Notes and other receivables, long-term

269,668

^[1]

259,244

^[2]

302,367

^[1]

305,615

^[2]

Long-term deferred tax assets

34,917

^[1]

33,799

^[2]

Other assets

6,462

^[1]

7,733

^[2]

Total assets

1,114,133

^[1]

962,350

^[2]

Current liabilities:

Accounts payable

615

^[1]

318

^[2]

Accrued liabilities

81,481

^[1]

8,876

^[2]

Accrued Income Taxes, Current

^[1]

3,293

^[2]

Deferred Tax Liabilities

6,667

Term loan payable

99,393

^[1]

Convertible Notes Payable, Current

154,592

^[1]

175,496

^[2]

Total current liabilities

342,748

^[1]

187,983

^[2]

Convertible notes payable

277,975

^[1]

276,228

^[2]

Other long-term liabilities

41,466

^[1]

37,702

^[2]

Total liabilities

662,189

^[1]

501,913

^[2]

Commitments and contingencies (Note 8)

^[1]

^[2]

Stockholders' deficit:

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

^[1]

^[2]

Common stock, par value $0.01 per share, 350,000 shares authorized; 163,534 and 162,186 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively

1,635

^[1]

1,622

^[2]

Additional paid-in capital

(119,386)

^[1]

(119,874)

^[2]

Accumulated other comprehensive gain

7,910

^[1]

2,949

^[2]

Retained earnings

561,785

^[1]

575,740

^[2]

Total stockholders' equity

451,944

^[1]

460,437

^[2]

Total liabilities and stockholders' equity

$ 1,114,133

^[1]

$ 962,350

^[2]

[1]	unaudited
[2]	Note 1

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

Mar. 31, 2015

Dec. 31, 2014

Statement of Financial Position [Abstract]

Preferred stock par value (in Dollars per Share)

$ 0.01

^[1]

$ 0.01

^[2]

Preferred stock, shares authorized (in Shares)

10,000

^[1]

10,000

^[2]

Preferred stock, shares issued (in Shares)

^[1]

^[2]

Preferred stock, shares outstanding (in Shares)

^[1]

^[2]

Common stock par value (in Dollars per Share)

$ 0.01

^[1]

$ 0.01

^[2]

Common stock, shares authorized (in Shares)

350,000

^[1]

350,000

^[2]

Common stock, shares issued (in Shares)

163,534

^[1]

162,186

^[2]

Common stock, shares outstanding (in Shares)

163,534

^[1]

162,186

^[2]

[1]	unaudited
[2]	Note 1

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

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Cash flows from operating activities

Net income

$ 84,498

$ 72,883

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

Amortization of convertible notes and term loan offering costs

4,066

4,817

Change in fair value of acquired royalty rights

(11,362)

(11,707)

Losses on Extinguishment of Debt

(6,143)

Depreciation, Amortization and Accretion, Net

(45)

Hedge ineffectiveness on foreign exchange contracts

(2)

Stock-based compensation expense

501

194

Deferred income taxes

3,343

(1,012)

Changes in assets and liabilities:

Receivables from licensees and other

300

(11,350)

Prepaid and other current assets

(6,396)

844

Accrued interest on notes receivable

(2,594)

(3,284)

Other assets

Accounts payable

297

123

Accrued liabilities

(1,081)

2,682

Increase (Decrease) in Income Taxes Payable

(3,293)

5,335

Other long-term liabilities

3,546

2,520

Net cash provided by operating activities

71,846

68,141

Cash flows from investing activities

Payments for (Proceeds from) Productive Assets

938

23,638

Purchase of notes receivable

(50,000)

Net cash provided by/(used in) investing activities

938

(26,362)

Proceeds from Short-term Debt

100,000

Cash flows from financing activities

Repurchase of Convertible Notes

22,337

29,906

Proceeds from the issuance of Convertible Notes, net

300,000

Payment of debt issuance costs

(607)

(9,824)

Purchase of purchased call options, net of tax

(30,951)

Proceeds from Issuance of Warrants

11,427

Repayments of Notes Payable

(18,750)

Cash dividends paid

(24,549)

(24,042)

Net cash provided by/(used in) financing activities

52,507

197,954

Net increase in cash and cash equivalents

125,291

239,733

Cash and cash equivalents at beginning of the period

291,377

^[1]

Cash and cash equivalents at end of period

416,668

^[2]

Supplemental cash flow information

Cash paid for income taxes

52,000

34,000

Cash paid for interest

6,332

5,454

Other Significant Noncash Transaction, Value of Consideration Given

$ 9,794

$ 157,591

[1]	Note 1
[2]	unaudited

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

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

The accompanying Condensed Consolidated Financial Statements and related financial information should be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2014, included in our Annual Report on Form 10-K, as amended, filed with the SEC. The Condensed Consolidated Balance Sheet at December 31, 2014, has been derived from the audited Consolidated Financial Statements at that date, but does not include all disclosures required by GAAP.

Principles of Consolidation

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

Management Estimates

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

Notes Receivable and Other Long-Term Receivables

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

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

Convertible Notes

We issued our Series 2012 Notes, May 2015 Notes and our February 2018 Notes with a net share settlement feature, meaning that upon any conversion, the principal amount will be settled in cash and the remaining amount, if any, will be settled in shares of our common stock. In accordance with accounting guidance for convertible debt instruments that may be settled in cash or other assets upon conversion, we separated the principal balance between the fair value of the liability component and the common stock conversion feature using a market interest rate for a similar nonconvertible instrument at the date of issuance.

Queen et al. Royalty Revenues

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

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

Royalty Rights - At Fair Value

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

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

Reclassifications

Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Interest income recognized from financial assets that was previously reported as a component of "Interest and other income, net" in our Condensed Consolidated Statements of Income has been reclassified to "Interest revenue" as a component of revenue in the Condensed Consolidated statements of Income. Intangible assets that were previously reported in our Condensed Consolidated Balance Sheets have been reclassified to “Royalty rights - at fair value” as a component of assets in the Condensed Consolidated Balance Sheets. Cost of sales that were previously reported in our Condensed Consolidated Statements of Income have been reclassified to "Royalty rights - change in fair value" as a component of revenue in Condensed Consolidated statements of Income. Amortization of intangible assets that were previously reported in our Condensed Consolidated Statements of Cash Flows have been reclassified to “Change in fair value of royalty rights - at fair value” and “Proceeds from royalty rights - at fair value” in our Condensed Consolidated Statements of Cash Flows.

Customer Concentration

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



		Three Months Ended March 31,
Licensee	Product Name	2015		2014
Genentech	Avastin	26	%	30	%
	Herceptin	25	%	28	%

Biogen	Tysabri^®	10	%	9	%

Foreign Currency Hedging

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

We hedge certain Euro-denominated currency exposures related to royalties associated with our licensees’ product sales with Euro forward contracts. In general, these contracts are intended to offset the underlying Euro market risk in our royalty revenues. The last of these contracts expires in the fourth quarter of 2015. We designate foreign currency exchange contracts used to hedge royalty revenues based on underlying Euro-denominated licensee product sales as cash flow hedges.

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

Income Taxes

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

The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

Comprehensive Income (Loss)

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

Recently Issued Accounting Pronouncements

In April 2015, FASB issued ASU 2015-03 – Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for the Company beginning in the first quarter of 2016. The Company is currently evaluating the impact of ASU 2015-03 on its financial statements.

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

+ References+ Details

Net Income per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Net Income per Share

2. Net Income per Share



	Three Months Ended
	March 31,
Net Income per Basic and Diluted Share:	2015		2014
(in thousands except per share amounts)
Numerator
Net income used to compute net income per basic and diluted share	$	84,498	$	72,883

Denominator
Weighted-average shares used to compute net income per basic share	162,829		151,198
Restricted stock outstanding	28		68
Effect of dilutive stock options	18		21
Assumed conversion of Series 2012 Notes	666		6,903
Assumed conversion of warrants	1,927		—
Assumed conversion of May 2015 Notes	4,944		6,381
Weighted-average shares used to compute net income per diluted share	170,412		164,571

Net income per share - basic	$	0.52	$	0.48
Net income per share - diluted	$	0.50	$	0.44

We compute diluted net income per share using the sum of the weighted-average number of common and common equivalents shares outstanding. Common equivalent shares used in the computation of diluted net income per share include shares that may be issued under our stock options and restricted stock awards, our February 2018 Notes, our Series 2012 Notes and our May 2015 Notes on a weighted average basis for the period that the notes were outstanding, including the effect of adding back interest expense and the underlying shares using the if-converted method. In the first quarter of 2012, $179.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes, in the third quarter of 2013, $1.0 million aggregate principal of our February 2015 Notes was exchanged for our Series 2012 Notes and the February 2015 Notes were retired, in the first quarter of 2014, $131.7 million aggregate principal of our Series 2012 Notes was retired in a privately negotiated exchange and purchase agreements, in the fourth quarter of 2014, the Company entered into a privately negotiated exchange agreement by which it retired approximately $26.0 million in principal of the outstanding Series 2012 Notes, and in the first quarter of 2015 the Company completed the retirement of the remaining $22.3 million of aggregate principal of its Series 2012 Notes.

In May 2011, we issued our May 2015 Notes, in January and February 2012, we issued our Series 2012 Notes, and in February 2014, we issued our February 2018 Notes. The February 2018 Notes, Series 2012 Notes and May 2015 Notes are net share settled, with the principal amount settled in cash and the excess settled in our common stock. The weighted average share adjustments related to our Series 2012 Notes and May 2015 Notes, shown in the table above, include the shares issuable in respect of such excess.

May 2015 Notes Purchased Call Option and Warrant Potential Dilution

The warrants are dilutive for three months ended March 31, 2015, as the exercise price of the warrants was lower than the average market price of our common stock. We excluded from our calculations of net income per diluted share zero and 21.5 million shares for the three months ended March 31, 2015 and 2014, respectively, for warrants issued in 2011, because the exercise price of the warrants was higher than the average market price of our common stock and thus, for the three months ended March 31, 2014, no stock was issuable upon conversion. Our purchased call options, issued in 2011, will always be anti-dilutive and therefore 27.1 million and 25.3 million shares were excluded from our calculations of net income per diluted share for the three months ended March 31, 2015 and 2014, respectively, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 9.

February 2018 Notes Purchased Call Option and Warrant Potential Dilution

We excluded from our calculation of net income per diluted share 29.0 million shares for the three months ended March 31, 2015 and 2014, for warrants issued in February 2014, because the exercise price of the warrants exceeded the VWAP of our common stock and conversion of the underlying February 2018 Notes is not assumed, therefore no stock would be issuable upon conversion. These securities could be dilutive in future periods. Our purchased call options, issued in February 2014, will always be anti-dilutive and therefore 32.7 million shares were excluded from our calculation of net income per diluted share for the three months ended March 31, 2015 and 2014, because they have no effect on diluted net income per share. For information related to the conversion rates on our convertible debt, see Note 9.

Anti-Dilutive Effect of Stock Options and Restricted Stock Awards

For the three months ended March 31, 2015 and 2014, we excluded approximately zero and 115,000 shares underlying outstanding stock options, respectively, and we excluded approximately 233,000 and zero shares underlying restricted stock awards, respectively, calculated on a weighted average basis, from our net income per diluted share calculations because their effect was anti-dilutive.

The entire disclosure for earnings per share.

+ References+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

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

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

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

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

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



	March 31, 2015								December 31, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(In thousands)
Financial assets:
Money market funds	$	190,836	$	—	$	—	$	190,836	$	221,792	$	—	$	—	$	221,792
Corporate securities	—		2,252		—		2,252		—		2,310		—		2,310
Foreign currency hedge contracts	—		11,668		—		11,668		—		4,069		—		4,069
Royalty rights - at fair value	—		—		269,668		269,668		—		—		259,244		259,244
Total	$	190,836	$	13,920	$	269,668	$	474,424	$	221,792	$	6,379	$	259,244	$	487,415

There have been no transfers between levels during the three months ended March 31, 2015, and the three months ended December 31, 2014. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

Corporate Securities

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

Royalty Rights - At Fair Value

Depomed Royalty Agreement

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

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

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

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

As of March 31, 2015, and December 31, 2014, the Company determined that its royalty purchase interest in Depo DR Sub represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Depo DR Sub that most significantly impact Depo DR Sub's economic performance and is not the primary beneficiary of Depo DR Sub; therefore, Depo DR Sub is not subject to consolidation by the Company.

The asset acquired represents a single unit of accounting. The fair value of the asset acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. This asset is classified as a Level 3 asset within the fair value hierarchy, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by the FDA or other regulatory agencies. The discounted cash flow is based upon expected royalties from sales of licensed products over a nine-year period. The discount rates utilized range from approximately 21% to 25%. Significant judgment is required in selecting appropriate discount rates. At March 31, 2015, an evaluation was performed to assess those rates and general market conditions potentially affecting the fair market value. Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $19.2 million or increase by $24.4 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. Should the expected royalties increase or decrease by 10%, the fair value of the asset could increase by $14.9 million or decrease by $15.6 million, respectively.

When PDL acquired the Depomed royalties, 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, likely attributable to the practices of its distributors in drawing down such inventory and to a review by Salix's audit committee of its accounting practices. Because of these disclosures and PDL's lack of direct access to information as to the levels of inventory of Glumetza in the distribution channels, PDL commenced a review of all public statements by Salix, publicly available historical third-party prescription data, analyst reports and other relevant data sources. PDL also engaged a third-party expert to specifically assess estimated inventory levels of Glumetza in the distribution channel and to ascertain the potential effects those inventory levels may have on expected future cash flows. Salix was acquired by Valeant in early April. As of March 31, 2015, we have not revised our expectations as to any impact, if any, the acquisition will have on future cash flows from Glumetza. We will monitor whether the acquisition by Valeant has any effect on sales of Glumetza and thus royalties on such sales paid to PDL. There can be no assurances that we will be able to assess the impact of the acquisition on sales of Glumetza and thus royalties on such sales paid to PDL.

As of March 31, 2015, and December 31, 2014, the carrying value of the asset acquired as reported in our Condensed Consolidated Balance Sheets was approximately $184.8 million and $176.2 million, respectively. As of March 31, 2015, the maximum loss exposure was $184.8 million.

VB Royalty Agreement

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

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

The fair value of the VB Royalty Agreement royalty right at March 31, 2015 was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a nine year period. The discount rate utilized was approximately 17.5%. Significant judgment is required in selecting the appropriate discount rate. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. The fair value of the asset is subject to variation should those cash flows vary significantly from our estimates. At each reporting period, an evaluation is performed to assess those estimates, discount rates utilized and general market conditions affecting fair market value.

As of March 31, 2015, and December 31, 2014, the carrying value of the asset acquired as reported in our Condensed Consolidated Balance Sheets was $16.4 million and $16.1 million, respectively. As of March 31, 2015, the maximum loss exposure was $16.4 million.

University of Michigan

On November 6, 2014, PDL acquired a portion of all royalty payments of the U-M’s worldwide royalty interest in Cerdelga (eliglustat) for $65.6 million. Under the terms of the Michigan Royalty Agreement, PDL will receive 75% of all royalty payments due under U-M’s license agreement with Genzyme until expiration of the licensed patents, excluding any patent term extension. Cerdelga, an oral therapy for adult patients with Gaucher disease type 1, was developed by Genzyme. Cerdelga was approved in the United States on August 19, 2014, in the European Union on January 22, 2015 and in Japan on March 25, 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities.

The fair value of the royalty right at March 31, 2015, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as our valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over a nine-year period. The discount rate utilized was approximately 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 $6.3 million or increase by $7.2 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $3.4 million or decrease by $3.4 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 our estimates. An evaluation of those estimates, discount rates utilized and general market conditions affecting fair market value is performed in each reporting period.

As of March 31, 2015, and December 31, 2014, the fair value of the asset acquired as reported in our Condensed Consolidated Balance Sheets was $68.5 million and $66.9 million. As of March 31, 2015, the maximum loss exposure was $68.5 million.

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the three months ended March 31, 2015:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

(in thousands)				Royalty Rights - At Fair Value
Beginning Balance at December 31, 2014							$	259,244

	Transfer into Level 3						—
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	11,362
		Proceeds from royalty rights - at fair value		$	(938	)
			Total net change in fair value for the period				10,424
	Purchases, issues, sales, and settlements
		Purchases					—

Ending Balance at March 31, 2015							$	269,668

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



	Three Months Ended
	March 31,
(in thousands)	2015		2014

Total change in fair value for the period included in earnings for assets held at the end of the reporting period	$	11,362	$	11,707

Foreign Currency Hedge Contracts

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

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



	March 31, 2015						December 31, 2014
	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	50,191	$	50,191	$	—	$	50,191
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
Avinger note receivable	21,231		—		21,117		20,611		—		20,760
LENSAR note receivable	41,241		—		40,200		39,668		—		40,451
Direct Flow Medical note receivable	50,849		—		51,500		50,397		—		49,940
Paradigm Spine note receivable	49,600		—		50,818		49,571		—		50,125
kaléo note receivable	151,494		—		153,420		151,574		—		151,073
Total	$	365,806	$	—	$	368,446	$	363,212	$	—	$	363,740

Liabilities:
Series 2012 Notes	$	—	$	—	$	—	$	22,261	$	33,506	$	—
May 2015 Notes	154,592		189,487		—		153,235		205,534		—
February 2018 Notes	277,975		287,685		—		276,228		289,665		—
March 2015 Term Loan	99,393		100,000		—		—		—		—
Total	$	531,960	$	577,172	$	—	$	451,724	$	528,705	$	—

As of March 31, 2015 and December 31, 2014, the estimated fair values of our Paradigm Spine note receivable, kaléo note receivable, Hyperion note receivable, Avinger note receivable, LENSAR note receivable and Direct Flow Medical note receivable, were determined using one or more discounted cash flow models, incorporating expected payments and the interest rate extended on the notes receivable with fixed interest rates and incorporating expected payments for notes receivable with a variable rate of return. In some instances the carrying values of certain notes receivable exceed their estimated fair market values. This is generally the result of discount rates used when performing a discounted cash flow for fair value valuation purposes.

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

The Wellstat Diagnostics Note Receivable and Credit Agreement, as amended and restated, is collateralized by all assets and equity interest in Wellstat Diagnostics. The estimated fair value of the collateral was determined by using a discounted cash flow analysis related to the underlying technology included in the collateral. On March 31, 2015, and December 31, 2014, the discounted cash flow was based upon expected income from estimated sales of planned products over a period of 15 years. The terminal value was estimated using selected market multiples based on sales and EBITDA.

On March 31, 2015, the carrying values of several of our notes receivable exceeded their fair value. This is the result of discount rates used when performing a discounted cash flow for fair value valuation purposes. We determined these notes receivable to be Level 3 assets, as our valuations utilized significant unobservable inputs, estimates of future revenues, expectations about settlement and required yield. To provide support for the fair value measurements, we considered forward-looking performance, and current measures associated with high yield and published indices, and reviewed the terms and yields of notes placed by specialty finance and venture firms both across industries and in a similar sector.

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

Cash and Cash Equivalents [Abstract]

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

+ References+ Details

Cash Equivalents and Investments

3 Months Ended

Mar. 31, 2015

Cash Equivalents and Investments

4. Cash Equivalents and Investments

As of March 31, 2015, and December 31, 2014, we had invested our excess cash balances primarily in money market funds, and a corporate equity security. Our securities are classified as available-for-sale and are carried at estimated fair value, with unrealized gains and losses reported in "Accumulated other comprehensive gain" in stockholders’ equity, net of estimated taxes. See Note 3 for fair value measurement information. The cost of securities sold is based on the specific identification method. To date, we have not experienced credit losses on investments in these instruments, and we do not require collateral for our investment activities.



Summary of Cash and Available-For-Sale Securities	Adjusted Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments
(In thousands)
March 31, 2015
Cash	$	225,832	$	—	$	—	$	225,832	$	225,832	$	—
Money market funds	190,836		—		—		190,836		190,836		—
Corporate securities	1,750		502		—		2,252		—		2,252
Total	$	418,418	$	502	$	—	$	418,920	$	416,668	$	2,252

December 31, 2014
Cash	$	69,585	$	—	$	—	$	69,585	$	69,585	$	—
Money market funds	221,792		—		—		221,792		221,792		—
Corporate securities	1,750		560		—		2,310		—		2,310
Total	$	293,127	$	560	$	—	$	293,687	$	291,377	$	2,310

No gains or losses on sales of available-for-sale securities were recognized for the three months ended March 31, 2015 and 2014.

The unrealized gain (loss) on investments included in "Other comprehensive income (loss), net of tax" was approximately $326,000 and $364,000 as of March 31, 2015, and December 31, 2014, respectively.

Foreign Currency Hedging

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

5. Foreign Currency Hedging

We designate the foreign currency exchange contracts used to hedge our royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on our Condensed Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of March 31, 2015, and December 31, 2014, all outstanding Euro forward contracts were classified as cash flow hedges.

In October 2014, we entered into a series of Euro forward contracts covering the quarters in which our licensees' sales occurred through December 2015.

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



Euro Forward Contracts			March 31, 2015				December 31, 2014
			(In thousands)				(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value		Notional Amount		Fair Value
Euro	1.256	Sell Euro	$	—	$	—	$	6,000	$	241
Euro	1.257	Sell Euro	15,750		2,675		15,750		728
Euro	1.259	Sell Euro	16,125		2,975		16,125		752
Euro	1.260	Sell Euro	33,000		6,018		33,000		1,468
Euro	1.270	Sell Euro	—		—		7,000		377
Euro	1.281	Sell Euro	—		—		8,000		503
Total			$	64,875	$	11,668	$	85,875	$	4,069

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



Cash Flow Hedge	Location	March 31, 2015		December 31, 2014
(In thousands)
Euro contracts	Prepaid and other current assets	$	11,668	$	3,352
Euro contracts	Other assets	$	—	$	717

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



	Three Months Ended
	March 31,
	2015		2014
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	5,668	$	67
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	669	$	(728	)
Net gain (loss) recognized in interest and other income, net - cash flow hedges ⁽³⁾	$	—	$	2

_______________________________

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

(2) Effective portion classified as royalty revenue.

(3) Ineffectiveness from excess hedge was approximately $0 and ($2) for the three months ended March 31, 2015 and 2014, respectively.

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

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+ Details

Notes Receivable and Other Long-term Receivables	3 Months Ended
Notes Receivable and Other Long-term Receivables	Mar. 31, 2015
Receivables [Abstract]
Notes and Other Long-term Receivables	6. Notes Receivable and Other Long-Term Receivables Notes receivable and other long-term receivables included the following significant agreements: Wellstat Diagnostics Note Receivable and Credit Agreement In March 2012, the Company executed a $7.5 million two-year senior secured note receivable with the holders of the equity interests in Wellstat Diagnostics. In addition to bearing interest at 10% per annum, the note receivable gave PDL certain rights to negotiate for certain future financing transactions. In August 2012, PDL and Wellstat Diagnostics amended the note receivable, providing a senior secured note receivable of $10.0 million, bearing interest at 12% per annum, to replace the original $7.5 million note receivable. This $10.0 million note receivable was repaid on November 2, 2012, using the proceeds of the $40.0 million credit facility entered into with the Company on the same date. On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company was to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL was to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics' net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics' products, if any, commencing upon the commercialization of its products. In January 2013, the Company was informed that, as of December 31, 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. PDL sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, PDL exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to PDL and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby PDL agreed to refrain from exercising additional remedies for 120 days while Wellstat Diagnostics raised funds to capitalize the business and the parties attempted to negotiate a revised credit agreement. PDL agreed to provide up to $7.9 million to Wellstat Diagnostics to fund the business for the 120-day forbearance period under the terms of the forbearance agreement. Following the conclusion of the forbearance period that ended on June 28, 2013, the Company agreed to forbear its exercise of remedies for additional periods of time to allow the owners and affiliates of Wellstat Diagnostics to complete a pending financing transaction. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. On August 15, 2013, the owners and affiliates of Wellstat Diagnostics completed a financing transaction to fulfill Wellstat Diagnostics' obligations under the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. Except as otherwise described here, the material terms of the amended and restated credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, PDL was to continue to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics' net revenues. However, pursuant to the amended and restated credit agreement: (i) the principal amount was reset to approximately $44.1 million, which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics' obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics were required to contribute additional capital to Wellstat Diagnostics upon the sale of an affiliate entity. The amended and restated credit agreement had an ultimate maturity date of December 31, 2021 (but has subsequently been accelerated as described below). When the principal amount was reset, a $2.5 million reduction of the carrying value was recorded as a financing cost as a component of "Interest and other income, net". The new carrying value is lower as a function of the variable nature of the internal rate of return to be realized by the Company based on when the note was to be repaid. The internal rate of return calculation, although increased, was reset when the credit agreement was amended and restated. In June of 2014, the Company received information from Wellstat Diagnostics that showed that it was generally unable to pay its debts as they became due. This constituted an event of default under the amended and restated credit agreement. Wellstat Diagnostics entered into a transaction involving another lender, pursuant to which Wellstat Diagnostics obtained additional short-term funding for its operations. At the same time, the Company entered into the first amendment to amended and restated credit agreement with Wellstat Diagnostics. The material terms of the amendment included the following: (1) Wellstat Diagnostics acknowledged that an event of default had occurred; (2) the Company agreed to forbear from immediately enforcing its rights for up to 60 days, so long as the other lender provided agreed levels of interim funding to Wellstat Diagnostics; and (3) the Company obtained specified additional information rights with regard to Wellstat Diagnostics’ financial matters and investment banking activities. On August 5, 2014, the Company received notice that the short-term funding being provided pursuant to the agreement with the other lender entered into during June 2014, was being terminated. Wellstat Diagnostics remained in default because it was still unable to pay its debts as they became due. Accordingly, the Company delivered the Wellstat Diagnostics Borrower Notice. The Wellstat Diagnostics Borrower Notice accelerated all obligations under the amended and restated credit agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, included an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered the Wellstat Diagnostics Guarantor Notice. The Wellstat Diagnostics Guarantor Notice included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ shareholders. On September 24, 2014, the Company filed the Wellstat Diagnostics Petition, which was granted on the same day. The order granting the Wellstat Diagnostics Petition authorizes the receiver to take immediate possession of the physical assets of Wellstat Diagnostics, with the purpose of holding, protecting, insuring, managing and preserving the business of Wellstat Diagnostics and the value of the Company’s collateral. Wellstat Diagnostics has remained in operation during the period of the receivership with incremental additional funding from the Company. The Company continues to assess its options with respect to collecting on the loan, including determining whether and when it will foreclose on the collateral and proceed with a sale of Wellstat Diagnostics’ assets, whether providing further capital to the receiver to fund Wellstat Diagnostics’ operations for a period of time prior to sale will best position Wellstat Diagnostics’ assets for sale, and assessing the value of the guarantees obtained by the Company from Wellstat Diagnostics’ guarantors, including Wellstat Diagnostics’ shareholders and Wellstat Therapeutics. On November 4, 2014, the Company entered into the third amendment to the amended and restated credit agreement with Wellstat Diagnostics. The amendment provides that additional funding, if any, to be made by the Company is conditioned upon the agreement by Wellstat Diagnostics to make certain operational changes within Wellstat Diagnostics, which the Company believes will allow the receiver to more efficiently optimize the value of the collateral. Through the period ending March 31, 2015, PDL has advanced to Wellstat Diagnostics $8.1 million to fund the ongoing operations of the business and other associated costs. This funding has been expensed as incurred. Effective April 1, 2014 and as a result of the event of default, we determined the loan to be impaired and we ceased to accrue interest revenue. At that time and as of March 31, 2015 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 recoup the full carrying value. There can be no assurance that this will be true in the event of the Company’s foreclosure on the collateral, nor can there be any assurance of the timing in realizing value from such collateral. Hyperion Agreement On January 27, 2012, PDL and Hyperion entered into an agreement whereby Hyperion sold to PDL the royalty streams due from SDK related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. The agreement assigned the patent license agreement royalty stream accruing from January 1, 2012 through December 31, 2013 to PDL in exchange for the lump sum payment to Hyperion of $2.3 million. In exchange for the lump sum payment, PDL was to receive two equal payments of $1.2 million on both March 5, 2013 and 2014. The first payment of $1.2 million was paid on March 5, 2013, but Hyperion has not made the payment that was due on March 5, 2014. The Company completed an impairment analysis as of March 31, 2015. Effective with this date and as a result of the event of default, we ceased to accrue interest revenue. As of March 31, 2015, the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance that this will be true in the event of the Company's foreclosure on the collateral, nor can there be any assurance of realizing value from such collateral. Hyperion is considering other sources of financing and strategic alternatives, including selling the company. AxoGen Note Receivable and AxoGen Royalty Agreement In October 2012, PDL entered into the AxoGen Royalty Agreement with AxoGen pursuant to which the Company would receive specified royalties on AxoGen’s net revenues (as defined in the AxoGen Royalty Agreement) generated by the sale, distribution or other use of AxoGen’s products. The AxoGen Royalty Agreement had an eight-year term and provided PDL with royalties of 9.95% based on AxoGen's net revenues, subject to agreed-upon guaranteed quarterly minimum payments of approximately $1.3 million to $2.5 million, which were to begin in the fourth quarter of 2014, and the right to require AxoGen to repurchase the royalties under the AxoGen Royalty Agreement at the end of the fourth year. AxoGen was granted certain rights to call the contract in years five through eight. The total consideration PDL paid to AxoGen for the royalty rights was $20.8 million, including an interim funding of $1.8 million in August 2012. AxoGen was required to use a portion of the proceeds from the AxoGen Royalty Agreement to pay the outstanding balance under its existing credit facility. The royalty rights were secured by the cash and accounts receivable of AxoGen. On August 14, 2013, PDL purchased 1,166,666 shares of registered common stock of AxoGen (AXGN) at $3.00 per share, totaling $3.5 million. On December 22, 2014, PDL sold these shares at $3.03 per share, totaling approximately $3.5 million. On November 13, 2014, the Company agreed to terminate the AxoGen Royalty Agreement in consideration for a payment of $30.3 million in cash, which was the sum of the outstanding principal, interest and embedded derivative. Subsequent to the pay-off, the Company acquired 643,382 shares of registered common stock of AxoGen for approximately $1.7 million at a public offering price of $2.72 per share. The shares are classified as available for sale and recorded as short-term investments on the balance sheet. As of March 31, 2015, the shares were valued at $2.3 million, which resulted in an unrealized gain of $0.5 million and is recorded in "Other comprehensive income (loss), net of tax." Avinger Note Receivable and Royalty Agreement On April 18, 2013, PDL entered into a credit agreement with Avinger, under which we made available to Avinger up to $40.0 million to be used by Avinger in connection with the commercialization of its lumivascular catheter devices and the development of Avinger's lumivascular atherectomy device. Of the $40.0 million initially available to Avinger, we funded an initial $20.0 million, net of fees, at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to Avinger. Outstanding borrowings under the initial loan bear interest at a stated rate of 12% per annum. Avinger is required to make quarterly interest and principal payments. Principal repayment will commence on the eleventh interest payment date, March 31, 2016. The principal amount outstanding at commencement of repayment, after taking into account any payment-in-kind, will be repaid in equal installments until final maturity of the loan. The loan will mature in April 2018. In connection with entering into the credit agreement, the Company will receive a low, single-digit royalty on Avinger's net revenues through April 2018. Avinger may prepay the outstanding principal and accrued interest on the note receivable at any time. If Avinger repays the note receivable prior to April 2018, the royalty on Avinger's net revenues will be reduced by 50% and will be subject to certain minimum payments from the prepayment date through April 2018. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Avinger and any of its subsidiaries (other than controlled foreign corporations, if any). The credit agreement provides for a number of standard events of default, including payment, bankruptcy, covenant, representation and warranty and judgment defaults. LENSAR Credit Agreement On October 1, 2013, PDL entered into a credit agreement with LENSAR, under which PDL made available to LENSAR up to $60.0 million to be used by LENSAR in connection with the commercialization of its currently marketed LENSAR™ Laser System. Of the $60.0 million available to LENSAR, an initial $40.0 million, net of fees, was funded by the Company at the close of the transaction. The additional $20.0 million in the form of a second tranche is no longer available to LENSAR under the terms of the credit agreement. Outstanding borrowings under the loans bear interest at the rate of 15.5% per annum, payable quarterly in arrears. Principal repayment will commence on the thirteenth interest payment date or December 31, 2016. The principal amount outstanding at the commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on October 1, 2018. LENSAR may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The loans are secured by all of the assets of LENSAR. Durata Credit Agreement On October 31, 2013, PDL entered into a credit agreement with Durata, under which the Company made available to Durata up to $70.0 million. Of the $70.0 million available to Durata, an initial $25.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. On May 27, 2014, the Company funded Durata an additional $15.0 million (tranche two) as a result of Durata's marketing approval of dalbavancin in the United States, which occurred on May 23, 2014, and was the milestone needed to receive the tranche two funding. Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bore interest at the rate of 14.0% per annum, payable quarterly in arrears. Upon occurrence of the tranche two milestone, the interest rate of the loans decreased to 12.75%. On November 17, 2014, the Company received a payment of approximately $42.7 million constituting repayment in full of the outstanding principal amount of loans plus accrued interest and fees under the credit agreement. The repayment was made in connection with the acquisition of Durata by Actavis plc. Direct Flow Medical Credit Agreement On November 5, 2013, PDL entered into a credit agreement with Direct Flow Medical, under which PDL agreed to provide up to $50.0 million to Direct Flow Medical. Of the $50.0 million available to Direct Flow Medical, an initial $35.0 million (tranche one), net of fees, was funded by the Company at the close of the transaction. Pursuant to the original terms of the credit agreement the Company agreed to provide Direct Flow Medical an additional $15.0 million tranche, net of fees, upon the attainment of a specified revenue milestone to be accomplished no later than December 31, 2014 (the tranche two milestone). Until the occurrence of the tranche two milestone, outstanding borrowings under tranche one bore interest at the rate of 15.5% per annum, payable quarterly in arrears. On November 10, 2014, PDL and Direct Flow Medical agreed to an amendment to the credit agreement to permit Direct Flow Medical to borrow the $15.0 million second tranche upon receipt by Direct Flow Medical of a specified minimum amount of proceeds from an equity offering prior to December 31, 2014. In exchange, the parties amended the credit agreement to provide for additional fees associated with certain liquidity events, such as a change of control or the consummation of an initial public offering, and granted PDL certain board of director observation rights. On November 19, 2014, upon Direct Flow Medical satisfying the amended tranche two milestone, the Company funded the $15.0 million second tranche to Direct Flow Medical, net of fees. Upon occurrence of the borrowing of the second tranche, the interest rate applicable to all loans under the credit agreement was decreased to 13.5% per annum, payable quarterly in arrears. Principal repayment will commence on the twelfth interest payment date, September 30, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on November 5, 2018. Direct Flow Medical may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the credit agreement are secured by a pledge of substantially all of the assets of Direct Flow Medical and any of its subsidiaries. Paradigm Spine Credit Agreement On February 14, 2014, the Company entered into the Paradigm Spine Credit Agreement, under which it made available to Paradigm Spine up to $75.0 million to be used by Paradigm Spine to refinance its existing credit facility and expand its domestic commercial operations. Of the $75.0 million available to Paradigm Spine, an initial $50.0 million, net of fees, was funded by the Company at the close of the transaction. A second tranche of up to an additional $12.5 million, net of fees, is no longer available under the terms of the Paradigm Spine Credit Agreement. Upon the attainment of specified sales and other milestones before June 30, 2015, the Company agreed to fund Paradigm Spine up to an additional $12.5 million, also at Paradigm Spine’s discretion. Borrowings under the credit agreement bear interest at the rate of 13.0% per annum, payable quarterly in arrears. Principal repayment will commence on the twelfth interest payment date, December 31, 2016. The principal amount outstanding at commencement of repayment will be repaid in equal installments until final maturity of the loans. The loans will mature on February 14, 2019. Paradigm Spine may elect to prepay the loans at any time, subject to a prepayment penalty that decreases over the life of the loans. The obligations under the Paradigm Spine Credit Agreement are secured by a pledge of substantially all of the assets of Paradigm Spine and its domestic subsidiaries and, initially, certain assets of Paradigm Spine’s German subsidiaries. kaléo Note Purchase Agreement On April 1, 2014, PDL entered into a note purchase agreement with Accel 300, a wholly-owned subsidiary of kaléo, pursuant to which the Company acquired $150.0 million of secured notes due 2029. The secured notes were issued pursuant to an indenture between Accel 300 and U.S. Bank, National Association, as trustee, and are secured by the kaléo Revenue Interests, and a pledge of kaléo’s equity ownership in Accel 300. The secured notes bear interest at 13% per annum, paid quarterly in arrears on principal outstanding. The principal balance of the secured notes is repaid to the extent that the kaléo Revenue Interests exceed the quarterly interest payment, as limited by a quarterly payment cap. The final maturity of the secured notes is June 2029. kaléo may redeem the secured notes at any time, subject to a redemption premium. As of March 31, 2015, the Company determined that its royalty purchase interest in Accel 300 represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of Accel 300 that most significantly impact Accel 300's economic performance and is not the primary beneficiary of Accel 300; therefore, Accel 300 is not subject to consolidation by the Company. For carrying value and fair value measurement information related to our notes receivable and other long-term receivables, see Note 3.

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

+ References+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	. Commitments and Contingencies Legal Proceedings The Company, its directors, and certain of its officers were parties to three related lawsuits filed by stockholders of the Company. The first lawsuit, which purported to be brought on behalf of a class of purchasers of the Company’s securities from November 6, 2013 to September 16, 2014, was brought in Federal District Court in Nevada and alleged that the Company and certain of its officers violated federal securities laws by allegedly making misstatements or omissions concerning, among other things, the Company’s financial condition. This action was entitled Hampe v. PDL Biopharma, Inc., et al., No. 2:14-cv-01526-APG-NJL (D. Nev.). A second lawsuit, which purported to be brought derivatively on behalf of the Company and was also filed in Federal District Court in Nevada, sought to assert claims on behalf of the Company against the Company’s directors for, among other things, breach of fiduciary duty (for disseminating allegedly false and misleading information). This action was entitled Feely, et ano. v. Lindell, et al., No. 2:14-cv-01738-APGGWF (D. Nev.). A third lawsuit, with substantially similar allegations to Feely was subsequently filed in Nevada State Court and was entitled Marchetti, et ano. v. Lindell, et al., No. A-14-708757-C (Dist. Ct. Clark Co., Nev.). In February 2015, all three actions were voluntarily dismissed without prejudice. Other Legal Proceedings In addition, from time to time, we may be subject to various other legal proceedings and claims that arise in the ordinary course of business and which we do not expect to materially impact our financial statements. Lease Guarantee In connection with the Spin-Off, we entered into amendments to the leases for our former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify us for all matters related to the leases attributable to the period after the Spin-Off date. Should Facet default under its lease obligations, we could be held liable by the landlord as a co-tenant and, thus, we have in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of March 31, 2015, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $76.1 million. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie. If AbbVie were to default, we could also be responsible for lease-related costs including utilities, property taxes and common area maintenance, which may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Condensed Consolidated Balance Sheets as of March 31, 2015, and December 31, 2014, related to this guarantee. In future periods, we may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable.

Convertible and Non-Recourse Notes

The entire disclosure for commitments and contingencies.

+ References+ Details

Convertible Notes

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

. Convertible Notes and Term Loans



		Principal Balance Outstanding		Carrying Value
		March 31,		March 31,		December 31,
Description	Maturity Date	2015		2015		2014
(In thousands)
Convertible Notes
Series 2012 Notes	February 15, 2015	$	—	$	—	$	22,261
May 2015 Notes	May 1, 2015	$	155,050	154,592		153,235
February 2018 Notes	February 1, 2018	$	300,000	277,975		276,228
March 2015 Term Loan	February 15, 2016	$	100,000	99,393		—
Total				$	531,960	$	451,724

As of March 31, 2015, PDL was in compliance with all applicable debt covenants, and embedded features of all debt agreements were evaluated and did not need to be accounted for separately.

Series 2012 Notes

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

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

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

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

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



(In thousands)	March 31, 2015		December 31, 2014
Principal amount of the Series 2012 Notes	$	—	$	22,337
Unamortized discount of liability component	—		(76		)
Total	$	—	$	22,261

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	80	$	761
Amortization of debt issuance costs	13		870
Amortization of debt discount	76		980
Total	$	169	$	2,611

May 2015 Notes

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

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


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


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


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


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

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of our May 2015 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.5%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, we recorded a total debt discount of $18.9 million, allocated $12.3 million to additional paid-in capital and allocated $6.6 million to deferred tax liability. The discount is being amortized to interest expense over the term of our May 2015 Notes and increases interest expense during the term of our May 2015 Notes from the 3.75% cash coupon interest rate to an effective interest rate of 7.5%. As of March 31, 2015, the remaining discount amortization period is 0.1 years.

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



(In thousands)	March 31, 2015			December 31, 2014
Principal amount of the May 2015 Notes	$	155,050		$	155,050
Unamortized discount of liability component	(458		)	(1,815		)
Total	$	154,592		$	153,235

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	1,454	$	1,455
Amortization of debt issuance costs	326		315
Amortization of debt discount	1,357		1,261
Total	$	3,137	$	3,031

As of March 31, 2015, our May 2015 Notes were convertible into 174.8506 shares of the Company’s common stock per $1,000 of principal amount, or approximately $5.72 per common share, subject to further adjustment upon certain events including dividend payments. At March 31, 2015, the if-converted value of our May 2015 exceeded their principal amount by approximately $35.8 million.

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

Purchased Call Options and Warrants

In connection with the issuance of our May 2015 Notes, we entered into purchased call option transactions with two hedge counterparties. We paid an aggregate amount of $20.8 million, plus legal fees, for the purchased call options with terms substantially similar to the embedded conversion options in our May 2015 Notes. The purchased call options cover, subject to anti-dilution and certain other customary adjustments substantially similar to those in our May 2015 Notes, approximately 27.1 million shares of our common stock. We exercised the purchased call options upon conversion of our May 2015 Notes on May 1, 2015, which required the hedge counterparties to deliver shares to the Company. The hedge counterparties delivered to us approximately 5.2 million of PDL common shares, which was the amount equal to the shares required to be delivered by us to the note holders for the excess conversion value.

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

The purchased call option transactions and warrant sales effectively serve to reduce the potential dilution associated with conversion of our May 2015 Notes. The strike prices are approximately $5.72 and $6.73, subject to further adjustment upon certain events including dividend payments, for the purchased call options and warrants, respectively.

Because the share price is above $5.72, but below $6.73, upon conversion of our May 2015 Notes, the purchased call options offset the share dilution, and the Company received shares on exercise of the purchased call options equal to the shares that the Company must deliver to the note holders. If the share price is above $6.73, upon exercise of the warrants, the Company will deliver shares to the counterparties in an amount equal to the excess of the share price over $6.73. For example, a 10% increase in the share price above $6.73 would result in the issuance of 2.1 million incremental shares upon exercise of the warrants. If our share price continues to increase, additional dilution would occur.

While the purchased call options reduced the potential equity dilution upon conversion of our May 2015 Notes, prior to the conversion or exercise, our May 2015 Notes and the warrants have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the respective exercise prices of those instruments. As of March 31, 2015, and December 31, 2014, there were no related purchased call options or warrants exercised.

The purchased call options and warrants are considered indexed to PDL stock, require net-share settlement and met all criteria for equity classification at inception and at March 31, 2015, and December 31, 2014. The purchased call options cost, including legal fees, of $20.8 million, less deferred taxes of $7.2 million, and the $10.9 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

February 2018 Notes

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

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


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


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


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


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

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

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, we were required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, we separated the principal balance of our February 2018 Notes between the fair value of the debt component and the fair value of the common stock conversion feature. Using an assumed borrowing rate of 7.0%, which represents the estimated market interest rate for a similar nonconvertible instrument available to us on the date of issuance, we recorded a total debt discount of $29.7 million, allocated $19.3 million to additional paid-in capital and allocated $10.4 million to deferred tax liability. The discount is being amortized to interest expense over the term of our February 2018 Notes and increases interest expense during the term of our February 2018 Notes from the 4.0% cash coupon interest rate to an effective interest rate of 6.9%. As of March 31, 2015, the remaining discount amortization period is 2.9 years.

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



(In thousands)	March 31, 2015			December 31, 2014
Principal amount of the February 2018 Notes	$	300,000		$	300,000
Unamortized discount of liability component	(22,025		)	(23,772		)
Total	$	277,975		$	276,228

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	3,000	$	1,571
Amortization of debt issuance costs	543		222
Amortization of debt discount	1,747		671
Total	$	5,290	$	2,464

As of March 31, 2015, our February 2018 Notes are not convertible. At March 31, 2015, the if-converted value of our February 2018 Notes did not exceed the principal amount.

Purchased Call Options and Warrants

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

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

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

The purchased call options and warrants are considered indexed to PDL stock, require net-share settlement, and met all criteria for equity classification at inception and at March 31, 2015. The purchased call options cost of $31.0 million, less deferred taxes of $10.8 million, and the $11.4 million received for the warrants, was recorded as adjustments to additional paid-in capital. Subsequent changes in fair value will not be recognized as long as the purchased call options and warrants continue to meet the criteria for equity classification.

March 2015 Term Loan

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

The interest rates per annum applicable to amounts outstanding under the term loan are, 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 March 31, 2015, the interest rate, based upon the adjusted Eurodollar rate, was 2.02%. Interest payments under the credit agreement are due on the interest payment dates specified in the credit agreement.

The term loan requires amortization 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.

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

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

The credit agreement contains events of default that the Company believes are usual and customary for a senior secured credit agreement.

October 2013 Term Loan

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

The interest rates per annum applicable to amounts outstanding under the October 2013 Term Loan were, at the Company’s option, either (a) the base rate plus 1.00%, or (b) the Eurodollar rate plus 2.00% per annum. As of the final payment date, the interest rate was 2.22%. This principal balance and outstanding interest was paid in full on October 28, 2014.

Other Long-Term Liabilities

3 Months Ended

Mar. 31, 2015

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities

10. Other Long-Term Liabilities



	March 31,		December 31,
	2015		2014
(In thousands)
Accrued lease liability	$	10,700	$	10,700
Long term incentive accrual	1,160		578
Uncertain tax positions	29,317		26,356
Dividend payable	289		68
Total	$	41,466	$	37,702

In connection with the Spin-Off, we entered into amendments to the leases for our former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify us for all matters related to the leases attributable to the period after the Spin-Off date. Should Facet default under its lease obligations, we could be held liable by the landlord as a co-tenant and, thus, we have in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of March 31, 2015, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $76.1 million. If Facet were to default, we could also be responsible for lease-related costs including utilities, property taxes and common area maintenance that may be as much as the actual lease payments. We have recorded a liability of $10.7 million on our Condensed Consolidated Balance Sheets as of March 31, 2015, and December 31, 2014, related to this guarantee.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

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

Stock-Based Compensation

11. Stock-Based Compensation

The Company grants stock options and restricted stock awards pursuant to a stockholder approved stock-based incentive plan. This incentive plan is described in further detail in Note 13, Stock-Based Compensation, of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as amended.

The following table summarizes the Company’s stock option and restricted stock award activity during the three months ended March 31, 2015:



			Stock Options			Restricted Stock Awards
(In thousands except per share amounts)	Shares Available for Grant		Number of Shares Outstanding	Weighted Average Exercise Price		Number of Shares Outstanding		Weighted Average Grant-date Fair Value Per Share
Balance at December 31, 2014	4,166		58	$	5.41	277		$	8.39
Granted	(287	)	—			287		7.55
Shares released	—		—			(6	)	8.36
Balance at March 31, 2015	3,879		58	$	5.41	558		$	7.96

Stockholders' Equity Note [Abstract]

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

+ References+ Details

Cash Dividends

3 Months Ended

Mar. 31, 2015

Cash Dividends

12. Cash Dividends

On January 27, 2015, our board of directors declared that the regular quarterly dividends to be paid to our stockholders in 2015 will be $0.15 per share of common stock, payable on March 12, June 12, September 11 and December 11 of 2015 to stockholders of record on March 5, June 5, September 4 and December 4 of 2015, the record dates for each of the dividend payments, respectively.

In connection with the March 12, 2015, dividend payment, the conversion rate for our convertible notes adjusted as follows:



Convertible Notes	Conversion Rate per $1,000 Principal Amount	Approximate Conversion Price Per Common Share		Effective Date
May 2015 Notes	174.8506	$	5.72	March 3, 2015

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

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+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes Income tax expense for the three months ended March 31, 2015 and 2014, was $49.0 million and $42.7 million, respectively, which resulted primarily from applying the federal statutory income tax rate to income before income taxes. The uncertain tax positions increased during the three months ended March 31, 2015, by $2.4 million resulting from an increase in tax uncertainties and estimated tax liabilities. In general, our income tax returns are subject to examination by U.S. federal, state and local tax authorities for tax years 1996 forward. In May 2012, PDL received a “no-change” letter from the IRS upon completion of an examination of the Company's 2008 federal tax return. We are currently under income tax examination in the state of California for tax years 2009 and 2010. Although the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year, except as noted above, we do not anticipate any material change to the amount of our unrecognized tax benefit over the next twelve months.

Accumulated Other Comprehensive Income (Loss) [Abstract]

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

+ References+ Details

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income (Loss)

14. Accumulated Other Comprehensive Income (Loss)

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

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



	Unrealized gains (losses) on available-for-sale securities			Unrealized gains (losses) on cash flow hedges		Total Accumulated Other Comprehensive Income (Loss)
(In thousands)
Beginning Balance at December 31, 2014	$	364		$	2,585	$	2,949
Activity for the three months ended March 31, 2015	(38		)	4,999		4,961
Ending Balance at March 31, 2015	$	326		$	7,584	$	7,910

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

Basis of Presentation, Policy

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+ Details

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	15. Subsequent Event Retirement of May 2015 Notes On May 1, 2015, the Company completed the retirement of the remaining $155.1 million of aggregate principal of its May 2015 notes at their stated maturity for $155.1 million, plus approximately 5.2 million shares of its common stock for the excess conversion value. In connection with the issuance of the May 2015 Notes, the Company entered into purchased call option transactions with two hedge counterparties. The purchased call options were exercised by PDL upon conversion of the May 2015 Notes and the hedge counterparties delivered to the Company approximately 5.2 million of PDL common shares, which was the amount equal to the shares required to be delivered by the us to the note holders for the excess conversion value. LENSAR Forbearance Agreement PDL and LENSAR are currently in discussions regarding a forbearance agreement whereby PDL may agree to refrain from exercising certain remedies under the LENSAR loan agreement for a period of time while LENSAR either raises funds through an equity based financing, enters into a binding agreement to complete a sale of itself or of its assets, or obtains a debt financing sufficient to repay PDL for all amounts owed. There can be no assurances of the timing of the forbearance agreement or whether PDL will enter into such forbearance agreement. Should the parties be unable to reach agreement, PDL will assess its options at that time.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation, Policy

Principles of Consolidation

Reclassification, Policy [Policy Text Block]

Reclassifications

Use of Estimates, Policy [Policy Text Block]

Management Estimates

Notes Receivable and Other Long-Term Receivables, Policy

Notes Receivable and Other Long-Term Receivables

Debt, Policy [Policy Text Block]

Convertible Notes

Revenue Recognition, Policy [Policy Text Block]

Queen et al. Royalty Revenues

Acquired Royalty Rights [Policy Text Block]

Royalty Rights - At Fair Value

Customer Concentration, Policy

Customer Concentration

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



		Three Months Ended March 31,
Licensee	Product Name	2015		2014
Genentech	Avastin	26	%	30	%
	Herceptin	25	%	28	%

Biogen	Tysabri^®	10	%	9	%

Foreign Currency Hedging, Policy

Foreign Currency Hedging

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

Income Tax, Policy [Policy Text Block]

Income Taxes

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

Net Income per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share



	Three Months Ended
	March 31,
Net Income per Basic and Diluted Share:	2015		2014
(in thousands except per share amounts)
Numerator
Net income used to compute net income per basic and diluted share	$	84,498	$	72,883

Denominator
Weighted-average shares used to compute net income per basic share	162,829		151,198
Restricted stock outstanding	28		68
Effect of dilutive stock options	18		21
Assumed conversion of Series 2012 Notes	666		6,903
Assumed conversion of warrants	1,927		—
Assumed conversion of May 2015 Notes	4,944		6,381
Weighted-average shares used to compute net income per diluted share	170,412		164,571

Net income per share - basic	$	0.52	$	0.48
Net income per share - diluted	$	0.50	$	0.44

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

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

The following tables summarize the changes in Level 3 assets and the gains and losses included in earnings for the three months ended March 31, 2015:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

(in thousands)				Royalty Rights - At Fair Value
Beginning Balance at December 31, 2014							$	259,244

	Transfer into Level 3						—
	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value		$	11,362
		Proceeds from royalty rights - at fair value		$	(938	)
			Total net change in fair value for the period				10,424
	Purchases, issues, sales, and settlements
		Purchases					—

Ending Balance at March 31, 2015							$	269,668

Schedule of fair value of financial instruments measured on recurring basis



	March 31, 2015								December 31, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(In thousands)
Financial assets:
Money market funds	$	190,836	$	—	$	—	$	190,836	$	221,792	$	—	$	—	$	221,792
Corporate securities	—		2,252		—		2,252		—		2,310		—		2,310
Foreign currency hedge contracts	—		11,668		—		11,668		—		4,069		—		4,069
Royalty rights - at fair value	—		—		269,668		269,668		—		—		259,244		259,244
Total	$	190,836	$	13,920	$	269,668	$	474,424	$	221,792	$	6,379	$	259,244	$	487,415

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

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



	March 31, 2015						December 31, 2014
	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3
(In thousands)
Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	50,191	$	50,191	$	—	$	50,191
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
Avinger note receivable	21,231		—		21,117		20,611		—		20,760
LENSAR note receivable	41,241		—		40,200		39,668		—		40,451
Direct Flow Medical note receivable	50,849		—		51,500		50,397		—		49,940
Paradigm Spine note receivable	49,600		—		50,818		49,571		—		50,125
kaléo note receivable	151,494		—		153,420		151,574		—		151,073
Total	$	365,806	$	—	$	368,446	$	363,212	$	—	$	363,740

Liabilities:
Series 2012 Notes	$	—	$	—	$	—	$	22,261	$	33,506	$	—
May 2015 Notes	154,592		189,487		—		153,235		205,534		—
February 2018 Notes	277,975		287,685		—		276,228		289,665		—
March 2015 Term Loan	99,393		100,000		—		—		—		—
Total	$	531,960	$	577,172	$	—	$	451,724	$	528,705	$	—

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

+ References+ Details

Foreign Currency Hedging (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Euro forward contracts

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



Euro Forward Contracts			March 31, 2015				December 31, 2014
			(In thousands)				(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value		Notional Amount		Fair Value
Euro	1.256	Sell Euro	$	—	$	—	$	6,000	$	241
Euro	1.257	Sell Euro	15,750		2,675		15,750		728
Euro	1.259	Sell Euro	16,125		2,975		16,125		752
Euro	1.260	Sell Euro	33,000		6,018		33,000		1,468
Euro	1.270	Sell Euro	—		—		7,000		377
Euro	1.281	Sell Euro	—		—		8,000		503
Total			$	64,875	$	11,668	$	85,875	$	4,069

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

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



Cash Flow Hedge	Location	March 31, 2015		December 31, 2014
(In thousands)
Euro contracts	Prepaid and other current assets	$	11,668	$	3,352
Euro contracts	Other assets	$	—	$	717

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

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



	Three Months Ended
	March 31,
	2015		2014
(In thousands)
Net gain (loss) recognized in OCI, net of tax ⁽¹⁾	$	5,668	$	67
Gain (loss) reclassified from accumulated OCI into royalty revenue, net of tax ⁽²⁾	$	669	$	(728	)
Net gain (loss) recognized in interest and other income, net - cash flow hedges ⁽³⁾	$	—	$	2

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

Schedule of convertible and non-recourse notes activity

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Convertible Notes (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]



		Principal Balance Outstanding		Carrying Value
		March 31,		March 31,		December 31,
Description	Maturity Date	2015		2015		2014
(In thousands)
Convertible Notes
Series 2012 Notes	February 15, 2015	$	—	$	—	$	22,261
May 2015 Notes	May 1, 2015	$	155,050	154,592		153,235
February 2018 Notes	February 1, 2018	$	300,000	277,975		276,228
March 2015 Term Loan	February 15, 2016	$	100,000	99,393		—
Total				$	531,960	$	451,724

Schedule of carrying value and unamortized discount on Series 2012 Notes

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



(In thousands)	March 31, 2015		December 31, 2014
Principal amount of the Series 2012 Notes	$	—	$	22,337
Unamortized discount of liability component	—		(76		)
Total	$	—	$	22,261

Schedule of interest expense on Series 2012 Notes

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	80	$	761
Amortization of debt issuance costs	13		870
Amortization of debt discount	76		980
Total	$	169	$	2,611

Schedule of carrying value and unamortized discount on May 2015 Notes

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



(In thousands)	March 31, 2015			December 31, 2014
Principal amount of the May 2015 Notes	$	155,050		$	155,050
Unamortized discount of liability component	(458		)	(1,815		)
Total	$	154,592		$	153,235

Schedule of interest expense for May 2015 Notes

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	1,454	$	1,455
Amortization of debt issuance costs	326		315
Amortization of debt discount	1,357		1,261
Total	$	3,137	$	3,031

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

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



(In thousands)	March 31, 2015			December 31, 2014
Principal amount of the February 2018 Notes	$	300,000		$	300,000
Unamortized discount of liability component	(22,025		)	(23,772		)
Total	$	277,975		$	276,228

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

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



	Three Months Ended
	March 31,
(In thousands)	2015		2014
Contractual coupon interest	$	3,000	$	1,571
Amortization of debt issuance costs	543		222
Amortization of debt discount	1,747		671
Total	$	5,290	$	2,464

Summary of Significant Accounting Policies (Schedule of Revenue by Major Customers) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Genentech [Member] \| Avastin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	26.00%	30.00%
Genentech [Member] \| Herceptin [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	25.00%	28.00%
Elan [Member] \| Tysabri [Member]
Entity Wide Revenue Major Customer [Line Items]
Percentage of total revenue (in Percent)	10.00%	9.00%

Net Income per Share (Narrative) (Detail) (USD $)	3 Months Ended														3 Months Ended				3 Months Ended
Net Income per Share (Narrative) (Detail) (USD $)	Mar. 31, 2014 Warrants [Member]	Mar. 31, 2014 Purchased Call Options [Member]	Mar. 31, 2015 Stock Options [Member]	Mar. 31, 2014 Stock Options [Member]	Mar. 31, 2015 Restricted Stock [Member]	Mar. 31, 2014 Restricted Stock [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Mar. 31, 2012 February 2015 Notes [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Feb. 17, 2015 Series 2012 Notes [Member]	Nov. 24, 2014 Series 2012 Notes [Member]	Feb. 07, 2014 Series 2012 Notes [Member]	Feb. 06, 2014 Series 2012 Notes [Member]	Feb. 29, 2012 Series 2012 Notes [Member]	Mar. 31, 2015 May 2015 Notes [Member] [Member] Warrants [Member]	Mar. 31, 2015 May 2015 Notes [Member] [Member] Purchased Call Options [Member]	Mar. 31, 2015 February 2018 Notes [Member]	Feb. 12, 2014 February 2018 Notes [Member]	Mar. 31, 2015 February 2018 Notes [Member] Warrants [Member]	Mar. 31, 2015 February 2018 Notes [Member] Purchased Call Options [Member]
Debt Instrument [Line Items]
Amount of convertible notes payable								$ 179,000,000
Convertible notes							$ 1,000,000		$ 169,000,000	$ 22,300,000	$ 26,000,000	$ 131,700,000	$ 131,700,000	$ 10,000,000			$ 277,975,000	$ 300,000,000
Antidilutive securities excluded from computation of earnings per share (in Shares)	21,500,000	25,300,000	0	115,000	233,000	0									0	27,100,000			29,000,000	32,700,000

Cash payment for purchase of royalty right

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

+ References+ Details

Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Income used to compute net income per diluted share	$ 84,498	$ 72,883
Total weighted-average shares used to compute net income per basic share (in Shares)	162,829	151,198
Diluted (in Shares)	170,412	164,571
Basic (in Dollars per Share)	$ 0.52	$ 0.48
Net income per diluted share (in Dollars per Share)	$ 0.50	$ 0.44
Debt Instrument [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants	1,927	0
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	666	6,903
May 2015 Notes [Member]
Debt Instrument [Line Items]
Assumed conversion of debt notes (in Shares)	4,944	6,381
Stock Options [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	18	21
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	28	68

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

3 Months Ended

Mar. 31, 2015

Dec. 31, 2014

Nov. 06, 2014

Mar. 31, 2015

Depomed [Member]

Dec. 31, 2014

Depomed [Member]

Oct. 18, 2013

Depomed [Member]

Mar. 31, 2015

VB [Member]

Dec. 31, 2014

VB [Member]

Jun. 26, 2014

VB [Member]

Mar. 31, 2015

University of Michigan [Member]

Dec. 31, 2014

University of Michigan [Member]

$ 65,600,000

$ 240,500,000

Purchase of royalty rights

241,300,000

15,500,000

Fair value inputs, discount rate (in Percent)

17.50%

Royalty right purchase transaction costs

800,000

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

21.00%

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

25.00%

12.80%

Fair Value Measurements, Sensitivity Analysis, Description

Should these discount rates increase or decrease by 5%, the fair value of the asset could decrease by $19.2 million or increase by $24.4 million, respectively. A third-party expert was engaged to help management develop its original estimate of the expected future cash flows. The fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. Should the expected royalties increase or decrease by 10%, the fair value of the asset could increase by $14.9 million or decrease by $15.6 million, respectively.

Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.4 million or increase by $1.6 million, respectively. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase by $0.4 million or decrease by $0.4 million, respectively.

Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $6.3 million or increase by $7.2 million, respectively. Should the expected royalties increase or decrease by 5%, the fair value of the asset could increase by $3.4 million or decrease by $3.4 million, respectively.

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

269,668,000

^[1]

259,244,000

^[2]

184,800,000

176,200,000

16,400,000

16,100,000

68,500,000

66,900,000

184,800,000

16,400,000

68,500,000

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

15 years

Transfers from level 1 to level 2, amount

Transfers from level 2 to level 1, amount

$ 0

Percentage of royalty acquired

75.00%

[1]	unaudited
[2]	Note 1

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

Mar. 31, 2015

Dec. 31, 2014

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

$ 269,668

^[1]

$ 259,244

^[2]

Foreign Currency Contract, Asset, Fair Value Disclosure

474,424

487,415

11,668

4,069

Money Market Funds [Member]

Cash and Cash Equivalents, Fair Value

190,836

221,792

Equity Securities [Member]

Available for Sale Securities, Fair Value

2,252

2,310

Fair Value Level 1 [Member]

Foreign Currency Contract, Asset, Fair Value Disclosure

190,836

221,792

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

Cash and Cash Equivalents, Fair Value

190,836

221,792

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

Available for Sale Securities, Fair Value

Fair Value Level 2 [Member]

Foreign Currency Contract, Asset, Fair Value Disclosure

13,920

6,379

11,668

4,069

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

Cash and Cash Equivalents, Fair Value

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

Available for Sale Securities, Fair Value

2,252

2,310

Fair Value Level 3 [Member]

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

269,668

259,244

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

$ 269,668

$ 259,244

[1]	unaudited
[2]	Note 1

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Notes receivable, Carrying Value	$ 365,806	$ 363,212
Liabilities:
Convertible Notes Payable, Carrying Value	531,960	451,724
Series 2012 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	0	22,261
May 2015 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	154,592	153,235
February 2018 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	277,975	276,228
Term Loan. [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	99,393
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,191	50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value	1,200	1,200
Avinger Note Receivable [Member]
Assets
Notes receivable, Carrying Value	21,231	20,611
LENSAR Note Receivable [Member]
Assets
Notes receivable, Carrying Value	41,241	39,668
Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,849	50,397
Paradigm Spine [Member]
Assets
Notes receivable, Carrying Value	49,600	49,571
kaleo Note Receivable [Member]
Assets
Notes receivable, Carrying Value	151,494	151,574
Fair Value Level 2 [Member]
Liabilities:
Notes payable, Fair Value	577,172	528,705
Fair Value Level 2 [Member] \| Series 2012 Notes [Member]
Liabilities:
Notes payable, Fair Value		33,506
Fair Value Level 2 [Member] \| May 2015 Notes [Member]
Liabilities:
Notes payable, Fair Value	189,487	205,534
Fair Value Level 2 [Member] \| February 2018 Notes [Member]
Liabilities:
Notes payable, Fair Value	287,685	289,665
Fair Value Level 2 [Member] \| Term Loan. [Member]
Liabilities:
Notes payable, Fair Value	100,000
Fair Value Level 2 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| Paradigm Spine [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| kaleo Note Receivable [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 3 [Member]
Assets
Notes receivable, Fair Value	368,446	363,740
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value	50,191	50,191
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	1,200	1,200
Fair Value Level 3 [Member] \| Avinger Note Receivable [Member]
Assets
Notes receivable, Fair Value	21,117	20,760
Fair Value Level 3 [Member] \| LENSAR Note Receivable [Member]
Assets
Notes receivable, Fair Value	40,200	40,451
Fair Value Level 3 [Member] \| Direct Flow Medical Note Receivable [Member]
Assets
Notes receivable, Fair Value	51,500	49,940
Fair Value Level 3 [Member] \| Paradigm Spine [Member]
Assets
Notes receivable, Fair Value	50,818	50,125
Fair Value Level 3 [Member] \| kaleo Note Receivable [Member]
Assets
Notes receivable, Fair Value	$ 153,420	$ 151,073

Fair Value Measurements Level 3 Unobservable Input Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of acquired royalty rights	$ 11,362
Beginning balance	259,244
Transfer into Level 3	0
Gains (losses) included in earnings	10,424
Purchases	0
Ending balance	269,668
Payments for (Proceeds from) Productive Assets	(938)	(23,638)
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Unrealized Gains (Losses), Changes in Assets and Liabilities, Continued to be Held, Amount	$ 11,362	$ 11,707

Cash Equivalents and Investments (Narrative) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Cash and Cash Equivalents [Abstract]
Gains (losses) on sales of available-for-sale securities	$ 0		$ 0
Unrealized Gain (Loss) on Investments	$ 326,000	$ 364,000

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

Mar. 31, 2015

Dec. 31, 2014

Mar. 31, 2013

Dec. 31, 2012

Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax

$ 418,418

$ 293,127

502

560

Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax

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

418,920

293,687

416,668

^[1]

291,377

^[2]

334,035

94,302

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

2,252

^[1]

2,310

^[2]

Cash [Member]

Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax

225,832

69,585

Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax

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

225,832

69,585

225,832

69,585

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

Money Market Funds [Member]

Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax

190,836

221,792

Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax

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

190,836

221,792

190,836

221,792

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

Equity Securities [Member]

Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax

1,750

502

560

Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax

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

2,252

2,310

$ 2,252

$ 2,310

[1]	unaudited
[2]	Note 1

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

+ References+ Details

Foreign Currency Hedging (Schedule of Foreign Currency Exchange Contracts Designated as Cash Flow Hedges) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Fair Value	$ (11,668)	$ (4,069)
Derivative, Notional Amount	64,875	85,875
Eurodollar Sell Forward Contract 1.256 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.256
Fair Value	0	241
Derivative, Notional Amount	0	6,000
Eurodollar Sell Forward Contract 1.257 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.257
Fair Value	2,675	728
Derivative, Notional Amount	15,750	15,750
Eurodollar Sell Forward Contract 1.259 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.259
Fair Value	2,975	752
Derivative, Notional Amount	16,125	16,125
Eurodollar Sell Forward Contract 1.260 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.260
Fair Value	6,018	1,468
Derivative, Notional Amount	33,000	33,000
Eurodollar Sell Forward Contract 1.270 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.270
Fair Value	0
Derivative, Notional Amount	0
Eurodollar Sell Forward Contract 1.281 [Member]
Derivative [Line Items]
Derivative, Forward Exchange Rate	1.281
Fair Value	0
Derivative, Notional Amount	0
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.270 [Member]
Derivative [Line Items]
Fair Value		(377)
Derivative, Notional Amount		7,000
Euro Forward Contracts [Member] \| Eurodollar Sell Forward Contract 1.281 [Member]
Derivative [Line Items]
Fair Value		(503)
Derivative, Notional Amount		$ 8,000

Foreign Currency Hedging (Fair Value of Foreign Currency Exchange Contracts on Condensed Consolidated Balance Sheet) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Current	$ 11,668	$ 3,352
Derivative Asset, Noncurrent	$ 0	$ 717

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

+ References+ Details

Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net

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

+ References+ Details

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

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Derivative [Line Items]

$ 0

$ (2)

Cash Flow Hedges [Member]

Derivative [Line Items]

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

5,668

^[1]

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

669

^[2]

(728)

^[2]

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

$ 0

^[3]

$ 2

^[3]

[1]	Net change in the fair value of the effective portion of cash flow hedges classified in OCI.
[2]	Effective portion classified as royalty revenue.
[3]	Ineffectiveness from excess hedge was approximately $0 and ($2) for the three months ended March 31, 2015 and 2014, respectively.

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) (USD $)	3 Months Ended			3 Months Ended		0 Months Ended		3 Months Ended			0 Months Ended					0 Months Ended				3 Months Ended					1 Months Ended		1 Months Ended	3 Months Ended		0 Months Ended	1 Months Ended		3 Months Ended		0 Months Ended		0 Months Ended	1 Months Ended	58 Months Ended	0 Months Ended				3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Feb. 06, 2014	Mar. 31, 2015 Wellstat Diagnostics [Member]	Aug. 15, 2013 Wellstat Diagnostics [Member]	Feb. 23, 2015 AxoGen [Member]	Nov. 14, 2014 AxoGen [Member]	Mar. 31, 2015 AxoGen [Member]	Dec. 12, 2014 AxoGen [Member]	Aug. 14, 2013 AxoGen [Member]	Oct. 03, 2013 LENSAR [Member]	Nov. 14, 2014 Durata [Member]	Nov. 02, 2013 Durata [Member]	May 27, 2014 Durata [Member]	Oct. 31, 2013 Durata [Member]	Nov. 10, 2014 DirectFlow [Member]	Nov. 05, 2013 DirectFlow [Member]	Nov. 09, 2014 DirectFlow [Member]	Nov. 06, 2013 DirectFlow [Member]	Mar. 31, 2015 Paradigm Spine [Member]	Feb. 14, 2014 Paradigm Spine [Member]	Mar. 05, 2013 Hyperion [Member]	Jan. 27, 2012 Hyperion [Member]	Apr. 01, 2014 kaleo Note Receivable [Member]	Mar. 31, 2012 Notes Receivable [Member] Wellstat Diagnostics [Member]	Aug. 31, 2012 Notes Receivable [Member] Wellstat Diagnostics [Member]	Apr. 30, 2013 Notes Receivable [Member] Avinger [Member]	Mar. 31, 2015 Notes Receivable [Member] Avinger [Member]	Apr. 18, 2013 Notes Receivable [Member] Avinger [Member]	Aug. 15, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Feb. 28, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Jan. 31, 2013 Credit Agreement [Member] Wellstat Diagnostics [Member]	Mar. 31, 2015 Credit Agreement [Member] Wellstat Diagnostics [Member]	Nov. 02, 2012 Credit Agreement [Member] Wellstat Diagnostics [Member]	Aug. 15, 2013 Initial Loan [Member] Wellstat Diagnostics [Member]	Jun. 28, 2013 Additional Loan [Member] Wellstat Diagnostics [Member]	Oct. 03, 2013 Additional Loan [Member] LENSAR [Member]	Oct. 31, 2012 Royalty Agreement [Member] AxoGen [Member]	Apr. 30, 2018 Royalty Agreement [Member] Avinger [Member]	Aug. 15, 2013 Term loan and interest [Member] Wellstat Diagnostics [Member]	Aug. 15, 2013 Forbearance principal and interest [Member] Wellstat Diagnostics [Member]	Oct. 31, 2013 Tranche two [Member] Durata [Member]	Nov. 06, 2013 Tranche two [Member] DirectFlow [Member]	Mar. 31, 2015 Tranche two [Member] Paradigm Spine [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, gross											$ 40,000,000			$ 15,000,000	$ 25,000,000				$ 35,000,000		$ 50,000,000		$ 2,300,000	$ 150,000,000	$ 7,500,000	$ 10,000,000			$ 20,000,000					$ 40,000,000		$ 1,300,000							$ 15,000,000
Number of payments to be received																							2
Periodic contractual payments																						1,200,000
First minimum payment																						1,200,000
Financing Receivable, Modifications, Pre-Modification Recorded Investment																																			33,700,000					1,300,000	9,100,000
Financing receivable, modification, cost as a component of interest and other income, net					2,500,000
Financing Receivable, Net				53,900,000
Asset Management Costs				8,100,000
Term of receivable (in Duration)																									2 years													8 years
Royalty rate on AxoGen net revenues (in percent)																																						9.95%
Guaranteed quarterly minimum payment-low																																						1,300,000.0
Guaranteed quarterly minimum payment-high																																						2,500,000
Interest rate of note receivable (in Percent)					5.00%						15.50%				14.00%			13.50%	15.50%		13.00%			13.00%	10.00%	12.00%			12.00%													12.75%
Reduction in royalty rate (in percent)																																							50.00%
Repayment of notes receivable							30,300,000					42,700,000
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											60,000,000		70,000,000			15,000,000	50,000,000			75,000,000							40,000,000				7,900,000		8,700,000				20,000,000							12,500,000
Financing Receivable, Modifications, Post-Modification Recorded Investment																														44,100,000
Forbearance period under terms of credit agreement (in Duration)																															120 days
Term of royalty agreement (in Duration)																																						8 years
Total consideration paid to AxoGen for the royalty rights																																						20,800,000
Initial interim funding for royalty rights																																						1,800,000
Investment Owned, Balance, Shares									643,382	1,166,666
Share Price			$ 7.97						$ 2.72	$ 3.00
Investment Owned, at Cost									1,700,000	3,500,000
Price per share of investment sold									$ 3.03
Proceeds from Sale of Available-for-sale Securities, Equity						3,500,000
Investment Owned, at Fair Value								2,300,000
Unrealized Gain (Loss) on Investments	326,000	364,000						500,000
Maximum amount of additional funds, upon attainment of milestones																												$ 20,000,000
Debt Instrument, Date of First Required Payment											Dec. 31, 2016

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

Mar. 31, 2015

Dec. 31, 2014

Payables and Accruals [Abstract]

Compensation

$ 2,062

$ 1,332

Interest

4,423

6,210

Dividend payable

73,776

Legal

425

296

Other

795

948

Total

$ 81,481

^[1]

$ 8,876

^[2]

[1]	unaudited
[2]	Note 1

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

+ References+ Details

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

+ References+ Details

Debt Instrument, Interest Rate, Stated Percentage

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

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Commitments and Contingencies (Narrative) (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Total lease payments for the duration of the guarantee	$ 76,100,000
Accrued lease liability	$ 10,700,000	$ 10,700,000

Convertible Notes (Narrative) (Detail) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	0 Months Ended	3 Months Ended				0 Months Ended			1 Months Ended											0 Months Ended	3 Months Ended		3 Months Ended	1 Months Ended	3 Months Ended	1 Months Ended			0 Months Ended	3 Months Ended	12 Months Ended		0 Months Ended		0 Months Ended
	Oct. 20, 2014	Mar. 31, 2015	Mar. 31, 2014	Feb. 06, 2014	May 16, 2011	Feb. 18, 2015 Series 2012 Notes [Member]	Oct. 20, 2014 Series 2012 Notes [Member]	Feb. 05, 2014 Series 2012 Notes [Member]	Jan. 31, 2012 Series 2012 Notes [Member]	Mar. 31, 2015 Series 2012 Notes [Member]	Feb. 17, 2015 Series 2012 Notes [Member]	Dec. 31, 2014 Series 2012 Notes [Member]	Nov. 24, 2014 Series 2012 Notes [Member]	Oct. 20, 2014 Series 2012 Notes [Member]	Feb. 12, 2014 Series 2012 Notes [Member]	Feb. 07, 2014 Series 2012 Notes [Member]	Feb. 06, 2014 Series 2012 Notes [Member]	Aug. 01, 2013 Series 2012 Notes [Member]	Feb. 29, 2012 Series 2012 Notes [Member]	May 16, 2011 May 2015 Notes [Member]	Mar. 31, 2015 May 2015 Notes [Member]	Dec. 31, 2014 May 2015 Notes [Member]	Mar. 31, 2015 Purchased Call Options [Member]	Jan. 31, 2013 Warrants [Member]	Mar. 31, 2015 Warrants [Member]	Jan. 31, 2012 February 2015 Notes [Member]	Mar. 31, 2015 February 2015 Notes [Member]	Aug. 01, 2013 February 2015 Notes [Member]	Feb. 11, 2014 February 2018 Notes [Member]	Mar. 31, 2015 February 2018 Notes [Member]	Dec. 31, 2014 February 2018 Notes [Member]	Feb. 12, 2014 February 2018 Notes [Member]	Feb. 11, 2014 February 2018 Note Purchase Call Option [Member]	Mar. 31, 2015 February 2018 Note Purchase Call Option [Member]	Feb. 05, 2014 February 2018 Note Warrant [Member]	Mar. 31, 2015 February 2018 Note Warrant [Member]	Mar. 31, 2015 Term Loan. [Member]	Oct. 28, 2013 Term Loan. [Member]	Mar. 31, 2015 Term Loan. [Member] Base Rate [Member]	Oct. 28, 2013 Term Loan. [Member] Base Rate [Member]	Mar. 30, 2015 March 2015 Term Loan [Member]	Mar. 31, 2015 March 2015 Term Loan [Member] Base Rate [Member]	Mar. 30, 2015 March 2015 Term Loan [Member] Base Rate [Member]
Debt Instrument [Line Items]
Convertible notes											$ 22,300,000		$ 26,000,000			$ 131,700,000	$ 131,700,000		$ 10,000,000	$ 155,300,000						$ 169,000,000		$ 1,000,000		$ 277,975,000		$ 300,000,000
Total consideration given for convertible note exchange																	191,800,000
Incentive fee per each $1,000 principal amount tendered to convert debt																										5.00
Principal amount a $5 incentive cash payment per each to convert debt		1,000																								1,000
Induced conversion of convertible debt expense									845,000
Deferred issue costs, incentive payment allocated									765,000
Adjustments to additional paid in capital, equity component of convertible debt									52,000												12,300,000
Noted obligation allocated to deferred tax assets									28,000												6,600,000
Debt instrument, interest rate (in Percent)									2.875%												3.75%											4.00%							2.22%	1.00%		2.02%	0.75%
Total debt discount																					18,900,000
Unamortized discount of liability component										0		(76,000)		(100,000)	(2,100,000)						(458,000)	(1,815,000)								(22,025,000)		(29,700,000)
Debt Conversion, Original Debt, Amount	26,000,000
Debt discount recorded to additional paid in capital																																19,300,000
Debt discount recorded to deferred tax liability																																10,400,000
Minimum conversion price percent for note conversion (in Percent)																					130.00%									130.00%
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)																					98.00%									98.00%
Debt Instrument, Interest Rate, Effective Percentage					7.50%															7.50%												6.90%
Convertible notes, conversion price (in Dollars per Share)																					$ 5.72				$ 6.73							$ 9.17				$ 10.3610
Estimated market interest rate for similar nonconvertible instrument																																7.00%
Debt instrument, convertible, remaining amortization period (in Duration)																					1 month 1 day										2 years 10 months 8 days
Debt instrument, convertible, if-converted value																					35,800,000
Net proceeds from the issuance of convertible notes		0	300,000,000																	149,700,000									290,200,000
Convertible notes repurchase price as a percentage of principal (in Percent)																				100.00%
Debt Instrument, Face Amount										0	22,300,000	22,337,000					48,300,000	180,000,000			155,050,000	155,050,000					0			300,000,000		300,000,000					100,000,000
Conversion Rate per $1,000 Principal Amount (in Ratio)																					174.8506								109.1048
Number of hedge counterparties (in Counterparties)																																		2
Purchased call options cost																							20,800,000										31,000,000
Number of shares of common stock covered by the purchased call options purchased (in Shares)																							27.1		27.5									32.7
Proceeds from Issuance of Warrants		0	11,427,000																					10,900,000	10,900,000										11,400,000
Debt conversion, shares issued (in Shares)						1.3	1.8	20.3																	2.1
Debt Conversion, Converted Instrument, Amount								157,600,000
Cash paid to exchange convertible note														26,200,000			34,200,000
Inducement fee																	2,500,000
Interest Payable																	1,800,000
Deferred Income Tax Expense (Benefit)								29,900,000
Deferred taxes included in purchased call options cost																							7,200,000										10,800,000
Gain on conversion of convertible notes		0	6,143,000
Debt discount, derecognition on exchange																	5,800,000
Debt Exchange cost other																	300,000
Share Price				$ 7.97
Dividends Payable, Amount Per Share		$ 0.15
Short-term Debt																																						$ 75,000,000			$ 100,000,000

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

3 Months Ended

1 Months Ended

0 Months Ended

3 Months Ended

Mar. 31, 2015

Dec. 31, 2014

Mar. 31, 2015

Series 2012 Notes [Member]

Feb. 17, 2015

Series 2012 Notes [Member]

Dec. 31, 2014

Series 2012 Notes [Member]

Feb. 06, 2014

Series 2012 Notes [Member]

Aug. 01, 2013

Series 2012 Notes [Member]

Jan. 31, 2012

Series 2012 Notes [Member]

Mar. 31, 2015

May 2015 Notes [Member]

Dec. 31, 2014

May 2015 Notes [Member]

Jan. 31, 2012

February 2015 Notes [Member]

Mar. 31, 2015

February 2015 Notes [Member]

Feb. 11, 2014

February 2018 Notes [Member]

Mar. 31, 2015

February 2018 Notes [Member]

Dec. 31, 2014

February 2018 Notes [Member]

Feb. 12, 2014

February 2018 Notes [Member]

Mar. 31, 2015

Term Loan. [Member]

Debt Instrument [Line Items]

2.875%

3.75%

4.00%

Debt Instrument, Convertible, Conversion Ratio

174.8506

109.1048

Convertible notes, conversion price (in Dollars per Share)

$ 5.72

$ 9.17

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

$ 1,000

Convertible Notes, Maturity Date (Date)

Feb. 15, 2015

May 01, 2015

Feb. 01, 2018

Feb. 15, 2016

Convertible Notes, Principal Balance Outstanding

22,300,000

22,337,000

48,300,000

180,000,000

155,050,000

300,000,000

100,000,000

Term loan payable

99,393,000

^[1]

Convertible Notes Payable, Carrying Value

$ 531,960,000

$ 451,724,000

$ 0

$ 22,261,000

$ 154,592,000

$ 153,235,000

$ 277,975,000

$ 276,228,000

$ 99,393,000

[1]

unaudited

Other Liabilities Disclosure [Abstract]

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

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Convertible Notes (Summary of Series 2012 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Feb. 17, 2015	Dec. 31, 2014	Oct. 20, 2014	Feb. 12, 2014	Feb. 06, 2014	Aug. 01, 2013
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 531,960		$ 451,724
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding	0	22,300	22,337			48,300	180,000
Unamortized discount of liability component	0		(76)	(100)	(2,100)
Convertible Notes Payable, Carrying Value	$ 0		$ 22,261

Convertible Notes (Interest Expense for the Series 2012 Notes) (Detail) (Series 2012 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Series 2012 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 80	$ 761
Amortization of debt issuance costs	13	870
Amortization of debt discount	76	980
Total	$ 169	$ 2,611

Convertible Notes (Summary of May 2015 Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Convertible Notes Payable, Carrying Value	$ 531,960	$ 451,724
May 2015 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	155,050	155,050
Unamortized discount of liability component	(458)	(1,815)
Convertible Notes Payable, Carrying Value	$ 154,592	$ 153,235

Convertible Notes (Interest Expense for the May 2015 Notes) (Detail) (May 2015 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
May 2015 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 1,454	$ 1,455
Amortization of debt issuance costs	326	315
Amortization of debt discount	1,357	1,261
Total	$ 3,137	$ 3,031

Convertible Notes Convertible Notes (Summary of February 2018 Notes) (Detail) (Details) (February 2018 Notes [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Feb. 12, 2014
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ (22,025)	$ (29,700)
Convertible notes	277,975	300,000
Debt Instrument, Face Amount	$ 300,000	$ 300,000

Convertible Notes Convertible Notes (Interest Expense for February 2018 Notes) (Detail) (Details) (February 2018 Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
February 2018 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	$ 3,000	$ 1,571
Amortization of debt issuance costs	543	222
Amortization of debt discount	1,747	671
Total	$ 5,290	$ 2,464

Other Long-Term Liabilities (Narrative) (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Schedule of Other Liabilities [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 76,100,000
Accrued lease liability	$ 10,700,000	$ 10,700,000

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

Mar. 31, 2015

Dec. 31, 2014

Accrued lease liability

$ 10,700

Accrued Bonuses

1,160

578

Uncertain tax position

29,317

26,356

Dividends Payable

289

Total

$ 41,466

^[1]

$ 37,702

^[2]

[1]	unaudited
[2]	Note 1

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(6)
Stock-Based Incentive Plan [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	(287)
Shares Available for Grant, Balance beginning of period (in Shares)	4,166
Shares Available for Grant, Balance end of period (in Shares)	3,879
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Stock Options [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Stock Options, Number of Shares, Balance at beginning of period (in Shares)	58
Stock Options, Number of Shares Granted (in Shares)	0
Stock Options, Number of Shares, Balance at end of period (in Shares)	58
Stock Options, Weighted Average Exercise Price, Balance at beginning of period (in Dollars per Share)	$ 5.41
Stock Options, Weighted Average Exercise Price, Balance at end of period (in Dollars per Share)	$ 5.41
Restricted Stock [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	277
Restricted Stock Awards, Number of Shares Granted (in Shares)	287
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	558
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 8.39
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	$ 7.55
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	$ 7.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 8.36

Cash Dividends (Narrative) (Detail) (USD $)	3 Months Ended
Cash Dividends (Narrative) (Detail) (USD $)	Mar. 31, 2015
Stockholders' Equity Note [Abstract]
Dividends payable quarterly (in Dollars per Share)	$ 0.15
Dividends payable, date declared (Date)	Jan. 27, 2015

Cash Dividends (Summary of Conversion Rates for Convertible Notes) (Detail) (May 2015 Notes [Member], USD $)	3 Months Ended
	Mar. 31, 2015
May 2015 Notes [Member]
Debt Instrument [Line Items]
Conversion Rate per $1,000 Principal Amount (in Ratio)	174.8506
Approximate Conversion Price Per Common Share (in Dollars per Share)	$ 5.72
Effective Date (Date)	Mar. 03, 2015

Accumulated Other Comprehensive Income (Loss) [Abstract]

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

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Income Taxes (Narrative) (Detail) (USD $)	3 Months Ended
Income Taxes (Narrative) (Detail) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Investments, Owned, Federal Income Tax Note [Line Items]
Income Tax Expense	$ 49,018,000	$ 42,721,000
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	$ 2,400,000

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

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

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

$ 364

Unrealized losses on cash flow hedges, beginning balance

2,585

Total Accumulated Other Comprehensive Loss, beginning balance

2,949

^[1]

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

(38)

(1,092)

Unrealized gains (losses) on cash flow hedges

4,999

^[2]

795

^[2]

Total Accumulated Other Comprehensive Loss

4,961

(297)

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

326

Unrealized losses on cash flow hedges, ending balance

7,584

Total Accumulated Other Comprehensive Loss, ending balance

$ 7,910

^[3]

[1]	Note 1
[2]	Net of tax of $2,692 and $428 for the three months ended March 31, 2015 and 2014, respectively.
[3]	unaudited

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

+ References+ Details