranche commitment, to be funded at the option of the Company. The commitment for the second tranche was not funded and has since expired. In addition, (i) the Company agreed to waive the liquidity covenant and delay the timing of the unpaid interest payments until September 30, 2016 and (ii) Direct Flow Medical agreed to issue to the Company a specified amount of warrants to purchase shares of convertible preferred stock on the first day of each month for the duration of the waiver period at an exercise price of $0.01 per share. On July 15, 2016, the Company and Direct Flow Medical entered into the fifth amendment and limited waiver to the credit agreement. The Company funded an additional $1.5 million to Direct Flow Medical in the form of a note with substantially the same interest and payment terms as the existing loans and a conversion feature whereby the $1.5 million loan would convert into equity of Direct Flow Medical upon the occurrence of certain events. In addition, Direct Flow Medical agreed to issue to the Company warrants to purchase shares of convertible preferred stock at an exercise price of $0.01 per share. On September 12, 2016, the Company and Direct Flow Medical entered into the sixth amendment and limited waiver to the credit agreement under which the Company funded an additional $1.5 million to Direct Flow Medical in the form of a note with substantially the same interest and payment terms as the existing loans. In addition, Direct Flow Medical agreed to issue to the Company a specified amount of warrants to purchase shares of convertible preferred stock at an exercise price of $0.01 per share. On September 30, 2016, the Company and Direct Flow Medical entered into a waiver to the credit agreement where the parties agreed, among other things, to (i) delay payment on all overdue interest payments until October 31, 2016, (ii) waive the initial principal repayment until October 31, 2016 and (iii) continue to waive the liquidity requirements until October 31, 2016. Further, Direct Flow Medical agreed to issue to the Company a specified amount of warrants to purchase shares of convertible preferred stock at an exercise price of $0.01 per share. On October 31, 2016, the Company agreed to extend the waivers described above until November 30, 2016 and on November 14, 2016, the Company advanced an additional $1.0 million loan while Direct Flow Medical continued to seek additional financing. On November 16, 2016, Direct Flow Medical advised the Company that its potential financing source had modified its proposal from an equity investment to a loan with a substantially smaller amount and under less favorable terms. Direct Flow Medical shut down its operations in December 2016 and in January 2017 made an assignment for the benefit of creditors. The Company then initiated foreclosure proceedings, resulting in the Company obtaining ownership of most of the Direct Flow Medical assets through the Company’s wholly-owned subsidiary, DFM, LLC. The assets are held for sale and carried at the lower of carrying amount or fair value, less estimated selling costs, which is primarily based on supporting data from market participant sources, and valid offers from third parties. At December 31, 2016, the Company completed an impairment analysis and concluded that the situation qualified as a troubled debt restructuring and recognized an impairment loss of $51.1 million. In January 2017, the Company started to actively market the asset held for sale. On January 23, 2017, the Company and DFM, LLC entered into an Intellectual Property Assignment Agreement with Hong Kong Haisco Pharmaceutical Co., Limited (“Haisco”), a Chinese pharmaceutical company, whereby Haisco acquired former Direct Flow Medical clinical, regulatory and commercial information and intellectual property rights exclusively in China for $7.0 million. The Company, through DFM, LLC also sold Haisco certain manufacturing equipment for $450,000 and collected $692,000 on outstanding Direct Flow Medical accounts receivable during the year ended December 31, 2017. On January 6, 2018, the Company and HaisThera Advisors Co., Limited entered into a license agreement whereby the Company granted HaisThera Advisors Co., Limited an exclusive license to develop, manufacture and commercialize percutaneously implanting stentless aortic valve. The consideration for the license agreement was $500,000 upfront and up to $2.0 million in royalty payments. The Company is exploring alternatives to further monetize the remaining assets held for sale of Direct Flow Medical and has ascribed a carrying value of $1.8 million at December 31, 2017. Paradigm Spine Credit Agreement On February 14, 2014, the Company entered into the Credit Agreement (the “Paradigm Spine Credit Agreement”) with Paradigm Spine, LLC (“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. The second and third tranches of up to an additional $25.0 million in the aggregate, net of fees, are no longer available under the terms of the Paradigm Spine Credit Agreement. On October 27, 2015, the Company and Paradigm Spine entered into an amendment to the Paradigm Spine Credit Agreement to provide additional term loan commitments of up to $7.0 million payable in two tranches, of which the first tranche of $4.0 million was drawn on the closing date of the amendment, net of fees. Paradigm Spine chose not to draw down the second tranche of $3.0 million and such tranche is no longer available. Borrowings under the credit agreement bore interest at the rate of 13.0% per annum, payable quarterly in arrears. On August 26, 2016, the Company received $57.5 million in connection with the prepayment of the loans under the Paradigm Spine Credit Agreement, which included a repayment of the full principal amount outstanding of $54.7 million, plus accrued interest and a prepayment fee. kaléo Note Purchase Agreement On April 1, 2014, the Company entered into a note purchase agreement with Accel 300, LLC (“Accel 300”), a wholly-owned subsidiary of kaléo, Inc. (“kaléo”), pursuant to which the Company acquired $150.0 million of secured notes due 2029 (the “kaléo Note”). The kaléo Note was issued pursuant to an indenture between Accel 300 and U.S. Bank, National Association, as trustee, and was secured by 20% of net sales of its first approved product, Auvi-Q^® (epinephrine auto-injection, USP) (known as Allerject^®in Canada) and 10% of net sales of kaléo’s second proprietary auto-injector based product, EVZIO (naloxone hydrochloride injection ) (the “kaléo Revenue Interests”), and a pledge of kaléo’s equity ownership in Accel 300. On September 21, 2017, the Company entered into an agreement (the “kaléo Note Sale Agreement”) with MAM-Kangaroo Lender, LLC, a Delaware limited liability company (the “kaléo Purchaser”), pursuant to which the Company sold its entire interest in the kaléo Note. Pursuant to the kaléo Note Sale Agreement, the kaléo Purchaser paid to the Company an amount equal to 100% of the then outstanding principal, a premium of 1% of such amount and accrued interest under the kaléo Note, for an aggregate cash purchase price of $141.7 million, subject to an 18-month escrow holdback of $1.4 million against certain potential contingencies. For a further discussion on this topic, see Note 13. CareView Credit Agreement On June 26, 2015, the Company entered into a credit agreement with CareView, under which the Company made available to CareView up to $40.0 million in two tranches of $20.0 million each. Under the terms of the credit agreement, the first tranche of $20.0 million, net of fees, was funded by the Company upon CareView’s attainment of a specified milestone relating to the placement of CareView Systems^®, on October 7, 2015. On October 7, 2015, the Company and CareView entered into an amendment of the credit agreement to modify certain definitions related to the first and second tranche milestones. The second $20.0 million tranche would be funded upon CareView’s attainment of specified milestones relating to the placement of CareView Systems and consolidated earnings before interest, taxes, depreciation and amortization, to be accomplished no later than June 30, 2017. Such milestones were not achieved, and there is no additional funding obligation due from the Company. Outstanding borrowings under the credit agreement will bear interest at the rate of 13.5% per annum and are payable quarterly in arrears. As part of the transaction, the Company received a warrant to purchase approximately 4.4 million shares of common stock of CareView at an exercise price of $0.45 per share. The Company has accounted for the warrant as derivative asset with an offsetting credit as debt discount. At each reporting period the warrant is marked to market for changes in fair value. In connection with the October 2015 amendment of the credit agreement, the Company and CareView also agreed to amend the warrant to purchase common stock agreement by reducing the warrant’s exercise price from $0.45 to $0.40 per share. At December 31, 2017, the Company determined an estimated fair value of the warrant to be less than $0.1 million. In February 2018, the Company entered into a modification agreement with CareView whereby the Company agreed, effective as of December 28, 2017, to modify the credit agreement before remedies could otherwise have become available to the Company under the credit agreement in relation to certain obligations of CareView that would potentially not be met, including the requirement to make principal payments. Under the modification agreement the Company agreed that (i) a lower liquidity covenant would be applicable and (ii) principal repayment would be delayed for a period of up to December 31, 2018. In exchange for agreeing to these modifications, among other things, the exercise price of the Company’s warrants to purchase 4.4 million shares of common stock of CareView was reduced and, subject to the occurrence of certain events, CareView agreed to grant the Company additional equity interests.

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.

Property, Plant and Equipment [Abstract]

Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment Disclosure [Text Block]

. Property and Equipment

The following table provides details of the property and equipment, net:



	December 31,
(in thousands)	2017			2016
Leasehold improvements	$	321		$	153
Manufacturing equipment	1,393			—
Computer and office equipment	10,141			8,995
Furniture and fixtures	137			60
Equipment under lease	6,700			—
Total	18,692			9,208
Less accumulated depreciation	(11,474		)	(9,170		)
Construction in progress	4			—
Property and equipment, net	$	7,222		$	38

Accrued Liabilities

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Liabilities

The following table provides details of the accrued liabilities - short-term:



	December 31,
(in thousands)	2017		2016
Compensation	$	6,043	$	3,131
Interest	2,451		2,554
Deferred revenue	9,741		—
Refund to manufacturer	647		8,909
Accrued rebates, chargebacks and other revenue reserves	19,613		12,338
Dividend payable	79		21
Customer advances	3,198		—
Legal	595		1,594
Other	3,514		2,028
Total	$	45,881	$	30,575

The following table provides a summary of activity with respect to our sales allowances and accruals for the year ended December 31, 2017:



(in thousands)	Discount and Distribution Fees			Government Rebates and Chargebacks			Assistance and Other Discounts			Product Return			Total
Balance at January 1, 2017:	$	2,475		$	5,514		$	2,580		$	1,769		$	12,338
Allowances for current period sales	8,952			19,541			8,934			3,691			41,118
Allowances for prior period sales	—			253			—			—			253
Credits/payments for current period sales	(5,530		)	(10,823		)	(5,256		)	(1,145		)	(22,754		)
Credits/payments for prior period sales	(2,475		)	(5,776		)	(2,080		)	(1,011		)	(11,342		)
Balance at December 31, 2017	$	3,422		$	8,709		$	4,178		$	3,304		$	19,613

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

The Company currently occupies a leased facility in Incline Village, Nevada, with a lease term through May 2020, a leased facility in Dublin, Ireland, with a lease term through September 2025 with the option to terminate the lease in September 2021, and a leased facility in Orlando, Florida, with a lease term through July 2021. The Company also leases certain office equipment under operating leases. Rental expense under these arrangements totaled $0.8 million, $0.3 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.

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



Fiscal Years	Amount
2018	$	1,133
2019	1,140
2020	1,006
2021	565
2022	—
Thereafter	—
Total	$	3,844

Lease Guarantee

In connection with the spin-off by the Company of Facet Biotech Corporation (“Facet”) (the “Spin-Off”) the Company entered into amendments to the leases for the Company’s 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. As of December 31, 2017, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $45.1 million. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. (“AbbVie”). If AbbVie were to default under its lease obligations, the Company could be held liable by the landlord as a co-tenant and, thus, the Company has in substance guaranteed the payments under the lease agreements for the Redwood City facilities.

The Company prepared a discounted, probability weighted cash flow analysis to calculate the estimated fair value of the lease guarantee as of the Spin-Off. The Company was required to make assumptions regarding the probability of Facet’s default on the lease payment, the likelihood of a sublease being executed and the times at which these events could occur. These assumptions are based on information that the Company received from real estate brokers and the then-current economic conditions, as well as expectations of future economic conditions. The fair value of this lease guarantee was charged to additional paid-in capital upon the Spin-Off and any future adjustments to the carrying value of the obligation will also be recorded in additional paid-in capital.

The Company has recorded a liability of $10.7 million on its Consolidated Balance Sheets as of December 31, 2017 and 2016, related to this guarantee. In future periods, the Company may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable.

Irrevocable Letters of Credit

On June 30, 2016, the Company purchased a $75.0 million certificate of deposit, which is designated as cash collateral for the $75.0 million letter of credit issued on July 1, 2016 with respect to the first anniversary payment under the Noden Purchase Agreement. In addition, the Company provided an irrevocable and unconditional guarantee to Novartis, to pay up to $14.0 million of the remaining amount of the first anniversary payment not covered by the letter of credit. The Company concluded that both guarantees are contingent obligations and shall be accounted for in accordance with ASC 450, Contingencies. Further, it was concluded that both guarantees do not meet the conditions to be accrued at June 30, 2016 and December 31, 2016. On July 3, 2017, the first anniversary payment of $89.0 million was paid pursuant to the Noden Purchase Agreement and the $14.0 million guarantee expired. On July 31, 2017, the $75.0 million certificate of deposit matured, and on August 1, 2017, the letter of credit terminated.

Purchase Commitments

In connection with the Noden Transaction, Noden entered into an unconditional purchase obligation with Novartis to acquire all local finished goods inventory in certain countries upon transfer of the applicable marketing authorization rights in such country. The purchase is payable within 60 days after the transfer of the marketing authorization rights. The agreement does not specify minimum quantities but details pricing terms.

In addition, Noden and Novartis entered into a supply agreement pursuant to which Novartis will manufacture and supply to Noden a finished form of the Noden Products and bulk drug form of the Noden Products for specified periods of time prior to the transfer of manufacturing responsibilities for the Noden Products to another manufacturer. The supply agreement commits the Noden to a minimum purchase obligation of approximately $74.2 million and $105.8 million over the next twelve and thirty-six months, respectively. The Company expects Noden to meet this requirement

In June 2016, LENSAR and Coherent, Inc. entered into an Original Equipment Manufacturer agreement pursuant to which Coherent, Inc. will manufacture and supply to LENSAR Staccato Lasers by December 31, 2018. The supply agreement commits LENSAR to a minimum purchase obligation of approximately $1.3 million over the next three months. The Company expects LENSAR to meet this requirement.

Convertible Notes

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Convertible and Non-Recourse Notes

Convertible Notes and Term Loans

Convertible Notes and Term Loan activity for the years ended December 31, 2017 and 2016:



(in thousands)	February 2018 Notes			December 2021 Notes			Term Loan			Total
Balance at December 31, 2015	$	228,862		$	—		$	24,966		$	253,828
Issuance and exchange	—			150,000			—			150,000
Payment	—			—			(25,000		)	(25,000		)
Repurchase	(120,000		)	—			—			(120,000		)
Non-cash Discount	—			(3,204		)	—			(3,204		)
Non-cash conversion feature	—			(36,653		)	—			(36,653		)
Amortization	12,733			705			34			13,472
Balance at December 31, 2016	121,595			110,848			—			232,443
Amortization	4,471			6,567			—			11,038
Balance at December 31, 2017	$	126,066		$	117,415		$	—		$	243,481

Series 2012 Notes

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

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

On October 20, 2014, the Company entered into a privately negotiated exchange agreement under which it retired approximately $26.0 million in principal of the outstanding Series 2012 Notes. The exchange agreement provided for the issuance, by the Company, of shares of common stock and a cash payment for the Series 2012 Notes being exchanged. The Company issued approximately 1.8 million shares of its common stock and paid a cash payment of approximately $26.2 million. Immediately following the exchange, $22.3 million principal amount of the Series 2012 Notes was outstanding with approximately $0.1 million of remaining original issuance discount to be amortized over the remaining life of the Series 2012 Notes.

The Series 2012 Notes were due February 17, 2015, and bore interest at a rate of 2.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. On February 17, 2015, the Company retired the remaining $22.3 million of aggregate principal of its Series 2012 notes at their stated maturity for $22.3 million, plus approximately 1.34 million shares of its common stock.

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



	Year ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	—	$	—	$	80
Amortization of debt issuance costs	—		—		13
Amortization of debt discount	—		—		76
Total	$	—	$	—	$	169

May 2015 Notes

On May 16, 2011, the Company issued $155.3 million in aggregate principal amount, at par, of the May 2015 Notes in an underwritten public offering, for net proceeds of $149.7 million. The May 2015 Notes were due May 1, 2015, and the Company paid interest at 3.75% on the May 2015 Notes semiannually in arrears on May 1 and November 1 of each year, beginning November 1, 2011. Proceeds from the May 2015 Notes, net of amounts used for purchased call option transactions and provided by the warrant transactions described below, were used to redeem the Series 2012 Notes.

On May 1, 2015, the Company retired of the remaining $155.1 million of aggregate principal of its May 2015 Notes at their stated maturity for $155.1 million, plus approximately 5.2 million shares of its common stock for the excess conversion value.

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



	Year Ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	—	$	—	$	1,938
Amortization of debt issuance costs	—		—		435
Amortization of debt discount	—		—		1,815
Total	$	—	$	—	$	4,188

Purchased Call Options and Warrants

In connection with the issuance of the May 2015 Notes, the Company entered into purchased call option transactions with two hedge counterparties. The Company paid an aggregate amount of $20.8 million, plus legal fees, for the purchased call options with terms substantially similar to the embedded conversion options in the May 2015 Notes. The Company exercised the purchased call options upon conversion of the May 2015 Notes on May 1, 2015, which required the hedge counterparties to deliver shares to the Company. The hedge counterparties delivered approximately 5.2 million shares of the Company’s common stock to the Company, which was the amount equal to the shares required to be delivered by the Company to the note holders for the excess conversion value.

In addition, the Company 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 the May 2015 Notes. The Company received an aggregate amount of $10.9 million for the sale from the two counterparties. Under the terms of the warrant agreement, the warrant counterparties had the option to exercise the warrants on their specified expiration dates through the 120 scheduled trading days beginning on July 30, 2015 and ended on January 20, 2016. Because the VWAP of the Company’s common stock never exceeded the strike price of the warrants, the Company did not deliver any common stock to the warrant counterparties.

The purchased call option transactions and warrant sales effectively served to reduce the potential dilution associated with conversion of the May 2015 Notes.

Because the share price was above $5.72 but below $6.73, upon conversion of the Company’s May 2015 Notes, the purchased call options offset the share dilution, and the Company received shares on exercise of the purchased call options equal to the shares that the Company delivered to the note holders.

While the purchased call options reduced the potential equity dilution upon conversion of the May 2015 Notes, prior to the conversion or exercise, the May 2015 Notes and the warrants had a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the respective exercise prices of those instruments.

February 2018 Notes

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

On November 20, 2015, the Company’s agent initiated the repurchase of $53.6 million in aggregate principal amount of its February 2018 Notes for $43.7 million in cash in four open market transactions. The closing of these transactions occurred on November 30, 2015. It was determined that the repurchase of the principal amount shall be accounted for as a partial extinguishment of the February 2018 Notes. As a result, a gain on extinguishment of $6.5 million was recorded at closing of the transaction. The $6.5 million gain on extinguishment included the de-recognition of the original issuance discount of $3.1 million, outstanding deferred issuance costs of $0.9 million and agent fees of $0.1 million. Immediately following the repurchase, $246.4 million principal amount of the February 2018 Notes was outstanding with $14.1 million of remaining original issuance discount and $4.1 million of debt issuance costs to be amortized over the remaining life of the February 2018 Notes.

In connection with the repurchase of the February 2018 Notes, the Company and the counterparties agreed to unwind a portion of the purchased call options. As a result of the unwind transaction of the purchased call option, the Company received $270,000 in cash. The payments received have been recorded as an increase to APIC. In addition, the Company and the counterparties agreed to unwind a portion of the warrants for $170,000 in cash, payable by the Company. The payments have been recorded as a decrease to APIC.

On November 22, 2016, the Company repurchased $120.0 million in aggregate principal amount of its February 2018 Notes for approximately $121.5 million in cash (including $1.5 million of accrued interest) in open market transactions. It was determined that the repurchase of the principal amount shall be accounted for as an extinguishment. The extinguishment included the de-recognition of the original issuance discount of $4.3 million and outstanding deferred issuance costs of $1.3 million. Immediately following the repurchase, $126.4 million principal amount of the February 2018 Notes was outstanding with $4.6 million of remaining original issuance discount and $1.4 million of debt issuance costs to be amortized over the remaining life of the February 2018 Notes. As of December 31, 2017, the February 2018 Notes are convertible. At December 31, 2017, the if-converted value of the February 2018 Notes did not exceed the principal amount. On their maturity date, February 1, 2018, the Company repaid the outstanding principal of the February 2018 Notes plus accrued and unpaid interest for $129.0 million.

In connection with the repurchase of the February 2018 Notes, the Company and the counterparties agreed to unwind a portion of the purchased call options. The unwind transaction of the purchased call option did not result in any cash payments between the parties. In addition, the Company and the counterparties agreed to unwind a portion of the warrants, which also did not result in any cash payments between the parties. At December 31, 2017, the Company concluded that the remaining purchased call options and warrants continue to meet all criteria for equity classification.

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


•	During any fiscal quarter ending after the quarter ending June 30, 2014, if the last reported sale 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 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 the Company refers 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 the Company’s 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, the Company 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, the Company separated the principal balance of the February 2018 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.0%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, the Company recorded a total debt discount of $29.7 million, allocated $19.3 million to additional paid-in capital and allocated $10.4 million to deferred tax liability. The discount is being amortized to interest expense over the term of the February 2018 Notes and increases interest expense during the term of the February 2018 Notes from the 4.0% cash coupon interest rate to an effective interest rate of 6.9%. As of December 31, 2017, the remaining discount amortization period is 0.1 years.

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



(in thousands)	December 31, 2017			December 31, 2016
Principal amount of the February 2018 Notes	$	126,447		$	126,447
Unamortized discount of liability component	(381		)	(4,852		)
Net carrying value of the February 2018 Notes	$	126,066		$	121,595

Interest expense for the February 2018 Notes on the Company’s Consolidated Statements of Income was as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	5,058	$	9,338	$	11,786
Amortization of debt issuance costs	1,022		2,863		2,980
Amortization of debt discount	3,449		9,870		10,160
Total	$	9,529	$	22,071	$	24,926

Purchased Call Options and Warrants

In connection with the issuance of the February 2018 Notes, the Company entered into purchased call option transactions with two hedge counterparties. The Company paid an aggregate amount of $31.0 million for the purchased call options with terms substantially similar to the embedded conversion options in the February 2018 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in the February 2018 Notes, approximately 13.8 million shares of the Company common stock. The Company may exercise the purchased call options upon conversion of the February 2018 Notes and require the hedge counterparty to deliver shares to the Company in an amount equal to the shares required to be delivered by the Company to the note holder for the excess conversion value. The purchased call options expire on February 1, 2018, or the last day any of the February 2018 Notes remain outstanding.

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

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

The purchased call options and warrants are considered indexed to the Company stock, require net-share settlement and met all criteria for equity classification at inception and at December 31, 2017 and 2016. The purchased call options cost of $31.0 million, less deferred taxes of $10.8 million, and the $11.4 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

December 2021 Notes

On November 22, 2016, the Company issued $150.0 million in aggregate principal amount, at par, of the December 2021 Notes in an underwritten public offering, for net proceeds of $145.7 million. The December 2021 Notes are due December 1, 2021, and the Company pays interest at 2.75% on the December 2021 Notes semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2017. A portion of the proceeds from the December 2021 Notes, net of amounts used for capped call transaction described below, were used to extinguish $120.0 million of the February 2018 Notes. Upon the occurrence of a fundamental change, as defined in the indenture, holders have the option to require the Company to repurchase their December 2021 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

The December 2021 Notes are convertible under any of the following circumstances:

•

During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ending March 31, 2017, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day;

•

During the five business-day period immediately after any five consecutive trading-day period, which the Company refers 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 Company common stock and the conversion rate for the notes for each such trading day; or


•	Upon the occurrence of specified corporate events as described in the indenture.

The initial conversion rate for the December 2021 Notes is 262.2951 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes, which is equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the indenture.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, the Company was 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, the Company separated the principal balance of the December 2021 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 9.5%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, the Company recorded a total debt discount of $4.3 million, allocated $23.8 million to additional paid-in capital and allocated $12.8 million to deferred tax liability. The discount is being amortized to interest expense over the term of the December 2021 Notes and increases interest expense during the term of the December 2021 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 3.4%. As of December 31, 2017, the remaining discount amortization period is 3.9 years.

The carrying value and unamortized discount of the December 2021 Notes were as follows:



(in thousands)	December 31, 2017			December 31, 2016
Principal amount of the December 2021 Notes	$	150,000		$	150,000
Unamortized discount of liability component	(32,585		)	(39,152		)
Net carrying value of the December 2021 Notes	$	117,415		$	110,848

Interest expense for the December 2021 Notes on the Company’s Consolidated Statements of Income was as follows:



	Year Ended December 31,
(in thousands)	2017		2016
Contractual coupon interest	$	4,125	$	447
Amortization of debt issuance costs	74		10
Amortization of debt discount	526		75
Amortization of conversion feature	5,967		620
Total	$	10,692	$	1,152

As of December 31, 2017 and 2016, the December 2021 Notes are not convertible. At December 31, 2017 and 2016, the if-converted value of the December 2021 Notes did not exceed the principal amount.

Capped Call Transaction

In conjunction with the offering of the December 2021 Notes, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $14.4 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2021 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2021 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction, which initially corresponds to the approximate $3.81 per share conversion price of the December 2021 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2021 Notes. The cap price of the capped call transaction was initially $4.88 per share, and is subject to certain adjustments under the terms of the capped call transaction. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that they should be accounted for as separate transactions and classified as a net reduction to additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded.

March 2015 Term Loan

On March 30, 2015, the Company entered into a credit agreement among the Company, the lenders party thereto and the Royal Bank of Canada, as administrative agent. The credit agreement consisted of a term loan of $100.0 million.

The interest rates per annum applicable to amounts outstanding under the term loan were, at the Company’s option, either (a) the alternate base rate (as defined in the credit agreement) plus 0.75%, or (b) the adjusted Eurodollar rate (as defined in the credit agreement) plus 1.75% per annum. As of December 31, 2015, the interest rate, based upon the adjusted Eurodollar rate, was 2.17%. Interest payments under the credit agreement were due on the interest payment dates specified in the credit agreement.

The credit agreement required amortization of the term loan in the form of scheduled principal payments on June 15, September 15 and December 15 of 2015, with the remaining outstanding balance due on February 15, 2016. This principal balance and outstanding interest was paid in full on February 12, 2016.

As of December 31, 2017, the future minimum principal payments under the February 2018 Notes and December 2021 Notes were:



(in thousands)	February 2018 Notes		December 2021 Notes		Total
2018	$	126,447	$	—	$	126,447
2019	—		—		—
2020	—		—		—
2021	—		150,000		150,000
2022	—		—		—
Thereafter	—		—		—
Total	$	—	$	150,000	$	150,000

Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2017

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities

15. Other Long-Term Liabilities

The following table provides details of the accrued long-term liabilities:



	December 31,
(in thousands)	2017		2016
Accrued lease liability	$	10,700	$	10,700
Long-term incentive	1,729		1,995
Deferred tax liability	1,208		—
Uncertain tax position	30,682		41,591
Dividend payable	47		270
Other	343		—
Total	$	44,709	$	54,556

In connection with the Spin-Off, the Company entered into amendments to the leases for the Company’s 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, the Company could be held liable by the landlord as a co-tenant and, thus, the Company has in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of December 31, 2017, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $45.1 million. If Facet were to default, the Company could also be responsible for lease-related costs including utilities, property taxes and common area maintenance that may be as much as the actual lease payments. The Company recorded a liability of $10.7 million on the Company’s Consolidated Balance Sheets as of December 31, 2017 and 2016, related to this guarantee.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

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

Stock-Based Compensation

16. Stock-Based Compensation

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

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

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

Stock-based compensation expense for employees and directors and non-employees for the years ended December 31, 2017, 2016 and 2015, is presented below:



	Year Ended December 31,
Stock-based Compensation	2017		2016		2015
(in thousands)
Employees and directors	$	3,138	$	3,679	$	1,952
Non-employees	—		63		93
Total	$	3,138	$	3,742	$	2,045

Stock-Based Incentive Plans

2005 Equity Incentive Plan

The Company currently has one active stock-based incentive plan under which it may grant stock-based awards to the Company’s employees, directors and non-employees.

The total number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock, shares of common stock subject to outstanding awards and available for grant under this plan as of December 31, 2017, is as follows:



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Subject to Outstanding Awards	Total Shares of Common Stock Available for Grant
2005 Equity Incentive Plan⁽¹⁾	6,200,000	4,110,197	—	2,089,803

_________________________


(1)	As of December 31, 2017, there were 2,065,232 shares of unvested restricted stock awards outstanding as issued from the 2005 Equity Incentive Plan.

Under the Company’s Amended and Restated 2005 Equity Incentive Plan effective May 28, 2015 (the “2005 Equity Incentive Plan”), the Company is authorized to issue a variety of incentive awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance share and performance unit awards, deferred compensation awards and other stock-based or cash-based awards.

Restricted Stock

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

A summary of the Company’s restricted stock activity is presented below:



	2017				2016				2015
	Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted- average grant-date fair value per share
Unvested at beginning of year	1,472		$	3.96	586		$	7.13	277		$	8.39
Awards granted	1,917		$	2.15	1,264		$	3.31	522		$	6.40
Awards vested	(749	)	$	3.78	(366	)	$	6.65	(173	)	$	8.38
Forfeited	(575	)	$	3.00	(12	)	$	7.10	(40	)	$	7.79
Unvested at end of year	2,065		$	2.61	1,472		$	3.96	586		$	7.13

Stock-based compensation expense associated with the Company’s restricted stock for the years ended December 31, 2017, 2016 and 2015, was $2.7 million, $3.5 million and $2.0 million, respectively. As of December 31, 2017, the aggregate intrinsic value of non-vested restricted stock was $5.7 million. Total unrecognized compensation costs associated with non-vested restricted stock as of December 31, 2017, was $3.1 million, excluding forfeitures, which the Company expects to recognize over a weighted-average period of 2.1 years.

Inducement Award Agreements

On September 12, 2017, the Company granted 961,000 shares of common stock in the form of a nonstatutory inducement stock option grant pursuant to a nonstatutory inducement stock option agreement and granted 240,200 shares of our common stock in the form of an inducement restricted stock grant pursuant to an inducement restricted stock agreement. These inducement awards were not granted under the 2005 Equity Incentive Plan.

Inducement Stock Option Activity

During the year ended December 31, 2017, there were a total of 961,000 shares of stock options granted with an exercise price of $3.21 per share. The Company’s determination of the fair value of the stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’ stock price, as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the following:


•	Expected term (in years): 3.7


•	Risk-free interest rate: 1.77-1.96%


•	Volatility: 44%


•	Dividend yield: 0%


•	Weighted-average grant-date fair value: $1.51

As of December 31, 2017, all awards were outstanding and not exercisable. The weighted average remaining contractual life of stock options outstanding was 9.7 years and the aggregate intrinsic value was $1.5 million. Unrecognized compensation cost related to non-vested stock options was $1.2 million and will be recognized over a weighted-average period of 1.9 years.

Inducement Restricted Stock

During the year ended December 31, 2017, there were a total of 240,200 shares of restricted stock awards granted with the grant date fair value of $3.22 per share. At December 31, 2017, all awards were outstanding and vest annually over a three year period.

As of December 31, 2017, all awards were outstanding and unvested. The aggregate intrinsic value of the restricted awards was $0.7 million. Unrecognized compensation cost related to unvested restricted awards was $0.7 million and will be recognized over a weighted-average period of 1.5 years.

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.

Cash Dividends	12 Months Ended
Cash Dividends	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	18. Stockholders’ Equity Stock Repurchase Program On March 1, 2017, the Company’s board of directors authorized the repurchase through March 2018 of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $30.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under the Company’s share repurchase program were retired and restored to authorized but unissued shares of common stock at June 30, 2017. The Company repurchased 13.3 million shares of its common stock under the share repurchase program during the year ended December 31, 2017 for an aggregate purchase price of $30.0 million, or an average cost of $2.25 per share, including trading commission. On September 25, 2017, the Company’s board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $25.0 million pursuant to a new share repurchase program. As of March 12, 2018, this plan has not been implemented due to prohibitions on trading during black-out periods. Once implemented, under the new share repurchase program, purchases of the Company’s shares may be made from time to time in the open market or in privately negotiated transactions and are to be funded from the Company’s working capital. The amount and timing of such repurchases are dependent upon the price and availability of shares, general market conditions and the availability of cash. Repurchases may also be made under a Rule 10b5-1 trading plan the Company may implement when it is not otherwise in a trading black-out period. Such a plan would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. All shares of common stock repurchased under the Company’s new share repurchase program are expected to be retired and restored to authorized but unissued shares of common stock. The repurchase program may be suspended or discontinued at any time without notice. Cash Dividends On August 3, 2016, the Company’s board of directors decided to eliminate the quarterly cash dividend payment. On May 2, 2016, the Company’s board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on June 6, 2016. On June 13, 2016, the Company paid $8.2 million in connection with such dividend payment. Unvested restricted stock awards (“RSAs”) as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On January 26, 2016, the Company’s board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on March 4, 2016. On March 11, 2016, the Company paid $8.2 million in connection with such dividend payment. Unvested RSAs as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On January 27, 2015, the Company’s board of directors declared a regular quarterly dividend of $0.15 per share of common stock, which were paid on March 12, June 12, September 11 and December 11 of 2015 to stockholders of record on March 5, June 5, September 4 and December 4 of 2015, the record dates for each of the dividend payments, respectively. The Company paid $98.3 million in dividends in 2015.

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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Concentration Risk Disclosure [Text Block]

Customer Concentration

12 Months Ended

Dec. 31, 2017

Risks and Uncertainties [Abstract]

Customer Concentration

The percentage of total revenue earned from net sales, which individually accounted for 10% or more of the Company’s total revenues, was as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015
Income Generating Assets:
Genentech	—		43	%	70	%
Biogen	11	%	24	%	9	%
Depomed	52	%	13	%	9	%

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



	Year Ended December 31,
(in thousands)	2017		2016		2015
United States	$	291,448	$	157,327	$	339,596
Europe	16,144		82,534		250,852
Rest of World	12,468		4,440		—
Total revenues	$	320,060	$	244,301	$	590,448

The following tables presents total receivables from licensee and other, which individually account for 10% or more of the Company’s total receivables from licensee and other asset balance:



	December 31,
(in thousands)	2017		2016
Depomed	$	—	$	6,000
Cardinal Health	$	3,847	$	7,663
McKesson	$	—	$	9,135
AmerisourceBergen	$	2,982	$	8,039

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

17. Income Taxes

For financial reporting purposes, income before income taxes includes the following components:



	Years Ended December 31,
(in thousands)	2017			2016		2015
United States	$	195,865		$	103,656	$	530,138
Foreign	(11,338		)	5,714		—
Total	$	184,527		$	109,370	$	530,138

The provision for income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following:



	Year Ended December 31,
(in thousands)	2017			2016			2015
Current income tax expense
Federal	$	31,338		$	49,582		$	168,164
State	2,843			3,103			12,112
Foreign	529			2,455			—
Total current	34,710			55,140			180,276
Deferred income tax expense (benefit)
Federal	36,911			(8,476		)	16,910
State	2,591			147			157
Foreign	(386		)	(1,100		)	—
Total deferred	39,116			(9,429		)	17,067
Total provision	$	73,826		$	45,711		$	197,343

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



	Year Ended December 31,
(in thousands)	2017			2016			2015
Tax at U.S. statutory rate on income before income taxes	$	64,589		$	38,279		$	185,548
Change in valuation allowance	1,807			(744		)	2,286
State taxes	1,496			74			1
Change in uncertain tax positions	681			2,184			8,717
Foreign income	3,231			5,668			—
Foreign rate differential	1,356			(1,445		)	—
Change in tax rate reform	716			—			—
Other	(50		)	1,695			791
Total	$	73,826		$	45,711		$	197,343

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



	December 31,
(in thousands)	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	6,276		$	4,197
Research and other tax credits	1,414			1,833
Intangible assets	1,453			494
Stock-based compensation	547			835
Accruals	4,667			1,966
Capital loss carryforward	2,027			1,543
Other	5,878			13,020
Total deferred tax assets	22,262			23,888
Valuation allowance	(2,046		)	(1,543		)
Total deferred tax assets, net of valuation allowance	20,216			22,345
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	(117		)	(382		)
Debt modifications	(1,197		)	(122		)
Intangible assets	(16,932		)	(2,584		)
Other	(427		)	—
Unrealized gain on foreign currency hedge contracts and investments	(320		)	—
Total deferred tax liabilities	(18,993		)	(3,088		)
Net deferred tax assets	$	1,223		$	19,257

As of December 31, 2017 and 2016, the Company had federal net operating loss carryforwards of $117.3 million and $34.0 million, respectively. As of December 31, 2017 and 2016, the Company also had state net operating loss carryforwards of $299.9 million and $215.5 million, respectively. The federal net operating loss carryforwards will begin expiring in the year 2023 and the California net operating loss carryforwards will begin expiring by 2018, if not utilized. Other states net operating losses will begin expiring by 2023 if not utilized. As of December 31, 2017 and 2016, the Company had $19.3 million and $19.3 million, respectively, of state tax credit carryforwards that do not expire.

Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company has an annual limitation on the utilization of our federal operating losses of $1.8 million for each of the years ending December 31, 2017 to 2022, and $1.3 million for the year ending December 31, 2023. As of December 31, 2017, the Company estimates that at least $22.0 million of federal net operating loss carryforwards and zero of the $18.7 million state net operating losses will expire unutilized. Furthermore, under the 2017 Tax Act, although the treatment of tax losses generated in taxable years ending before December 31, 2017 has not changed, tax losses generated in taxable years beginning after December 31, 2017 may only be utilized to offset 80% of taxable income annually. This change may require the Company to pay additional federal income taxes in future years.

During 2017, the Company determined that is was more likely than not that certain deferred tax carryforward assets would not be realized in the near future. As a result, $2.0 million valuation allowance against deferred tax assets was established as of December 31, 2017. The net change in total valuation allowance for each of the years ending December 31, 2017 and 2016, was an increase of $0.5 million and $0.7 million, respectively. The valuation allowance at December 31, 2017, is related to capital losses that have limited carryback and carryforward utilization. The Company does not have an expectation of future capital gains against which such losses could be utilized and as such determined that it was more likely than not that such deferred tax assets would not be realized.

As a result of the 2017 Tax Act, the Company recorded income tax benefit of $0.4 million due to the re-measurement of its net deferred tax assets at a U.S. federal statutory rate that was reduced from a top rate of 35% to a flat rate of 21%. Based on information available, the Company estimated the cumulative undistributed foreign earnings to be immaterial. For the GILTI provisions of the 2017 Tax Act, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. In accordance with SEC guidance, provisional amounts may be refined as a result of additional guidance from, and interpretations by, U.S. regulatory and standard-setting bodies, and changes in assumptions. In the subsequent period, provisional amounts will be adjusted for the effects, if any, of interpretative guidance issued after December 31, 2017, by the U.S. Department of the Treasury. The effects of the 2017 Tax Act may be subject to changes for items that were previously reported as provisional amounts, as well as any element of the 2017 Tax Act that a provisional estimate could not be made, such as for executive compensation, GILTI and BEAT impact.

A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, for 2017, 2016 and 2015 is as follows:



	December 31,
(in thousands)	2017		2016		2015
Balance at the beginning of the year	$	59,429	$	57,125	$	47,146
Increases related to tax positions from prior fiscal years	783		436		—
Increases related to tax positions taken during current fiscal year	18,967		1,868		9,979
Expiration of statute of limitations for the assessment of taxes from prior fiscal years	—		—		—
Balance at the end of the year	$	79,179	$	59,429	$	57,125

The future impact of the unrecognized tax benefit of $79.2 million, if recognized, is as follows: $23.7 million would affect the effective tax rate and $55.5 million would result in adjustments to deferred tax assets. The Company periodically evaluates its exposures associated with our tax filing positions. As noted below, the Company is currently under audit by the California Franchise Tax Board. The timing of the audit resolution and the amount to be ultimately paid (if any) is uncertain. The outcome of these audits could result in the payment of tax amounts that differ from the amounts the Company has reserved for uncertain tax positions for the periods under audit resulting in incremental expense or a reversal of our reserves in a future period. The outcome of these audits could result in the payment of tax amounts that differ from the amounts we have reserved for uncertain tax positions for the periods under audit resulting in incremental expense or a reversal of the Company’s reserves in a future period. At this time, the Company does not anticipate a material change in the unrecognized tax benefits related to the California audit that would affect the effective tax rate or deferred tax assets over the next 12 months.

Estimated interest and penalties associated with unrecognized tax benefits increased income tax expense in the Consolidated Statements of Income by $1.0 million, $1.0 million and $2.3 million during the years ended December 31, 2017, 2016 and 2015, respectively. In general, our income tax returns are subject to examination by U.S. federal, state and local tax authorities for tax years 1996 forward. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $7.0 million and $6.0 million as of December 31, 2017 and 2016, respectively. In May 2012, the Company received a “no-change” letter from the IRS upon completion of an examination of the Company’s 2008 federal tax return. The Company is currently under income tax examination in the state of California for the tax years 2009 through 2015.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

. Accumulated Other Comprehensive Income (Loss)

Comprehensive income is comprised of net income and other comprehensive income (loss). The Company includes unrealized net gains on investments held in its available-for-sale securities and unrealized gains (losses) on its cash flow hedges in other comprehensive income (loss), and present the amounts net of tax. The Company’s other comprehensive income (loss) is included in the Company’s Consolidated Statements of Comprehensive Income.

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



(in thousands)	Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on cash flow hedges			Total Accumulated Other Comprehensive Income (Loss)

Beginning Balance at December 31, 2014	$	364		$	2,585		$	2,949
Activity for the year ended December 31, 2015	71			(764		)	(693		)
Balance at December 31, 2015	435			1,821			2,256

Activity for the year ended December 31, 2016	(435		)	(1,821		)	(2,256		)
Balance at December 31, 2016	—			—			—

Activity for the year ended December 31, 2017	1,181			—			1,181
Ending Balance at December 31, 2017	$	1,181		$	—		$	1,181

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.

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Quarterly Financial Information [Text Block]

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2017
Legal Proceedings [Abstract]
Legal Matters and Contingencies [Text Block]	23. Legal Proceedings PDL BioPharma, Inc. v Merck Sharp & Dohme, Corp. On January 22, 2016, the Company filed a complaint against Merck Sharp & Dohme, Corp (“Merck”) for patent infringement in the United States District Court for the District of New Jersey. In the complaint, the Company alleged that manufacture and sales of certain of Merck’s Keytruda product infringed one or more claims of the Company’s U.S. Patent No. 5,693,761 (the “761 Patent”). The Company requested judgment that Merck infringed the 761 Patent, an award of damages due to the infringement, a finding that such infringement was willful and deliberate and trebling of damages therefore, and a declaration that the case is exceptional and warrants an award of attorney’s fees and costs. On April 21, 2017, the Company entered into a settlement agreement with Merck to resolve the patent infringement lawsuit between the parties pending in the U.S. District Court for the District of New Jersey related to Merck’s Keytruda humanized antibody product. Under the terms of the agreement, Merck paid the Company a one time, lump-sum payment of $19.5 million, and the Company granted Merck a fully paid-up, royalty free, non-exclusive license to certain of the Company’s rights to issued patents in the United States and elsewhere, covering the humanization of antibodies (the “Queen et al. patent”) for use in connection with Keytruda as well as a covenant not to sue Merck for any royalties regarding Keytruda. In addition, the parties agreed to dismiss all claims in the relevant legal proceedings. Wellstat Litigation On September 4, 2015, the Company filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On July 29, 2016, the court issued its Memorandum of Decision granting the Company’s motion for summary judgment and denying the Wellstat Diagnostics Guarantors’ cross-motion for summary judgment seeking a determination that they were no longer liable under the guarantees. The Supreme Court of New York held that the Wellstat Diagnostics Guarantors are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. It did not set a specific dollar amount due, but ordered that a judicial hearing officer or special referee be designated to determine the amount of the Obligations owing, and awarded the Company its attorneys’ fees and costs in an amount to be determined. On July 29, 2016, the Wellstat Diagnostics Guarantors filed a notice of appeal from the Memorandum of Decision to the Appellate Division of the Supreme Court of New York. On February 14, 2017, the Appellate Division reversed the summary judgment decision of the Supreme Court in the Company’s favor, but affirmed the denial of the Wellstat Guarantors’ cross-motion for summary judgment. The Appellate Division determined that the action was inappropriate for summary judgment pursuant to New York Civil Practice Law & Rules section 3213 on procedural grounds, but specifically made no determination regarding whether the Company was entitled to a judgment on the merits. Pursuant to this decision, the action has been remanded to the Supreme Court for further proceedings on the merits. The proceeding is conducted as a plenary proceeding, with both parties having the opportunity to take discovery and file dispositive motions in accordance with New York civil procedure. Noden Pharma DAC v Anchen Pharmaceuticals, Inc. et al On June 12, 2017, Noden Pharma DAC filed a complaint against Anchen Pharmaceuticals, Inc. (“Anchen”) and Par Pharmaceutical (“Par”) for infringement of U.S. Patent No. 8,617,595 based on their submission of an Abbreviated New Drug Application (“ANDA”) seeking authorization from the FDA to market a generic version of Tekturna^® aliskiren hemifumarate tablets, 150 mg and 300 mg, in the United States. Noden Pharma DAC’s suit triggered a 30-month stay of FDA approval of that application under the Hatch Waxman Act. Par filed a counterclaim seeking a declaratory judgment that their proposed generic version of Tekturna HCT^® aliskiren hemifumarate hydrochlorothiazide tablets (150 mg eq. base/12.5 mg HCT, 150 mg eq. base/25 mg HCT, 300 mg eq. base/12.5 mg HCT, and 300 mg eq. base/25 mg HCT), described in a separate ANDA submitted by Par to FDA, alleging noninfringement of U.S. Patent No. 8,618,172 (“the ‘172 Patent”), also owned by Noden Pharma DAC. This case is proceeding in the United States District Court for the District of Delaware. In March of 2018, the Parties filed a joint stipulation of dismissal of the defendants’ counterclaim seeking a declaratory judgment of non-infringement of the ‘172 Patent. In the stipulation, Anchen and Par agreed that they will not seek, or otherwise join or assist in, any post-grant review, including inter partes review, of the ‘172 patent or U.S. Patent No. 9,023,893. The defendants further stipulated that they will not seek approval of Par’s ANDA or submit any other ANDA seeking approval to market aliskiren hemifumarate hydrochlorthiazide prior to the expiration of the ‘172 Patent in July of 2028. Both the ‘172 Patent and the ‘893 Patent are listed in the Orange Book for Tekturna HCT. Noden Pharma DAC intends to continue to take appropriate legal action to protect its intellectual property in Tekturna^® and Tekturna HCT^®. Noden Pharma DAC is aware that Novartis received Paragraph IV certifications from Par for Tekturna HCT and Anchen on December 31, 2013. Novartis did not file a responsive patent infringement suit related to these certifications. However, to Noden Pharma DAC’s knowledge, neither Par nor Anchen have in the meantime commercialized generic aliskiren products. Depomed, Inc. vs. Valeant Pharmaceuticals, Inc. On October 27, 2017, Valeant, Depomed and the Company entered into a settlement agreement (“Depomed Settlement Agreement”) to resolve all matters addressed in the lawsuit. Under the terms of the Depomed Settlement Agreement, the litigation will be dismissed, with prejudice, and Valeant will pay to Depomed a one-time, lump-sum payment of $13.0 million. In addition, Depomed and the Company released Valeant and its subsidiary from any and all claims against them as a result of the audit, Valeant’s obligation to pay additional royalties under the commercialization agreement and/or the litigation; and Valeant released Depomed and the Company against any and all claims against them as a result of the audit and/or the litigation. The settlement payment was transferred to the Company under the terms of the Depomed Royalty Agreement in November of 2017. Other Legal Proceedings From time to time, the Company is involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of the Company’s operations of that period and on its cash flows and liquidity.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events Maturity of the February 2018 Notes On February 1, 2018, upon maturity of the February 2018 Notes, the Company repaid a total cash amount of $129.0 million to the custodian, The Bank of New York Mellon Trust Company, N.A., which was comprised of $126.4 million, in principal amount and $2.6 million in accrued interest to retire the February 2018 Notes. CareView Modification Agreement In February 2018, the Company entered into a modification agreement with CareView, pursuant to which the Company agreed, effective as of December 28, 2017, to modify the credit agreement before remedies could otherwise have become available to the Company under the credit agreement in relation to certain obligations of CareView that would potentially not be met, including the requirement to make principal payments. Under the modification agreement the Company agreed that (i) a lower liquidity covenant would be applicable and (ii) principal repayment would be delayed for a period of up to December 31, 2018. In exchange for agreeing to these modifications, among other things, the exercise price of the Company’s warrants to purchase 4.4 million shares of common stock of CareView was reduced and, subject to the occurrence of certain events, CareView agreed to grant the Company additional equity interests.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data [Abstract]

25. Quarterly Financial Data (Unaudited)



	Three Months Ended
(in thousands, except per share data)	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Total revenues	$	68,036	$	62,749	$	143,835	$	45,440
Net income attributable to PDL’s stockholders	$	22,336	$	20,732	$	60,439	$	7,241
Net income per basic share	$	0.15	$	0.14	$	0.39	$	0.04
Net income per diluted share	$	0.15	$	0.14	$	0.39	$	0.04



	Three Months Ended
(in thousands, except per share data)	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016
Total revenues	$	66,492		$	53,638	$	21,047	$	103,124
Net income attributable to PDL’s stockholders	$	(10,336	)	$	13,907	$	4,148	$	55,887
Net income per basic share	$	(0.06	)	$	0.08	$	0.03	$	0.34
Net income per diluted share	$	(0.06	)	$	0.08	$	0.03	$	0.34

Inventories (Notes)

12 Months Ended

Dec. 31, 2017

Inventory [Line Items]

Inventory Disclosure [Text Block]

9. Inventories

Inventories consisted of the following:



	December 31,
(in thousands)	2017		2016
Raw materials	$	1,717	$	—
Work in process	1,119		1,625
Finished goods	6,311		1,259
Total inventories	$	9,147	$	2,884

As of December 31, 2017 and 2016, the Company deferred approximately $1.3 million and $0.1 million, respectively, of costs associated with inventory transfer made under the Company’s third party logistic provider (“3PL”) service arrangement. These costs have been recorded as other assets on the Company’s Consolidated Balance Sheets as of December 31, 2017 and 2016. The Company will recognize the cost of product sold as inventory is transferred from 3PL to the Company’s customers.

During the years ended December 31, 2017 and 2016, the Company recognized an inventory write-down of $2.0 million and $0.3 million, respectively, predominately related to Noden Products that the Company would not be able to sell prior to its expiration.

Intangible Assets and Goodwill (Notes)

12 Months Ended

Dec. 31, 2017

Intangible Assets and Goodwill [Abstract]

Intangible Assets Disclosure [Text Block]

11. Intangible Assets

Intangible Assets, Net

The components of intangible assets as of December 31, 2017 and 2016 were as follows:



	December 31, 2017							December 31, 2016
(in thousands)	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Finite-lived intangible assets:
Acquired products rights ⁽¹⁾	$	216,690	$	(32,503	)	$	184,187	$	216,690	$	(10,834	)	$	205,856
Customer relationships ^{(1) (2)}	26,080		(3,729		)	22,351		23,880		(1,194		)	22,686
Acquired technology ⁽²⁾	9,200		(409		)	8,791		—		—			—
Acquired trademarks ⁽²⁾	570		(76		)	494		—		—			—
	$	252,540	$	(36,717	)	$	215,823	$	240,570	$	(12,028	)	$	228,542

_______________

⁽¹⁾ The Company acquired certain intangible assets as part of the Noden Transaction (see Note 21). They are amortized on a straight-line basis over a weighted average period of 10 years.

⁽²⁾ The Company acquired certain intangible assets as part of the LENSAR transaction (see Note 21). They are amortized over a weighted average period of 15 years. The intangible assets for acquired technology and trademarks are being amortized over their estimated useful lives using the straight-line method of amortization. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

Amortization expense for the year ended December 31, 2017 and 2016 was $24.7 million and $12.0 million, respectively.

Based on the intangible assets recorded at December 31, 2017, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):



Fiscal Year	Amount
2018	$	24,990
2019	24,969
2020	24,951
2021	24,934
2022	24,843
Thereafter	91,136
Total remaining estimated amortization expense	$	215,823

Business Combinations (Notes)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

21. Business Combinations

NODEN TRANSACTION

Description of the Noden Transaction

On July 1, 2016, Noden Transaction was consummated for cash consideration of $110.0 million that was paid to Novartis on July 1, 2016, the closing date of the acquisition. In addition, pursuant the terms of the Noden Purchase Agreement, Noden Pharma DAC committed to pay Novartis the following amounts in cash: $89.0 million payable on the first anniversary of the closing date, and up to an additional $95.0 million contingent on achievement of sales targets and the date of the launch of a generic drug containing the pharmaceutical ingredient aliskiren.

On July 1, 2016, upon the consummation of the Noden Transaction, a noncontrolling interest holder acquired a 6% equity interest in Noden. In May 2017, such equity interest was repurchased for $2.2 million in cash by the Company. The Company accounted for the repurchase in accordance with ASC 810 and recognized the difference between the fair value of the consideration paid and the amount by which the noncontrolling interest is adjusted for in equity attributable to the Company.

The Company determined that Noden shall be consolidated under the voting interest model as of December 31, 2017 and 2016.

On July 3, 2017, Noden made the $89.0 million anniversary payment to Novartis pursuant to the terms of the Noden Purchase Agreement, of which $32.0 million was funded by the company in the form of an equity contribution. The Company expects to make additional equity contributions to Noden of at least $38.0 million to fund a portion of certain milestone payments under the Noden Purchase Agreement, subject to the occurrence of such milestones.

Fair Value of Consideration Transferred

The fair value of consideration transferred totals $244.3 million, which consists of $216.7 million in acquired product rights, $23.9 million in customer relationships, $47.4 million in contingent consideration and $87.0 million in anniversary payments. Contingent consideration includes the future payments that the Company may pay to Novartis based on achieving certain milestones.

The contingent consideration was measured at fair value and recognized as of the acquisition date. The Company determined the acquisition date fair value of the contingent consideration obligation based on an income approach derived from the Noden Products revenue estimates and a probability assessment with respect to the likelihood of (a) achieving the level of net sales or (b) there being no generic product launch that would trigger the milestone payments. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in fair value measurement accounting. The key assumptions in determining the fair value are the discount rate and the probability assigned to the potential milestones being achieved. At each reporting date, the Company will re-measure the contingent consideration obligation to estimated fair value. Any changes in the fair value of contingent consideration will be recognized in operating expenses until the contingent consideration arrangement is settled.

As of the effective time of the acquisition, the identifiable intangible assets are required to be measured at fair value and these assets could include assets that are not intended to be used or sold or that are intended to be used in a manner other than their highest and best use. For purposes of the valuation, it is assumed that all assets will be used in the manner that represents the highest and best use of those assets, but it is not assumed that any market synergies will be achieved. The consideration of synergies has been excluded because they are not considered to be factually supportable.

The fair value of identifiable assets is determined primarily using the “income method,” which starts with a forecast of all expected future cash flows. Some of the more significant assumptions inherent in the development of intangible asset values, from the perspective of a market participant, include, among other factors: the amount and timing of projected future cash flows (including net revenue, cost of product sales, research and development costs, sales and marketing expenses, income tax expense, capital expenditures and working capital requirements) and estimated contributory asset charges; the discount rate selected to measure the risks inherent in the future cash flows; and the assessment of the asset’s life cycle and the competitive trends impacting the asset.

The following table presents a summary of the total fair value of consideration transferred for the Noden Products acquisition:



(in thousands)
Consideration paid in cash at closing	$	109,938
Discounted anniversary payment	87,007
Fair value of contingent consideration	47,360
Total fair value of consideration transferred	$	244,305

Assets Acquired and Liabilities Assumed

In accordance with the authoritative guidance for business combinations, the Noden Transaction was determined to be a business combination and is expected to be accounted for using the acquisition method of accounting.

The following table summarizes the fair values of the identifiable intangible assets acquired and liabilities assumed at the acquisition date:



(in thousands)
Acquired product rights	$	216,690
Customer relationships	23,880
Goodwill	3,735
Net intangible assets	$	244,305

The acquired product rights represent developed technology of products approved for sales in the market, which the Company refers to as marketed products, and have finite useful lives. They are amortized on a straight line basis over a weighted average of 10 years.

LENSAR TRANSACTION

Description of the LENSAR Transaction

In December 2016, LENSAR filed the Chapter 11 case with the support of the Company, as its largest senior secured creditor under a credit agreement, as amended, that the Company and LENSAR had entered into in 2013. For a further discussion of the LENSAR transaction and the Chapter 11 case, see Note 8. In January 2017, the Company agreed to provide debtor-in-possession financing of up to $2.8 million in new advances to LENSAR so that it could continue to operate its business during the remainder of the Chapter 11 case. As part of the Chapter 11 case, LENSAR filed a Chapter 11 plan of reorganization, with the Company’s support, under which LENSAR would issue 100% of its equity interests to the Company in exchange for the cancellation of the Company’s claims as a secured creditor in the Chapter 11 case.

On April 26, 2017, the bankruptcy court approved the plan of reorganization and on May 11, 2017, LENSAR emerged from bankruptcy. Pursuant to the plan of reorganization, the Company obtained control of 100% of the outstanding voting shares of LENSAR, making it a wholly-owned subsidiary of the Company. All assets of the LENSAR bankruptcy estate re-vested in reorganized LENSAR free and clear of all liens, claims or charges. The consummation of the plan of reorganization related transactions effect binding and valid transfers to reorganized LENSAR with all rights, title and interest in the acquired assets. Upon consummation of the plan of reorganization, all debt owed to the Company was eliminated other than the debtor-in-possession financing, which was carried over into a new exit facility provided by the Company. Liabilities to other creditors, including general unsecured creditors, were satisfied through the plan of reorganization.

The Company concluded that the LENSAR transaction shall be accounted in accordance with ASC 805, Business Combinations, that do not involve a transfer of consideration (“combinations by contract”) by applying the acquisition method.

Fair Value of Consideration Transferred

Contemporaneously with the cancellation of the Company’s notes receivable with a carrying value of $43.9 million, the Company acquired 100% equity interests in LENSAR, at fair value, for $31.7 million resulting in a net loss on extinguishment of notes receivable of $10.6 million. The fair value of the equity interest in LENSAR was determined primarily using the “income method,” which starts with a forecast of all expected future cash flows of the acquired business. The acquisition resulted in a gain on bargain purchase because the fair value of assets acquired and liabilities assumed exceeded the total of the fair value of the equity interest in LENSAR by approximately $9.3 million, net of loss on extinguishment of notes receivable, which was recorded in the Consolidated Statement of Income for the period ended December 31, 2017.

Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of the identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands):



(in thousands)
Cash	$	1,983
Tangible assets	18,647
Intangible assets ⁽¹⁾	11,970
Net deferred tax assets	25,723
Total identifiable assets	58,323
Current liabilities	(6,673		)
Total liabilities assumed	(6,673		)

Net loss on derecognition of notes receivables	(10,615		)
Gain on bargain purchase, net of loss on extinguishment of notes receivable	(9,309		)
Total fair value of consideration	$	31,726

______________

⁽¹⁾ As of the effective date of the transaction, identifiable intangible assets are required to be measured at fair value. The fair value measurement is based on significant inputs that are unobservable in the market and thus represents a Level 3 measurement. The Company used an income approach to estimate the preliminary fair value of the intangibles which includes technology, trademarks and customer relationships. The assumptions used to estimate the cash flows of the business included a discount rate of 16%, estimated gross margins ranging from 37-72%, income tax rate of 35%, and operating expenses consisting of direct costs based on the anticipated level of revenues. The intangible assets have a weighted-average useful life of approximately 15.0 years. The intangible assets for acquired technology and trademarks are being amortized over their estimated useful lives using the straight-line method of amortization. The intangible assets for customer relationship are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

Pro Forma Impact of Business Combination

The following table represents the unaudited consolidated financial information for the Company on a pro forma basis for the years ended December 31, 2017 and 2016, assuming that the Noden Transaction had closed on January 1, 2015 and the LENSAR transaction had closed on January 1, 2016. The historical financial information has been adjusted to give effect to pro forma items that are directly attributable to the acquisition and are expected to have a continuing impact on the consolidated results. Additionally, the following table sets forth unaudited financial information and has been compiled from historical financial statements and other information, but is not necessarily indicative of the results that actually would have been achieved had the transactions occurred on the dates indicated or that may be achieved in the future.



	Year Ended
	December 31,
(in thousands, except per share amounts)	2017		2016
Pro forma revenues	$	325,605	$	335,112
Pro forma net income	$	107,193	$	55,897
Pro forma net income per share - basic	$	0.69	$	0.34
Pro forma net income per share - diluted	$	0.69	$	0.34

The unaudited pro forma consolidated results include historical revenues and expenses of assets acquired in the Noden Transaction with the following adjustments:


•	Adjustment to recognize incremental amortization expense based on the fair value of intangibles acquired;


•	Eliminate non-recurring charges directly related to the acquisition that were included in the historical results of operations for the Company; and


•	Adjustment to recognize pro forma income tax based on income tax benefit on the amortization of intangible asset at the statutory tax rate of Ireland (12.5%), and the income tax benefit on the interest expense at the statutory tax rate of the United States (35.0%).

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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Segment Reporting Disclosure [Text Block]

Segment Information (Notes)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

22. Segment Information

Information regarding the Company’s segments for the year ended December 31, 2017 and 2016 is as follows:



Revenues by segment	Year Ended
	December 31,
(in thousands)	2017		2016
Income Generating Assets	$	235,937	$	212,632
Pharmaceutical	69,032		31,669
Medical Devices	15,091		—
Total revenues	$	320,060	$	244,301



Net income (net loss) by segment	Year Ended
	December 31,
(in thousands)	2017			2016
Income Generating Assets	$	125,759		$	59,085
Pharmaceutical	(5,755		)	4,521
Medical Devices	(9,256		)	—
Total net income	$	110,748		$	63,606



Long-lived assets by segment	Year Ended
	December 31,
(in thousands)	2017		2016
Income Generating Assets	$	137	$	38
Pharmaceutical	822		—
Medical Devices	6,263		—
Total long-lived assets	$	7,222	$	38

The operations for the Company’s Pharmaceutical and Medical Devices segments are primarily located in Ireland and the United States, respectively.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Stockholders' Equity (Notes)	12 Months Ended
Stockholders' Equity (Notes)	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	18. Stockholders’ Equity Stock Repurchase Program On March 1, 2017, the Company’s board of directors authorized the repurchase through March 2018 of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $30.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under the Company’s share repurchase program were retired and restored to authorized but unissued shares of common stock at June 30, 2017. The Company repurchased 13.3 million shares of its common stock under the share repurchase program during the year ended December 31, 2017 for an aggregate purchase price of $30.0 million, or an average cost of $2.25 per share, including trading commission. On September 25, 2017, the Company’s board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $25.0 million pursuant to a new share repurchase program. As of March 12, 2018, this plan has not been implemented due to prohibitions on trading during black-out periods. Once implemented, under the new share repurchase program, purchases of the Company’s shares may be made from time to time in the open market or in privately negotiated transactions and are to be funded from the Company’s working capital. The amount and timing of such repurchases are dependent upon the price and availability of shares, general market conditions and the availability of cash. Repurchases may also be made under a Rule 10b5-1 trading plan the Company may implement when it is not otherwise in a trading black-out period. Such a plan would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. All shares of common stock repurchased under the Company’s new share repurchase program are expected to be retired and restored to authorized but unissued shares of common stock. The repurchase program may be suspended or discontinued at any time without notice. Cash Dividends On August 3, 2016, the Company’s board of directors decided to eliminate the quarterly cash dividend payment. On May 2, 2016, the Company’s board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on June 6, 2016. On June 13, 2016, the Company paid $8.2 million in connection with such dividend payment. Unvested restricted stock awards (“RSAs”) as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On January 26, 2016, the Company’s board of directors declared a quarterly dividend of $0.05 per share of common stock to stockholders of record on March 4, 2016. On March 11, 2016, the Company paid $8.2 million in connection with such dividend payment. Unvested RSAs as of the record date are also entitled to dividends, which will only be paid when the RSAs vest and are released. On January 27, 2015, the Company’s board of directors declared a regular quarterly dividend of $0.15 per share of common stock, which were paid on March 12, June 12, September 11 and December 11 of 2015 to stockholders of record on March 5, June 5, September 4 and December 4 of 2015, the record dates for each of the dividend payments, respectively. The Company paid $98.3 million in dividends in 2015.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Accounts Receivable

Basis of Presentation, Policy

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

Principles of Consolidation, Policy

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Management Estimates, Policy

Use of Estimates

Segment Disclosures, Policy

Segment Reporting

Cash Equivalents and Investments, Policy

Cash Equivalents

Investment, Policy [Policy Text Block]

Investments

The Company’s investments include available-for-sale investments, equity method investments and cost method investments in certain publicly traded companies and privately-held companies.

Fair Value Measurements, Policy

Fair Value Measurements

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

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

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

Notes Receivable and Other Long-Term Receivables, Policy

Notes Receivable and Other Long-Term Receivables

Inventory, Policy [Policy Text Block]

Inventory

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Intangible Assets

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Property and Equipment, Policy

Property and Equipment

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



Leasehold improvements		Lesser of useful life or term of lease
Manufacturing equipment		3-5 years
Computer and office equipment		3 years
Furniture and fixtures		7 years
Equipment under lease		Greater of lease term or 5-10 years

Debt, Policy [Policy Text Block]

Convertible Notes

Financing Costs Related to Long-term Debt [Policy Text Block]

Financing Costs Related to Long-term Debt

Product Revenue, Policy

Product Revenue

General

Provisions

Queen et al. Royalty Revenues [Policy Text Block]

Queen et al. Royalty Revenues

Acquired Royalty Rights, Policy

Royalty Rights - At Fair Value

Derivatives, Methods of Accounting, Hedge Documentation [Policy Text Block]

Foreign Currency Hedging

From time to time, the Company may enter into foreign currency hedges to manage exposures arising in the normal course of business and not for speculative purposes.

Foreign Currency Hedging, Policy

Foreign Currency Translation

Comprehensive Income, Policy

Comprehensive Income (Loss)

Income Tax, Policy [Policy Text Block]

Income Taxes

Business Combinations Policy [Policy Text Block]

Business Combination

Lease, Policy [Policy Text Block]

Lease Accounting and Lease Guarantee

New Accounting Pronouncements, Policy [Policy Text Block]

Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company continues to evaluate the impact of the new guidance to the Medical Devices segment.

Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share



Net Income per Basic and Diluted Share	Year Ended December 31,
(in thousands, except per share amounts)	2017		2016		2015
Numerator
Income attributable to the Company’s stockholders used to compute net income per diluted share	$	110,748	$	63,606	$	332,795

Denominator
Total weighted-average shares used to compute net income per basic share	155,394		163,805		163,386
Effect of dilutive stock options	—		—		16
Restricted stock awards	863		387		152
Shares used to compute net income per diluted share	156,257		164,192		163,554

Net income per basic share	$	0.71	$	0.39	$	2.04
Net income per diluted share	$	0.71	$	0.39	$	2.03

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

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

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the year ended December 31, 2017:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

(in thousands)				Royalty Rights - At Fair Value
Fair value as of December 31, 2016							$	402,318

	Financial instruments settled						(108,169		)
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	162,327
		Proceeds from royalty rights - at fair value		$	(107,253	)
			Total net change in fair value for the period				55,074

Fair value as of December 31, 2017							$	349,223



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets
	Fair Value as of		Change of			Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2016		Ownership			Change in Fair Value			December 31, 2017
Depomed	$	164,070	$	—		$	67,968		$	232,038
VB	14,997		—			(617		)	14,380
U-M	35,386		—			(8,617		)	26,769
ARIAD	108,631		(108,169		)	(462		)	—
AcelRx	67,483		—			5,411			72,894
Avinger	1,638		—			(1,242		)	396
KYBELLA	10,113		—			(7,367		)	2,746
	$	402,318	$	(108,169	)	$	55,074		$	349,223



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities
(in thousands)		Anniversary Payment			Contingent Consideration
Fair value as of December 31, 2016		$	(88,001	)	$	(42,650	)

	Total net change in fair value for the period	(999		)	650
	Settlement of financial instrument	89,000			—

Fair value as of December 31, 2017		$	—		$	(42,000	)

Schedule of fair value of financial instruments measured on recurring basis



	December 31, 2017								December 31, 2016
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	417,563	$	—	$	—	$	417,563	$	4	$	—	$	—	$	4
Certificates of deposit	—		—		—		—		—		75,000		—		75,000
Corporate securities	4,848		—		—		4,848		—		—		—		—
Commercial paper	—		—		—		—		—		19,987		—		19,987
Warrants	—		29		—		29		—		78		—		78
Royalty rights - at fair value	—		—		349,223		349,223		—		—		402,318		402,318
Total	$	422,411	$	29	$	349,223	$	771,663	$	4	$	95,065	$	402,318	$	497,387

Financial liabilities:
Anniversary payment	$	—	$	—	$	—	$	—	$	—	$	—	$	88,001	$	88,001
Contingent consideration	—		—		42,000		42,000		—		—		42,650		42,650
Total	$	—	$	—	$	42,000	$	42,000	$	—	$	—	$	130,651	$	130,651

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



	December 31, 2017						December 31, 2016
(in thousands)	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	51,308	$	50,191	$	—	$	52,260
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
LENSAR note receivable ⁽¹⁾	—		—		—		43,909		—		43,900
Direct Flow Medical note receivable ⁽²⁾	—		—		—		10,000		—		10,000
kaléo note receivable ⁽³⁾	—		—		—		146,685		—		142,539
CareView note receivable	19,346		—		18,750		18,965		—		19,200
Total	$	70,737	$	—	$	71,258	$	270,950	$	—	$	269,099
Liabilities:
February 2018 Notes	$	126,066	$	126,131	$	—	$	121,595	$	123,918	$	—
December 2021 Notes	117,415		148,028		—		110,848		122,063		—
Total	$	243,481	$	274,159	$	—	$	232,443	$	245,981	$	—

Foreign Currency Hedging (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The effect of the Company’s derivative instruments in its Consolidated Statements of Income and its Consolidated Statements of Comprehensive Income were as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015

Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	—	$	—	$	4,626
Gain (loss) reclassified from accumulated OCI into “Queen et al. royalty revenue,” net of tax ⁽²⁾	$	—	$	1,821	$	5,390

_________________________

(1) Net change in the fair value of the effective portion of cash flow hedges classified in Other Comprehensive Income (“OCI”)

(2) Effective portion classified as royalty revenue

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]



	December 31,
(in thousands)	2017			2016
Leasehold improvements	$	321		$	153
Manufacturing equipment	1,393			—
Computer and office equipment	10,141			8,995
Furniture and fixtures	137			60
Equipment under lease	6,700			—
Total	18,692			9,208
Less accumulated depreciation	(11,474		)	(9,170		)
Construction in progress	4			—
Property and equipment, net	$	7,222		$	38

Commitments and Contingencies (Tables) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Future Minimum Payments Due	$ 1,133
Operating Leases, Future Minimum Payments, Due in Two Years	1,140
Operating Leases, Future Minimum Payments, Due in Three Years	1,006
Operating Leases, Future Minimum Payments, Due in Four Years	565
Operating Leases, Future Minimum Payments, Due in Five Years	0
Operating Leases, Future Minimum Payments, Due Thereafter	0
Operating Leases, Future Minimum Payments Due	$ 3,844

Convertible Notes (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of carrying value and unamortized discount on December 2021 Notes [Table Text Block]

The carrying value and unamortized discount of the December 2021 Notes were as follows:



(in thousands)	December 31, 2017			December 31, 2016
Principal amount of the December 2021 Notes	$	150,000		$	150,000
Unamortized discount of liability component	(32,585		)	(39,152		)
Net carrying value of the December 2021 Notes	$	117,415		$	110,848

Schedule of convertible and non-recourse notes activity



(in thousands)	February 2018 Notes			December 2021 Notes			Term Loan			Total
Balance at December 31, 2015	$	228,862		$	—		$	24,966		$	253,828
Issuance and exchange	—			150,000			—			150,000
Payment	—			—			(25,000		)	(25,000		)
Repurchase	(120,000		)	—			—			(120,000		)
Non-cash Discount	—			(3,204		)	—			(3,204		)
Non-cash conversion feature	—			(36,653		)	—			(36,653		)
Amortization	12,733			705			34			13,472
Balance at December 31, 2016	121,595			110,848			—			232,443
Amortization	4,471			6,567			—			11,038
Balance at December 31, 2017	$	126,066		$	117,415		$	—		$	243,481

Schedule of carrying value and unamortized discount on Series 2012 Notes

Schedule of interest expense on Series 2012 Notes



	Year ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	—	$	—	$	80
Amortization of debt issuance costs	—		—		13
Amortization of debt discount	—		—		76
Total	$	—	$	—	$	169

Schedule of carrying value and unamortized discount on May 2015 Notes

Schedule of interest expense for May 2015 Notes



	Year Ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	—	$	—	$	1,938
Amortization of debt issuance costs	—		—		435
Amortization of debt discount	—		—		1,815
Total	$	—	$	—	$	4,188

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



(in thousands)	February 2018 Notes		December 2021 Notes		Total
2018	$	126,447	$	—	$	126,447
2019	—		—		—
2020	—		—		—
2021	—		150,000		150,000
2022	—		—		—
Thereafter	—		—		—
Total	$	—	$	150,000	$	150,000

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

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



(in thousands)	December 31, 2017			December 31, 2016
Principal amount of the February 2018 Notes	$	126,447		$	126,447
Unamortized discount of liability component	(381		)	(4,852		)
Net carrying value of the February 2018 Notes	$	126,066		$	121,595

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

Interest expense for the February 2018 Notes on the Company’s Consolidated Statements of Income was as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015
Contractual coupon interest	$	5,058	$	9,338	$	11,786
Amortization of debt issuance costs	1,022		2,863		2,980
Amortization of debt discount	3,449		9,870		10,160
Total	$	9,529	$	22,071	$	24,926

Schedule of interest expense for December 2021 Notes [Table Text Block]

Interest expense for the December 2021 Notes on the Company’s Consolidated Statements of Income was as follows:



	Year Ended December 31,
(in thousands)	2017		2016
Contractual coupon interest	$	4,125	$	447
Amortization of debt issuance costs	74		10
Amortization of debt discount	526		75
Amortization of conversion feature	5,967		620
Total	$	10,692	$	1,152

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

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

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

Stock-based compensation expense for employees and directors and non-employees for the years ended December 31, 2017, 2016 and 2015, is presented below:



	Year Ended December 31,
Stock-based Compensation	2017		2016		2015
(in thousands)
Employees and directors	$	3,138	$	3,679	$	1,952
Non-employees	—		63		93
Total	$	3,138	$	3,742	$	2,045

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



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Subject to Outstanding Awards	Total Shares of Common Stock Available for Grant
2005 Equity Incentive Plan⁽¹⁾	6,200,000	4,110,197	—	2,089,803

_________________________


(1)	As of December 31, 2017, there were 2,065,232 shares of unvested restricted stock awards outstanding as issued from the 2005 Equity Incentive Plan.

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

A summary of the Company’s restricted stock activity is presented below:



	2017				2016				2015
	Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted-average grant-date fair value per share		Number of shares (in thousands)		Weighted- average grant-date fair value per share
Unvested at beginning of year	1,472		$	3.96	586		$	7.13	277		$	8.39
Awards granted	1,917		$	2.15	1,264		$	3.31	522		$	6.40
Awards vested	(749	)	$	3.78	(366	)	$	6.65	(173	)	$	8.38
Forfeited	(575	)	$	3.00	(12	)	$	7.10	(40	)	$	7.79
Unvested at end of year	2,065		$	2.61	1,472		$	3.96	586		$	7.13

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

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

Customer Concentration (Tables)

12 Months Ended

Dec. 31, 2017

Risks and Uncertainties [Abstract]

The percentage of total revenue earned from net sales, which individually accounted for 10% or more of the Company’s total revenues, was as follows:



	Year Ended December 31,
(in thousands)	2017		2016		2015
Income Generating Assets:
Genentech	—		43	%	70	%
Biogen	11	%	24	%	9	%
Depomed	52	%	13	%	9	%

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

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



	Year Ended December 31,
(in thousands)	2017		2016		2015
United States	$	291,448	$	157,327	$	339,596
Europe	16,144		82,534		250,852
Rest of World	12,468		4,440		—
Total revenues	$	320,060	$	244,301	$	590,448

The following tables presents total receivables from licensee and other, which individually account for 10% or more of the Company’s total receivables from licensee and other asset balance:



	December 31,
(in thousands)	2017		2016
Depomed	$	—	$	6,000
Cardinal Health	$	3,847	$	7,663
McKesson	$	—	$	9,135
AmerisourceBergen	$	2,982	$	8,039

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

income before income taxes, by location [Table Text Block]

For financial reporting purposes, income before income taxes includes the following components:



	Years Ended December 31,
(in thousands)	2017			2016		2015
United States	$	195,865		$	103,656	$	530,138
Foreign	(11,338		)	5,714		—
Total	$	184,527		$	109,370	$	530,138

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



	Year Ended December 31,
(in thousands)	2017			2016			2015
Current income tax expense
Federal	$	31,338		$	49,582		$	168,164
State	2,843			3,103			12,112
Foreign	529			2,455			—
Total current	34,710			55,140			180,276
Deferred income tax expense (benefit)
Federal	36,911			(8,476		)	16,910
State	2,591			147			157
Foreign	(386		)	(1,100		)	—
Total deferred	39,116			(9,429		)	17,067
Total provision	$	73,826		$	45,711		$	197,343

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



	Year Ended December 31,
(in thousands)	2017			2016			2015
Tax at U.S. statutory rate on income before income taxes	$	64,589		$	38,279		$	185,548
Change in valuation allowance	1,807			(744		)	2,286
State taxes	1,496			74			1
Change in uncertain tax positions	681			2,184			8,717
Foreign income	3,231			5,668			—
Foreign rate differential	1,356			(1,445		)	—
Change in tax rate reform	716			—			—
Other	(50		)	1,695			791
Total	$	73,826		$	45,711		$	197,343

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



	December 31,
(in thousands)	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	6,276		$	4,197
Research and other tax credits	1,414			1,833
Intangible assets	1,453			494
Stock-based compensation	547			835
Accruals	4,667			1,966
Capital loss carryforward	2,027			1,543
Other	5,878			13,020
Total deferred tax assets	22,262			23,888
Valuation allowance	(2,046		)	(1,543		)
Total deferred tax assets, net of valuation allowance	20,216			22,345
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	(117		)	(382		)
Debt modifications	(1,197		)	(122		)
Intangible assets	(16,932		)	(2,584		)
Other	(427		)	—
Unrealized gain on foreign currency hedge contracts and investments	(320		)	—
Total deferred tax liabilities	(18,993		)	(3,088		)
Net deferred tax assets	$	1,223		$	19,257

Summary of Income Tax Contingencies [Table Text Block]



	December 31,
(in thousands)	2017		2016		2015
Balance at the beginning of the year	$	59,429	$	57,125	$	47,146
Increases related to tax positions from prior fiscal years	783		436		—
Increases related to tax positions taken during current fiscal year	18,967		1,868		9,979
Expiration of statute of limitations for the assessment of taxes from prior fiscal years	—		—		—
Balance at the end of the year	$	79,179	$	59,429	$	57,125

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)



(in thousands)	Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on cash flow hedges			Total Accumulated Other Comprehensive Income (Loss)

Beginning Balance at December 31, 2014	$	364		$	2,585		$	2,949
Activity for the year ended December 31, 2015	71			(764		)	(693		)
Balance at December 31, 2015	435			1,821			2,256

Activity for the year ended December 31, 2016	(435		)	(1,821		)	(2,256		)
Balance at December 31, 2016	—			—			—

Activity for the year ended December 31, 2017	1,181			—			1,181
Ending Balance at December 31, 2017	$	1,181		$	—		$	1,181

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]



	Three Months Ended
(in thousands, except per share data)	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Total revenues	$	68,036	$	62,749	$	143,835	$	45,440
Net income attributable to PDL’s stockholders	$	22,336	$	20,732	$	60,439	$	7,241
Net income per basic share	$	0.15	$	0.14	$	0.39	$	0.04
Net income per diluted share	$	0.15	$	0.14	$	0.39	$	0.04



	Three Months Ended
(in thousands, except per share data)	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016
Total revenues	$	66,492		$	53,638	$	21,047	$	103,124
Net income attributable to PDL’s stockholders	$	(10,336	)	$	13,907	$	4,148	$	55,887
Net income per basic share	$	(0.06	)	$	0.08	$	0.03	$	0.34
Net income per diluted share	$	(0.06	)	$	0.08	$	0.03	$	0.34

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consisted of the following:



	December 31,
(in thousands)	2017		2016
Raw materials	$	1,717	$	—
Work in process	1,119		1,625
Finished goods	6,311		1,259
Total inventories	$	9,147	$	2,884

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets and Goodwill [Abstract]

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

The components of intangible assets as of December 31, 2017 and 2016 were as follows:



	December 31, 2017							December 31, 2016
(in thousands)	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Finite-lived intangible assets:
Acquired products rights ⁽¹⁾	$	216,690	$	(32,503	)	$	184,187	$	216,690	$	(10,834	)	$	205,856
Customer relationships ^{(1) (2)}	26,080		(3,729		)	22,351		23,880		(1,194		)	22,686
Acquired technology ⁽²⁾	9,200		(409		)	8,791		—		—			—
Acquired trademarks ⁽²⁾	570		(76		)	494		—		—			—
	$	252,540	$	(36,717	)	$	215,823	$	240,570	$	(12,028	)	$	228,542

_______________

⁽¹⁾ The Company acquired certain intangible assets as part of the Noden Transaction (see Note 21). They are amortized on a straight-line basis over a weighted average period of 10 years.

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



Fiscal Year	Amount
2018	$	24,990
2019	24,969
2020	24,951
2021	24,934
2022	24,843
Thereafter	91,136
Total remaining estimated amortization expense	$	215,823

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2017

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the fair values of the identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands):



(in thousands)
Cash	$	1,983
Tangible assets	18,647
Intangible assets ⁽¹⁾	11,970
Net deferred tax assets	25,723
Total identifiable assets	58,323
Current liabilities	(6,673		)
Total liabilities assumed	(6,673		)

Net loss on derecognition of notes receivables	(10,615		)
Gain on bargain purchase, net of loss on extinguishment of notes receivable	(9,309		)
Total fair value of consideration	$	31,726

______________

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

The following table presents a summary of the total fair value of consideration transferred for the Noden Products acquisition:



(in thousands)
Consideration paid in cash at closing	$	109,938
Discounted anniversary payment	87,007
Fair value of contingent consideration	47,360
Total fair value of consideration transferred	$	244,305

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following table summarizes the fair values of the identifiable intangible assets acquired and liabilities assumed at the acquisition date:



(in thousands)
Acquired product rights	$	216,690
Customer relationships	23,880
Goodwill	3,735
Net intangible assets	$	244,305

Business Acquisition, Pro Forma Information [Table Text Block]



	Year Ended
	December 31,
(in thousands, except per share amounts)	2017		2016
Pro forma revenues	$	325,605	$	335,112
Pro forma net income	$	107,193	$	55,897
Pro forma net income per share - basic	$	0.69	$	0.34
Pro forma net income per share - diluted	$	0.69	$	0.34

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

Information regarding the Company’s segments for the year ended December 31, 2017 and 2016 is as follows:



Revenues by segment	Year Ended
	December 31,
(in thousands)	2017		2016
Income Generating Assets	$	235,937	$	212,632
Pharmaceutical	69,032		31,669
Medical Devices	15,091		—
Total revenues	$	320,060	$	244,301



Net income (net loss) by segment	Year Ended
	December 31,
(in thousands)	2017			2016
Income Generating Assets	$	125,759		$	59,085
Pharmaceutical	(5,755		)	4,521
Medical Devices	(9,256		)	—
Total net income	$	110,748		$	63,606



Long-lived assets by segment	Year Ended
	December 31,
(in thousands)	2017		2016
Income Generating Assets	$	137	$	38
Pharmaceutical	822		—
Medical Devices	6,263		—
Total long-lived assets	$	7,222	$	38

The operations for the Company’s Pharmaceutical and Medical Devices segments are primarily located in Ireland and the United States, respectively.

Organization and Business (Narrative) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Principal Transaction Revenue [Line Items]
Number of Reportable Segments	3
Transactions consummated	17
Outstanding transactions	9
Debt transactions [Member]
Principal Transaction Revenue [Line Items]
Strategic initiative funds deployed to date	$ 20.0
Outstanding transactions	1
Other Commitment	$ 40.0
Royalty transactions [Member]
Principal Transaction Revenue [Line Items]
Strategic initiative funds deployed to date	$ 396.1
Outstanding transactions	5
Other Commitment	$ 397.1
Hybrid royalty/debt transaction [Member]
Principal Transaction Revenue [Line Items]
Strategic initiative funds deployed to date	44.0
Other Commitment	44.0
Noden transaction [Member]
Principal Transaction Revenue [Line Items]
Strategic initiative funds deployed to date	179.0
Other Commitment	$ 202.0

Summary of Significant Accounting Policies 1 (Narrative) (Detail) $ in Thousands				12 Months Ended
	Jan. 03, 2018	May 09, 2017 USD ($)	Jul. 02, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 01, 2016
Financing Receivable, Impaired [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				10 years
Cumulative Effect on Retained Earnings, Tax				$ 7,700
Guarantor Obligations, Maximum Exposure, Undiscounted				$ 45,100
Federal income tax rate	21.00%			35.00%
Goodwill, Impairment Loss				$ 0	$ 3,735	$ 0
Business Acquisition, Percentage of Voting Interests Acquired							6.00%
Maximum maturity period of investments considered as cash equivalents				3 months
Number of notes receivable investments on non-accrual				3	4
Accounts and Notes Receivable, Net				$ 70,700	$ 105,300
Number of Reportable Segments				3
Notes Receivable, Fair Value Disclosure				$ 71,300	107,400
Payments to Acquire Equity Method Investments		$ 2,200	$ 110,000
Write off of financial instruments				0	51,100	4,000
Interest revenue				17,744	30,404	$ 36,202
Accrued lease liability				10,700	$ 10,700
Excess Tax Benefit from Share-based Compensation, Operating Activities				300
CareView [Member]
Financing Receivable, Impaired [Line Items]
Interest revenue				$ 3,100

Summary of Significant Accounting Policies (Schedule of Property and Equipment of Estimated Useful Lives) (Detail)	12 Months Ended
	Dec. 31, 2017
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	Lesser of useful life or term of lease
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	3-5 years
Equipment Leased to Other Party [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in description)	Greater of lease term or 5-10 years

Net Income per Share (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 22, 2016	Nov. 20, 2015	Feb. 12, 2014
Stock Options [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	502,000	0	41,000
Restricted Stock [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	1,830,000	1,107,000	450,000
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt	$ 126,066	$ 121,595		$ 126,400	$ 246,400	$ 300,000
February 2018 Notes [Member] \| Warrants [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	12,200,000	12,200,000	23,800,000
February 2018 Notes [Member] \| Purchased Call Options [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	13,800,000	13,800,000	26,900,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt	$ 117,415	$ 110,848		$ 150,000	$ 150,000

Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator
Income used to compute net income per diluted share									$ 110,748	$ 63,606	$ 332,795
Denominator
Total weighted-average shares used to compute net income per basic share (in Shares)									155,394	163,805	163,386
Diluted (in Shares)									156,257	164,192	163,554
Net income per basic share (in Dollars per Share)	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.06)	$ 0.08	$ 0.03	$ 0.34	$ 0.71	$ 0.39	$ 2.04
Net income per diluted share (in Dollars per Share)	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.06)	$ 0.08	$ 0.03	$ 0.34	$ 0.71	$ 0.39	$ 2.03
Stock Options [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)									0	0	16
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)									863	387	152

Fair Value Measurements (Narrative) (Detail) - USD ($)								12 Months Ended
Fair Value Measurements (Narrative) (Detail) - USD ($)	Jan. 07, 2018	Sep. 21, 2017	Dec. 13, 2016	Sep. 21, 2016	Jul. 08, 2016	Jun. 02, 2016	Sep. 22, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Jul. 03, 2017	Jul. 09, 2016	Jul. 01, 2016	Sep. 18, 2015	Jul. 28, 2015	Nov. 06, 2014	Jun. 26, 2014	Oct. 18, 2013
Accounts and Notes Receivable, Net								$ 70,700,000	$ 105,300,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value								349,223,000	402,318,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales								(108,169,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings								55,074,000
Other Long-term Investments								75,000,000				$ 75,000,000
Repayment of notes receivable								8,190,000	0	$ 0
Accounts Receivable, Net, Noncurrent								1,400,000			$ 1,400,000
Cash payment for purchase of royalty right																	$ 65,600,000
Royalty rights - at fair value								349,223,000	402,318,000
Percentage of royalty acquired																	75.00%
Revenue Recognition, Milestone Method, Revenue Recognized			$ 6,000,000	$ 5,000,000		$ 6,000,000
Maximum amount of additional funds, upon attainment of milestones	$ 2,000,000
Change in fair value of acquired royalty rights, Level 3 Rollforward								162,327,000	16,196,000
Write off of financial instruments								0	51,100,000	4,000,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings								(349,000)	3,716,000
Notes Receivable, Fair Value Disclosure								71,300,000	107,400,000
Interest revenue								17,744,000	30,404,000	$ 36,202,000
Transfers from level 1 to level 2, amount									0
Transfers from level 2 to level 1, amount								$ 0	0
VB [Member]
Fair Value Inputs, Discount Rate								15.00%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.7 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively.
Royalty rights - at fair value								$ 14,400,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount								$ 14,400,000
University of Michigan [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate								12.80%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.7 million or decrease by $0.7 million, respectively.
Royalty rights - at fair value								$ 26,800,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount								$ 26,800,000
Depomed [Member]
Cash payment for purchase of royalty right																			$ 240,500,000
Purchase of royalty right																			241,300,000
Royalty right purchase transaction costs																			$ 800,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate								10.00%
Fair Value Measurements, Sensitivity Analysis, Description								Should these discount rates increase or decrease by 2.5%, the fair value of the asset could decrease by $14.1 million or increase by $16.2 million, respectively. A third-party expert was engaged to assist management develop its original estimate of the expected future cash flows. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. The Company periodically assesses the expected future cash flows and to the extent such payments are greater or less than its initial estimates, or the timing of such payments is materially different than the original estimates, the Company will adjust the estimated fair value of the asset. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $5.8 million or decrease by $5.8 million, respectively.
Royalty rights - at fair value								$ 232,000,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount								$ 232,000,000										$ 15,500,000
ARIAD [Member]
Purchase of royalty right																$ 100,000,000
Royalty Guarantees, Commitments, Amount																200,000,000
ARIAD [Member] \| Tranche 1 [Member]
Purchase of royalty right																50,000,000
ARIAD [Member] \| Tranche 3 [Member]
Cash payment for purchase of royalty right																$ 100,000,000
AcelRx [Member]
Purchase of royalty right															$ 65,000,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate								13.40%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $9.9 million or increase by $12.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $1.8 million or decrease by $1.8 million, respectively.
Royalty rights - at fair value								$ 72,900,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount								$ 72,900,000
Percentage of royalty acquired															75.00%
Kybella [Member]
Purchase of royalty right													$ 9,500,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate								14.40%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $0.2 million or increase by $0.3 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $69,000 or decrease by $69,000, respectively.
Royalty rights - at fair value								$ 2,700,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount								2,700,000
Maximum amount of additional funds, upon attainment of milestones					$ 1,000,000
kaleo Note Receivable [Member]
Repayment of notes receivable		$ 141,700,000
Avinger [Member]
Repayment of notes receivable							$ 21,400,000
Contingent Consideration [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value								(42,000,000)	(42,650,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings								650,000
Anniversary Payment [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value								0	$ (88,001,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings								(999,000)
Noden [Member] \| Cash to be paid [Member]
Other Commitment														$ 89,000,000
CareView [Member]
Interest revenue								$ 3,100,000

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jul. 03, 2017	Dec. 31, 2016	Jul. 01, 2016
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 42,000		$ 130,651
Financial assets:
Warrants and Rights Outstanding	29		78
Royalty rights - at fair value	349,223		402,318
Assets, Fair Value	771,663		497,387
Financial liabilites:
Anniversary payment	0	$ 89,000	88,001	$ 87,000
Business Combination, Contingent Consideration, Liability, Noncurrent	42,000		42,650
Commercial Paper [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		19,987
Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		75,000
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	417,563		4
Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	4,848		0
Fair Value Level 1 [Member]
Financial assets:
Assets, Fair Value	422,411		4
Fair Value Level 1 [Member] \| Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		0
Fair Value Level 1 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	417,563		4
Fair Value Level 1 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	4,848		0
Fair Value Level 2 [Member]
Financial assets:
Warrants and Rights Outstanding	29		78
Assets, Fair Value	29		95,065
Fair Value Level 2 [Member] \| Commercial Paper [Member]
Financial assets:
Available for Sale Securities, Fair Value	0		19,987
Fair Value Level 2 [Member] \| Certificates of Deposit [Member]
Financial assets:
Available for Sale Securities, Fair Value			75,000
Fair Value Level 2 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	0		0
Fair Value Level 2 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value			0
Fair Value Level 3 [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	42,000		130,651
Financial assets:
Royalty rights - at fair value	349,223		402,318
Assets, Fair Value	349,223		402,318
Financial liabilites:
Anniversary payment	0		88,001
Business Combination, Contingent Consideration, Liability, Noncurrent	$ 42,000		$ 42,650

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Notes Receivable, Fair Value Disclosure	$ 71,300	$ 107,400
Assets, Fair Value Disclosure	771,663	497,387
Liabilities:
Notes Payable, Carrying Value	243,481	232,443	$ 253,828
February 2018 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	126,066	121,595	228,862
December 2021 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	117,415	110,848	$ 0
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,191	50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value	1,200	1,200
LENSAR Note Receivable [Member]
Assets
Notes receivable, Carrying Value	0	43,909
Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Carrying Value	0	10,000
Kaleo [Member]
Assets
Notes receivable, Carrying Value	0	146,685
CareView [Member]
Assets
Notes receivable, Carrying Value	19,346	18,965
Fair Value Level 2 [Member]
Assets
Assets, Fair Value Disclosure	29	95,065
Liabilities:
Notes payable, Fair Value	274,159	245,981
Fair Value Level 2 [Member] \| February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value	126,131	123,918
Fair Value Level 2 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value	148,028	122,063
Fair Value Level 2 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 2 [Member] \| Hyperion [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 2 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 2 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 2 [Member] \| Kaleo [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 2 [Member] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 3 [Member]
Assets
Notes Receivable, Fair Value Disclosure	71,258	269,099
Assets, Fair Value Disclosure	349,223	402,318
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	0
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	51,308	52,260
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes Receivable, Fair Value Disclosure	1,200	1,200
Fair Value Level 3 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	43,900
Fair Value Level 3 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	10,000
Fair Value Level 3 [Member] \| Kaleo [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	142,539
Fair Value Level 3 [Member] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure	18,750	19,200
Assets [Member]
Assets
Assets, Fair Value Disclosure	70,737	270,950
Assets [Member] \| Fair Value Level 2 [Member]
Assets
Notes Receivable, Fair Value Disclosure	$ 0	$ 0

Fair Value Measurements Fair Value Measurements (Schedule of Fair Value of Financial Instruments Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 349,223	$ 402,318
Change in fair value of acquired royalty rights, Level 3 Rollforward	162,327	16,196
Payments for (Proceeds from) Productive Assets	(107,253)	(72,582)	$ (43,407)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	$ (349)	$ 3,716

Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 349,223	$ 402,318
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(108,169)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	55,074
Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	349,223	402,318
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(108,169)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	55,074
Depomed [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	232,038	164,070
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	67,968
VB [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	14,380	14,997
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(617)
University of Michigan [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	26,769	35,386
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(8,617)
ARIAD [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0	108,631
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	(108,169)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(462)
AcelRx [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	72,894	67,483
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	5,411
Avinger [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	396	1,638
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(1,242)
Kybella [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,746	$ 10,113
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ (7,367)

Cash Equivalents and Investments (Narrative) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	$ 1,200,000	$ 0
Gains (losses) on sales of available-for-sale securities	$ 0	$ 882,000

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	$ 530,619	$ 167,141
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1,495	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	532,114	167,141
Cash and Cash Equivalents	527,266	147,154	$ 218,883	$ 291,377
Short-Term Marketable Securities	4,848	19,987
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	109,703	147,150
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	109,703	147,150
Cash and Cash Equivalents	109,703	147,150
Short-Term Marketable Securities	0	0
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	417,563	4
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	417,563	4
Cash and Cash Equivalents	417,563	4
Short-Term Marketable Securities	0	0
Equity Securities [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	3,353
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1,495
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	4,848
Cash and Cash Equivalents	0
Short-Term Marketable Securities	$ 4,848
Commercial Paper [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost		19,987
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax		0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value		19,987
Cash and Cash Equivalents		0
Short-Term Marketable Securities		$ 19,987

Foreign Currency Hedging (Schedule of Effect of Derivative Instruments in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income) (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Derivative [Line Items]

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

^[1]

$ 0

$ 4,626

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

^[2]

$ 0

$ 1,821

$ 5,390

[1]	(1) Net change in the fair value of the effective portion of cash flow hedges classified in Other Comprehensive Income (“OCI”)
[2]	(2) Effective portion classified as royalty revenue

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) $ / shares in Units, shares in Millions																	1 Months Ended		9 Months Ended	12 Months Ended			58 Months Ended
	Jan. 07, 2018 USD ($)	Sep. 21, 2017 USD ($)	Feb. 14, 2017 USD ($)	Feb. 09, 2017 USD ($)	Feb. 06, 2017 USD ($)	Dec. 30, 2016 USD ($)	Aug. 26, 2016 USD ($)	Jul. 16, 2016 $ / shares	Oct. 27, 2015 USD ($)	Sep. 22, 2015 USD ($)	Jun. 26, 2015 USD ($) $ / shares shares	Nov. 10, 2014 USD ($)	Feb. 14, 2014 USD ($)	Nov. 05, 2013 USD ($)	Oct. 03, 2013 USD ($)	Aug. 15, 2013 USD ($)	Feb. 28, 2013	Jan. 31, 2013 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($)	Apr. 30, 2018	Sep. 30, 2017 USD ($)	Mar. 01, 2017 USD ($)	Nov. 14, 2016 USD ($)	Sep. 29, 2016 $ / shares	Sep. 12, 2016 USD ($) $ / shares	Aug. 25, 2016 USD ($)	Jul. 15, 2016 USD ($)	Dec. 15, 2015 USD ($) shares	Oct. 28, 2015 USD ($)	Oct. 07, 2015 $ / shares	Sep. 29, 2015 USD ($)	May 12, 2015 USD ($)	Nov. 09, 2014	Apr. 01, 2014 USD ($)	Feb. 06, 2014 $ / shares	Nov. 06, 2013 USD ($)	Jun. 28, 2013 USD ($)	Mar. 05, 2013 USD ($)	Nov. 02, 2012 USD ($)	Jan. 27, 2012 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Premiums, Percentage Assumed to Net		1.00%
Gain Contingency, Unrecorded Amount																				$ 56,000,000
Repayment of notes receivable																				8,190,000	$ 0	$ 0
Accounts Receivable, Net, Noncurrent																				1,400,000				$ 1,400,000
Investment Owned, Balance, Shares \| shares																															1.7
Share Price \| $ / shares																																						$ 7.97
Maximum amount of additional funds, upon attainment of milestones	$ 2,000,000
Commitments and Contingencies																																			$ 8,500,000
Investment Warrants, Exercise Price \| $ / shares								$ 0.01
Warrants and Rights Outstanding																				29,000	78,000
License and other	$ 500,000																			$ 19,451,000	$ (126,000)	$ 723,000
Equity investment, shares held (shares) \| shares																				4.4
Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																			$ 53,900,000
Interest rate of note receivable (in Percent)																5.00%
Financing Receivable, Net																				$ 50,200,000
Avinger [Member]
Accounts Notes And Loans Receivable [Line Items]
Repayment of notes receivable										$ 21,400,000
LENSAR [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross															$ 40,000,000																$ 42,000,000
Interest rate of note receivable (in Percent)															15.50%																				18.50%
Amount company has agreed to advance under agreement															$ 60,000,000
DirectFlow [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																										$ 1,000,000		$ 1,500,000		$ 1,500,000									$ 35,000,000
Interest rate of note receivable (in Percent)																																				13.50%
Amount company has agreed to advance under agreement												$ 15,000,000		$ 50,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares																											$ 0.01	$ 0.01
Accounts, Notes, Loans and Financing Receivable, Net, Current																									$ 1,800,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down						$ 51,100,000
Proceeds from Sale of Other Assets			$ 700,000	$ 500,000	$ 7,000,000
Hyperion [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																											$ 2,300,000
First minimum payment																																									$ 1,200,000
Number of payments to be received																																											2
Periodic contractual payments																																									$ 1,200,000
Paradigm Spine [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross													$ 50,000,000																$ 54,700,000			$ 4,000,000
Interest rate of note receivable (in Percent)													13.00%
Repayment of notes receivable							$ 57,500,000
Amount company has agreed to advance under agreement									$ 7,000,000				$ 75,000,000
Maximum amount of additional funds, upon attainment of milestones													$ 25,000,000
Tranche 2 of note receivable																																$ 3,000,000
kaleo Note Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																					$ 150,000,000
Repayment of notes receivable		$ 141,700,000
Alphaeon [Member]
Accounts Notes And Loans Receivable [Line Items]
Investment estimated fair value, per share \| $ / shares																					$ 3.84
CareView [Member]
Accounts Notes And Loans Receivable [Line Items]
Interest rate of note receivable (in Percent)											13.50%
Amount company has agreed to advance under agreement											$ 40,000,000
Tranche 1 of note receivable											20,000,000
Tranche 2 of note receivable											$ 20,000,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares											4.4
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares											$ 0.45																						$ 0.40
Warrants and Rights Outstanding																				$ 100,000
Credit Agreement [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																										$ 40,000,000
Credit agreement, stated interest rate (in Percent)																																										5.00%
Proceeds received under remedies available for borrower's breach of terms credit agreement																		$ 8,100,000
Amount company has agreed to advance under agreement																			$ 8,700,000
Financing Receivable, Modifications, Post-Modification Recorded Investment																$ 44,100,000
Forbearance period under terms of credit agreement (in Duration)																	120 days
Credit Agreement [Member] \| LENSAR [Member]
Accounts Notes And Loans Receivable [Line Items]
Amount company has agreed to advance under agreement					$ 2,800,000
Initial Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment																33,700,000
Additional Loan [Member]
Accounts Notes And Loans Receivable [Line Items]
Commitments and Contingencies																																		$ 800,000	$ 500,000
Additional Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																																								$ 1,300,000
Additional Loan [Member] \| LENSAR [Member]
Accounts Notes And Loans Receivable [Line Items]
Amount company has agreed to advance under agreement															$ 20,000,000
Royalty Agreement [Member] \| Avinger [Member]
Accounts Notes And Loans Receivable [Line Items]
Reduction in royalty rate (in percent)																							50.00%
Term loan and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment																1,300,000
Forbearance principal and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Modifications, Pre-Modification Recorded Investment																$ 9,100,000
Tranche three [Member] \| DirectFlow [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross																															$ 5,000,000

Property and Equipment (Property and Equipment) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Leasehold Improvements, Gross	$ 321	$ 153
Machinery and Equipment, Gross	1,393	0
Computer and office equipment	10,141	8,995
Furniture and Fixtures, Gross	137	60
Capital Leased Assets, Gross	6,700	0
Property, Plant and Equipment, Gross	18,692	9,208
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(11,474)	(9,170)
Construction in Progress, Gross	4	0
Property, Plant and Equipment, Net	$ 7,222	$ 38

Accrued Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Compensation	$ 6,043	$ 3,131
Interest	2,451	2,554
Deferred Revenue	9,741	0
Dividend payable	79	21
Customer Advances, Current	3,198	0
Legal	595	1,594
Other	3,514	2,028
Customer Refundable Fees	647	8,909
Accrued rebate liability	19,613	12,338
Total	$ 45,881	$ 30,575

Accrued Liabilities Accrued rebates, chargebacks and other reserves (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Discount and Distribution Fees	$ 3,422	$ 2,475
Government rebates and chargebacks	8,709	5,514
Assistance and Other Discounts	4,178	2,580
Product return	3,304	1,769
Accrued liabilities, amounts received in advance of revenue recognition	$ 19,613	$ 12,338

Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 03, 2017	Jul. 01, 2016	Jun. 29, 2016
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation	$ 1,300
Operating Leases, Rent Expense	800	$ 300	$ 200
Guarantor Obligations, Maximum Exposure, Undiscounted	45,100
Accrued lease liability	10,700	10,700
Other Investments						$ 75,000
Guarantees, Fair Value Disclosure					$ 14,000
Anniversary payment	0	$ 88,001		$ 89,000	$ 87,000
Other Long-term Investments	75,000			$ 75,000
Next twelve months [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation	74,200
Next twenty-four months [Member] [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation	$ 105,800

Convertible Notes (Narrative) (Detail) $ / shares in Units, shares in Millions									1 Months Ended		3 Months Ended	12 Months Ended
	Nov. 21, 2016 USD ($)	Nov. 20, 2015 USD ($)	May 02, 2015 USD ($) shares	Feb. 18, 2015 shares	Oct. 20, 2014 USD ($) shares	Feb. 11, 2014 USD ($)	Feb. 05, 2014 USD ($) shares	May 16, 2011 USD ($)	Jan. 31, 2013 USD ($)	Jan. 31, 2012 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Nov. 23, 2016 USD ($)	Nov. 22, 2016 USD ($) $ / shares	Nov. 21, 2015 USD ($)	May 01, 2015 USD ($) shares	Mar. 30, 2015 USD ($)	Feb. 17, 2015 USD ($)	Sep. 30, 2014 USD ($)	Feb. 12, 2014 USD ($) $ / shares	Feb. 06, 2014 USD ($) $ / shares	Aug. 01, 2013 USD ($)	Feb. 29, 2012 USD ($)
Debt Instrument [Line Items]
Principal amount a $5 incentive cash payment per each to convert debt												$ 1,000
Convertible note rate conversion trading days (in days)												0
Convertible Notes rate conversion consecutive trading days (in days)												$ 30
Debt Conversion, Original Debt, Amount					$ 26,000,000
Minimum conversion price percent for note conversion (in Percent)												130.00%
Convertible Notes rate conversion business day period (in days)												$ 5
Share Price \| $ / shares																							$ 7.97
Net proceeds from the issuance of convertible notes												0	$ 150,000,000	$ 0
Interest Paid												9,286,000	11,410,000	16,987,000
Purchased call options cost												$ 0	(14,400,000)	0
Dividends Payable, Amount Per Share \| $ / shares												$ 0.15
Deferred Income Tax Expense (Benefit)												$ 39,116,000	(9,429,000)	17,067,000
Gains (loss) on extinguishment of debt											$ (6,100,000)	$ 0	(2,353,000)	$ 6,450,000
Debt instrument, increase, additional borrowings													150,000,000
February 2018 Note Warrant [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) \| $ / shares												$ 10.3610
Proceeds from issuance of warrants							$ 11,400,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt		$ 150,000,000										$ 117,415,000	110,848,000			$ 150,000,000
Unamortized discount of liability component												$ (32,585,000)	(39,152,000)			$ (4,300,000)
Debt Instrument, Interest Rate, Stated Percentage																2.80%
Debt discount recorded to additional paid in capital																$ 23,800,000
Debt discount recorded to deferred tax liability																$ 12,800,000
Debt Instrument, Interest Rate, Effective Percentage																3.40%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares																$ 3.81
Estimated market interest rate for similar nonconvertible instrument																9.50%
Debt instrument, convertible, remaining amortization period (in Duration)												3 years 11 months 6 days
Net proceeds from the issuance of convertible notes	$ 145,700,000
Debt Instrument, Face Amount													150,000,000			$ 150,000,000
Conversion Rate per $1,000 Principal Amount (in Ratio)	262.2951
Proceeds from issuance of warrants							$ 14,400,000
Debt instrument, increase, additional borrowings													150,000,000
February 2018 Note Purchase Call Option [Member]
Debt Instrument [Line Items]
Number of hedge counterparties (in Counterparties)																					2
Purchased call options cost						$ 31,000,000
Deferred taxes included in purchased call options cost						10,800,000
Number of shares of common stock covered by the purchased call options purchased (in Shares) \| shares												13.8
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt																							$ 131,700,000		$ 10,000,000
Total consideration given for convertible note exchange																							191,800,000
Induced conversion of convertible debt expense										$ 845,000
Deferred issue costs, incentive payment allocated										765,000
Adjustments to additional paid in capital, equity component of convertible debt										52,000
Noted obligation allocated to deferred tax assets										$ 28,000
Unamortized discount of liability component					(100,000)																	$ (2,100,000)
Debt Instrument, Interest Rate, Stated Percentage										2.875%
Debt Instrument, Face Amount					$ 22,300,000															$ 22,300,000			48,300,000	$ 180,000,000
Debt conversion, shares issued (in Shares) \| shares				1.3	1.8		20.3
Debt Conversion, Converted Instrument, Amount							$ 157,600,000
Cash paid to exchange convertible note					$ 26,200,000																		34,200,000
Inducement fee																							2,500,000
Interest Payable																							1,800,000
Deferred Income Tax Expense (Benefit)							$ 29,900,000
Debt discount, derecognition on exchange																							5,800,000
Debt Exchange cost other																							$ 300,000
May 2015 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt								$ 155,300,000
Debt Instrument, Interest Rate, Stated Percentage																					3.75%
Minimum conversion price percent for note conversion (in Percent)												130.00%
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)												98.00%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares												$ 5.72
Net proceeds from the issuance of convertible notes								$ 149,700,000
Convertible notes repurchase price as a percentage of principal (in Percent)								100.00%
Debt Instrument, Face Amount																		$ 155,100,000
Debt conversion, shares issued (in Shares) \| shares			5.2
Purchased Call Options [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) \| $ / shares												4.88
Purchased call options cost			$ 20,800,000
Warrants [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) \| $ / shares												$ 6.73
Number of shares of common stock covered by the purchased call options purchased (in Shares) \| shares																		27.5
Proceeds from issuance of warrants									$ 10,900,000
February 2015 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt										$ 169,000,000														$ 1,000,000
Incentive fee per each $1,000 principal amount tendered to convert debt										5.00
Principal amount a $5 incentive cash payment per each to convert debt										$ 1,000
Debt Instrument, Face Amount																					$ 0
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt		246,400,000										$ 126,066,000	121,595,000			126,400,000						300,000,000
Adjustments to additional paid in capital, equity component of convertible debt													25,465,000
Unamortized discount of liability component		(3,100,000)										$ (381,000)	(4,852,000)		$ (4,600,000)	(4,300,000)	$ (14,100,000)					$ (29,700,000)
Deferred issuance costs		900,000													$ 1,400,000	1,300,000	$ 4,100,000
Purchase call option unwind		270,000
Warrant unwind		170,000
Fees and Commissions, Transfer Agent		100,000
Debt Instrument, Interest Rate, Stated Percentage																						4.00%
Debt discount recorded to additional paid in capital																						$ 19,300,000
Debt discount recorded to deferred tax liability																						$ 10,400,000
Debt Instrument, Interest Rate, Effective Percentage																						6.90%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares																						$ 9.17
Estimated market interest rate for similar nonconvertible instrument																						7.00%
Debt instrument, convertible, remaining amortization period (in Duration)												1 month 2 days
Net proceeds from the issuance of convertible notes						$ 290,200,000
Debt Instrument, Repurchase Amount		53,600,000														120,000,000
Debt instrument, repurchase amount paid		43,700,000														$ 121,500,000
Interest Paid	$ 1,500,000
Debt Instrument, Face Amount												$ 126,447,000	$ 126,447,000
Conversion Rate per $1,000 Principal Amount (in Ratio)						109.1048
Gains (loss) on extinguishment of debt		$ 6,500,000
March 2015 Term Loan [Member]
Debt Instrument [Line Items]
Short-term Debt																			$ 100,000,000
March 2015 Term Loan [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage												2.17%							0.75%

Convertible Notes (Summary of Convertible Notes) (Detail)				1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 21, 2016	Nov. 20, 2015 USD ($)	Feb. 11, 2014	Jan. 31, 2012 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Nov. 22, 2016 USD ($) $ / shares	May 01, 2015 USD ($)	Feb. 17, 2015 USD ($)	Oct. 20, 2014 USD ($)	Sep. 30, 2014 USD ($)	Feb. 12, 2014 $ / shares	Feb. 06, 2014 USD ($)	Aug. 01, 2013 USD ($)
Debt Instrument [Line Items]
Principal amount a $5 incentive cash payment per each to convert debt						$ 1,000
Convertible Notes and Term Loans, Beginning Balance						232,443,000	$ 253,828,000
Issuance and exchange of Debt							150,000,000
Repayments of Debt							25,000,000
Payments for Repurchase of Convertible Preferred Stock						0	120,000,000	$ 220,397,000
Gains (Losses) on Extinguishment of Debt					$ 6,100,000	0	2,353,000	(6,450,000)
Non-cash discount							(3,204,000)
Amortization						11,038,000	13,472,000
Convertible Notes and Term Loans, Ending Balance						243,481,000	232,443,000	253,828,000
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				2.875%
Convertible Notes, Principal Balance Outstanding											$ 22,300,000	$ 22,300,000			$ 48,300,000	$ 180,000,000
Amortization of Debt Discount (Premium)						$ 0	0	76,000
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage													3.75%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares						$ 5.72
Convertible Notes, Principal Balance Outstanding										$ 155,100,000
Amortization of Debt Discount (Premium)						$ 0	0	1,815,000
February 2015 Notes [Member]
Debt Instrument [Line Items]
Principal amount a $5 incentive cash payment per each to convert debt				$ 1,000
Convertible Notes, Principal Balance Outstanding													$ 0
Term Loan. [Member]
Debt Instrument [Line Items]
Convertible Notes and Term Loans, Beginning Balance						0	24,966,000
Repayments of Debt							25,000,000
Amortization						0	34,000
Convertible Notes and Term Loans, Ending Balance						0	0	24,966,000
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage														4.00%
Debt Instrument, Convertible, Conversion Ratio			109.1048
Convertible notes, conversion price (in Dollars per Share) \| $ / shares														$ 9.17
Convertible Notes, Principal Balance Outstanding						126,447,000	126,447,000
Convertible Notes and Term Loans, Beginning Balance						121,595,000	228,862,000
Payments for Repurchase of Convertible Preferred Stock							(120,000,000)
Gains (Losses) on Extinguishment of Debt		$ (6,500,000)
Amortization of Debt Discount (Premium)						3,449,000	9,870,000	10,160,000
Amortization						4,471,000	12,733,000
Convertible Notes and Term Loans, Ending Balance						126,066,000	121,595,000	228,862,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									2.80%
Debt Instrument, Convertible, Conversion Ratio	262.2951
Convertible notes, conversion price (in Dollars per Share) \| $ / shares									$ 3.81
Convertible Notes, Principal Balance Outstanding							150,000,000		$ 150,000,000
Convertible Notes and Term Loans, Beginning Balance						110,848,000	0
Issuance and exchange of Debt							150,000,000
Non-cash discount							(3,204,000)
Debt Instrument, Convertible, Beneficial Conversion Feature							(36,653,000)
Amortization of Debt Discount (Premium)						526,000	75,000
Amortization						6,567,000	705,000
Convertible Notes and Term Loans, Ending Balance						$ 117,415,000	$ 110,848,000	$ 0

Convertible Notes (Summary of Series 2012 Notes) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Feb. 17, 2015	Oct. 20, 2014	Feb. 12, 2014	Feb. 06, 2014	Aug. 01, 2013
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 243,481	$ 232,443	$ 253,828
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding				$ 22,300	$ 22,300		$ 48,300	$ 180,000
Unamortized discount of liability component					$ (100)	$ (2,100)

Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) - Series 2012 Notes [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Contractual coupon interest	$ 0	$ 0	$ 80
Amortization of debt issuance costs	0	0	13
Amortization of Debt Discount (Premium)	0	0	76
Total	$ 0	$ 0	$ (169)

Convertible Notes (Summary of May 2015 Notes) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	May 01, 2015
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 243,481	$ 232,443	$ 253,828
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 155,100

Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) - May 2015 Notes [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Contractual coupon interest	$ 0	$ 0	$ 1,938
Amortization of debt issuance costs	0	0	435
Amortization of Debt Discount (Premium)	0	0	1,815
Total	$ 0	$ 0	$ 4,188

Convertible Notes Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 126,447
Long-term Debt, Maturities, Repayments of Principal in Year Two	0
Long-term Debt, Maturities, Repayments of Principal in Year Three	0
Long-term Debt, Maturities, Repayments of Principal in Year Four	150,000
Long-term Debt, Maturities, Repayments of Principal in Year Five	0
Long-term Debt, Maturities, Repayments of Principal after Year Five	0
Long-term Debt	150,000
February 2018 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	126,447
Long-term Debt, Maturities, Repayments of Principal in Year Two	0
Long-term Debt, Maturities, Repayments of Principal in Year Three	0
Long-term Debt, Maturities, Repayments of Principal in Year Four	0
Long-term Debt, Maturities, Repayments of Principal in Year Five	0
Long-term Debt, Maturities, Repayments of Principal after Year Five	0
Long-term Debt	0
December 2021 Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	0
Long-term Debt, Maturities, Repayments of Principal in Year Three	0
Long-term Debt, Maturities, Repayments of Principal in Year Four	150,000
Long-term Debt, Maturities, Repayments of Principal in Year Five	0
Long-term Debt, Maturities, Repayments of Principal after Year Five	0
Long-term Debt	$ 150,000

Convertible Notes Schedule of carrying value and unamortized discount on February 2018 Notes (Details) - February 2018 Notes [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Nov. 23, 2016	Nov. 22, 2016	Nov. 21, 2015	Nov. 20, 2015	Feb. 12, 2014
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 126,447	$ 126,447
Debt Instrument, Unamortized Discount	(381)	(4,852)	$ (4,600)	$ (4,300)	$ (14,100)	$ (3,100)	$ (29,700)
Convertible Debt	$ 126,066	$ 121,595		$ 126,400		$ 246,400	$ 300,000

Convertible Notes Convertible Notes (Interest Expense for the February 2018 Notes) (Details) $ in Thousands, shares in Millions		12 Months Ended
	Feb. 11, 2014 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Nov. 23, 2016 USD ($)	Nov. 22, 2016 USD ($)	Nov. 21, 2015 USD ($)	Nov. 20, 2015 USD ($)	Sep. 30, 2014	Feb. 12, 2014 USD ($)
Debt Instrument [Line Items]
Purchased call options cost		$ 0	$ (14,400)	$ 0
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount		381	4,852		$ 4,600	$ 4,300	$ 14,100	$ 3,100		$ 29,700
Deferred issuance costs					$ 1,400	$ 1,300	$ 4,100	$ 900
Interest Expense, Debt, Excluding Amortization		5,058	9,338	11,786
Amortization of debt issuance costs		1,022	2,863	2,980
Amortization of Debt Discount (Premium)		3,449	9,870	10,160
Total		$ (9,529)	$ (22,071)	$ (24,926)
February 2018 Note Purchase Call Option [Member]
Debt Instrument [Line Items]
Number of hedge counterparties (in Counterparties)									2
Purchased call options cost	$ 31,000
Number of shares of common stock covered by the purchased call options purchased (in Shares) \| shares		13.8

Convertible Notes Schedule of interest expense for December 2021 Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature	$ 5,967	$ 620	$ 100
February 2018 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	4,125	447
Amortization of debt issuance costs	74	10
Amortization of Debt Discount (Premium)	526	75
Interest Expense, Debt	$ 10,692	$ 1,152

Other Long-Term Liabilities (Narrative) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Total lease payments for the duration of the guarantee	$ 45,100
Accrued lease liability	$ 10,700	$ 10,700

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Other Liabilities [Line Items]
Accrued lease liability	$ 10,700	$ 10,700
Deferred Compensation Liability, Classified, Noncurrent	1,729	1,995
Deferred Tax and Other Liabilities, Noncurrent	1,208	0
Uncertain tax position	30,682	41,591
Other Sundry Liabilities, Noncurrent	47	270
Other Sundry Liabilities	343	0
Total	$ 44,709	$ 54,556

Stock-Based Compensation (Narrative) (Detail) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

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

Allocated Share-based Compensation Expense, Net of Tax

$ 3,138

$ 3,742

$ 2,045

Aggregate intrinsic value, non-vested restricted stock

$ 5,700

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number

2,065,000

1,472,000

586,000

277,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method

3.7

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate

177.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate

44.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate

0.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value

$ 1.51

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

1 year 11 months

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

1,917,000

1,264,000

522,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 2.15

$ 3.31

$ 6.40

Restricted Stock [Member]

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

Allocated Share-based Compensation Expense, Net of Tax

$ 2,700

$ 3,500

$ 2,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number

2,065,232

2005 Equity Incentive Plan [Member]

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

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

^[1]

Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options

$ 3,100

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

2 years 1 month

Inducement Award [Member]

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

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

1 year 6 months

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

961,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price

$ 3.21

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

9 years 8 months

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value

$ 1,500

Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options

$ 1,200

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

240,200

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 3.22

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding

$ 700

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$ 700

[1]	As of December 31, 2017, there were 2,065,232 shares of unvested restricted stock awards outstanding as issued from the 2005 Equity Incentive Plan.

Stock-Based Compensation (Stock-Based Compensation Expense for Employees and Directors and Non-Employees) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,138	$ 3,742	$ 2,045
Employees and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,138	3,679	1,952
Non-employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ 63	$ 93

Stock-Based Compensation (Shares of Company Common Stock Available Under Share-Based Plans) (Detail) - 2005 Equity Incentive Plan [Member]

12 Months Ended

Dec. 31, 2017

^[1]

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

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

6,200,000

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

4,110,197

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

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

2,090,000

[1]	As of December 31, 2017, there were 2,065,232 shares of unvested restricted stock awards outstanding as issued from the 2005 Equity Incentive Plan.

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	1,472	586	277
Restricted Stock Awards, Number of Shares Granted (in Shares)	1,917	1,264	522
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	2,065	1,472	586
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 3.96	$ 7.13	$ 8.39
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	$ 2.15	$ 3.31	$ 6.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(749)	(366)	(173)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 3.78	$ 6.65	$ 8.38
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	3.00	7.10	7.79
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	$ 2.61	$ 3.96	$ 7.13
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(575)	(12)	(40)

Stock-Based Compensation (Restricted Stock Activity) (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,065	1,472	586	277
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 2.61	$ 3.96	$ 7.13	$ 8.39
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,917	1,264	522
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 2.15	$ 3.31	$ 6.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(749)	(366)	(173)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 3.78	$ 6.65	$ 8.38
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 3.00	$ 7.10	$ 7.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(575)	(12)	(40)

Cash Dividends (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		12 Months Ended
	May 02, 2016	Jan. 26, 2016	Jan. 28, 2015	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.05	$ 0.05	$ 0.15			$ 0.00	$ 0.10	$ 0.60
Payments of Dividends				$ 8,200	$ 8,200	$ 222	$ 16,583	$ 98,307

Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Genentech [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	0.00%	43.00%	70.00%
Biogen Idec [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	11.00%	24.00%	9.00%
Depomed [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	52.00%	13.00%	9.00%

Customer Concentration (Total Revenues by Geographic Area) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Revenues	$ 68,036	$ 62,749	$ 143,835	$ 45,440	$ 66,492	$ 53,638	$ 21,047	$ 103,124	$ 320,060	$ 244,301	$ 590,448
UNITED STATES
Concentration Risk [Line Items]
Revenues									291,448	157,327	339,596
Europe [Member]
Concentration Risk [Line Items]
Revenues									16,144	82,534	250,852
Other geographic location [Member]
Concentration Risk [Line Items]
Revenues									$ 12,468	$ 4,440	$ 0

Customer Concentration Customer Concentration - Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Depomed [Member]
Concentration Risk [Line Items]
Receivables from Customers	$ 0	$ 6,000
Cardinal [Member]
Concentration Risk [Line Items]
Receivables from Customers	3,847	7,663
Mckesson [Member]
Concentration Risk [Line Items]
Receivables from Customers	0	9,135
ABC [Member]
Concentration Risk [Line Items]
Receivables from Customers	$ 2,982	$ 8,039

Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Unrecognized Tax Benefits	$ 79,179	$ 59,429	$ 57,125	$ 47,146
Deferred Tax Assets, Valuation Allowance	2,046	1,543
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	23,700
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	1,000	1,000	2,300
Unrecognized tax benefits resulting in adjustment to deferred tax assets	55,500
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	18,967	1,868	9,979
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	0	$ 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	7,000	6,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	18,700
Valuation Allowances and Reserves, Balance	2,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	500	(744)
Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	117,300	34,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	22,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	299,900	215,500
Deferred Tax Assets, Tax Credit Carryforwards	19,300	$ 19,300
California Franchise Tax Board [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 0
For the years ending December 31, 2014 to 2022 [Member] \| Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Limitations on Use	1.8
For the year ending December 31, 2023 [Member] \| Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Limitations on Use	1.3

Income Taxes (Provision for Income Taxes) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Current Federal Tax Expense (Benefit)	$ 31,338	$ 49,582	$ 168,164
Current State and Local Tax Expense (Benefit)	2,843	3,103	12,112
Current Foreign Tax Expense (Benefit)	529	2,455	0
Current Income Tax Expense (Benefit)	34,710	55,140	180,276
Deferred Federal Income Tax Expense (Benefit)	36,911	(8,476)	16,910
Deferred State and Local Income Tax Expense (Benefit)	2,591	147	157
Deferred Foreign Income Tax Expense (Benefit)	(386)	(1,100)	0
Deferred Income Tax Expense (Benefit)	39,116	(9,429)	17,067
Income Tax Expense (Benefit)	$ 73,826	$ 45,711	$ 197,343

Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 6,276	$ 4,197
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	64,589	38,279	$ 185,548
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	1,807	(744)	2,286
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	1,496	74	1
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	681	2,184	8,717
Foreign Income Tax Expense (Benefit), Continuing Operations	3,231	5,668	0
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	1,356	(1,445)	0
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	716	0	0
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	(50)	1,695	791
Income Tax Expense (Benefit)	73,826	45,711	$ 197,343
Deferred Tax Assets, Tax Credit Carryforwards, Research	1,414	1,833
Deferred Tax Liabilities, Intangible Assets	1,453	494
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	547	835
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves	4,667	1,966
Deferred Tax Assets, Capital Loss Carryforwards	2,027	1,543
Deferred Tax Assets, Other	5,878	13,020
Deferred Tax Assets, Gross	22,262	23,888
Deferred Tax Assets, Valuation Allowance	(2,046)	(1,543)
Deferred Tax Assets, Net of Valuation Allowance	20,216	22,345
Deferred Tax Liabilities, Tax Deferred Income	117	382
Deferred Tax Liabilities, Financing Arrangements	1,197	122
Deferred Tax Liabilities, Intangible Assets	(16,932)	(2,584)
Deferred Tax Liabilities, Other	427	0
Deferred Tax Liabilities, Unrealized Currency Transaction Gains	(320)	0
Deferred Tax Liabilities, Gross	(18,993)	(3,088)
Deferred Tax Assets, Net	$ 1,223	$ 19,257

Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Beginning Balance	$ 59,429	$ 57,125	$ 47,146
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	783	436	0
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	18,967	1,868	9,979
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	0	0
Unrecognized Tax Benefits, Ending Balance	$ 79,179	$ 59,429	$ 57,125

Income Taxes Income before taxes, by location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Abstract]
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 195,865	$ 103,656	$ 530,138
Income (Loss) from Continuing Operations before Income Taxes, Foreign	(11,338)	5,714	0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 184,527	$ 109,370	$ 530,138

Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	$ 0
Other Comprehensive Income (Loss), Net of Tax	1,181	$ (2,256)	$ (693)
Total Accumulated Other Comprehensive Loss, ending balance	1,181	0
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	0	2,256	2,949
Other Comprehensive Income (Loss), Net of Tax	1,181	(2,256)	(693)
Total Accumulated Other Comprehensive Loss, ending balance	1,181	0	2,256
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	0	435	364
Other Comprehensive Income (Loss), Net of Tax	1,181	(435)	71
Total Accumulated Other Comprehensive Loss, ending balance	1,181	0	435
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	0	1,821	2,585
Other Comprehensive Income (Loss), Net of Tax	0	(1,821)	(764)
Total Accumulated Other Comprehensive Loss, ending balance	$ 0	$ 0	$ 1,821

Subsequent Events (Narrative) (Detail) - Subsequent Event [Member] - USD ($) shares in Millions, $ in Millions	Feb. 02, 2018	Feb. 28, 2018	Feb. 01, 2018
Subsequent Event [Line Items]
Repayments of Convertible Debt	$ 129.0
Repayment of convertible note, principal			$ 126.4
Repayment of convertible note, interest			$ 2.6
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right		4.4

Quarterly Financial Data (Unaudited) (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effect of Fourth Quarter Events [Line Items]
Revenues	$ 68,036	$ 62,749	$ 143,835	$ 45,440	$ 66,492	$ 53,638	$ 21,047	$ 103,124	$ 320,060	$ 244,301	$ 590,448
Net Income (Loss) Attributable to Parent	$ 22,336	$ 20,732	$ 60,439	$ 7,241	$ (10,336)	$ 13,907	$ 4,148	$ 55,887	$ 110,748	$ 63,606	$ 332,795
Net income per basic share (in Dollars per Share)	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.06)	$ 0.08	$ 0.03	$ 0.34	$ 0.71	$ 0.39	$ 2.04
Net income per diluted share (in Dollars per Share)	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.06)	$ 0.08	$ 0.03	$ 0.34	$ 0.71	$ 0.39	$ 2.03

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Inventory, Raw Materials, Gross	$ 1,717	$ 0
Deferred Costs and Other Assets	1,300	100
Inventory, Work in Process, Gross	1,119	1,625
Inventory, Finished Goods, Gross	6,311	1,259
Inventory, Net	9,147	2,884
Inventory Write-down	$ 2,012	$ 342	$ 0

Intangible Assets and Goodwill (Details) - USD ($)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Finite-Lived Intangible Asset, Useful Life

10 years

Amortization of Intangible Assets

$ 24,689,000

$ 12,028,000

$ 0

Finite-Lived Intangible Assets, Accumulated Amortization

252,540,000

240,570,000

(36,717,000)

(12,028,000)

215,823,000

228,542,000

Acquired rights [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

216,690,000.000

^[1]

(32,503,000.000)

(10,834,000.000)

Customer Relationships [Member]

^[1]

184,187,000.000

205,856,000.000

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

26,080,000.000

23,880,000.000

^[1]

(3,729,000.000)

(1,194,000.000)

Patented Technology [Member]

^[1]

22,351,000.000

22,686,000.000

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

9,200,000.000

0.000

^[1]

(409,000.000)

0.000

^[1]

8,791,000.000

0.000

Trademarks [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

570,000.000

0.000

^[1]

(76,000.000)

0.000

Acquired Finite-Lived Intangible Assets [Line Items]

^[1]

$ 494,000.000

$ 0.000

[1]

1) The Company acquired certain intangible assets as part of the Noden Transaction (see Note 21). They are amortized on a straight-line basis over a weighted average period of 10 years.(2) The Company acquired certain intangible assets as part of the LENSAR transaction (see Note 21). They are amortized over a weighted average period of 15 years. The intangible assets for acquired technology and trademarks are being amortized over their estimated useful lives using the straight-line method of amortization. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

Intangible Assets and Goodwill Schedule of Future Amortization for Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Future Amortization Expense [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 24,990
Finite-Lived Intangible Assets, Amortization Expense, Year Two	24,969
Finite-Lived Intangible Assets, Amortization Expense, Year Three	24,951
Finite-Lived Intangible Assets, Amortization Expense, Year Four	24,934
Finite-Lived Intangible Assets, Amortization Expense, Year Five	24,843
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	91,136
Finite-Lived Intangible Assets, Net	$ 215,823	$ 228,542

Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands						12 Months Ended
	Jan. 03, 2018	May 13, 2017	May 11, 2017	May 09, 2017	Jul. 02, 2016	Dec. 31, 2017	Dec. 31, 2016	Jul. 03, 2017	Jan. 20, 2017	Jul. 01, 2016
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						10 years
Business Acquisition, Pro Forma Revenue						$ 325,605	$ 335,112
Ireland Income Tax Rate						13.00%
Business Combination, Consideration Transferred					$ 244,300
Business Acquisition, Percentage of Voting Interests Acquired										6.00%
Payments to Acquire Equity Method Investments				$ 2,200	110,000
Business Combination, Contingent Consideration, Liability										$ 47,400
Anniversary payment						$ 0	88,001	$ 89,000		87,000
Federal income tax rate	21.00%					35.00%
Business Acquisition, Pro Forma Net Income (Loss)						$ 107,193	$ 55,897
Business Acquisition, Pro Forma Earnings Per Share, Basic						$ 0.69	$ 0.34
Business Acquisition, Pro Forma Earnings Per Share, Diluted						$ 0.69	$ 0.34
Accounts and Notes Receivable, Net						$ 70,700	$ 105,300
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value			$ 31,700
Noden [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						10 years
Payments to Acquire Businesses, Gross					109,938
Business Combination, Consideration Transferred, Liabilities Incurred					87,007
Business Combination, Consideration Transferred, Other					47,360
Business Combination, Consideration Transferred					244,305
LENSAR [Member]
Business Acquisition [Line Items]
Contractual Obligation									$ 2,800
Business Combination, Consideration Transferred		$ 31,726
Accounts and Notes Receivable, Net			43,900
Gain (Loss) on Investments		$ 9,300	$ 10,600
Cash to be paid [Member] \| Noden [Member]
Business Acquisition [Line Items]
Other Commitment										89,000
Cash to be paid [Member] \| PDL BioPharma [Member]
Business Acquisition [Line Items]
Other Commitment										32,000
Milestone [Member] \| Noden [Member]
Business Acquisition [Line Items]
Other Commitment										95,000
Milestone [Member] \| PDL BioPharma [Member]
Business Acquisition [Line Items]
Other Commitment										$ 38,000
Acquired rights [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred					216,700
Customer Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred					$ 23,900

Business Combinations Assets Acquired (Details) - USD ($)
$ in Thousands

12 Months Ended

May 13, 2017

Jul. 02, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

May 11, 2017

Jul. 01, 2016

Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized

$ (10,615)

Business Combination, Bargain Purchase, Gain Recognized, Amount

$ 9,309

$ 0

Acquired Finite-Lived Intangible Assets [Line Items]

$ 244,300

Acquired rights [Member]

Customer Relationships [Member]

216,700

Acquired Finite-Lived Intangible Assets [Line Items]

Acquired Finite-Lived Intangible Assets [Line Items]

23,900

LENSAR [Member]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

$ 1,983

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

58,323

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment

18,647

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

^[1]

11,970

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets

25,723

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities

$ (6,673)

Business Combination, Bargain Purchase, Gain Recognized, Amount

(9,309)

Acquired Finite-Lived Intangible Assets [Line Items]

$ 31,726

Noden [Member]

Indefinite-lived Intangible Assets Acquired

3,735

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

$ 244,305