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

$ (68,859)

$ 110,701

$ 63,659

Other comprehensive income (loss), net of tax

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

(578)

1,181

122

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

(603)

(557)

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

^[1]

(1,181)

1,181

(435)

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

(1,821)

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

^[2]

(1,821)

Total other comprehensive income (loss), net of tax

(1,181)

1,181

(2,256)

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

(70,040)

111,882

61,403

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

(47)

Comprehensive income

$ (70,040)

$ 111,929

$ 61,350

[1]	Net of tax of ($314), $314 and ($234) for the years ended December 31, 2018, 2017 and 2016, respectively.
[2]	Net of tax of ($981) for the year ended December 31, 2016.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities, tax	$ (314)	$ 314	$ (234)
Unrealized gains (losses) on cash flow hedges, tax			$ (981)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 394,590	$ 527,266
Short-term investments	0	4,848
Receivables from licensees	21,648	31,183
Notes receivable	63,042	53,613
Inventory, net	18,942	9,147
Prepaid and other current assets	18,995	14,386
Total current assets	517,217	640,443
Property, Plant and Equipment, Net	7,387	7,222
Royalty rights - at fair value	376,510	349,223
Notes and other receivables, long-term	771	17,124
Long-term deferred tax assets	1,539	2,432
Intangible assets, net	51,319	215,823
Other assets	8,993	10,856
Total assets	963,736	1,243,123
Current liabilities:
Accounts payable	13,142	19,785
Accrued liabilities	39,312	45,881
Accrued Income Taxes, Current	16	1,377
Convertible Notes Payable, Current	0	126,066
Total current liabilities	52,470	193,109
Convertible notes payable	124,644	117,415
Contingent consideration	0	42,000
Other long-term liabilities	56,843	44,709
Total liabilities	233,957	397,233
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; 136,513 and 153,775 shares issued and outstanding at December 31, 2018 and 2017, respectively	1,365	1,538
Additional paid-in capital	(98,030)	(102,443)
Treasury Stock, Value	(2,103)	0
Accumulated other comprehensive income	0	1,181
Retained earnings	828,547	945,614
Total stockholders' equity	729,779	845,890
Noncontrolling Interest in Variable Interest Entity	0	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	729,779	845,890
Total liabilities and stockholders' equity	$ 963,736	$ 1,243,123

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands	Dec. 31, 2018	Dec. 31, 2017
Preferred stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in Shares)	10,000	10,000
Preferred stock, shares issued (in Shares)	0	0
Preferred stock, shares outstanding (in Shares)	0	0
Common stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Common stock, shares authorized (in Shares)	350,000	350,000
Common stock, shares issued (in Shares)	136,513	153,775
Common stock, shares outstanding (in Shares)	136,513	153,775

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (68,859)	$ 110,701	$ 63,659
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible notes and term loan offering costs	7,609	11,038	10,009
Amortization of Intangible Assets	15,831	24,689	12,028
Impairment of Intangible Assets, Finite-lived	152,330	0	0
Asset Impairment Charges	8,200	0	3,735
Change in fair value of acquired royalty rights	(85,256)	(162,327)	(16,196)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss)	(33)	49	906
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(41,631)	349	(3,716)
Other amortization, depreciation and accretion of embedded derivative	3,696	2,366	18
Inventory Write-down	(1,203)	2,012	342
Provision for Doubtful Accounts	8	76	0
Loss on extinguishment of notes receivable	0	0	51,075
Gains (Losses) on Extinguishment of Debt	0	0	2,353
Gain (Loss) on Sale of Investments	(764)	(108)	(882)
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	66	0	0
Increase (Decrease) in Other Receivables	0	(1,400)	0
Business Combination, Bargain Purchase, Gain Recognized, Amount	0	(9,309)	0
Stock-based compensation expense	4,758	3,138	3,742
Deferred taxes	13,846	39,172	(10,676)
Changes in assets and liabilities:
Receivables from licensees	9,341	5,877	(34,120)
Increase (Decrease) in Accounts and Other Receivables	0	(5,055)	6,000
Prepaid and other current assets	(5,025)	(9,100)	(1,526)
Accrued interest on notes receivable	0	1,475	(2,764)
Increase (Decrease) in Inventories	(8,305)	(1,120)	(3,227)
Other assets	(2,120)	(1,400)	(757)
Accounts payable	(6,642)	10,840	6,621
Accrued liabilities	(7,449)	13,120	22,729
Increase (Decrease) in Income Taxes Payable	(1,361)	(3,346)	1,352
Increase (Decrease) in Other Deferred Liability	0	0	(787)
Other long-term liabilities	(462)	(1,223)	3,800
Net cash provided by operating activities	(13,425)	40,624	101,718
Cash flows from investing activities
Purchase consideration paid in advance	0	0	(109,938)
Purchases of investments	0	(23,213)	(22,952)
Payments to Acquire Other Investments	0	0	(75,000)
Proceeds from Sale and Maturity of Other Investments	0	75,000	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	(858)	0	0
Maturities of investments	4,116	39,956	4,680
Purchase of royalty rights	(20,000)	0	(59,500)
Payments for (Proceeds from) Productive Assets	77,969	107,253	72,582
Proceeds from Sale of Productive Assets	0	108,169	0
Issuance of notes receivable	0	0	(9,010)
Proceeds from Sale and Collection of Notes Receivable	0	144,829	54,653
Repayment of notes receivable	0	8,190	0
Acquisition of property and equipment	(4,523)	(1,297)	(25)
Net cash provided by/(used in) investing activities	56,704	458,887	(144,510)
Cash flows from financing activities
Repayments of Unsecured Debt	0	0	25,000
Payments for Repurchase of Convertible Preferred Stock	0	0	(120,000)
Repayments of Notes Payable	(126,447)	0	0
Payment of debt issuance costs	0	0	(3,204)
Net proceeds from the issuance of convertible notes	0	0	150,000
Purchased call options cost	0	0	(14,400)
Other Payments to Acquire Businesses	0	(87,007)	0
Proceeds from Noncontrolling Interests	0	0	250
Cash paid for purchase of noncontrolling interest	0	(2,170)	0
Payments for Repurchase of Common Stock	(49,109)	(30,000)	0
Cash dividends paid	(48)	(222)	(16,583)
Excess Tax Benefit from Share-based Compensation, Financing Activities	(351)	0	0
Net cash used in financing activities	(175,955)	(119,399)	(28,937)
Net increase/(decrease) in cash and cash equivalents	(132,676)	380,112	(71,729)
Cash and cash equivalents at beginning of the period	527,266	147,154	218,883
Cash and cash equivalents at end of period	394,590	527,266	147,154
Supplemental cash flow information
Cash paid for income taxes	3,805	43,366	50,000
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	6,654	9,286	11,410
Supplemental disclosures of non-cash financing activities
Assets held for sale reclassified from other assets to intangibles	1,811	0	0
Noncash or Part Noncash Acquisition, Value of Assets Acquired	0	0	2,342
Noncash or Part Noncash Acquisition, Other Liabilities Assumed	0	0	87,007
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed	0	0	47,360
Asset held for sale reclassified from notes receivable to other assets	0	10,000	0
Extinguishment of Debt, Amount	$ 0	$ 43,909	$ 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, 2015

164,286,615

Beginning Balance at Dec. 31, 2015

$ 695,952

$ 1,643

$ (117,983)

$ 810,036

$ 2,256

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

1,251,832

Issuance of common stock under employee benefit plans

$ 0

(12)

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), Securities, Available-for-sale, 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

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, 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), Securities, Available-for-sale, 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

Treasury Stock, Value

Noncontrolling Interest in Variable Interest Entity

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 845,890

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

(601,668)

Issuance of common stock under employee benefit plans

$ (58)

Stock-based compensation expense

$ 4,407

Stock Repurchased During Period, Shares

(16,660,566)

Treasury Stock, Retired, Par Value Method, Amount

$ (167)

Treasury Stock, Value, Acquired, Cost Method

(2,103)

Treasury Stock, Retired, Cost Method, Amount

(48,266)

Stock Repurchased and Retired During Period, Value

(50,536)

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

(70,040)

Net Income (Loss) Attributable to Parent

(68,859)

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

(68,859)

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

(1,181)

^[1]

(1,181)

Total comprehensive income

(70,040)

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

^[2]

$ 0

Ending Balance (in shares) at Dec. 31, 2018

136,512,522

Ending Balance at Dec. 31, 2018

$ 729,779

$ 1,365

$ (98,030)

$ 828,547

$ 0

Treasury Stock, Value

(2,103)

Noncontrolling Interest in Variable Interest Entity

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

$ 729,779

[1]	Net of tax of ($314), $314 and ($234) for the years ended December 31, 2018, 2017 and 2016, respectively.
[2]	Net of tax of ($981) for the year ended December 31, 2016.

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2018
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 commercial stage pharmaceutical assets with multiple year revenue growth potential as well as late clinical stage pharmaceutical products. Historically, the Company generated a substantial portion of its revenues through the license agreements related to patents covering the humanization of antibodies, which it refers to as the Queen et al. patents. 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 such transactions, ten of which are active and outstanding. Based on the composition of its existing investment portfolio, the Company currently operates in three segments designated as Pharmaceutical, Medical Devices and Income Generating Assets. 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”). The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales. 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 the Queen et al. patents.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

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 notes receivable and inventory, the assessment of recoverability of 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 as of December 31, 2018, and has identified three reportable segments: Pharmaceutical, Medical Devices and Income Generating Assets.

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, limits the amount of credit exposure in any one financial instrument.

Accounts Receivable

As of December 31, 2018 and 2017, the Company had $78,000 and $76,000 in its 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 ceases collection efforts.

Investments

As of December 31, 2018, the Company’s investments comprised an investment in a privately-held company. As of December 31, 2017, the Company’s investments also included available-for-sale investments.

All marketable securities were 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 classifies 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”) whereby 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, the Company repurchased this equity interest for $2.2 million in cash. 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, 2018 and 2017. For additional information about the consolidation of Noden, see Note 23, Business Combinations.

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 impairment 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 an impaired status and cease recognizing interest income on that note receivable or loan on an accrual basis 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. Any interest payments received for notes receivable or loans on an impaired status are recognized as interest income on a cash basis.

For the years ended December 31, 2018 and 2017, the Company recognized $2.3 million and $3.1 million, respectively, of interest revenue for the CareView note receivable while on impaired status as a result of cash interest payments made during these years. For the year ended December 31, 2016, the Company did not recognize any interest income for notes receivable or loans which were impaired.

As of December 31, 2018, the Company had three notes receivable investments which were determined to be impaired with a cumulative investment cost and fair value of approximately $62.8 million and $70.0 million, respectively, compared to three note receivable investments which were determined to be impaired as of December 31, 2017 with a cumulative investment cost and fair value of approximately $70.7 million and $71.3 million, respectively. During the years ended December 31, 2018 and 2017, the Company did not recognize any losses on extinguishment of notes receivable. During the year ended December 31, 2016, the Company recognized a loss on extinguishment of notes receivable of $51.1 million.

During the year ended December 31, 2018 the Company recorded an impairment loss of $8.2 million related to the CareView note receivable. There were no impairment losses on notes receivable for the years ended December 31, 2017 and 2016. For additional information about the impairment loss recorded on the CareView note receivable, see Note 9, Notes and Other Long-Term Receivables.

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.

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 eight years 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. There is no remaining goodwill recorded on the Consolidated Balance Sheets as of December 31, 2018 or 2017.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is 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
Transportation 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 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. 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 reductions from the carrying amount of the long-term debt liability, consistent with debt discounts, on the Company’s Consolidated Balance Sheets.

Revenue Recognition

Adoption of New Revenue Recognition Standard

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers that supersedes Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition (“ASC 605”). Subsequently, the FASB issued several updates to ASU No. 2014-09, codified in ASC Topic 606 (“ASC 606”). ASC 606 also includes new guidance on costs related to a contract, which is codified in ASC Subtopic 340-40. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all contracts not substantially completed as of the date of adoption. The cumulative impact of the adoption of ASC 606 was not material to the Company; therefore, the Company did not record any adjustments to retained earnings. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the guidance of ASC 605, which is also referred to herein as “legacy GAAP” or the “previous guidance”.

Policy Elections and Practical Expedients Taken

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product revenue.

Sales commissions and other incremental costs of obtaining contracts are expensed as incurred as the amortization periods are less than one year.

General

In accordance with ASC 606, revenue is recognized from the sale of products when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the performance obligations are satisfied.

The following is a description of principal activities - separated by reportable segments - from which the Company generates its revenue. For more detailed information about reportable segments, see Note 24, Segment Information.

Pharmaceutical

The Pharmaceutical segment of the Company principally generates revenue from products sold to wholesalers and distributors. Customer orders are generally fulfilled within a few days of receipt resulting in minimal order backlog. Contractual performance obligations are usually limited to transfer of the product to the customer. The transfer occurs either upon shipment or upon receipt of the product in certain countries outside the United States after considering when the customer obtains control of the product. In addition, for some non-U.S. countries, the Company sells product on a consignment basis where control is not transferred until the customer resells the product to an end user. At these points, customers are able to direct the use of and obtain substantially all of the remaining benefits of the product.

Sales to customers are initially invoiced at contractual list prices. Payment terms are typically 30 to 90 days based on customary practice in each country. Revenue is reduced from the list price at the time of recognition for expected chargebacks, discounts, rebates, sales allowances and product returns, which are referred to as gross-to-net adjustments. A description of gross-to-net adjustments are described below.

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 negotiated discount rates and expected utilization as well as historical data. 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 products sold for which the chargeback has not been billed. 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. 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.

Reserves for chargebacks, discounts, rebates, sales allowances and product returns are included within current liabilities in the Company’s Consolidated Balance Sheets.

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 transfer with Novartis.

Beginning on October 5, 2016, 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. As of the third quarter of 2018, Noden Pharma DAC completed the marketing authorization transfers for all territories.

For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition.

Medical Devices

The Medical Devices segment of the Company principally generates revenue from the sale and lease of the LENSAR^®Laser System, which may include equipment, Patient Interface Devices (“PIDs”), procedure licenses, and training, installation, warranty and maintenance agreements.

For bundled packages, the Company accounts for individual products and services separately if they are distinct - i.e. if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The LENSAR® Laser system, standard warranty training and installation services are one performance obligation. All other elements are separate performance obligations. PIDs, procedure licenses, warranty and maintenance services are also sold on a stand-alone basis.

As the Company both sells and leases the LENSAR^®Laser System, the consideration (including any discounts) is first allocated between lease and non-lease components and then allocated between the separate products and services based on their stand-alone selling prices. The stand-alone selling prices for the PIDs and procedure licenses are determined based on the prices at which the Company separately sells the PIDs and procedure licenses. The LENSAR^®Laser System and warranty stand-alone selling prices are determined using the expected cost plus a margin approach.

For LENSAR^®Laser System sales, the Company recognizes revenue in product revenue when a customer takes possession of the system. This usually occurs after the customer signs a contract, LENSAR installs the system, and LENSAR performs the requisite training for use of the system. For LENSAR^®Laser System leases, the Company recognizes revenue in product revenue over the length of the lease in accordance with ASC Topic 840, Leases.

The LENSAR^®Laser System requires both a consumable, a PID, and a procedure license to perform each procedure. The Company recognizes revenue for PIDs in product revenue when the customer takes possession of the PID. PIDs are sold by the case. The Company recognizes revenue for procedure licenses in product revenue when a customer purchases a procedure license from the web portal. Typically, consideration for PIDs and procedure licenses is considered fixed consideration except for certain customer agreements that provide for tiered volume discount pricing which is considered variable consideration.

The Company offers an extended warranty that provides additional services beyond the standard warranty. The Company recognizes revenue from the sale of extended warranties in product revenue over the warranty period. Customers have the option of renewing the warranty period, which is considered a new and separate contract.

Income Generating Assets

Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license.

In January 2018, DFM, LLC, a wholly-owned subsidiary of the Company, granted an exclusive license related to certain Direct Flow Medical assets in exchange for $0.5 million in cash and up to $2.0 million in royalty payments. The $0.5 million payment was accounted for in accordance with ASC 606 under which the full cash payment was recognized as revenue in the first quarter of 2018 as DFM, LLC had fulfilled its performance obligation under the agreement.

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. Royalties qualify for the sales-and-usage exemption under ASC 606 as (i) royalties are based strictly on the sales-and-usage by the licensee; and (ii) a license of intellectual property is the sole or predominant item to which such royalties relate. Based on this exemption, these royalties are earned under the terms of a license agreement in the period the products are sold by the Company's partner and the Company has a present right to payment. 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^®, Perjeta^® and Kadcyla^®. 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. 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, royalties from product sales of Tysabri were substantially lower in 2018 and no additional royalties are expected.

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 Operations 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, pricing assumptions and the impact of competition from other branded or generic products. 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 a change in the number of treatments and the entrants of new competitors or generic products. 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 were 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 Operations. 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 Operations amounted to a $0.7 million loss, $0.1 million gain and less than $0.1 million gain for the years ended December 31, 2018, 2017 and 2016, respectively.

Comprehensive (Loss) Income

Comprehensive (loss) income comprises net (loss) income adjusted for other comprehensive (loss) income, 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 (loss) 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 Tax Cuts and Job Act of 2017 (the “2017 Tax Act”) significantly changed the existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate (from a top rate of 35% to a flat rate of 21%), implementing elements of a territorial tax system, and imposing a one-time deemed repatriation transition tax on cumulative undistributed foreign earnings, for which we have not previously paid U.S. taxes. The Company recognized the estimated tax impact related to the revaluation of deferred tax assets and liabilities in its Consolidated Financial Statements for the year ended December 31, 2017. The ultimate impact did not differ materially from these provisional amounts after additional analysis, changes in interpretations and assumptions the Company made and additional regulatory guidance that was issued. The accounting was completed when the Company’s 2017 U.S. corporate income tax return was filed in 2018. The Company has made a policy election with respect to its treatment of potential global intangible low-taxed income (“GILTI”) to account for taxes on GILTI as a current-period expense as incurred.

Business Combination

The Company applies ASC 805, Business combinations (“ASC 805”), 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 Operations as a bargain purchase gain.

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 consistent with other property and equipment.

Adopted Accounting Pronouncements

In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard requires equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. Under the previous guidance, changes in the fair value of equity securities were recognized through other comprehensive income. Effective January 1, 2018, the Company adopted the requirements of ASU No. 2016-01. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

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. Effective January 1, 2018, the Company adopted the requirements of ASU No. 2016-15. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

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. Effective January 1, 2018, the Company adopted the requirements of ASU No. 2016-16. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

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. Effective January 1, 2018, the Company adopted the requirements of ASU No. 2016-18. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases, which outlines a comprehensive lease accounting model that supersedes the current lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new standard is to be applied using either a modified retrospective approach, or an optional transition method that allows an entity to apply the new standard at the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption and will be effective for the Company starting with the first quarter of 2019, with early adoption permitted. Effective the first quarter of 2019, the Company will adopt the standard, using a modified retrospective approach. The Company does not expect the adoption will have a material impact on its consolidated statement of earnings. However, the new standard will require the Company to establish liabilities and corresponding right-of-use assets on its Consolidated Balance Sheet for operating leases that exist as of the January 1, 2019 adoption date.

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 after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating ASU No. 2016-13 and assessing the impact, if any, it may have to the Company’s Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the amendments, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. The amendments are effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis and early adoption is permitted. The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The new guidance will become effective for the Company on January 1, 2020. Early adoption is permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this guidance will have on its Consolidated Financial Statements.

Net Income per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Net Income per Share

4. Net (Loss) Income per Share



Net (Loss) Income per Basic and Diluted Share	Year Ended December 31,
(in thousands, except per share amounts)	2018			2017		2016
Numerator
(Loss) income attributable to the PDL’s shareholders used to compute net (loss) income per basic and diluted share	$	(68,859	)	$	110,748	$	63,606

Denominator
Total weighted-average shares used to compute net (loss) income attributable to PDL's shareholders, per basic share	145,669			155,394		163,805
Restricted stock outstanding	—			863		387
Shares used to compute net (loss) income attributable to PDL’s shareholders, per diluted share	145,669			156,257		164,192

Net (loss) income attributable to PDL’s shareholders, per share - basic	$	(0.47	)	$	0.71	$	0.39
Net (loss) income attributable to PDL’s shareholders, per share - diluted	$	(0.47	)	$	0.71	$	0.39

The computation of basic earnings per share (“EPS”) is based on the weighted-average number of the Company’s common shares outstanding. The computation of diluted EPS is based on the weighted-average number of the Company’s common shares outstanding and dilutive potential common shares, which may be issued pursuant to outstanding stock options and restricted stock awards using the treasury stock method, and the 4.0% Convertible Senior Notes due February 1, 2018 (the “February 2018 Notes”) that were repaid on February 1, 2018 and the 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”), in each case, for the period that the notes were outstanding, including, if applicable, the effect of adding back interest expense and the underlying shares using the if converted method.

December 2021 Notes Capped Call Potential Dilution

In November 2016, the Company issued $150.0 million in aggregate principal of 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. For additional information on the conversion rates on the Company’s convertible debt, see Note 16, Term Loan and Convertible Senior Notes. In conjunction with the issuance of the December 2021 Notes, the Company entered into a capped call transaction, with a hedge counterparty. 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 net (loss) income per diluted share computation as such securities would have an anti-dilutive effect and those securities should be considered separately rather than in the aggregate in determining whether their effect on net (loss) income per diluted share would be dilutive or anti-dilutive. For additional information regarding the capped call transaction related to the Company’s December 2021 Notes; see Note 16, Term Loan and Convertible Senior Notes.

Anti-Dilutive Effect of Stock Options and Restricted Stock Awards

For the years ended December 31, 2018 and 2017, the Company excluded approximately 3,892,000 and 502,000 shares underlying outstanding stock options, respectively, calculated on a weighted-average basis, from the Company’s net (loss) income per diluted share calculations because their effect was anti-dilutive. There were no outstanding options for the year ended December 31, 2016. For the years ended December 31, 2018, 2017 and 2016, the Company excluded approximately 1,139,000, 1,830,000, and 1,107,000 shares, respectively, underlying restricted stock awards, calculated on a weighted-average basis, from the Company’s net (loss) income per diluted share calculations because their effect was anti-dilutive.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

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, as discussed in Note 2, Summary of Significant Accounting Policies:



	December 31, 2018								December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	226,719	$	—	$	—	$	226,719	$	417,563	$	—	$	—	$	417,563
Corporate securities	—		—		—		—		4,848		—		—		4,848
Warrants	—		62		—		62		—		29		—		29
Royalty rights - at fair value	—		—		376,510		376,510		—		—		349,223		349,223
Total	$	226,719	$	62	$	376,510	$	603,291	$	422,411	$	29	$	349,223	$	771,663

Financial liabilities:
Contingent consideration, current¹	$	—	$	—	$	1,071	$	1,071	$	—	$	—	$	—	$	—
Contingent consideration, non-current	—		—		—		—		—		—		42,000		42,000
Total	$	—	$	—	$	1,071	$	1,071	$	—	$	—	$	42,000	$	42,000

___________________

¹ Contingent consideration, current is classified as “Accrued liabilities” on the Consolidated Balance Sheet. See Note 14, Accrued Liabilities, for details.

There have been no transfers between levels during the periods presented in the table above. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

Corporate Securities

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

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 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, Inc. and Depo DR Sub, LLC (together, “Depomed”), whereby the Company acquired the rights to receive royalties and milestones payable on sales of five 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”), which, in July 2018, changed its name to Bausch Health Companies Inc. (hereafter referred to as “Bausch Health”) 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 approved fixed-dose combination of Invokana^® (canagliflozin, a sodium glucose cotransporter 2 (SGLT2) inhibitor) and extended-release metformin tablets, marketed as Invokamet XR^®; (d) from Boehringer Ingelheim and Eli Lilly and Company 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 approved products, Jentadueto XR^® and Synjardy XR^®; and (e) from LG Life Sciences and Bausch Health for sales of extended-release metformin tablets in Korea and Canada, respectively.

On August 2, 2018, PDL Investment Holding, LLC (“PDLIH”), a wholly-owned subsidiary of the Company and assignee from the Company under the Depomed Royalty Agreement, entered into an amendment to the Depomed Royalty Agreement with Depomed. Pursuant to the amendment, PDLIH purchased all of Depomed’s remaining interests in royalty and milestone payments payable on sales of Type 2 diabetes products licensed by Depomed for $20.0 million. Prior to the amendment, the Depomed Royalty Agreement provided that the Company would have received all royalty and milestone payments due under license agreements between Depomed and its licensees until the Company received payments equal to two times the cash payment it made to Depomed, or approximately $481.0 million, after which all net payments received by Depomed would have been shared equally between the Company and Depomed. Following the amendment, the Depomed Royalty Agreement provides that the Company will receive all royalty and milestone payments due under the license agreements between Depomed and its licensees. The Company has elected to continue to elect the fair value option and carry the financial asset at fair value.

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, 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 did not have the power to direct the activities of Depo DR Sub, LLC that most significantly impact Depo DR Sub, LLC’s economic performance and was not the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC was not subject to consolidation by the Company.

As of December 31, 2018, in conjunction with the amendment described above, the Company was provided the power to direct the activities of Depo DR Sub, LLC and is the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC is subject to consolidation by the Company. As of December 31, 2018, Depo DR Sub, LLC did not have any assets or liabilities of value for consolidation with 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 approximately 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, 2018, 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 $22.9 million or increase by $27.2 million, respectively. A third-party expert was engaged to assist management develop its original estimate of the expected future cash flows, which was updated after the acquisition of Depomed’s reversionary interest in August 2018. 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 or decrease by $6.6 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 2013 a generic equivalent to Glumetza was approved by the U.S. Food and Drug Administration (“FDA”) and in August 2016, two additional generic equivalents to Glumetza were approved to enter the U.S. market. In February 2016, Lupin Pharmaceuticals, Inc., in August 2017, Teva Pharmaceutical Industries Ltd., and in July 2018, Sun Pharmaceutical, Inc. (“Sun”) each launched a generic equivalent approved product.

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.

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 (now Bausch Health), 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 2017. In October 2018, PDL submitted notice of its intent to exercise its audit right under the Depomed Royalty Agreement with respect to the period beginning January 1, 2016 and ending December 31, 2018.

At December 31, 2018, 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. These data and assumptions are based on available but limited information. At December 31, 2018, 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 Bausch Health.

As of December 31, 2018, 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 Bausch Health’s marketing and pricing strategy, as well as Sun’s recently launched generic product 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.

On May 31, 2016, the Company obtained a notification indicating that the 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, 2018, 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.

In August 2018, Depomed, Inc. was renamed Assertio Therapeutics, Inc.

As of December 31, 2018, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $264.4 million and the maximum loss exposure was $264.4 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 held by VB and commercialized by Paradigm Spine, LLC (“Paradigm Spine”), in exchange for a $15.5 million cash payment, less fees.

The royalty rights acquired include 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’s ability to repurchase the royalty right for a specified amount expired on June 26, 2018.

The fair value of the royalty rights at December 31, 2018, 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 approximately 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 $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.4 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. At each reporting period, an evaluation is performed to assess those estimates, discount rate utilized and general market conditions affecting fair market value.

As of December 31, 2018, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $14.1 million and the maximum loss exposure was $14.1 million.

University of Michigan Royalty Agreement

On November 6, 2014, the Company acquired a portion of all royalty payments of 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. A third-party expert is engaged by the Company to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Based on the analysis performed, management revised the underlying assumptions used in the discounted cash flow analysis. As of December 31, 2018, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows.

The fair value of the royalty right at December 31, 2018, 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 approximately 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 $1.1 million or increase by $1.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.6 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. An evaluation of those estimates, discount rate utilized and general market conditions affecting fair market value is performed in each reporting period.

As of December 31, 2018, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $25.6 million and the maximum loss exposure was $25.6 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 receives 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, 2018 and 2017, 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, 2018, 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 approximately 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 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 December 31, 2018, management performed an evaluation of those estimates, discount rate utilized and general market conditions to determine the fair market value of the asset, and such an evaluation is performed for each reporting period. As of December 31, 2018, 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.

As of December 31, 2018, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $70.4 million and the maximum loss exposure was $70.4 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, 2018, 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 approximately a seven-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 or increase by $0.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.1 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 rate utilized and general market conditions affecting fair market value is performed in each reporting period.

As of December 31, 2018, the fair value of the asset acquired as reported in the Company’s Consolidated Balance Sheet was $2.1 million and the maximum loss exposure was $2.1 million.

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the year ended December 31, 2018:



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, 2017							$	349,223

	Financial instruments purchased						20,000
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	85,256
		Proceeds from royalty rights - at fair value		$	(77,969	)
			Total net change in fair value for the period				7,287

Fair value as of December 31, 2018							$	376,510



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets
	Fair Value as of		Purchase of		Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2017		Royalty Assets		Change in Fair Value			December 31, 2018
Assertio	$	232,038	$	20,000	$	12,333		$	264,371
VB	14,380		—		(272		)	14,108
U-M	26,769		—		(1,174		)	25,595
AcelRx	72,894		—		(2,514		)	70,380
Avinger	396		—		(396		)	—
KYBELLA	2,746		—		(690		)	2,056
	$	349,223	$	20,000	$	7,287		$	376,510

The following table summarizes the changes in Level 3 Liabilities and the gains and losses included in earnings for the year ended December 31, 2018:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities
(in thousands)		Contingent Consideration
Fair value as of December 31, 2017		$	(42,000	)

	Financial instruments purchased	(1,560		)
	Total net change in fair value for the period	41,631
	Settlement of financial instrument	858

Fair value as of December 31, 2018		$	(1,071	)

The fair value of the contingent consideration was determined using an income approach derived from the revenue estimates and a probability assessment with respect to the likelihood of (a) achieving predetermined levels of net sales or (b) the launch of a generic version of aliskiren by a third party that would trigger the milestone payments to Novartis under the Noden Purchase Agreement. 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 Operations. The significant decline in fair value of the contingent consideration during the year ending December 31, 2018 is due primarily to the increased probability of a third-party generic entry prior to the milestone date under the Noden Purchase Agreement and the change in fair value and partial settlement of the contingent and conversion consideration acquired as part of the assets acquired by LENSAR from Precision Eye Services (“PES”), as described in Note 12, Asset Acquisition.

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)	2018		2017

Total change in fair value for the period included in earnings for royalty right assets held at the end of the reporting period	$	85,256	$	162,327

Total change in fair value for the period included in earnings for liabilities held at the end of the reporting period	$	41,631	$	(349	)

Assets/Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of long-lived assets, including property and equipment and intangible assets and the 1.7 million shares of Alphaeon Class A common stock, received in connection with the LENSAR credit agreement.

During the three months ended June 30, 2018, the Company recorded an impairment charge of $152.3 million for the Noden intangible assets related to the increased probability of a generic version of aliskiren being launched in the United States. As a result of this impairment charge, which was based on the estimated fair value of the assets, the remaining carrying value of these intangible assets was determined to be $40.1 million. The fair value calculation included level 3 inputs. For additional information on the impairment charge, see Note 13, Intangible Assets.

The Company’s carrying value of the investment in Alphaeon as of both December 31, 2018 and December 31, 2017 is $6.6 million based on an estimated per share value of $3.84, which was established by a valuation performed when the shares were acquired. The value of our investment in Alphaeon is not readily determinable as Alphaeon’s shares are not publicly traded. The Company evaluates the fair value of this investment by performing a qualitative assessment each reporting period. If the results of this qualitative assessment indicate that the fair value is less than the carrying value, the investment is written down to its fair value. There have been no such write downs since the Company acquired these shares. This investment is included in other long-term assets. For additional information on the Alphaeon investment, see Note 9, Notes and Other Long-Term Receivables.

Assets/Liabilities Not Subject to Fair Value Recognition

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, 2018						December 31, 2017
(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	$	—	$	57,322	$	50,191	$	—	$	51,308
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
CareView note receivable	11,458		—		11,458		19,346		—		18,750
Total	$	62,849	$	—	$	69,980	$	70,737	$	—	$	71,258
Liabilities:
February 2018 Notes	$	—	$	—	$	—	$	126,066	$	126,131	$	—
December 2021 Notes	124,644		151,356		—		117,415		148,028		—
Total	$	124,644	$	151,356	$	—	$	243,481	$	274,159	$	—

During the year ended December 31, 2018 we recorded an impairment loss of $8.2 million to the CareView note receivable. There were no impairment losses on notes receivable in the years ended December 31, 2017 and 2016.

As of December 31, 2018 and 2017, the estimated fair values of the Hyperion Catalysis International, Inc. (“Hyperion”) note receivable and CareView note receivable, were determined using one or more discounted cash flow models, incorporating expected principal and interest payments. In addition, during the year ended December 31, 2018, the fair value of the CareView note receivable also considered the recoverability of the note receivable balance utilizing third-party revenue multiples for small cap healthcare technology companies. As of December 31, 2018 and 2017, the estimated fair value of the Wellstat Diagnostics note receivable were determined by using an asset approach and discounted cash flow model related to the underlying collateral and adjusted to consider estimated costs to sell the assets.

The Company engages a third-party valuation expert when deemed necessary 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, required yield and the value of underlying collateral. 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 of, and equity interests in, CareView. The Wellstat Diagnostics note receivable is secured by substantially all assets of Wellstat Diagnostics and is supported by a guaranty from the Wellstat Diagnostics Guarantors (as defined in Note 9, Notes and Other Long-Term Receivables).

On December 31, 2018, the carrying value of one of the Company’s notes receivable assets differed from its estimated fair value. This is the result of inputs used in estimating the fair value of the collateral, including appraisals, projected cash flows of collateral assets and discount rates used when performing a discounted cash flow analysis.

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

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, 2018	December 31, 2017

Wellstat Diagnostics
Wellstat Guarantors intellectual property	Income Approach
		Discount rate	12%	12%
		Royalty amount	$21 million	$21 million
Settlement Amount	Income Approach
		Discount rate	15%	15%
		Settlement amount	$34 million	$32 million
Real Estate Property	Market Approach
		Annual appreciation rate	4%	4%
		Estimated realtor fee	6%	6%
		Estimated disposal date	9/30/2019	6/30/2019

CareView
Note receivable cash flows	Income Approach
		Discount rate	30.0%	17.5%

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, 2018

Cash Equivalents and Investments

6. Cash, Cash Equivalents and Short-term Investments

As of December 31, 2018, the Company had invested its excess cash balances primarily in cash and money market funds, and as of December 31, 2017, the Company had invested its excess cash balances primarily in cash, money market funds and a corporate equity security. 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 5, Fair Value Measurements. 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 and fair value by significant investment category reported as cash and cash equivalents, or short-term investments as of December 31, 2018 and 2017:



							Reported as:
(in thousands)	Amortized Cost		Unrealized Gains		Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments
December 31, 2018
Cash	$	167,871	$	—	$	167,871	$	167,871	$	—
Money market funds	226,719		—		226,719		226,719		—
Total	$	394,590	$	—	$	394,590	$	394,590	$	—

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

The Company recognized approximately $0.8 million, $0.1 million and $0.9 million, respectively, of gains on sales of available-for-sale securities in the years ended December 31, 2018, 2017 and 2016.

The unrealized gains on investments included in “Other comprehensive (loss) income, net of tax,” was approximately zero and $1.2 million as of December 31, 2018 and 2017, respectively.

Foreign Currency Hedging

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

. Foreign Currency Hedging

The Company designated the foreign currency exchange contracts it used to hedge its royalty revenues based on underlying Euro-denominated sales as cash flow hedges. All outstanding Euro forward contracts as of December 31, 2015 settled during the first quarter of 2016. There were no Euro forward contracts outstanding as of December 31, 2018 or December 31, 2017.

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



	Year Ended December 31,
(in thousands)	2018		2017		2016

Net gain (loss) recognized in Other Comprehensive Income, net of tax ⁽¹⁾	$	—	$	—	$	—
Gain (loss) reclassified from accumulated Other Comprehensive Income into “Queen et al. royalty revenue,” net of tax ⁽²⁾	$	—	$	—	$	1,821

_________________________

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

(2) Effective portion classified as royalty revenue

Notes Receivable and Other Long-term Receivables	12 Months Ended
Notes Receivable and Other Long-term Receivables	Dec. 31, 2018
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. 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 Supreme Court of New York 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. On February 6, 2018, the Supreme Court of New York issued an order from the bench which enjoins the Wellstat Diagnostics Guarantors from selling, encumbering, removing, transferring or altering the collateral pending the outcome of the proceedings before it. The Supreme Court of New York also issued an order precluding the Company from foreclosing on certain of the Wellstat Diagnostics Guarantors’ collateral pending the outcome of the proceedings before it. In September of 2018, discovery in the New York action was completed. Summary judgment motions were filed by Wellstat and the Company in 2018, and accompanying briefing was completed in January 2019. The court has ordered a hearing on the summary judgment motions for March 26, 2019. In an unrelated litigation, Wellstat Therapeutics filed a lawsuit against BTG International, Inc. for breach of contract (the “BTG Litigation”). In September 2017, the Delaware Chancery Court found in favor of Wellstat Therapeutics and awarded a judgment of $55.8 million in damages, plus interest. In October 2017, the Company filed a motion with the Supreme Court of New York requesting a pre-judgement attachment of the award. In June 2018, the Delaware Supreme Court largely affirmed the September 2017 decision of the Delaware Chancery Court, including the $55.8 million awarded in judgment. In August of 2018, in a letter to the Company’s counsel, Wellstat Guarantors’ counsel confirmed that the Wellstat Guarantors are preserving the BTG Litigation judgment award proceeds consistent with the New York Court’s prior directions. 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 has been joined for all purposes, including discovery and trial, and consolidated with the pending case filed by the Company. 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, 2018, 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 (which is also a Wellstat Diagnostics Guarantor) entered into an agreement whereby Hyperion sold to the Company the royalty streams accruing from January 1, 2012 through December 31, 2013 due from Showa Denko K.K. (“SDK”) related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. In exchange for the lump sum payment to Hyperion of $2.3 million, in addition to any royalties from SDK, the Company was to receive two equal payments of $1.2 million on March 5, 2013 and March 5, 2014. The first payment of $1.2 million was paid on March 5, 2013, but the second payment that was due on March 5, 2014 has not been made by Hyperion. Effective as of such date and as a result of the event of default, the Company ceased to accrue interest revenue. As of December 31, 2018, the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance of realizing value from such collateral in the event of the Company’s foreclosure on the collateral. Avinger Credit and Royalty Agreement On April 18, 2013, the Company entered into a credit agreement with Avinger, Inc. (the “Avinger Credit and Royalty Agreement”). Under the terms of the Avinger Credit and Royalty Agreement, the Company received 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 payable to the Company prior to its maturity date, the royalty on Avinger’s net revenues was reduced by 50%, subject to certain minimum payments from the prepayment date until April 18, 2018. The Company accounted for the royalty rights in accordance with the fair value option. As of April 18, 2018, there were no further obligations owed to the Company. 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 or to 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 which were valued at $6.6 million at the time the shares were received. For additional information on this investment in Alphaeon, see Note 5, Fair Value Measurements. 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 all 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 13, Intangible Assets, Note 23, Business Combinations and Note 24, 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, the first tranche of $35.0 million, 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 an additional $15.0 million (in a 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 scheduled 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 were held for sale and carried at the lower of carrying amount or fair value, less estimated selling costs, which was 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, DFM, LLC, a wholly-owned subsidiary of the Company, and HaisThera Advisors Co., Limited (“HaisThera”) entered into a license agreement whereby DFM, LLC granted HaisThera an exclusive license to develop, manufacture and commercialize percutaneously implanting stentless aortic valves in the European Union. The consideration for the license agreement was $500,000 upfront and up to $2.0 million in royalty payments. 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 all 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 15, Commitments and Contingencies. 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 loans comprised of two tranches of $20.0 million each, subject to CareView’s attainment of specified milestones. 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 and the Company funded the first tranche of $20.0 million, net of fees, based on CareView’s attainment of the first milestone, as amended. The second $20.0 million tranche was not funded due to CareView’s failure to achieve the related funding milestones and there is no additional funding obligation due from the Company. Outstanding borrowings under the credit agreement bear interest at the rate of 13.5% per annum and are payable quarterly in arrears. As part of the original credit agreement, 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. In February 2018, the Company entered into a modification agreement with CareView (the “February 2018 Modification Agreement”) whereby the Company agreed, effective 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 February 2018 Modification Agreement, the Company agreed that (i) a lower liquidity covenant would be applicable and (ii) principal repayment would be delayed until 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 repriced from $0.40 to $0.03 per share and, subject to the occurrence of certain events, CareView agreed to grant the Company additional equity interests. In September 2018, the Company entered into an amendment to the February 2018 Modification Agreement with CareView whereby the Company agreed, effective as of September 28, 2018, that a lower liquidity covenant would be applicable. At December 31, 2018, the Company determined an estimated fair value of the warrant to be $0.1 million.

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.

Commitments and Contingencies Disclosure [Abstract]

Accrued Liabilities

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following:



	December 31,
(in thousands)	2018		2017

Compensation	$	4,468	$	6,043
Interest	344		2,451
Deferred revenue	8,811		9,741
Refund to manufacturer	—		647
Accrued rebates, chargebacks and other revenue reserves	20,133		19,613
Dividend payable	15		79
Customer advances	1		3,198
Legal	623		595
Other	4,917		3,514
Total	$	39,312	$	45,881

The following table provides a summary of activity with respect to the Company’s sales allowances and accruals for the year ended December 31, 2018:



(in thousands)	Discount and Distribution Fees			Government Rebates and Chargebacks			Assistance and Other Discounts			Product Returns			Total

Balance at January 1, 2018	$	3,422		$	8,709		$	4,178		$	3,304		$	19,613
Allowances for current period sales	9,403			18,583			8,206			2,367			38,559
Allowances for prior period sales	—			38			—			61			99
Credits/payments for current period sales	(6,313		)	(10,045		)	(4,963		)	—			(21,321		)
Credits/payments for prior period sales	(3,418		)	(8,384		)	(3,964		)	(1,051		)	(16,817		)
Balance at December 31, 2018	$	3,094		$	8,901		$	3,457		$	4,681		$	20,133

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

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 $1.3 million, $0.8 million and $0.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.

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



Fiscal Years	Amount
2019	$	1,140
2020	1,003
2021	559
2022	—
2023	—
Thereafter	—
Total	$	2,702

Lease Guarantee

In connection with the Spin-Off of Facet Biotech Corporation (“Facet”) in December 2008 (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. 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. As of December 31, 2018, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $33.8 million.

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, 2018 and 2017, 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 were contingent obligations and should be accounted for in accordance with ASC 450, Contingencies. Further, it was concluded that both guarantees did 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 Obligations

Noden and Novartis entered into a supply agreement pursuant to which Novartis will manufacture and supply to Noden a bulk tableted form of the Noden Products, and for the additional supply of active pharmaceutical ingredient (“API”) form, for specified periods of time prior to the transfer of manufacturing responsibilities for the Noden Products to another manufacturer. The supply agreement may be terminated by either party for material breach that remains uncured for a specified time period. Noden has placed firm orders for bulk product of $12.3 million, which will be fulfilled within the next twelve months. Under the terms of the supply agreement, Noden is committed to purchase certain minimum quantities of bulk product and API that would amount to approximately $127.6 million over the next thirty-six months if fulfilled, of which $54.0 million is committed over the next twelve months. While the supply agreement provides that the parties will agree to reasonable accommodations with respect to changes in firm orders, the Company expects that Noden will meet the requirements of the supply agreement, unless otherwise negotiated. The commitments in the supply agreement terminate upon transfer to another manufacturer.

In addition, at the end of the supply agreement, which is the earlier of November 30, 2020 or upon transfer to another manufacturer of API, Noden must acquire all remaining API inventory produced by Novartis. The purchase is payable within 60 days after the end of the supply period for API. The agreement does not specify minimum quantities but details pricing terms.

LENSAR entered into various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $3.8 million over the next twenty-four months of which $3.5 million is due in the next 12 months. LENSAR expects to meet these requirements. For more information about the LENSAR Transaction, see Note 23, Business Combinations.

Escrow Receivable

On September 21, 2017, the Company entered into the kaléo Note Sale Agreement, pursuant to which the Company sold its entire interest in the kaléo Note.

Pursuant to the kaléo Note Sale Agreement, the purchaser paid to the Company an amount equal to all of the then outstanding principal, a premium of 1% of such amount and accrued interest under the kaléo Notes, for an aggregate cash purchase price of $141.7 million.

Pursuant to the terms of the kaléo Note Sale Agreement, $1.4 million of the aggregate purchase price was deposited into an escrow account as a potential payment against certain contingencies, which expires on the 18-month anniversary of the closing date. Upon the expiration of escrow period, the escrow agent is required to release remaining funds to the Company.

The Company does not expect there to be any claims by the purchaser under the escrow agreement. However, in the event that such a claim is made, and if successful, the amount of such a claim up to $1.4 million would be released from the escrow account to the purchaser, which amount would be reduced from the amount released to the Company at the end of the 18-month escrow period. As of December 31, 2018, the Company is not aware of any claims by the purchaser that would reduce the escrow receivable. For more information about the kaléo Note Sale Agreement, see Note 9, Notes and Other Long-Term Receivables.

Convertible Notes

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Convertible and Non-Recourse Notes

16. Term Loan and Convertible Senior Notes

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 were paid in full on February 12, 2016.

Convertible Senior Notes

Convertible Notes activity for the years ended December 31, 2018 and 2017:



(in thousands)	February 2018 Notes			December 2021 Notes		Total

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
Payment	(126,447		)	—		(126,447		)
Amortization	381			7,229		7,610
Balance at December 31, 2018	$	—		$	124,644	$	124,644

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 were due February 1, 2018, and the Company paid 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 Company’s 2.975% Convertible Senior Notes due February 17, 2016.

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 reflected 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 represented the estimated market interest rate for a similar nonconvertible instrument available to the Company 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 was being amortized to interest expense over the term of the February 2018 Notes and increased 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%.

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 covered, 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’s common stock. Outstanding purchased call options expired on February 1, 2018.

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 underlying the February 2018 Notes at a strike price of $10.3610 per share, which represented 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 Company received an aggregate amount of $11.4 million for the sale from the two counterparties.

The purchased call options and warrants were considered indexed to the Company stock, required net-share settlement and met all criteria for equity classification at inception and in subsequent periods. 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, were recorded as adjustments to additional paid-in capital.

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 should 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 a proportional share of the original issuance discount of $3.1 million, outstanding deferred issuance costs of $0.9 million and agent fees of $0.1 million. In connection with this repurchase of the February 2018 Notes, the Company unwound a corresponding portion of the purchased call options related to the notes. As a result of this unwinding, the Company received $0.3 million in cash. The payments received have been recorded as an increase to additional paid-in-capital. In addition, the Company unwound a corresponding portion of the warrants issued in connection with the notes for $0.2 million in cash, payable by the Company. The payments have been recorded as a decrease to additional paid-in-capital.

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 be accounted for as an extinguishment. The extinguishment included the de-recognition of a proportional share of the original issuance discount of $4.3 million and outstanding deferred issuance costs of $1.3 million. In connection with the repurchase of the February 2018 Notes, the Company unwound a corresponding portion of the purchased call options. The transaction did not result in any cash payments between the parties. In addition, the Company and the counterparties agreed to unwind a corresponding portion of the warrants, which also did not result in any cash payments between the parties.

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.

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



(in thousands)	December 31, 2018		December 31, 2017

Principal amount of the February 2018 Notes	$	—	$	126,447
Unamortized discount of liability component	—		(381		)
Net carrying value of the February 2018 Notes	$	—	$	126,066

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



	Year Ended December 31,
(in thousands)	2018		2017		2016

Contractual coupon interest	$	422	$	5,058	$	9,338
Amortization of debt issuance costs	88		1,022		2,863
Amortization of debt discount	293		3,449		9,870
Total	$	803	$	9,529	$	22,071

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 the capped call transaction described below, was used to extinguish $120.0 million of the February 2018 Notes.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2021 Notes (the “December 2021 Notes 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 ended 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 December 2021 Notes 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 December 2021 Notes 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 represented the estimated market interest rate for a similar nonconvertible instrument available to the Company 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, 2018, the remaining discount amortization period is 2.9 years.

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



(in thousands)	December 31, 2018			December 31, 2017

Principal amount of the December 2021 Notes	$	150,000		$	150,000
Unamortized discount of liability component	(25,356		)	(32,585		)
Net carrying value of the December 2021 Notes	$	124,644		$	117,415

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



	Year Ended December 31,
(in thousands)	2018		2017

Contractual coupon interest	$	4,125	$	4,125
Amortization of debt issuance costs	76		74
Amortization of debt discount	542		526
Amortization of conversion feature	6,611		5,967
Total	$	11,354	$	10,692

As of December 31, 2018 and 2017, the December 2021 Notes are not convertible. At December 31, 2018 and 2017, the if-converted value of the December 2021 Notes did not exceed the principal amount.

Capped Call Transaction

In connection 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. This 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 senior 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 it should be accounted for as a separate transaction and classified as a net reduction to additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded.

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



(in thousands)	December 2021 Notes		Total

2019	$	—	$	—
2020	—		—
2021	150,000		150,000
2022	—		—
2023	—		—
Thereafter	—		—
Total	$	150,000	$	150,000

Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

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

Stock-Based Compensation

18. Stock-Based Compensation

The Company grants stock-based incentive awards to attract, motivate and retain qualified employees and non-employee directors, and to align their financial interest with those of the Company’s stockholders. The Company utilizes stock-based compensation in the form of restricted stock awards and options to purchase common stock, in each case pursuant to a stockholder approved equity incentive plan.

Stock-Based Compensation Expense

The following table summarizes the Company’s stock option and restricted stock award activity during the years ended December 31, 2018, 2017 and 2016:



	Year Ended December 31,
Stock-based Compensation	2018		2017		2016
(in thousands)
Employees and directors	$	4,758	$	3,138	$	3,679
Non-employees	—		—		63
Total	$	4,758	$	3,138	$	3,742

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on the historical volatility of our common stock over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding. The expected term is based on the “simplified method” as defined by the SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). The Company uses the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free rate is based on yields on U.S. Treasury securities with a maturity similar to the estimated expected term of the options.

The fair value of our stock options was estimated assuming no expected dividends and the following weighted-average assumptions:



	Year Ended December 31,
	2018			2017	2016

Range of expected term (in years)	3.5	-	6	3.7	—
Range of risk-free interest rate	2.7%	-	3.0%	2.0%	—%
Expected volatility	40%			44%	—%

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.

Under the Company’s Amended and Restated 2005 Equity Incentive Plan effective June 8, 2018 (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. As of December 31, 2018, awards granted under the 2005 Equity Incentive Plan consisted of stock options and restricted stock awards. There were no other grants of any other award types under the 2005 Equity Incentive Plan.

In June 2018, the Company’s stockholders approved an amendment and restatement of the 2005 Equity Incentive Plan that increased the number of shares available for grant by 15,000,000 to 26,200,000. The number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock awards, shares of common stock subject to outstanding awards and shares available for grant under this plan as of December 31, 2018, are as follows:



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Available for Grant

2005 Equity Incentive Plan	26,200,000	10,416,523	15,783,477

Stock Options

The following table summarizes the option activity under the 2005 Equity Incentive Plan for the year ended December 31, 2018:



	Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	(in thousands)
Outstanding at beginning of year	—	$	—	—	$	—
Granted	6,908	$	2.76
Outstanding at end of year	6,908	$	2.76	9.1	$	1,099

Exercisable at end of year	1,763	$	2.76	9.1	$	259

Options to purchase common stock generally vest over a 4-year period and are generally granted for a term of 10 years.

The weighted-average grant-date fair value of options granted during the year ended December 31, 2018 was $1.09. The total fair value of options vested during the year ended December 31, 2018 was approximately $1.8 million. Total unrecognized compensation expense of $5.0 million related to options will be recognized over a weighted-average period of 2.9 years.

Restricted Stock Awards

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 and compensation expense associated with these awards is recognized on a straight-line basis over the vesting period. 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.

The following table summarizes the restricted stock award activity under the 2005 Equity Incentive Plan for the year ended December 31, 2018:



	2018
	Number of shares		Weighted-average grant-date fair value per share
	(in thousands)
Unvested at beginning of year	2,065		$	2.61
Awards granted	1,057		$	2.61
Awards vested	(758	)	$	2.78
Withheld related to net settlement	(104	)	$	2.71
Forfeited	(1,537	)	$	2.44
Unvested at end of year	723		$	2.79

The total fair value of restricted stock awards vested during the years ended December 31, 2018, 2017 and 2016 was approximately $2.1 million, $2.8 million and $2.4 million, respectively.

The weighted-average grant date fair value for restricted stock awards granted under the 2005 Equity Incentive Plan for the years end December 31, 2018, 2017 and 2016 was $2.61, $2.15 and $3.31, respectively.

At December 31, 2018, there was approximately $1.1 million of total unrecognized compensation expense related to restricted stock awards granted under the 2005 Equity Incentive Plan, which is expected to be recognized over a weighted-average period of 0.8 years.

Inducement Award Agreements

On September 12, 2017, the Company granted 961,000 shares of common stock in the form of a non-statutory inducement stock option grant pursuant to a non-statutory 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

As of December 31, 2018, all stock option awarded under the non-statutory inducement stock option agreement were outstanding and 260,271 shares were exercisable. The total fair value of options vested during the year ended December 31, 2018 was approximately $0.4 million. Total unrecognized compensation expense of $0.4 million related to these options will be recognized over a weighted-average period of 2.8 years.

Inducement Restricted Stock

As of December 31, 2018, 160,134 shares of restricted stock awarded under the non-statutory inducement restricted stock agreement were outstanding and unvested. The total fair value of the restricted stock awards vested during the year ended December 31, 2018 was approximately $0.3 million.

Compensation expense associated with unvested restricted stock awards is recognized on a straight-line basis over the vesting period. At December 31, 2018, there was approximately $0.3 million of total unrecognized compensation expense related to restricted stock awards granted under the non-statutory inducement restricted stock agreement, which is expected to be recognized over a weighted-average period of 1.4 years.

Cash Dividends	12 Months Ended
Cash Dividends	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	20. Stockholders’ Equity Stock Repurchase Program On March 1, 2017, the Company announced that its 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 fiscal 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 commissions. On September 25, 2017, the Company announced that its 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 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 this share repurchase program were retired and restored to authorized but unissued shares of common stock at July 5, 2018. The Company repurchased 8.7 million shares of its common stock for an aggregate purchase price of $25.0 million, or an average cost of $2.86 per share, including trading commissions. On September 24, 2018, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a new share repurchase program. Repurchases under the new share repurchase program will be made from time to time in the open market or in privately negotiated transactions and funded from the Company’s working capital. The amount and timing of such repurchases will depend upon the price and availability of shares, general market conditions and the availability of cash. Repurchases may also be made under a trading plan under Rule 10b5-1, which 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. As of December 31, 2018, the Company has repurchased 8.7 million shares of its common stock under this share repurchase program for an aggregate purchase price of $25.5 million, or an average cost of $2.94 per share, including trading commissions. As of December 31, 2018, the Company had 750,000 shares held in treasury stock at a total cost of $2.1 million. Those shares were settled and retired on January 8, 2019. This share repurchase program may be suspended 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 as of the record date are also entitled to dividends, which will only be paid when the restricted stock awards 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 restricted stock awards as of the record date are also entitled to dividends, which will only be paid when the restricted stock awards vest and are released.

Customer Concentration

12 Months Ended

Dec. 31, 2018

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

Concentration of Credit Risk

Product Line Concentration

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:



	Year Ended December 31,
(in thousands)	2018		2017		2016
Genentech	—	%	—	%	43	%
Biogen	2	%	11	%	24	%
Assertio	42	%	52	%	13	%
LENSAR	12	%	5	%	—	%
Noden	41	%	22	%	13	%

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



	Year Ended December 31,
(in thousands)	2018		2017		2016
United States	$	148,622	$	291,448	$	157,327
Europe	27,709		16,144		82,534
Rest of World	21,779		12,468		4,440
Total revenues	$	198,110	$	320,060	$	244,301

The following tables presents total receivables which individually account for 10% or more of the Company’s total receivables balance:



	December 31,
(in thousands)	2018		2017
Cardinal Health	$	2,732	$	3,847
McKesson	$	2,352	$	—
AmerisourceBergen	$	4,330	$	2,982

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

19. Income Taxes

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



	Years Ended December 31,
(in thousands)	2018			2017			2016
United States	$	48,844		$	195,865		$	103,656
Foreign	(104,766		)	(11,338		)	5,714
Total	$	(55,922	)	$	184,527		$	109,370

The provision for income taxes for the years ended December 31, 2018, 2017 and 2016 consisted of the following:



	Year Ended December 31,
(in thousands)	2018			2017			2016
Current income tax (benefit) expense
Federal	$	2,169		$	31,338		$	49,582
State	1,029			2,843			3,103
Foreign	(4,107		)	529			2,455
Total current	(909		)	34,710			55,140
Deferred income tax expense (benefit)
Federal	11,497			36,911			(8,476		)
State	1,313			2,591			147
Foreign	1,036			(386		)	(1,100		)
Total deferred	13,846			39,116			(9,429		)
Total provision	$	12,937		$	73,826		$	45,711

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 Operations is as follows:



	Year Ended December 31,
(in thousands)	2018			2017			2016
Tax at U.S. statutory rate on (loss) income before income taxes	$	(11,744	)	$	64,589		$	38,279
Change in valuation allowance	11,226			1,807			(744		)
State taxes	1,376			1,496			74
Change in uncertain tax positions	809			681			2,184
Foreign income	1,048			3,231			5,668
Foreign rate differential	8,936			1,356			(1,445		)
Change in tax rate reform	—			716			—
True-ups	939			—			—
Other	347			(50		)	1,695
Total	$	12,937		$	73,826		$	45,711

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)	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	11,713		$	6,276
Research and other tax credits	1,580			1,414
Intangible assets	2,203			1,453
Stock-based compensation	1,130			547
Accruals	2,362			4,667
Debt modifications	4,661			—
Capital loss carryforward	1,866			2,027
Other	6,642			5,878
Total deferred tax assets	32,157			22,262
Valuation allowance	(13,271		)	(2,046		)
Total deferred tax assets, net of valuation allowance	18,886			20,216
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	—			(117		)
Debt modifications	(2,981		)	(1,197		)
Intangible assets	(28,214		)	(16,932		)
Other	—			(427		)
Unrealized gain on foreign currency hedge contracts and investments	—			(320		)
Total deferred tax liabilities	(31,195		)	(18,993		)
Net deferred tax (liabilities) assets	$	(12,309	)	$	1,223

As of December 31, 2018 and 2017, the Company had federal net operating loss carryforwards of $101.7 million and $117.3 million, respectively. As of December 31, 2018 and 2017, the Company also had state net operating loss carryforwards of $285.9 million and $299.9 million, respectively. The federal and state net operating loss carryforwards will begin expiring in the year 2023, if not utilized. As of December 31, 2018 and 2017, the Company had $2.2 million and $2.2 million, respectively, of federal tax credits that will begin expiring in the year 2025, if not utilized. As of December 31, 2018 and 2017, the Company had $19.3 million and $19.3 million, respectively, of state tax credit carryforwards that do not expire. As of December 31, 2018, the Company had $73.0 million of net operating loss carryforwards in Ireland 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. Of the Company’s $101.7 million of federal net operating loss carryforwards as of December 31, 2018, $30.4 million are subject to an annual limitation of $1.8 million for each of the years ending December 31, 2018 to 2022, and $1.3 million for the year ending December 31, 2023. As of December 31, 2018, the Company estimates that at least $22.0 million of federal net operating loss carryforwards and none of the 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 if additional losses are generated post 2017.

As of December 31, 2018, the Company determined that it was more likely than not that certain deferred tax assets would not be realized in the near future and had a $13.3 million valuation allowance against deferred tax assets. The net change in total valuation allowance for each of the years ending December 31, 2018 and 2017, was an increase of $11.2 million and $0.5 million, respectively. $1.9 million of the valuation allowance at December 31, 2018, is related to capital losses that have limited 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. $11.4 million of the valuation allowance at December 31, 2018, is related to Ireland deferred tax assets that the Company determined it was more likely than not would not be realized.

The cumulative amount of earnings of our foreign subsidiaries are expected to be permanently invested in the foreign subsidiaries. Deferred taxes have not been provided on the excess of book basis over tax basis, or the excess tax basis over book basis in the shares of our foreign subsidiaries because these basis differences are not expected to reverse in the foreseeable future and are essentially permanent in duration. Our intention is to reinvest the earnings of the foreign subsidiaries indefinitely.

The Tax Cuts and Job Act of 2017 significantly changed the existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate (from a top rate of 35% to a flat rate of 21%), implementing elements of a territorial tax system, and imposing a one-time deemed repatriation transition tax on cumulative undistributed foreign earnings, for which we have not previously paid U.S. taxes. Due to the complexities involved in accounting for the 2017 Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. SAB 118 provided a measurement period of up to one year after the enactment date of the 2017 Tax Act to finalize the recording of the related tax impacts.

The Company’s accounting for the following elements of the 2017 Tax Act is complete:


•	Change in federal corporate tax rate from a top rate of 35% to a flat rate of 21% (“Rate Adjustment”): The December 31, 2017 provisional estimate and December 31, 2018 additional measurement-period adjustment related to the Rate Adjustment on our deferred tax assets and liabilities impacted the Company’s income tax rate by less than 1% for each of the years ended December 31, 2017 and 2018.

•

Global intangible low-taxed income (“GILTI”): The Company did not recognize any GILTI for the year ended December 31, 2017. No provisional estimate or additional measurement-period adjustments were recorded for the years ended December 31, 2017 and 2018. The Company have made a policy election with respect to its treatment of potential GILTI to account for taxes on GILTI as a current-period expense as incurred.


•	Foreign-derived intangible income (“FDII”): The Company did not recognize any FDII benefit for the year ended December 31, 2017. No provisional estimate or additional measurement-period adjustments were recorded for the years ended December 31, 2017 and 2018.


•	Deemed repatriation transition tax (“Transition Tax”): The December 31, 2017 provisional estimate and December 31, 2018 additional measurement-period adjustment to the Transition Tax obligation impacted the Company’s income tax rate by less than 1% for each of the years ended December 31, 2017 and 2018.


•	Base-erosion and anti-abuse tax (“BEAT”): The Company did not recognize any BEAT obligation for the year ended December 31, 2017. No provisional estimate or additional measurement-period adjustments were recorded for the years ended December 31, 2017 and 2018.

A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, for 2018, 2017 and 2016 is as follows:



	December 31,
(in thousands)	2018		2017		2016
Balance at the beginning of the year	$	79,179	$	59,429	$	57,125
Increases related to tax positions from prior fiscal years	1,604		783		436
Increases related to tax positions taken during current fiscal year	—		18,967		1,868
Balance at the end of the year	$	80,783	$	79,179	$	59,429

The future impact of the unrecognized tax benefit of $80.8 million, if recognized, is as follows: $59.5 million would affect the effective tax rate and $21.3 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 and the Internal Revenue Service. 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 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 or Internal Revenue Service audits 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 Operations by $1.0 million, during each of the years ended December 31, 2018, 2017 and 2016, respectively. In general, the Company’s income tax returns are subject to examination by U.S. federal, foreign, state and local tax authorities for tax years 2000 forward. Interest and penalties associated with unrecognized tax benefits accrued on the balance sheet were $8.0 million and $7.0 million as of December 31, 2018 and 2017, respectively. The Company is currently under income tax examination by the State of California for the tax years 2009 through 2015 and by the Internal Revenue Service for the tax year 2016.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

. Accumulated Other Comprehensive Income

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

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



(in thousands)	Unrealized gains (losses) on available-for- sale securities			Unrealized gains (losses) on cash flow hedges			Total Accumulated Other Comprehensive Income

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

Activity for the year ended December 31, 2018	(1,181		)	$	—		$	(1,181	)
Ending Balance at December 31, 2018	$	—		$	—		$	—

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2018
Legal Proceedings [Abstract]
Legal Matters and Contingencies [Text Block]	25. 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 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 was litigated 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 marketing approval of Par’s ANDA or submit any other ANDA seeking approval to market aliskiren hemifumarate hydrochlorothiazide 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. On June 8, 2018, Noden and Anchen entered into a settlement agreement (the “Settlement Agreement”). Under the Settlement Agreement, the parties agreed to file a stipulation of dismissal with the court to facilitate dismissal of the litigation in its entirety, with prejudice. In the Settlement Agreement, Noden granted Anchen a non-exclusive, royalty free, fully paid up and non-transferable license to manufacture and commercialize in the United States a generic version of aliskiren which is described in Anchen’s ANDA, and Anchen agreed not to commercialize its generic version of aliskiren prior to March 1, 2019. The license grant excludes certain formulations covered by the ‘595 Patent which closely relate to the commercial formulation of Tekturna marketed by Noden. The Settlement Agreement includes a release by each party for liabilities associated with the litigation and an acknowledgment from Anchen that the ‘595 Patent claims are valid and enforceable. 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 was dismissed, with prejudice, and Valeant paid 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, 2018
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events Share Repurchase From January 1, 2019 to March 13, 2019, the Company repurchased approximately 10.7 million shares of its common stock at a weighted-average price of $3.32 per share for a total of $35.5 million. The total amounts repurchased by the Company under the $100.0 million share repurchase program authorized by the Company’s board of directors equal approximately 19.4 million shares of its common stock for an aggregate purchase price of $61.0 million, or an average cost of $3.15 per share, including trading commissions. CareView Modification Agreement As further discussed in Note 9, Notes and Other Long-Term Receivables, the first principal payment and the scheduled interest payment due December 31, 2018 that were previously deferred until January 31, 2019 were subsequently deferred until March 31, 2019 under additional amendments. Authorized Generic As further discussed in Note 13, Intangible Assets, on March 4, 2019, the Company announced the U.S. commercial launch of an authorized generic of Tekturna, with the same drug formulation as Tekturna.

Inventories (Notes)

12 Months Ended

Dec. 31, 2018

Inventory [Line Items]

Inventory Disclosure [Text Block]

10. Inventories

Inventories consisted of the following:



	December 31,
(in thousands)	2018		2017
Raw materials	$	6,214	$	1,717
Work in process	549		1,119
Finished goods	12,179		6,311
Total inventories	$	18,942	$	9,147

As of December 31, 2018 and 2017, the Company deferred approximately $0.5 million and $1.3 million, respectively, of costs associated with inventory transfers made under the Company’s third-party logistics provider service arrangement. These costs have been recorded as Other assets on the Company’s Consolidated Balance Sheets as of December 31, 2018 and 2017. The Company will recognize the cost of product sold as inventory is transferred from its third-party logistics provider to the Company’s customers.

During the year ended December 31, 2018, the Company recognized a reduction in the inventory reserve of $1.2 million. During the years ended December 31, 2017 and 2016 the Company recognized inventory write-downs of $2.0 million and $0.3 million respectively, related to the “Noden Products” that the Company would not be able to sell prior to their expiration.

Intangible Assets and Goodwill (Notes)

12 Months Ended

Dec. 31, 2018

Intangible Assets and Goodwill [Abstract]

Intangible Assets Disclosure [Text Block]

13. Intangible Assets

Intangible Assets, Net

On June 8, 2018, Noden Pharma DAC (“Noden DAC”), a wholly-owned subsidiary of the Company, entered into a Settlement Agreement (the “Settlement Agreement”) with Anchen Pharmaceuticals, Inc. and its affiliates (“Anchen”) to resolve the patent litigation relating to infringement of U.S. Patent No. 8,617,595 (the “‘595 Patent”) based on their submission of an Abbreviated New Drug Application (“ANDA”) seeking authorization from the FDA to market a generic version of aliskiren, the active ingredient in Tekturna and Tekturna HCT. Under the Settlement Agreement, Anchen, the sole ANDA filer of which the Company is aware, agreed to not commercialize its generic version of aliskiren prior to March 1, 2019. Per the Settlement Agreement, Anchen may commercialize their formulation of aliskiren, but is not permitted to commercialize a copy of Tekturna.

Accordingly, management evaluated the ongoing value of the Noden DAC asset group based upon the probability of Anchen’s market entry of a generic version of aliskiren in the United States and the associated cash flows and conducted a test for impairment. Due to the increased probability of a generic version of aliskiren being launched in the United States, the Company revised its estimates of future cash flows and as a result of this analysis, determined that the sum of undiscounted cash flows was not greater than the carrying value of the assets. Therefore, the Company performed a discounted cash flow analysis to estimate the fair value of the asset group in accordance with ASC Topic 360, Impairment or Disposal of Long-lived Assets. The cash flows used in this analysis are those expected to be generated by market participants, discounted to reflect an appropriate amount of risk, which was determined to be 21%. The Company concluded that the Noden DAC acquired product rights and customer relationship long-lived assets, with a carrying amount of $192.5 million, were no longer recoverable and wrote them down to their estimated fair value of $40.1 million, resulting in an impairment charge of $152.3 million in the second quarter of 2018. This write-down is included in “Impairment of intangible assets” in the Consolidated Statement of Operations and the Consolidated Statement of Cash Flows for the year ended December 31, 2018. The remaining Noden DAC intangible asset balance, included in the Pharmaceutical segment, will be amortized on a straight-line basis over the remaining useful life of eight years.

On March 4, 2019, the Company announced the U.S. commercial launch of an authorized generic of Tekturna, with the same drug formulation as Tekturna. The Company performed an impairment assessment of the Noden asset group at this time by estimating the undiscounted future cash flows with respect to the asset against its carrying value and concluded a further impairment was not required.

Future events, such as FDA approval of a third-party generic version of aliskiren or publicly announced plans of a launch of a generic version of aliskiren, may be further indicators of impairment which may require the Company to perform additional impairment testing.

The components of intangible assets as of December 31, 2018 and 2017 were as follows:



	December 31, 2018							December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Acquired products rights ⁽¹⁾	$	36,143	$	(2,258	)	$	33,885	$	216,690	$	(32,503	)	$	184,187
Customer relationships ^{(1) (2)}	8,028		(782		)	7,246		26,080		(3,729		)	22,351
Acquired technology ^{(2) (3)}	11,011		(1,203		)	9,808		9,200		(409		)	8,791
Acquired trademarks ⁽²⁾	570		(190		)	380		570		(76		)	494
	$	55,752	$	(4,433	)	$	51,319	$	252,540	$	(36,717	)	$	215,823

_______________

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

⁽²⁾ The Company acquired certain intangible assets as part of the LENSAR transaction. The intangible assets are being amortized on a straight-line basis over a weighted-average period of 15 years. 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. For a further discussion of the LENSAR transaction, see Note 23, Business Combinations.

⁽³⁾ The Company acquired certain intangible assets as part of the foreclosure on certain of Direct Flow Medical assets, as described further in Note 9, Notes and Other Long-Term Receivables. They are being amortized on a straight-line basis over a weighted-average period of 10 years.

Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $15.8 million, $24.7 million and $12.0 million, respectively.

Based on the intangible assets recorded at December 31, 2018, 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
2019	$	6,275
2020	6,240
2021	6,209
2022	6,104
2023	6,040
Thereafter	20,451
Total remaining estimated amortization expense	$	51,319

Business Combinations (Notes)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

23. Business Combinations

NODEN TRANSACTION

Description of the Noden Transaction

On July 1, 2016, the 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 non-controlling 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 non-controlling 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, 2018 and 2017.

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 may 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. During the second quarter of 2018, the Company concluded that the Noden DAC acquired product rights and customer relationship long-lived assets, with a carrying amount of $192.5 million, were no longer recoverable and wrote them down to their estimated fair value of $40.1 million, resulting in an impairment charge of $152.3 million. The remaining Noden DAC intangible asset balance, included in the Pharmaceutical segment, will be amortized on a straight-line basis over the remaining useful life of eight years. They are amortized on a straight-line basis over a weighted-average remaining useful life of 8 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 more information regarding the credit agreement between the Company and LENSAR, please see Note 9, Notes and Other Long-Term Receivables. 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 securities to the Company in exchange for the cancellation of the Company’s claims as a secured creditor in the Chapter 11 case. Following consummation of the Chapter 11 plan of reorganization, LENSAR would become an operating subsidiary of the Company and the Company provided LENSAR a new, senior-secured, first-priority term loan facility (the “Exit Facility”).

On April 26, 2017, the bankruptcy court approved the plan of reorganization. On May 11, 2017, LENSAR and the Company consummated the plan of reorganization and LENSAR emerged from bankruptcy. Pursuant to the plan of reorganization, the Company obtained control of 100% of the outstanding voting shares of LENSAR. All assets of the LENSAR bankruptcy estate re-vested in reorganized LENSAR free and clear of all liens, claims or charges. Upon consummation of the plan of reorganization, all debt owed to the Company was eliminated other than the Exit Facility. Liabilities to other creditors, including general unsecured creditors, were satisfied through the plan of reorganization.

The Company concluded that the LENSAR transaction should be accounted for by applying the acquisition method in accordance with ASC 805 that did not involve a transfer of consideration (“combinations by contract”).

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 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 receivables, which was recorded in the Consolidated Statement of Operations for the year 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 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, 2018 and 2017, assuming that the LENSAR transaction had closed on January 1, 2017. 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)	2018			2017

Pro forma revenues	$	198,110		$	325,605
Pro forma net (loss) income	$	(68,859	)	$	107,193
Pro forma net (loss) income per share - basic	$	(0.47	)	$	0.69
Pro forma net (loss) income per share - diluted	$	(0.47	)	$	0.69

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


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


•	Elimination of 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 the United States, at such time, and the income tax benefit on the interest expense at the statutory tax rate of the United States, at such time.

Segment Information (Notes)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

24. Segment Information

Information regarding the Company’s segments for the year ended December 31, 2018 and 2017 is as follows:



Revenues by segment	Year Ended December 31,
(in thousands)	2018		2017
Pharmaceutical	$	80,796	$	69,032
Medical Devices	24,652		15,091
Income Generating Assets	92,662		235,937
Total revenues	$	198,110	$	320,060



(Loss) income by segment	Year Ended December 31,
(in thousands)	2018			2017
Pharmaceutical	$	(98,368	)	$	(5,755	)
Medical Devices	(5,086		)	(9,256		)
Income Generating Assets	34,595			125,759
Total net (loss) income	$	(68,859	)	$	110,748



Long-lived assets by segment	Year Ended December 31,
(in thousands)	2018		2017
Pharmaceutical	$	3,682	$	822
Medical Devices	3,545		6,263
Income Generating Assets	160		137
Total long-lived assets	$	7,387	$	7,222

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

Stockholders' Equity (Notes)	12 Months Ended
Stockholders' Equity (Notes)	Dec. 31, 2018
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	20. Stockholders’ Equity Stock Repurchase Program On March 1, 2017, the Company announced that its 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 fiscal 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 commissions. On September 25, 2017, the Company announced that its 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 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 this share repurchase program were retired and restored to authorized but unissued shares of common stock at July 5, 2018. The Company repurchased 8.7 million shares of its common stock for an aggregate purchase price of $25.0 million, or an average cost of $2.86 per share, including trading commissions. On September 24, 2018, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a new share repurchase program. Repurchases under the new share repurchase program will be made from time to time in the open market or in privately negotiated transactions and funded from the Company’s working capital. The amount and timing of such repurchases will depend upon the price and availability of shares, general market conditions and the availability of cash. Repurchases may also be made under a trading plan under Rule 10b5-1, which 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. As of December 31, 2018, the Company has repurchased 8.7 million shares of its common stock under this share repurchase program for an aggregate purchase price of $25.5 million, or an average cost of $2.94 per share, including trading commissions. As of December 31, 2018, the Company had 750,000 shares held in treasury stock at a total cost of $2.1 million. Those shares were settled and retired on January 8, 2019. This share repurchase program may be suspended 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 as of the record date are also entitled to dividends, which will only be paid when the restricted stock awards 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 restricted stock awards as of the record date are also entitled to dividends, which will only be paid when the restricted stock awards vest and are released.

Asset Acquisition (Notes)

12 Months Ended

Dec. 31, 2018

Asset Acquisition [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

12. Asset Acquisition

On January 8, 2018, LENSAR entered into an Asset Purchase Agreement with PES to purchase assets used in PES’ laser-assisted cataract surgery business. The assets purchased include equipment, inventory and PES’ customer contracts. No workforce was transferred as part of the transaction.

The Company assessed the acquisition of PES assets under ASC 805. Under ASC 805, the Company determined that the acquired assets did not constitute a business and that the transaction would be accounted for as an asset acquisition.

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



Equipment and inventory	$	848
Fixed assets	67
Intangible assets (customer relationships)	1,845
Total identifiable assets	$	2,760

Consideration paid at closing, cash	$	1,200
Conversion consideration	920
Contingent consideration	640
Total fair value of consideration	$	2,760

Revenue from Contracts with Customers (Notes)

12 Months Ended

Dec. 31, 2018

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

3. Revenue from Contracts with Customers

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by segment and geographic location as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. In the following table, revenue is disaggregated by segment and primary geographical market for the year ended December 31, 2018:



	Year Ended December 31, 2018
(in thousands)	Medical Devices		Pharmaceutical

Primary geographical markets:
North America	$	7,425	$	41,900
Europe	2,451		25,259
Asia	7,136		13,637
Other	377		—
Total revenue from contracts with customers¹	$	17,389	$	80,796

_______________

¹ The table above does not include lease revenue from the Company’s Medical Devices segment of $7.3 million.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:



(in thousands)	December 31, 2018		January 1, 2018

Receivables, current and non-current, net	$	20,655	$	30,771
Contract assets	$	2,595	$	—
Contract liabilities	$	8,938	$	10,084

Receivables, Net—Receivables, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable.

Contract Assets—The Company’s contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales has not yet occurred. The Company classifies contract assets in prepaid and other current assets in the Company’s consolidated balance sheet based on the timing of when it expects to receive payment.



(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at January 1, 2018	$	—	$	—	$	—
Contract assets recognized	—		2,595		2,595
Contract assets at December 31, 2018	$	—	$	2,595	$	2,595

Contract Liabilities—The Company’s contract liabilities consist of deferred revenue for products sold to customers for which the performance obligation has not been satisfied by the Company. The Company classifies deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the Company’s condensed consolidated balance sheets.



(in thousands)	Medical Devices			Pharmaceutical			Total

Contract liabilities at January 1, 2018	$	1,391		$	8,693		$	10,084
Additions	834			7,771			8,605
Amounts recognized into revenue	(1,058		)	(8,693		)	(9,751		)
Contract liabilities at December 31, 2018	$	1,167		$	7,771		$	8,938

Transaction Price Allocated to Remaining Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.



	Twelve months ended
(in thousands)	December 31, 2019		Thereafter		Total

Pharmaceutical product sales	$	1,000	$	—	$	1,000
Medical device sales	$	3,419	$	2,627	$	6,046

The Company does not disclose the transaction price allocated to remaining performance obligations for (i) contracts with original expected lengths of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for the products delivered or services performed.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

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

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

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 is 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
Transportation 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

Revenue Recognition

Adoption of New Revenue Recognition Standard

Policy Elections and Practical Expedients Taken

Sales commissions and other incremental costs of obtaining contracts are expensed as incurred as the amortization periods are less than one year.

General

Pharmaceutical

Reserves for chargebacks, discounts, rebates, sales allowances and product returns are included within current liabilities in the Company’s Consolidated Balance Sheets.

Medical Devices

Income Generating Assets

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 (Loss) Income

Income Tax, Policy [Policy Text Block]

Income Taxes

Business Combinations Policy [Policy Text Block]

Business Combination

Lease, Policy [Policy Text Block] (Deprecated 2017-01-31)

Lease Accounting and Lease Guarantee

New Accounting Pronouncements, Policy [Policy Text Block]

Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

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 Royalty Right Assets and the gains and losses included in earnings for the year ended December 31, 2018:



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, 2017							$	349,223

	Financial instruments purchased						20,000
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	85,256
		Proceeds from royalty rights - at fair value		$	(77,969	)
			Total net change in fair value for the period				7,287

Fair value as of December 31, 2018							$	376,510



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets
	Fair Value as of		Purchase of		Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2017		Royalty Assets		Change in Fair Value			December 31, 2018
Assertio	$	232,038	$	20,000	$	12,333		$	264,371
VB	14,380		—		(272		)	14,108
U-M	26,769		—		(1,174		)	25,595
AcelRx	72,894		—		(2,514		)	70,380
Avinger	396		—		(396		)	—
KYBELLA	2,746		—		(690		)	2,056
	$	349,223	$	20,000	$	7,287		$	376,510

The following table summarizes the changes in Level 3 Liabilities and the gains and losses included in earnings for the year ended December 31, 2018:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities
(in thousands)		Contingent Consideration
Fair value as of December 31, 2017		$	(42,000	)

	Financial instruments purchased	(1,560		)
	Total net change in fair value for the period	41,631
	Settlement of financial instrument	858

Fair value as of December 31, 2018		$	(1,071	)

Schedule of fair value of financial instruments measured on recurring basis



	December 31, 2018								December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	226,719	$	—	$	—	$	226,719	$	417,563	$	—	$	—	$	417,563
Corporate securities	—		—		—		—		4,848		—		—		4,848
Warrants	—		62		—		62		—		29		—		29
Royalty rights - at fair value	—		—		376,510		376,510		—		—		349,223		349,223
Total	$	226,719	$	62	$	376,510	$	603,291	$	422,411	$	29	$	349,223	$	771,663

Financial liabilities:
Contingent consideration, current¹	$	—	$	—	$	1,071	$	1,071	$	—	$	—	$	—	$	—
Contingent consideration, non-current	—		—		—		—		—		—		42,000		42,000
Total	$	—	$	—	$	1,071	$	1,071	$	—	$	—	$	42,000	$	42,000

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



	December 31, 2018						December 31, 2017
(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	$	—	$	57,322	$	50,191	$	—	$	51,308
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
CareView note receivable	11,458		—		11,458		19,346		—		18,750
Total	$	62,849	$	—	$	69,980	$	70,737	$	—	$	71,258
Liabilities:
February 2018 Notes	$	—	$	—	$	—	$	126,066	$	126,131	$	—
December 2021 Notes	124,644		151,356		—		117,415		148,028		—
Total	$	124,644	$	151,356	$	—	$	243,481	$	274,159	$	—

Commitments and Contingencies (Tables) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Future Minimum Payments Due	$ 1,140
Operating Leases, Future Minimum Payments, Due in Two Years	1,003
Operating Leases, Future Minimum Payments, Due in Three Years	559
Operating Leases, Future Minimum Payments, Due in Four Years	0
Operating Leases, Future Minimum Payments, Due in Five Years	0
Operating Leases, Future Minimum Payments, Due Thereafter	0
Operating Leases, Future Minimum Payments Due	$ 2,702

Convertible Notes (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018			December 31, 2017

Principal amount of the December 2021 Notes	$	150,000		$	150,000
Unamortized discount of liability component	(25,356		)	(32,585		)
Net carrying value of the December 2021 Notes	$	124,644		$	117,415

Schedule of convertible and non-recourse notes activity



(in thousands)	February 2018 Notes			December 2021 Notes		Total

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
Payment	(126,447		)	—		(126,447		)
Amortization	381			7,229		7,610
Balance at December 31, 2018	$	—		$	124,644	$	124,644

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



(in thousands)	December 2021 Notes		Total

2019	$	—	$	—
2020	—		—
2021	150,000		150,000
2022	—		—
2023	—		—
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, 2018		December 31, 2017

Principal amount of the February 2018 Notes	$	—	$	126,447
Unamortized discount of liability component	—		(381		)
Net carrying value of the February 2018 Notes	$	—	$	126,066

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 Operations was as follows:



	Year Ended December 31,
(in thousands)	2018		2017		2016

Contractual coupon interest	$	422	$	5,058	$	9,338
Amortization of debt issuance costs	88		1,022		2,863
Amortization of debt discount	293		3,449		9,870
Total	$	803	$	9,529	$	22,071

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 Operations was as follows:



	Year Ended December 31,
(in thousands)	2018		2017

Contractual coupon interest	$	4,125	$	4,125
Amortization of debt issuance costs	76		74
Amortization of debt discount	542		526
Amortization of conversion feature	6,611		5,967
Total	$	11,354	$	10,692

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

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

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

the years ended December 31, 2018, 2017 and 2016:



	Year Ended December 31,
Stock-based Compensation	2018		2017		2016
(in thousands)
Employees and directors	$	4,758	$	3,138	$	3,679
Non-employees	—		—		63
Total	$	4,758	$	3,138	$	3,742

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

The number of shares of common stock authorized for issuance, shares of common stock issued upon exercise of options or grant of restricted stock awards, shares of common stock subject to outstanding awards and shares available for grant under this plan as of December 31, 2018, are as follows:



Title of Plan	Total Shares of Common Stock Authorized	Total Shares of Common Stock Issued	Total Shares of Common Stock Available for Grant

2005 Equity Incentive Plan	26,200,000	10,416,523	15,783,477

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



	2018
	Number of shares		Weighted-average grant-date fair value per share
	(in thousands)
Unvested at beginning of year	2,065		$	2.61
Awards granted	1,057		$	2.61
Awards vested	(758	)	$	2.78
Withheld related to net settlement	(104	)	$	2.71
Forfeited	(1,537	)	$	2.44
Unvested at end of year	723		$	2.79

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The fair value of our stock options was estimated assuming no expected dividends and the following weighted-average assumptions:



	Year Ended December 31,
	2018			2017	2016

Range of expected term (in years)	3.5	-	6	3.7	—
Range of risk-free interest rate	2.7%	-	3.0%	2.0%	—%
Expected volatility	40%			44%	—%

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, 2018

Risks and Uncertainties [Abstract]

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:



	Year Ended December 31,
(in thousands)	2018		2017		2016
Genentech	—	%	—	%	43	%
Biogen	2	%	11	%	24	%
Assertio	42	%	52	%	13	%
LENSAR	12	%	5	%	—	%
Noden	41	%	22	%	13	%

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 are as follows:



	Year Ended December 31,
(in thousands)	2018		2017		2016
United States	$	148,622	$	291,448	$	157,327
Europe	27,709		16,144		82,534
Rest of World	21,779		12,468		4,440
Total revenues	$	198,110	$	320,060	$	244,301

The following tables presents total receivables which individually account for 10% or more of the Company’s total receivables balance:



	December 31,
(in thousands)	2018		2017
Cardinal Health	$	2,732	$	3,847
McKesson	$	2,352	$	—
AmerisourceBergen	$	4,330	$	2,982

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

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

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



	Years Ended December 31,
(in thousands)	2018			2017			2016
United States	$	48,844		$	195,865		$	103,656
Foreign	(104,766		)	(11,338		)	5,714
Total	$	(55,922	)	$	184,527		$	109,370

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



	Year Ended December 31,
(in thousands)	2018			2017			2016
Current income tax (benefit) expense
Federal	$	2,169		$	31,338		$	49,582
State	1,029			2,843			3,103
Foreign	(4,107		)	529			2,455
Total current	(909		)	34,710			55,140
Deferred income tax expense (benefit)
Federal	11,497			36,911			(8,476		)
State	1,313			2,591			147
Foreign	1,036			(386		)	(1,100		)
Total deferred	13,846			39,116			(9,429		)
Total provision	$	12,937		$	73,826		$	45,711

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



	Year Ended December 31,
(in thousands)	2018			2017			2016
Tax at U.S. statutory rate on (loss) income before income taxes	$	(11,744	)	$	64,589		$	38,279
Change in valuation allowance	11,226			1,807			(744		)
State taxes	1,376			1,496			74
Change in uncertain tax positions	809			681			2,184
Foreign income	1,048			3,231			5,668
Foreign rate differential	8,936			1,356			(1,445		)
Change in tax rate reform	—			716			—
True-ups	939			—			—
Other	347			(50		)	1,695
Total	$	12,937		$	73,826		$	45,711

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



	December 31,
(in thousands)	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	11,713		$	6,276
Research and other tax credits	1,580			1,414
Intangible assets	2,203			1,453
Stock-based compensation	1,130			547
Accruals	2,362			4,667
Debt modifications	4,661			—
Capital loss carryforward	1,866			2,027
Other	6,642			5,878
Total deferred tax assets	32,157			22,262
Valuation allowance	(13,271		)	(2,046		)
Total deferred tax assets, net of valuation allowance	18,886			20,216
Deferred tax liabilities:
Deferred gain on repurchase of convertible notes	—			(117		)
Debt modifications	(2,981		)	(1,197		)
Intangible assets	(28,214		)	(16,932		)
Other	—			(427		)
Unrealized gain on foreign currency hedge contracts and investments	—			(320		)
Total deferred tax liabilities	(31,195		)	(18,993		)
Net deferred tax (liabilities) assets	$	(12,309	)	$	1,223

Summary of Income Tax Contingencies [Table Text Block]



	December 31,
(in thousands)	2018		2017		2016
Balance at the beginning of the year	$	79,179	$	59,429	$	57,125
Increases related to tax positions from prior fiscal years	1,604		783		436
Increases related to tax positions taken during current fiscal year	—		18,967		1,868
Balance at the end of the year	$	80,783	$	79,179	$	59,429

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets and Goodwill [Abstract]

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

The components of intangible assets as of December 31, 2018 and 2017 were as follows:



	December 31, 2018							December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Acquired products rights ⁽¹⁾	$	36,143	$	(2,258	)	$	33,885	$	216,690	$	(32,503	)	$	184,187
Customer relationships ^{(1) (2)}	8,028		(782		)	7,246		26,080		(3,729		)	22,351
Acquired technology ^{(2) (3)}	11,011		(1,203		)	9,808		9,200		(409		)	8,791
Acquired trademarks ⁽²⁾	570		(190		)	380		570		(76		)	494
	$	55,752	$	(4,433	)	$	51,319	$	252,540	$	(36,717	)	$	215,823

_______________

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

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



Fiscal Year	Amount
2019	$	6,275
2020	6,240
2021	6,209
2022	6,104
2023	6,040
Thereafter	20,451
Total remaining estimated amortization expense	$	51,319

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2018

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

______________

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

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

Business Acquisition, Pro Forma Information [Table Text Block]



	Year Ended
	December 31,
(in thousands, except per share amounts)	2018			2017

Pro forma revenues	$	198,110		$	325,605
Pro forma net (loss) income	$	(68,859	)	$	107,193
Pro forma net (loss) income per share - basic	$	(0.47	)	$	0.69
Pro forma net (loss) income per share - diluted	$	(0.47	)	$	0.69

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018 and 2017 is as follows:



Revenues by segment	Year Ended December 31,
(in thousands)	2018		2017
Pharmaceutical	$	80,796	$	69,032
Medical Devices	24,652		15,091
Income Generating Assets	92,662		235,937
Total revenues	$	198,110	$	320,060



(Loss) income by segment	Year Ended December 31,
(in thousands)	2018			2017
Pharmaceutical	$	(98,368	)	$	(5,755	)
Medical Devices	(5,086		)	(9,256		)
Income Generating Assets	34,595			125,759
Total net (loss) income	$	(68,859	)	$	110,748



Long-lived assets by segment	Year Ended December 31,
(in thousands)	2018		2017
Pharmaceutical	$	3,682	$	822
Medical Devices	3,545		6,263
Income Generating Assets	160		137
Total long-lived assets	$	7,387	$	7,222

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

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2018

Contract assets [Line Items]

Contract with Customer, Asset and Liability [Table Text Block]

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:



(in thousands)	December 31, 2018		January 1, 2018

Receivables, current and non-current, net	$	20,655	$	30,771
Contract assets	$	2,595	$	—
Contract liabilities	$	8,938	$	10,084



(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at January 1, 2018	$	—	$	—	$	—
Contract assets recognized	—		2,595		2,595
Contract assets at December 31, 2018	$	—	$	2,595	$	2,595



(in thousands)	Medical Devices			Pharmaceutical			Total

Contract liabilities at January 1, 2018	$	1,391		$	8,693		$	10,084
Additions	834			7,771			8,605
Amounts recognized into revenue	(1,058		)	(8,693		)	(9,751		)
Contract liabilities at December 31, 2018	$	1,167		$	7,771		$	8,938

Organization and Business (Narrative) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Principal Transaction Revenue [Line Items]
Number of Reportable Segments	3
Hybrid royalty/debt transaction [Member]
Principal Transaction Revenue [Line Items]
Other Commitment	$ 44.0

Summary of Significant Accounting Policies 1 (Narrative) (Detail)				12 Months Ended
	Jan. 07, 2018 USD ($)	May 09, 2017 USD ($)	Jul. 02, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 01, 2016
Financing Receivable, Impaired [Line Items]
Foreign Currency Transaction Gain (Loss), before Tax				$ (700,000)	$ (100,000)	$ (100,000)
Medicare Part D insurance coverage gap					0.5
Allowance for Doubtful Accounts Receivable				78,000	$ 76,000
Asset Impairment Charges				$ 8,200,000	$ 0	3,735,000
Federal income tax rate				21.00%	35.00%
Goodwill, Impairment Loss						3,700,000
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	3
Maximum amount of additional funds, upon attainment of milestones	$ 2,000,000
Number of Reportable Segments				3
Notes Receivable, Fair Value Disclosure				$ 70,000,000	$ 71,300,000
Gain (Loss) on Sale of Notes Receivable				0	0	(51,075,000)
Payments to Acquire Equity Method Investments		$ 2,200,000	$ 110,000,000
Interest revenue				2,337,000	17,744,000	$ 30,404,000
Accounts and Notes Receivable, Net				$ 62,800,000	$ 70,700,000
Minimum [Member]
Financing Receivable, Impaired [Line Items]
Term of receivable (in Duration)				30 days
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				8 years
Maximum [Member]
Financing Receivable, Impaired [Line Items]
Term of receivable (in Duration)				90 days
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				15 years
Federal income tax rate				21.00%	35.00%
CareView [Member]
Financing Receivable, Impaired [Line Items]
Asset Impairment Charges				$ 8,200,000
Interest revenue				$ 2,300,000	$ 3,100,000
License and other [Member] \| DirectFlow [Member]
Financing Receivable, Impaired [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 500,000

Summary of Significant Accounting Policies (Schedule of Property and Equipment of Estimated Useful Lives) (Detail)	12 Months Ended
	Dec. 31, 2018
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
Transportation Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life (in years)	3 years

Net Income per Share (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Nov. 22, 2016	Nov. 20, 2015
Stock Options [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	3,892,000	502,000
Restricted Stock [Member]
Debt Instrument [Line Items]
Antidilutive securities Excluded from Computation of Earnings Per Share (in Shares)	1,139,000	1,830,000	1,107,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt	$ 124,644	$ 117,415		$ 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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator
Income used to compute net income per diluted share									$ (68,859)	$ 110,748	$ 63,606
Denominator
Total weighted-average shares used to compute net income per basic share (in Shares)									145,669	155,394	163,805
Diluted (in Shares)									145,669	156,257	164,192
Net income per basic share (in Dollars per Share)	$ 0.12	$ 0.18	$ (0.76)	$ 0.01	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.47)	$ 0.71	$ 0.39
Net income per diluted share (in Dollars per Share)	$ 0.11	$ 0.18	$ (0.76)	$ 0.01	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.47)	$ 0.71	$ 0.39
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)									0	863	387

Fair Value Measurements (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions						3 Months Ended		12 Months Ended
	Jan. 07, 2018	Dec. 13, 2016	Sep. 21, 2016	Jul. 08, 2016	Jun. 02, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Aug. 01, 2018	Jun. 30, 2018	Jun. 27, 2018	Mar. 29, 2017	Jul. 09, 2016	Dec. 15, 2015	Sep. 18, 2015	Jul. 28, 2015	Nov. 06, 2014	Jun. 26, 2014	Oct. 18, 2013
Investment Owned, Balance, Shares																1.7
Asset Impairment Charges								$ 8,200,000	$ 0	$ 3,735,000
Investment estimated fair value, per share						$ 3.84		$ 3.84
Impairment of Intangible Assets, Finite-lived								$ 152,330,000	0	0
Intangible assets, net						$ 51,319,000	$ 215,823,000	51,319,000	215,823,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value						376,510,000	349,223,000	376,510,000	349,223,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings								7,287,000
Cash payment for purchase of royalty right																			$ 65,600,000
Proceeds from Sale of Productive Assets								0	108,169,000	0
Sale of royalty multiple														120.00%
Proceeds from Legal Settlements							13,000,000
Royalty rights - at fair value						376,510,000	349,223,000	376,510,000	349,223,000
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								85,256,000	162,327,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings								41,631,000	(349,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements								(858,000)	0	$ 0
Notes Receivable, Fair Value Disclosure						70,000,000	71,300,000	70,000,000	71,300,000
Investment Owned, at Fair Value																$ 6,600,000
Transfers from level 1 to level 2, amount						0	0	0	0
Transfers from level 2 to level 1, amount						$ 0	0	$ 0	0
VB [Member]
Cash flow model expected royalty sales term						10 years
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						15.00%		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 $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.4 million, respectively.
Royalty rights - at fair value						$ 14,100,000		$ 14,100,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount						$ 14,100,000		$ 14,100,000												$ 15,500,000
Royalty asset multiple								0
University of Michigan [Member]
Cash flow model expected royalty sales term						4 years
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						12.80%		12.80%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.1 million or increase by $1.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.6 million, respectively.
Royalty rights - at fair value						$ 25,600,000		$ 25,600,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount						$ 25,600,000		$ 25,600,000
Depomed [Member]
Cash payment for purchase of royalty right											$ 20,000,000										$ 240,500,000
Maximum royalty prior to amendment																					481,000,000
Cash flow model expected royalty sales term						9 years
Purchase of royalty right																					241,300,000
Royalty right purchase transaction costs																					$ 800,000
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 $22.9 million or increase by $27.2 million, respectively. A third-party expert was engaged to assist management develop its original estimate of the expected future cash flows, which was updated after the acquisition of Depomed’s reversionary interest in August 2018. 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 or decrease by $6.6 million, respectively.
Royalty rights - at fair value						$ 264,400,000		$ 264,400,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount						$ 264,400,000		$ 264,400,000
ARIAD [Member]
Proceeds from Sale of Productive Assets									108,200,000
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]
Cash flow model expected royalty sales term						14 years
Purchase of royalty right																	$ 65,000,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						13.40%		13.40%
Fair Value Measurements, Sensitivity Analysis, Description								Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $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 or decrease by $1.8 million, respectively.
Royalty rights - at fair value						$ 70,400,000		$ 70,400,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount						$ 70,400,000		$ 70,400,000
Percentage of royalty acquired																	75.00%
Kybella [Member]
Cash flow model expected royalty sales term						7 years
Purchase of royalty right															$ 9,500,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						14.40%		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 or increase by $0.2 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.1 million, respectively.
Royalty rights - at fair value						$ 2,100,000		$ 2,100,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount						$ 2,100,000		$ 2,100,000
Maximum amount of additional funds, upon attainment of milestones				$ 1,000,000
Alphaeon [Member]
Investment Owned, Balance, Shares						1.7		1.7
Investment Owned, at Fair Value						$ 6,600,000	6,600,000	$ 6,600,000	6,600,000
Contingent Consideration [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value						$ (1,071,000)	$ (42,000,000)	(1,071,000)	$ (42,000,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases								1,560,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings								41,631,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements								858,000
Noden [Member]
Impairment of Intangible Assets, Finite-lived								152,300,000
Intangible assets, net												$ 40,100,000	$ 192,500,000
CareView [Member]
Asset Impairment Charges								$ 8,200,000
Minimum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						10.00%		10.00%
Maximum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate						24.00%		24.00%

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 05, 2018
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	$ (858)	$ 0	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	41,631	(349)
Financial and Nonfinancial Liabilities, Fair Value Disclosure	1,071	42,000
Financial assets:
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	394,590	532,114
Warrants and Rights Outstanding	62	29
Royalty rights - at fair value	376,510	349,223
Assets, Fair Value	603,291	771,663
Financial liabilites:
Business Combination, Contingent Consideration, Liability, Current	1,071			$ 920
Business Combination, Contingent Consideration, Liability, Noncurrent	0	42,000		$ 640
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	226,719	417,563
Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	4,848
Fair Value Level 1 [Member]
Financial assets:
Assets, Fair Value	226,719	422,411
Fair Value Level 1 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	226,719	417,563
Fair Value Level 1 [Member] \| Equity Securities [Member]
Financial assets:
Available for Sale Securities, Fair Value	0	4,848
Fair Value Level 2 [Member]
Financial assets:
Warrants and Rights Outstanding	62	29
Assets, Fair Value	62	29
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	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	1,071	42,000
Financial assets:
Royalty rights - at fair value	376,510	349,223
Assets, Fair Value	376,510	349,223
Financial liabilites:
Business Combination, Contingent Consideration, Liability, Current	1,071
Business Combination, Contingent Consideration, Liability, Noncurrent	0	42,000
Equity Securities [Member]
Financial assets:
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value		4,848
Contingent Consideration [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	(1,071)	$ (42,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	858
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	(1,560)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	$ 41,631

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Notes Receivable, Fair Value Disclosure	$ 70,000	$ 71,300
Assets, Fair Value Disclosure	603,291	771,663
Liabilities:
Notes Payable, Carrying Value	124,644	243,481	$ 232,443
February 2018 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	0	126,066	121,595
December 2021 Notes [Member]
Liabilities:
Notes Payable, Carrying Value	124,644	117,415	$ 110,848
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,191	50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value	1,200	1,200
CareView [Member]
Assets
Notes receivable, Carrying Value	11,458	19,346
Fair Value Level 2 [Member]
Assets
Assets, Fair Value Disclosure	62	29
Liabilities:
Notes payable, Fair Value	151,356	274,159
Fair Value Level 2 [Member] \| February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value	0	126,131
Fair Value Level 2 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value	151,356	148,028
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] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure	0	0
Fair Value Level 3 [Member]
Assets
Notes Receivable, Fair Value Disclosure	69,980	71,258
Assets, Fair Value Disclosure	376,510	349,223
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	57,322	51,308
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes Receivable, Fair Value Disclosure	1,200	1,200
Fair Value Level 3 [Member] \| CareView [Member]
Assets
Notes Receivable, Fair Value Disclosure	11,458	18,750
Assets [Member]
Assets
Assets, Fair Value Disclosure	62,849	70,737
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, 2018	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	$ 376,510	$ 349,223
Change in fair value of acquired royalty rights, Level 3 Rollforward	85,256	162,327
Payments for (Proceeds from) Productive Assets	(77,969)	(107,253)	$ (72,582)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	41,631	(349)
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value	0	4,848
Fair Value Level 2 [Member] \| Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value	0	0
Fair Value Level 1 [Member] \| Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Available for Sale Securities, Fair Value	$ 0	$ 4,848

Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	$ 20,000,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	376,510,000	$ 349,223,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	7,287,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	41,631,000	(349,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	(858,000)	0	$ 0
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	376,510,000	349,223,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	20,000,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	7,287,000
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	264,371,000	232,038,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	20,000,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	12,333,000
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	14,108,000	14,380,000
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	(272,000)
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	25,595,000	26,769,000
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	(1,174,000)
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	70,380,000	72,894,000
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	(2,514,000)
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	0	396,000
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	(396,000)
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	2,056,000	2,746,000
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	(690,000)
Contingent Consideration [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	(1,071,000)	$ (42,000,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	1,560,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	41,631,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	$ 858,000
Measurement Input, Discount Rate [Member] \| CareView [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input	0.30	0.18
Measurement Input, Discount Rate [Member] \| Minimum [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input	0.12	0.12
Measurement Input, Discount Rate [Member] \| Maximum [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input	0.15	0.15
Measurement Input, Discount Rate [Member] \| Intellectual Property [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 21,000,000.00	$ 21,000,000.00
Measurement Input, Discount Rate [Member] \| Other [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 34,000,000.00	$ 32,000,000.00
Estimated realtor fee [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input	0.06	0.06
Real estate appreciation [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Held-for-sale, Measurement Input	0.04	0.04

Cash Equivalents and Investments (Narrative) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax	$ 0	$ 1,181,000
Gains (losses) on sales of available-for-sale securities	$ 764,000	$ 108,000	$ 900,000

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	$ 394,590	$ 530,619
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	1,495
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	394,590	532,114
Cash and Cash Equivalents	394,590	527,266	$ 147,154	$ 218,883
Short-Term Marketable Securities	0	4,848
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	167,871	109,703
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	167,871	109,703
Cash and Cash Equivalents	167,871	109,703
Short-Term Marketable Securities	0	0
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Adjusted Cost	226,719	417,563
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Cash, Cash Equivalents and Available-for-Sale Securities, Fair Value	226,719	417,563
Cash and Cash Equivalents	226,719	417,563
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

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, 2018

Dec. 31, 2017

Dec. 31, 2016

Derivative [Line Items]

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

^[1]

$ 0

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

^[2]

$ 0

$ 1,821

[1]	(1) Net change in the fair value of the effective portion of cash flow hedges classified in Other Comprehensive Income
[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		3 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 ($)	Feb. 28, 2013	Jan. 31, 2013 USD ($)	Dec. 31, 2018 USD ($) shares	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Apr. 30, 2018	Feb. 28, 2018 $ / shares	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 ($)	Nov. 06, 2013 USD ($)	Jun. 28, 2013 USD ($)	Mar. 05, 2013 USD ($)	Nov. 02, 2012 USD ($)	Jan. 27, 2012 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Acquisition premium		1.00%
Gain Contingency, Unrecorded Amount																			$ 55,800,000									$ 55,800,000
Repayment of notes receivable																												0	$ 8,190,000	$ 0
Accounts Receivable, Net, Noncurrent																								$ 1,400,000
Investment Owned, Balance, Shares \| shares																																						1.7
Investment Owned, at Fair Value																																						$ 6,600,000
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																			62,000				29,000					62,000	29,000
License and other																			$ 45,119,000	$ 67,898,000	$ 46,575,000	$ 38,518,000	68,036,000	$ 62,749,000	$ 143,835,000	$ 45,440,000		$ 198,110,000	320,060,000	244,301,000
Equity investment, shares held (shares) \| shares																			4.4									4.4
Asset Impairment Charges																												$ 8,200,000	0	3,735,000
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									$ 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
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down						$ 51,100,000
Interest rate of note receivable (in Percent)																																											13.50%		15.50%
Amount company has agreed to advance under agreement												$ 15,000,000		$ 50,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares																																		$ 0.01	$ 0.01
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 Owned, Balance, Shares \| shares																			1.7									1.7
Investment Owned, at Fair Value																			$ 6,600,000				$ 6,600,000					$ 6,600,000	6,600,000
CareView [Member]
Accounts Notes And Loans Receivable [Line Items]
Interest rate of note receivable (in Percent)											13.50%
Amount company has agreed to advance under agreement											$ 40,000,000
Tranche 1 of note receivable											20,000,000
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																					$ 0.03								$ 0.40
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
License and other [Member]
Accounts Notes And Loans Receivable [Line Items]
License and other																												$ 533,000	$ 19,451,000	$ (126,000)
DirectFlow [Member] \| License and other [Member]
Accounts Notes And Loans Receivable [Line Items]
License and other	$ 500,000

Property and Equipment (Property and Equipment) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Leasehold Improvements, Gross	$ 322	$ 321
Machinery and Equipment, Gross	1,669	1,393
Computer and office equipment	9,451	10,141
Furniture and Fixtures, Gross	162	137
Capital Leased Assets, Gross	6,529	6,700
Property, Plant and Equipment, Other, Gross	67	0
Property, Plant and Equipment, Gross	18,200	18,692
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(14,203)	(11,474)
Construction in Progress, Gross	3,390	4
Property, Plant and Equipment, Net	7,387	7,222
Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation	$ 2,700	$ 2,300	$ 100

Accrued Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Compensation	$ 4,468	$ 6,043
Interest	344	2,451
Deferred Revenue	8,811	9,741
Customer Refundable Fees	0	647
Accrued rebate liability	20,133	19,613
Dividend payable	15	79
Customer Advances, Current	1	3,198
Legal	623	595
Other	4,917	3,514
Total	$ 39,312	$ 45,881

Accrued Liabilities Accrued rebates, chargebacks and other reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Contract assets [Line Items]
Government rebates and chargebacks	$ 8,901	$ 8,709
Assistance and Other Discounts	3,457	4,178
Product return	4,681	3,304
Discount and Distribution Fees	3,094	3,422
Accrued liabilities, amounts received in advance of revenue recognition	20,133	$ 19,613
Allowances for prior period sales	99
Payments for current period sales	(21,321)
Allowances for current period sales	38,559
Payments for prior period sales	(16,817)
Discount and Distribution Fees [Member]
Contract assets [Line Items]
Allowances for prior period sales	0
Payments for current period sales	(6,313)
Allowances for current period sales	9,403
Payments for prior period sales	(3,418)
Government Rebates and Chargebacks [Member]
Contract assets [Line Items]
Allowances for prior period sales	38
Payments for current period sales	(10,045)
Allowances for current period sales	18,583
Payments for prior period sales	(8,384)
Assistance and Other Discounts [Member]
Contract assets [Line Items]
Allowances for prior period sales	0
Payments for current period sales	(4,963)
Allowances for current period sales	8,206
Payments for prior period sales	(3,964)
Product Returns [Member]
Contract assets [Line Items]
Allowances for prior period sales	61
Payments for current period sales	0
Allowances for current period sales	2,367
Payments for prior period sales	$ (1,051)

Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands		12 Months Ended
	Sep. 21, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017	Jul. 03, 2017	Jul. 01, 2016	Jun. 29, 2016
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Acquisition premium	1.00%
Repayment of notes receivable		$ 0	$ 8,190	$ 0
Accounts Receivable, Net, Noncurrent					$ 1,400
Operating Leases, Rent Expense		1,300	800	$ 300
Guarantor Obligations, Maximum Exposure, Undiscounted		33,800
Accrued lease liability		10,700	$ 10,700
Other Investments								$ 75,000
Guarantees, Fair Value Disclosure							$ 14,000
Anniversary payment						$ 89,000	$ 87,000
Other Long-term Investments						$ 75,000
Noden [Member] \| Next six months [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation		12,300
Noden [Member] \| Next thirty-six months [Member] [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation		127,600
Noden [Member] \| Next twelve months [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation		54,000
LENSAR [Member] \| Next twelve months [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation		3,500
LENSAR [Member] \| Next twenty-four months [Member] [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Obligation		$ 3,800
kaleo Note Receivable [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Repayment of notes receivable	$ 141,700

Convertible Notes (Narrative) (Detail) $ / shares in Units, shares in Millions					12 Months Ended
	Nov. 21, 2016 USD ($)	Nov. 20, 2015 USD ($)	Feb. 11, 2014 USD ($)	Feb. 05, 2014 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Feb. 01, 2018 USD ($)	Nov. 22, 2016 USD ($) $ / shares	Nov. 21, 2015 USD ($)	Mar. 30, 2015 USD ($)	Sep. 30, 2014	Feb. 12, 2014 USD ($)	Feb. 06, 2014 USD ($) $ / shares
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
Minimum conversion price percent for note conversion (in Percent)					130.00%
Share Price \| $ / shares														$ 7.97
Net proceeds from the issuance of convertible notes					$ 0	$ 0	$ 150,000,000
Interest Paid, Including Capitalized Interest, Operating and Investing Activities					6,654,000	9,286,000	11,410,000
Purchased call options cost					0	0	(14,400,000)
Gains (loss) on extinguishment of debt					$ 0	0	$ (2,353,000)
Repayment of convertible note, principal								$ 126,400,000
Repayment of convertible note, interest								$ 2,600,000
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			$ 124,644,000	117,415,000			$ 150,000,000
Unamortized discount of liability component					$ (25,356,000)	(32,585,000)			$ (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)					2 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
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
May 2015 Notes [Member]
Debt Instrument [Line Items]
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)					98.00%
Purchased Call Options [Member]
Debt Instrument [Line Items]
Convertible notes, conversion price (in Dollars per Share) \| $ / shares					$ 4.88
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible Debt					$ 0	126,066,000							$ 300,000,000
Unamortized discount of liability component		(3,100,000)			0	(381,000)			$ (4,300,000)
Deferred issuance costs		900,000							1,300,000	$ 29,700,000
Purchase call option unwind		300,000
Warrant unwind		200,000
Fees and Commissions, Transfer Agent (Deprecated 2018-01-31)		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%
Estimated market interest rate for similar nonconvertible instrument													7.00%
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, Including Capitalized Interest, Operating and Investing Activities	$ 1,500,000
Debt Instrument, Face Amount					0	$ 126,447,000
Gains (loss) on extinguishment of debt		$ 6,500,000
Repayments of Convertible Debt					$ 129,000,000
March 2015 Term Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					2.17%						0.75%
Short-term Debt											$ 100,000,000

Convertible Notes (Summary of Convertible Notes) (Detail)			12 Months Ended
	Nov. 21, 2016	Nov. 20, 2015 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 22, 2016 $ / shares	Feb. 12, 2014
Debt Instrument [Line Items]
Repayments of Notes Payable			$ (126,447,000)	$ 0	$ 0
Principal amount a $5 incentive cash payment per each to convert debt			1,000
Convertible Notes and Term Loans, Beginning Balance			243,481,000	232,443,000
Gains (Losses) on Extinguishment of Debt			0	0	2,353,000
Amortization			7,610,000	11,038,000
Convertible Notes and Term Loans, Ending Balance			124,644,000	243,481,000	232,443,000
February 2018 Notes [Member]
Debt Instrument [Line Items]
Repayments of Notes Payable			(126,447,000)
Debt Instrument, Interest Rate, Stated Percentage							4.00%
Convertible Notes, Principal Balance Outstanding			0	126,447,000
Convertible Notes and Term Loans, Beginning Balance			126,066,000	121,595,000
Gains (Losses) on Extinguishment of Debt		$ (6,500,000)
Amortization of Debt Discount (Premium)			293,000	3,449,000	9,870,000
Amortization			381,000	4,471,000
Convertible Notes and Term Loans, Ending Balance			0	126,066,000	121,595,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Repayments of Notes Payable			0
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			117,415,000	110,848,000
Amortization of Debt Discount (Premium)			542,000	526,000
Amortization			7,229,000	6,567,000
Convertible Notes and Term Loans, Ending Balance			$ 124,644,000	$ 117,415,000	$ 110,848,000

Convertible Notes Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Dec. 31, 2018 USD ($)
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	150,000
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	150,000
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	150,000
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	$ 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, 2018	Dec. 31, 2017	Nov. 22, 2016	Nov. 20, 2015	Feb. 12, 2014
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 0	$ 126,447
Debt Instrument, Unamortized Discount	0	(381)	$ (4,300)	$ (3,100)
Convertible Debt	$ 0	$ 126,066			$ 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 ($)	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 22, 2016 USD ($)	Nov. 21, 2015 USD ($)	Nov. 20, 2015 USD ($)	Sep. 30, 2014
Debt Instrument [Line Items]
Purchased call options cost		$ 0	$ 0	$ (14,400)
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount		0	381		$ 4,300		$ 3,100
Deferred issuance costs					$ 1,300	$ 29,700	$ 900
Interest Expense, Debt, Excluding Amortization		422	5,058	9,338
Amortization of debt issuance costs		88	1,022	2,863
Amortization of Debt Discount (Premium)		293	3,449	9,870
Total		$ (803)	$ (9,529)	$ (22,071)
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) - February 2018 Notes [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Contractual coupon interest	$ 4,125	$ 4,125
Amortization of debt issuance costs	76	74
Amortization of Debt Discount (Premium)	542	526
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature	6,611	5,967
Total	$ 11,354	$ 10,692

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule of Other Liabilities [Line Items]
Accrued lease liability	$ 10,700	$ 10,700
Deferred Compensation Liability, Classified, Noncurrent	125	1,729
Deferred Tax and Other Liabilities, Noncurrent	13,847	1,208
Uncertain tax position	31,706	30,682
Other Sundry Liabilities, Noncurrent	4	47
Other Sundry Liabilities	461	343
Total	$ 56,843	$ 44,709

Stock-Based Compensation (Narrative) (Detail) - USD ($)	12 Months Ended
Stock-Based Compensation (Narrative) (Detail) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		15,000,000		26,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 1.09
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	6,908,000,000
Allocated Share-based Compensation Expense, Net of Tax	$ 4,758,000	$ 3,138,000	$ 3,742,000
Aggregate intrinsic value, non-vested restricted stock	$ 2,100,000	$ 2,800,000	$ 2,400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 11 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	723,000	2,065,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	6,908,000,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 2.76
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	9 years 1 month
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 5,000,000.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,057,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 1,800,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 2.61	$ 2.15	$ 3.31
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
2005 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	26,200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 1,100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	9 months 22 days
Inducement Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	961,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	240,200
Nonstatutory [Member] \| Stock Options [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	2 years 9 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	260,271
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	400,000
Nonstatutory [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value, non-vested restricted stock	300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 5 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	160,134

Stock-Based Compensation (Stock-Based Compensation Expense for Employees and Directors and Non-Employees) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,758	$ 3,138	$ 3,742
Employees and directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4,758	3,138	3,679
Non-employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ 0	$ 63

Stock-Based Compensation (Shares of Company Common Stock Available Under Share-Based Plans) (Detail) - shares	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		26,200,000	15,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	6,908,000,000
2005 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	26,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	10,416,523
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	15,783,000

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	1,763,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	6,908,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		3 years 8 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum	2.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum	3.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	40.00%	44.00%
Stock Options, Number of Shares, Balance at end of period (in Shares)	6,908,000
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	2,065
Restricted Stock Awards, Number of Shares Granted (in Shares)	1,057
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	723	2,065
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 2.61
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	$ 2.61	$ 2.15	$ 3.31
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(758)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 2.78
Withheld related to net settlement	(104)
Adjustments Related to Tax Withholding for Share-based Compensation	$ 2.71
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	2.44
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	$ 2.79	$ 2.61
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(1,537)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price	$ 2.76
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	9 years 1 month
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 2.76
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	9 years 1 month
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 1,099
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 259
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 2.76
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years

Stock-Based Compensation (Restricted Stock Activity) (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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	723	2,065
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 2.79	$ 2.61
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,057
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 2.61	$ 2.15	$ 3.31
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(758)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 2.78
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 2.44
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(1,537)

Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Genentech [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	0.00%	0.00%	43.00%
Biogen Idec [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	2.00%	11.00%	24.00%
Depomed [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	42.00%	52.00%	13.00%
LENSAR [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	12.00%	5.00%	0.00%
Noden [Member]
Concentration Risk [Line Items]
Royalty by Licensee as a percentage of revenue, Percentage	41.00%	22.00%	13.00%

Customer Concentration (Total Revenues by Geographic Area) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Revenues	$ 45,119	$ 67,898	$ 46,575	$ 38,518	$ 68,036	$ 62,749	$ 143,835	$ 45,440	$ 198,110	$ 320,060	$ 244,301
UNITED STATES
Concentration Risk [Line Items]
Revenues									148,622	291,448	157,327
Europe [Member]
Concentration Risk [Line Items]
Revenues									27,709	16,144	82,534
Other geographic location [Member]
Concentration Risk [Line Items]
Revenues									$ 21,779	$ 12,468	$ 4,440

Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 02, 2018	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Unrecognized Tax Benefits	$ 80,783	$ 79,179	$ 59,429		$ 57,125
Deferred Tax Assets, Valuation Allowance	13,271	2,046
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	59,500
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	1,000	1,000	1,000
Unrecognized tax benefits resulting in adjustment to deferred tax assets	21,300
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	0	18,967	$ 1,868
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	8,000	7,000
2017TaxActNOLLimitation				80.00%
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount	13,300
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 11,200	$ 500
Federal income tax rate	21.00%	35.00%
Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 101,700	$ 117,300
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 22,000
Operating Loss Carryforwards, Limitations on Use	30.4
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 285,900	299,900
Deferred Tax Assets, Tax Credit Carryforwards	19,300	$ 19,300
Revenue Commissioners, Ireland [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	73,000
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
For the year ending December 31, 2025 [Member]
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Limitations on Use	2.2	2.2
Capital Loss Carryforward [Member]
Operating Loss Carryforwards [Line Items]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount	$ 1,900
SEC Schedule, 12-09, Valuation Allowance, Other Tax Carryforward [Member]
Operating Loss Carryforwards [Line Items]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount	$ 11,400

Income Taxes (Provision for Income Taxes) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Contingency [Line Items]
Current Federal Tax Expense (Benefit)	$ 2,169	$ 31,338	$ 49,582
Current State and Local Tax Expense (Benefit)	1,029	2,843	3,103
Current Foreign Tax Expense (Benefit)	(4,107)	529	2,455
Current Income Tax Expense (Benefit)	(909)	34,710	55,140
Deferred Federal Income Tax Expense (Benefit)	11,497	36,911	(8,476)
Deferred State and Local Income Tax Expense (Benefit)	1,313	2,591	147
Deferred Foreign Income Tax Expense (Benefit)	1,036	(386)	(1,100)
Deferred Income Tax Expense (Benefit)	13,846	39,116	(9,429)
Income Tax Expense (Benefit)	$ 12,937	$ 73,826	$ 45,711

Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 11,713	$ 6,276
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	(11,744)	64,589	$ 38,279
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	11,226	1,807	(744)
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	1,376	1,496	74
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	809	681	2,184
Foreign Income Tax Expense (Benefit), Continuing Operations	1,048	3,231	5,668
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	8,936	1,356	(1,445)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	0	716	0
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount	939	0	0
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	347	(50)	1,695
Income Tax Expense (Benefit)	12,937	73,826	$ 45,711
Deferred Tax Assets, Tax Credit Carryforwards, Research	1,580	1,414
Deferred Tax Liabilities, Intangible Assets	2,203	1,453
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	1,130	547
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves	2,362	4,667
Deferred Tax Assets, Capital Loss Carryforwards	1,866	2,027
Deferred Tax Assets, Other	6,642	5,878
Deferred Tax Assets, Gross	32,157	22,262
Deferred Tax Assets, Valuation Allowance	(13,271)	(2,046)
Deferred Tax Assets, Net of Valuation Allowance	18,886	20,216
Deferred Tax Liabilities, Tax Deferred Income	0	117
Deferred Tax Liabilities, Financing Arrangements	2,981	1,197
Deferred Tax Liabilities, Intangible Assets	(28,214)	(16,932)
Deferred Tax Liabilities, Other	0	427
Deferred Tax Liabilities, Unrealized Currency Transaction Gains	0	(320)
Deferred Tax Liabilities, Gross	(31,195)	(18,993)
Deferred Tax Liabilities, Net	12,309
Deferred Tax Assets, Net		1,223
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	$ 4,661	$ 0

Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 1,000	$ 1,000	$ 1,000
Unrecognized Tax Benefits, Beginning Balance	79,179	59,429
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	1,604	783	436
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	0	18,967	1,868
Unrecognized Tax Benefits, Ending Balance	$ 80,783	$ 79,179	$ 59,429

Income Taxes Income before taxes, by location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 48,844	$ 195,865	$ 103,656
Income (Loss) from Continuing Operations before Income Taxes, Foreign	$ (104,766)	$ (11,338)	5,714
Federal income tax rate	21.00%	35.00%
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ (55,922)	$ 184,527	$ 109,370

Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	$ 1,181
Other Comprehensive Income (Loss), Net of Tax	(1,181)	$ 1,181	$ (2,256)
Total Accumulated Other Comprehensive Loss, ending balance	0	1,181
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	1,181	0	2,256
Other Comprehensive Income (Loss), Net of Tax	(1,181)	1,181	(2,256)
Total Accumulated Other Comprehensive Loss, ending balance	0	1,181	0
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total Accumulated Other Comprehensive Loss, beginning balance	1,181	0	435
Other Comprehensive Income (Loss), Net of Tax	(1,181)	1,181	(435)
Total Accumulated Other Comprehensive Loss, ending balance	0	1,181	0
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	0	1,821
Other Comprehensive Income (Loss), Net of Tax	0	0	(1,821)
Total Accumulated Other Comprehensive Loss, ending balance	$ 0	$ 0	$ 0

Subsequent Events (Narrative) (Detail) - USD ($)	2 Months Ended	3 Months Ended	4 Months Ended	9 Months Ended	12 Months Ended
Subsequent Events (Narrative) (Detail) - USD ($)	Mar. 13, 2019	Dec. 31, 2018	Mar. 13, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Sep. 24, 2018	Sep. 25, 2017	Mar. 02, 2017
Subsequent Event [Line Items]
Stock Repurchased During Period, Shares		8,700,000		8,700,000	16,660,566	13,346,389
Treasury Stock Acquired, Average Cost Per Share		$ 2.94		$ 3		$ 2.25
Stock Repurchased During Period, Value		$ 25,500,000		$ 25,000,000		$ 30,000,000
Stock Repurchase Program, Authorized Amount							$ 100,000,000	$ 25,000,000	$ 30,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock Repurchased During Period, Shares	10,700,000		19,400,000
Treasury Stock Acquired, Average Cost Per Share	$ 3.32		$ 3.15
Stock Repurchased During Period, Value	$ 35,500,000		$ 61,000,000

Quarterly Financial Data (Unaudited) (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effect of Fourth Quarter Events [Line Items]
Revenues	$ 45,119	$ 67,898	$ 46,575	$ 38,518	$ 68,036	$ 62,749	$ 143,835	$ 45,440	$ 198,110	$ 320,060	$ 244,301
Net Income (Loss) Attributable to Parent	$ 16,279	$ 25,556	$ (112,296)	$ 1,602	$ 22,336	$ 20,732	$ 60,439	$ 7,241	$ (68,859)	$ 110,748	$ 63,606
Net income per basic share (in Dollars per Share)	$ 0.12	$ 0.18	$ (0.76)	$ 0.01	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.47)	$ 0.71	$ 0.39
Net income per diluted share (in Dollars per Share)	$ 0.11	$ 0.18	$ (0.76)	$ 0.01	$ 0.15	$ 0.14	$ 0.39	$ 0.04	$ (0.47)	$ 0.71	$ 0.39

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

+ References

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+ Details

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

+ References

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+ Details

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

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
Inventory, Raw Materials, Gross	$ 6,214	$ 1,717
Deferred Costs and Other Assets	500	1,300
Inventory, Work in Process, Gross	549	1,119
Inventory, Finished Goods, Gross	12,179	6,311
Inventory, Net	18,942	9,147
Inventory Write-down	$ 1,203	$ (2,012)	$ (342)

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Jun. 30, 2018

Jun. 27, 2018

Short-Duration Contracts, Discounted Liabilities, Discount Rate

21.00%

Amortization of Intangible Assets

$ 15,831,000

$ 24,689,000

$ 12,028,000

Finite-Lived Intangible Assets, Accumulated Amortization

55,752,000

252,540,000

(4,433,000)

(36,717,000)

51,319,000

215,823,000

51,319,000

215,823,000

152,330,000

$ 0

Acquired rights [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

36,143,000.000

216,690,000.000

^[1]

(2,258,000.000)

(32,503,000.000)

Customer Relationships [Member]

^[1]

33,885,000.000

184,187,000.000

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

8,028,000.000

26,080,000.000

^[1]

(782,000.000)

(3,729,000.000)

Patented Technology [Member]

^[1]

7,246,000.000

22,351,000.000

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

11,011,000.000

9,200,000.000

^[1]

(1,203,000.000)

(409,000.000)

^[1]

9,808,000.000

8,791,000.000

Trademarks [Member]

Finite-Lived Intangible Assets, Accumulated Amortization

^[1]

570,000.000

^[1]

(190,000.000)

(76,000.000)

^[1]

$ 380,000.000

$ 494,000.000

Noden [Member]

Intangible Assets, Gross (Excluding Goodwill)

$ 192,500,000

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

8 years

$ 40,100,000

$ 192,500,000

$ 152,300,000

LENSAR [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

15 years

DirectFlow [Member]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

10 years

[1]

1) The Company acquired certain intangible assets as part of the Noden Transaction. They are being amortized on a straight-line basis over a weighted-average period of eight years.(2) The Company acquired certain intangible assets as part of the LENSAR transaction. The intangible assets are being amortized on a straight-line basis over a weighted-average period of 15 years. 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. For a further discussion of the LENSAR transaction, see Note 23, Business Combinations.(3) The Company acquired certain intangible assets as part of the foreclosure on certain of Direct Flow Medical assets, as described further in Note 9, Notes and Other Long-Term Receivables. They are being amortized on a straight-line basis over a weighted-average period of 10 years.

Intangible Assets and Goodwill Schedule of Future Amortization for Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Future Amortization Expense [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 6,275
Finite-Lived Intangible Assets, Amortization Expense, Year Two	6,240
Finite-Lived Intangible Assets, Amortization Expense, Year Three	6,209
Finite-Lived Intangible Assets, Amortization Expense, Year Four	6,104
Finite-Lived Intangible Assets, Amortization Expense, Year Five	6,040
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	20,451
Finite-Lived Intangible Assets, Net	$ 51,319	$ 215,823

Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands						12 Months Ended
	Jan. 07, 2018	May 13, 2017	May 11, 2017	May 09, 2017	Jul. 02, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 03, 2017	Jan. 20, 2017	Jul. 01, 2016
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue						$ 198,110	$ 325,605
Business Combination, Consideration Transferred	$ 1,200				$ 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									$ 89,000		87,000
Federal income tax rate						21.00%	35.00%
Business Acquisition, Pro Forma Net Income (Loss)						$ (68,859)	$ 107,193
Business Acquisition, Pro Forma Earnings Per Share, Basic						$ (0.47)	$ 0.69
Business Acquisition, Pro Forma Earnings Per Share, Diluted						$ (0.47)	$ 0.69
Accounts and Notes Receivable, Net						$ 62,800	$ 70,700
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value			$ 31,700
Gain (Loss) on Investments						$ 764	$ 0	$ 0
Noden [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						8 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]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						15 years
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
Measurement Input, Discount Rate [Member]
Business Acquisition [Line Items]
Lensar acquisition assumptions			16.00%
Minimum [Member]
Business Acquisition [Line Items]
Lensar acquisition assumptions			37.00%
Maximum [Member]
Business Acquisition [Line Items]
Lensar acquisition assumptions			72.00%
Federal income tax rate						21.00%	35.00%

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

12 Months Ended

Jan. 07, 2018

May 13, 2017

Jul. 02, 2016

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Jun. 30, 2018

Jun. 27, 2018

Jan. 05, 2018

May 11, 2017

Jul. 01, 2016

Acquired Finite-Lived Intangible Assets [Line Items]

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

$ 51,319

$ 215,823

$ 2,760

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

$ 1,845

Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized

$ (10,615)

Business Combination, Bargain Purchase, Gain Recognized, Amount

(9,309)

$ 0

$ 1,200

$ 244,300

Acquired Finite-Lived Intangible Assets [Line Items]

$ 152,330

$ 0

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]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

15 years

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]

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

8 years

Indefinite-lived Intangible Assets Acquired

$ 40,100

$ 192,500

3,735

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

$ 244,305

244,305

Noden [Member] | Acquired rights [Member]

$ 152,300

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-lived Intangible Assets Acquired

216,690

Noden [Member] | Customer Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-lived Intangible Assets Acquired

$ 23,880

[1]

(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 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.

Proforma (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Business Acquisition, Pro Forma Revenue	$ 198,110	$ 325,605
Business Acquisition, Pro Forma Net Income (Loss)	$ (68,859)	$ 107,193
Business Acquisition, Pro Forma Earnings Per Share, Basic	$ (0.47)	$ 0.69
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ (0.47)	$ 0.69

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 7,387				$ 7,222				$ 7,387	$ 7,222
Net Income (Loss) Attributable to Parent	16,279	$ 25,556	$ (112,296)	$ 1,602	22,336	$ 20,732	$ 60,439	$ 7,241	(68,859)	110,748	$ 63,606
Revenues	45,119	$ 67,898	$ 46,575	$ 38,518	68,036	$ 62,749	$ 143,835	$ 45,440	198,110	320,060	$ 244,301
Income generating assets [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	160				137				160	137
Net Income (Loss) Attributable to Parent									34,595	125,759
Revenues									92,662	235,937
Pharmaceutical [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	3,682				822				3,682	822
Net Income (Loss) Attributable to Parent									(98,368)	(5,755)
Revenues									80,796	69,032
Medical devices [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 3,545				$ 6,263				3,545	6,263
Net Income (Loss) Attributable to Parent									(5,086)	(9,256)
Revenues									$ 24,652	$ 15,091

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