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COVER PAGE - shares	6 Months Ended
COVER PAGE - shares	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	000-19756
Entity Registrant Name	PDL BIOPHARMA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3023969
Entity Address, Address Line One	932 Southwood Boulevard
Entity Address, City or Town	Incline Village,
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89451
City Area Code	775
Local Phone Number	832-8500
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PDLI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		113,982,229
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000882104
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Revenues	$ 5,211	$ 7,458	$ 11,206	$ 14,154
Operating expenses
Cost of Revenue	2,639	4,929	5,499	8,729
Amortization of intangible assets	335	344	637	662
Business Exit Costs	3,579	0	22,313	0
General and administrative	9,719	8,695	22,471	17,005
Selling and Marketing Expense	1,237	1,861	2,487	3,435
Research and Development Expense	1,465	886	3,321	1,796
Costs and Expenses	18,974	16,715	56,728	31,627
Operating loss from continuing operations	(13,763)	(9,257)	(45,522)	(17,473)
Non-operating expense, net
Interest and other income, net	69	1,650	582	3,524
Interest expense	(312)	(2,984)	(786)	(5,939)
Loss on extinguishment of convertible notes	0	0	(606)	0
Total non-operating expense, net	(243)	(1,334)	(810)	(2,415)
Loss from continuing operations before income taxes	(14,006)	(10,591)	(46,332)	(19,888)
Income tax benefit from continuing operations	(1,077)	(2,575)	(14,144)	(3,422)
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(12,929)	(8,016)	(32,188)	(16,466)
Total non-operating (expense) income, net	(44,277)	4,830	(58,112)	23,517
Discontinued Operation, Tax Effect of Discontinued Operation	(6,878)	1,328	(7,961)	4,948
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(37,399)	3,502	(50,151)	18,569
Net (loss) income	(50,328)	(4,514)	(82,339)	2,103
Net Income (Loss) Attributable to Noncontrolling Interest	(357)	(95)	(645)	(158)
Net loss from continuing operations	$ (49,971)	$ (4,419)	$ (81,694)	$ 2,261
Net income per share
Income (Loss) from Continuing Operations, Per Basic Share	$ (0.11)	$ (0.07)	$ (0.26)	$ (0.13)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share	(0.32)	0.03	(0.42)	0.15
Basic (in Dollars per Share)	(0.43)	(0.04)	(0.68)	0.02
Income (Loss) from Continuing Operations, Per Diluted Share	(0.11)	(0.07)	(0.26)	(0.13)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share	(0.32)	0.03	(0.42)	0.15
Net income per diluted share (in Dollars per Share)	$ (0.43)	$ (0.04)	$ (0.68)	$ 0.02
Weighted average shares outstanding
Basic (in Shares)	115,908	118,285	119,402	123,484
Diluted (in Shares)	115,908	118,285	119,402	123,484
Product Revenue [Member]
Revenues
Revenue from Contract with Customer, Including Assessed Tax	$ 4,099	$ 5,268	$ 8,115	$ 10,004
Lease Revenue
Revenues
Revenue from Contract with Customer, Including Assessed Tax	359	1,308	1,436	2,532
Service
Revenues
Revenue from Contract with Customer, Including Assessed Tax	690	846	1,582	1,612
Queen et al. patents [Member]
Revenues
Revenues	0	6	0	9
License and other [Member]
Revenues
Revenues	$ 63	$ 30	$ 73	$ (3)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net (loss) income	$ (50,328)	$ (4,514)	$ (82,339)	$ 2,103
Other comprehensive income (loss), net of tax
Other Comprehensive Income (Loss), Net of Tax	0	0	0	0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(50,328)	(4,514)	(82,339)	2,103
Net Income (Loss) Attributable to Noncontrolling Interest	(357)	(95)	(645)	(158)
Comprehensive (loss) income attributable to PDL’s shareholders	$ (49,971)	$ (4,419)	$ (81,694)	$ 2,261

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 105,446	$ 168,982
Accounts receivable, net	6,154	6,559
Notes receivable	52,598	52,583
Inventory	12,633	8,061
Assets held for sale (Note 2)	289,426	70,366
Prepaid and other current assets	29,291	7,344
Total current assets	495,548	313,895
Property and equipment, net	3,039	2,560
Notes receivable, long-term	636	827
Intangible assets, net	12,550	13,186
Long-term assets held for sale (Note 2)	0	377,491
Other assets	8,883	9,247
Total assets	520,656	717,206
Current liabilities:
Accounts payable	3,524	2,675
Accrued liabilities	14,498	11,923
Liabilities held for sale (Note 2)	18,213	31,095
Total current liabilities	36,235	45,693
Convertible notes payable	13,507	27,250
Liabilities held for sale, long-term (Note 2)	0	120
Other long-term liabilities	50,913	50,865
Total liabilities	100,655	123,928
Commitments and contingencies (Note 13)
Stockholders' deficit:
Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.01 per share, 350,000 shares authorized; 113,945 and 124,303 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	1,139	1,243
Additional paid-in capital	(66,164)	(78,875)
Retained earnings	485,493	670,832
Total PDL’s stockholders’ equity	420,468	593,200
Noncontrolling interests	(467)	78
Total stockholders’ equity	420,001	593,278
Total liabilities and stockholders’ equity	$ 520,656	$ 717,206

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands	Jun. 30, 2020	Dec. 31, 2019
Preferred stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in Shares)	10,000	10,000
Preferred stock, shares issued (in Shares)	0	0
Preferred stock, shares outstanding (in Shares)	0	0
Common stock par value (in Dollars per Share)	$ 0.01	$ 0.01
Common stock, shares authorized (in Shares)	350,000	350,000
Common stock, shares issued (in Shares)	113,945	124,303
Common stock, shares outstanding (in Shares)	113,945	124,303

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended					6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash flows from operating activities
Net (loss) income	$ (50,328)	$ (32,011)		$ (4,514)	$ 6,617	$ (82,339)	$ 2,103
Less: (Loss) income from discontinued operations	(37,399)			3,502		(50,151)	18,569
Net loss from continuing operations	(12,929)			(8,016)		(32,188)	(16,466)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible notes conversion option and debt issuance costs						485	3,876
Accreted interest on convertible note principal						38	0
Amortization of intangible assets	335			344		637	662
Amortization of right-of-use assets						370	362
Change in fair value of derivative assets						73	(3)
Loss on extinguishment of convertible notes	0		$ 3,900	0		606	0
Other amortization and depreciation						867	1,509
Loss on disposal of property and equipment						316	0
Stock-based compensation expense						18,000	3,210
Deferred income taxes						(158)	9,353
Changes in assets and liabilities:
Accounts receivable						582	(3,532)
Prepaid and other current assets						(21,944)	5,614
Inventory						(5,991)	(1,138)
Other assets						67	406
Accounts payable						843	1,078
Accrued liabilities						3,360	1,155
Other long-term liabilities						266	167
Net cash (used in) provided by operating activities - continuing operations						(33,771)	6,253
Net cash used in operating activities - discontinued operations						1,688	(14,428)
Cash flows from investing activities
Purchase of intangible assets						0	(1,700)
Purchase of property and equipment						(235)	(163)
Net cash used in investing activities - continuing operations						(235)	(1,863)
Net cash provided by (used in) investing activities - discontinued operations						24,966	(27,274)
Cash flows from financing activities
Proceeds from the exercise of stock options						461	0
Repurchase of convertible notes						(18,845)	0	$ (97,900)
Net receipts for capped call transactions						801	0
Payment of contingent consideration						0	(1,071)
Repurchase of Company common stock						(39,374)	(71,266)
Net settlement of stock-based compensation awards						(3,462)	0
Net cash used in financing activities - continuing operations						(60,419)	(72,337)
Net cash used in financing activities - discontinued operations						(359)	0
Net decrease in cash and cash equivalents						(68,130)	(109,649)
Cash and cash equivalents at beginning of the period		$ 193,451			$ 394,590	193,451	394,590	394,590
Cash and cash equivalents at end of the period	125,321		$ 193,451	284,941		125,321	284,941	$ 193,451
Less: Cash and cash equivalents of discontinued operations				28,447			28,447
Cash and cash equivalents of continuing operations at end of period	105,446			$ 256,494		105,446	256,494
Supplemental cash flow information
Cash (refunded) paid for income taxes						(4)	3,980
Cash paid for interest						298	4,591
Supplemental schedule of non-cash investing and financing activities
Noncash liquidating distribution	$ 64,400					64,400	0
Assets held for sale reclassified from other assets to intangible assets						$ 0	$ 1,811

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Non-controlling Interest
Shares, Issued at Dec. 31, 2018		136,512,522
Stockholders' Equity Attributable to Parent at Dec. 31, 2018	$ 729,779	$ 1,365	$ (2,103)	$ (98,030)	$ 828,547
Other Noncontrolling Interests at Dec. 31, 2018						$ 0
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		764,785
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	0	$ (8)		(8)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,169			1,169
Stock Repurchased During Period, Shares		(13,460,164)
Treasury Stock, Retired, Par Value Method, Amount		$ (135)
Treasury Stock, Value, Acquired, Cost Method			(613)
Treasury Stock, Retired, Cost Method, Amount					(44,831)
Noncontrolling Interest, Period Increase (Decrease)	572					572
Stock Repurchased and Retired During Period, Value	(44,353)
Net Income (Loss) Attributable to Parent					6,680
Net Income (Loss) Attributable to Noncontrolling Interest						(63)
Net (loss) income	6,617
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	6,617
Shares, Issued at Mar. 31, 2019		123,817,143
Stockholders' Equity Attributable to Parent at Mar. 31, 2019	693,784	$ 1,238	(1,490)	(96,869)	790,396
Other Noncontrolling Interests at Mar. 31, 2019						509
Shares, Issued at Dec. 31, 2018		136,512,522
Stockholders' Equity Attributable to Parent at Dec. 31, 2018	729,779	$ 1,365	(2,103)	(98,030)	828,547
Other Noncontrolling Interests at Dec. 31, 2018						0
Noncash liquidating distribution	0
Net Income (Loss) Attributable to Parent	2,261
Net Income (Loss) Attributable to Noncontrolling Interest	(158)
Net (loss) income	2,103
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	2,103
Shares, Issued at Jun. 30, 2019		115,669,169
Stockholders' Equity Attributable to Parent at Jun. 30, 2019		$ 1,157	(546)	(94,465)	759,080
Other Noncontrolling Interests at Jun. 30, 2019						198
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2019	665,424
Shares, Issued at Dec. 31, 2018		136,512,522
Stockholders' Equity Attributable to Parent at Dec. 31, 2018	729,779	$ 1,365	(2,103)	(98,030)	828,547
Other Noncontrolling Interests at Dec. 31, 2018						0
Shares, Issued at Dec. 31, 2019		124,302,616
Stockholders' Equity Attributable to Parent at Dec. 31, 2019	593,200	$ 1,243	0	(78,875)	670,832
Other Noncontrolling Interests at Dec. 31, 2019	78					78
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2019	593,278
Shares, Issued at Mar. 31, 2019		123,817,143
Stockholders' Equity Attributable to Parent at Mar. 31, 2019	693,784	$ 1,238	(1,490)	(96,869)	790,396
Other Noncontrolling Interests at Mar. 31, 2019						509
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		37,996
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	0
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,175			2,175
Stock Repurchased During Period, Shares		(8,185,970)
Treasury Stock, Retired, Par Value Method, Amount		$ (81)
Reduction in Treasury stock held			944
Treasury Stock, Retired, Cost Method, Amount					(26,897)
Noncontrolling Interest, Period Increase (Decrease)	13			229		(216)
Stock Repurchased and Retired During Period, Value	(26,034)
Net Income (Loss) Attributable to Parent	(4,419)				(4,419)
Net Income (Loss) Attributable to Noncontrolling Interest	(95)					(95)
Net (loss) income	(4,514)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(4,514)
Shares, Issued at Jun. 30, 2019		115,669,169
Stockholders' Equity Attributable to Parent at Jun. 30, 2019		$ 1,157	(546)	(94,465)	759,080
Other Noncontrolling Interests at Jun. 30, 2019						198
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2019	665,424
Shares, Issued at Dec. 31, 2019		124,302,616
Stockholders' Equity Attributable to Parent at Dec. 31, 2019	593,200	$ 1,243	0	(78,875)	670,832
Other Noncontrolling Interests at Dec. 31, 2019	78					78
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2019	593,278
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		1,781,197
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	0	$ (18)		(18)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	14,453			14,453
Stock Repurchased During Period, Shares		(5,564,841)
Treasury Stock, Retired, Par Value Method, Amount		$ (56)
Reduction in Treasury stock held			(2,244)
Treasury Stock, Retired, Cost Method, Amount					(17,978)
Noncontrolling Interest, Period Increase (Decrease)						100
Stock Repurchased and Retired During Period, Value	(20,278)
Adjustments to Additional Paid in Capital, Other				683
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	783
Write off of Deferred Debt Issuance Cost	(3,911)			(3,911)
Call option unwind	801			801
Net Income (Loss) Attributable to Parent					(31,723)
Net Income (Loss) Attributable to Noncontrolling Interest						(288)
Net (loss) income	(32,011)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(32,011)
Shares, Issued at Mar. 31, 2020		120,518,972
Stockholders' Equity Attributable to Parent at Mar. 31, 2020		$ 1,205	(2,244)	(66,867)	621,131
Other Noncontrolling Interests at Mar. 31, 2020						(110)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2020	553,115
Shares, Issued at Dec. 31, 2019		124,302,616
Stockholders' Equity Attributable to Parent at Dec. 31, 2019	593,200	$ 1,243	0	(78,875)	670,832
Other Noncontrolling Interests at Dec. 31, 2019	78					78
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2019	593,278
Noncash liquidating distribution	(64,400)
Net Income (Loss) Attributable to Parent	(81,694)
Net Income (Loss) Attributable to Noncontrolling Interest	(645)
Net (loss) income	(82,339)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(82,339)
Shares, Issued at Jun. 30, 2020		113,944,728
Stockholders' Equity Attributable to Parent at Jun. 30, 2020	420,468	$ 1,139	0	(66,164)	485,493
Other Noncontrolling Interests at Jun. 30, 2020	(467)					(467)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2020	420,001
Shares, Issued at Mar. 31, 2020		120,518,972
Stockholders' Equity Attributable to Parent at Mar. 31, 2020		$ 1,205	(2,244)	(66,867)	621,131
Other Noncontrolling Interests at Mar. 31, 2020						(110)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2020	553,115
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		183,903
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	460	$ (2)		458
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	245			245
Stock Repurchased During Period, Shares		(6,758,147)
Treasury Stock, Retired, Par Value Method, Amount		$ (68)
Reduction in Treasury stock held			2,244
Treasury Stock, Retired, Cost Method, Amount					(21,267)
Stock Repurchased and Retired During Period, Value	(19,091)
Noncash liquidating distribution	(64,400)				(64,400)
Net Income (Loss) Attributable to Parent	(49,971)				(49,971)
Net Income (Loss) Attributable to Noncontrolling Interest	(357)					(357)
Net (loss) income	(50,328)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(50,328)
Shares, Issued at Jun. 30, 2020		113,944,728
Stockholders' Equity Attributable to Parent at Jun. 30, 2020	420,468	$ 1,139	$ 0	$ (66,164)	$ 485,493
Other Noncontrolling Interests at Jun. 30, 2020	(467)					$ (467)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2020	$ 420,001

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation Throughout its history, the mission of PDL BioPharma, Inc. and its subsidiaries (collectively, the “Company” or “PDL”) has been to improve the lives of patients by aiding in the successful development of innovative therapeutics and healthcare technologies. PDL was founded in 1986 as Protein Design Labs, Inc. when it pioneered the humanization of monoclonal antibodies, enabling the discovery of a new generation of targeted treatments that have had a profound impact on patients living with different cancers as well as a variety of other debilitating diseases. In 2006, the Company changed its name to PDL BioPharma, Inc. Historically, the Company generated a substantial portion of its revenues through license agreements related to patents covering the humanization of antibodies, which it refers to as the Queen et al. patents. In 2012, the Company began providing alternative sources of capital through royalty monetizations and debt facilities, and, in 2016, the Company began acquiring commercial-stage products and launching specialized companies dedicated to the commercialization of these products. In 2019, and as a further evolution of the Company’s strategy, it began to enter into strategic transactions involving innovative late clinical-stage or early commercial-stage therapeutics. Consistent with this strategy, on April 10, 2019, the Company entered into a securities purchase agreement with Evofem Biosciences, Inc. (“Evofem”), pursuant to which it invested $60.0 million in a private placement of securities structured in two tranches. Overall, the Company consummated eighteen transactions, nine of which are active and outstanding. In September 2019, the Company engaged financial and legal advisors and initiated a review of its strategy. In December 2019, the Company announced that it decided to halt the execution of its growth strategy, cease additional strategic transactions and investments and instead pursue a formal process to unlock value by monetizing its assets and returning net proceeds to stockholders (the “monetization strategy”). Pursuant to the Company’s monetization strategy, the Company does not expect to enter into any additional strategic investments. The Company further announced in December 2019 that it would explore a variety of potential transactions in connection with the monetization strategy, including a whole Company sale, divestiture of assets, spin-offs of operating entities, merger opportunities or a combination thereof. Over the subsequent months, the Company’s Board of Directors (the “Board”) and management analyzed, together with outside financial and legal advisors, how to best capture value pursuant to the monetization strategy and best return the value of the assets in its portfolio to its stockholders. During the first quarter of 2020, the Board approved a plan of complete liquidation (the “Plan of Liquidation”) and passed a resolution to seek stockholder approval at its next Annual Meeting of Stockholders to dissolve the Company as permitted by the General Corporation Law of the State of Delaware (the “DGCL”). In the event the proposal is approved by stockholders and the Board concludes that the whole Company sale process is unlikely to maximize the value that can be returned to the stockholders from our monetization process, the Company intends to file a Certificate of Dissolution with the Secretary of State of Delaware after monetizing its key assets and then proceed to wind-down and dissolve the Company in accordance with the DGCL. The Company has not set a definitive timeline to file for dissolution and intends to pursue its monetization strategy in a disciplined and cost-effective manner seeking to maximize returns to stockholders. Pursuant to the Company’s monetization strategy, the Company began a comprehensive program to market and sell its investments. During the quarter ended March 31, 2020, the Company’s Pharmaceutical segment and the royalty right assets within the Income Generating Assets segment met the criteria to be classified as held for sale. Those investments are reported as discontinued operations on the Condensed Consolidated Statements of Operations and as Assets and Liabilities held for sale on the Condensed Consolidated Balance Sheets. See Note 21, Subsequent Events, for additional information about the Pharmaceutical segment. During the quarter ended June 30, 2020, the Evofem common stock held within the Strategic Positions segment was distributed to the Company’s stockholders and as a result the Strategic Positions segment and all investments included in the segment met the criteria to be classified as discontinued operations. Therefore, the Strategic Positions segment is also presented as discontinued operations on the Condensed Consolidated Statements of Operations. While the Company cannot provide a definitive timeline for the liquidation process, it has been targeting the end of 2020 for completing the monetization or other distribution of its key assets. However, the Company recognizes that the duration and extent of the public health issues related to the COVID-19 pandemic make it possible, and perhaps probable, that the timing may be delayed. The accompanying unaudited Condensed Consolidated Financial Statements of PDL have been prepared in accordance with Generally Accepted Accounting Principles (United States) (“GAAP”) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), that management of the Company believes are necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year. The accompanying unaudited Condensed Consolidated Financial Statements and related financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements and the related notes thereto for the fiscal year ended December 31, 2019, included in its Annual Report on Form 10-K (the “2019 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on March 11, 2020 and the Company’s Current Report on Form 8-K, filed with the SEC on June 29, 2020, which revises and re-casts certain historical financial information included in the 2019 Form 10-K to present the Pharmaceutical segment and the royalty right assets within the Income Generating Assets segment as discontinued operations for all periods presented. The Condensed Consolidated Balance Sheet at December 31, 2019, included herein, has been derived from the audited Consolidated Financial Statements at that date, as adjusted to conform with the financial statement presentation as of and for the three and six months ended June 30, 2020 as discussed in Note 2, Discontinued Operations Classified as Assets Held for Sale, but does not include all disclosures required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying Notes to the Condensed Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, assets and liabilities held for sale, including the valuation of royalty rights - at fair value, product revenue recognition and allowances for customer rebates, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and the valuation of warrants to acquire shares of common stock. Furthermore, the impact on accounting estimates and judgments on the Company’s financial condition and results of operations due to COVID-19 has introduced additional uncertainties. Actual results could differ from those estimates. The Condensed Consolidated Financial Statements included herein include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Based on the composition of its investment portfolio, the Company historically structured its operations in four segments designated as Medical Devices, Strategic Positions, Pharmaceutical and Income Generating Assets. During the second quarter of 2020, and in connection with the distribution of shares of Evofem common stock to stockholders, the Company determined that Strategic Positions was no longer an operating segment. Following is a summary of the Company’s segments including those that have been classified as discontinued operations: •The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales made by the Company’s subsidiary, LENSAR, Inc. (“LENSAR”), which may include equipment, Patient Interface Devices (“PIDs” or “consumables”), procedure licenses, training, installation, warranty and maintenance agreements. •The Company’s Strategic Positions segment consisted of an investment in Evofem, which included shares of common stock and warrants to purchase shares of common stock. During the second quarter of 2020, the Company distributed its shares of common stock in Evofem to the Company’s stockholders at which time the segment ceased to be a reportable segment. The Company continues to hold warrants to purchase shares of Evofem’s common stock. Evofem is a publicly-traded commercial-stage biopharmaceutical company committed to developing and commercializing innovative products to address unmet needs in women’s sexual and reproductive health. Evofem is leveraging its proprietary Multipurpose Vaginal pH Regulator (MVP-R™) platform for Phexxi^TM (L-lactic acid, citric acid and potassium bitartrate) for hormone-free birth control. •The Company’s Pharmaceutical segment consisted of revenue derived from branded prescription medicine products sold under the name Tekturna^® and Tekturna HCT^® in the United States and Rasilez^® and Rasilez HCT^® in the rest of the world and an authorized generic form of Tekturna sold in the United States (collectively, the “Noden Products”). The branded prescription Noden Products were acquired from Novartis Pharma AG (“Novartis”) in July 2016 (the “Noden Transaction”) by the Company’s wholly-owned subsidiary, Noden Pharma DAC (“Noden DAC”). The Company, through its wholly-owned subsidiary, Noden Pharma USA Inc. (“Noden USA”) launched its authorized generic form of Tekturna in the United States in March 2019. •The Company’s Income Generating Assets segment consists of revenue derived from (i) notes and other long-term receivables, (ii) equity investments and (iii) royalties from issued patents in the United States and elsewhere covering the humanization of antibodies (“Queen et al. patents”). As noted above, the royalty rights assets previously included in the Income Generating Assets segment are classified as held for sale and are reported as discontinued operations. The worldwide spread of coronavirus, or COVID-19, has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. If the financial markets or the overall economy are impacted for an extended period, the Company’s liquidity, revenues, supplies and intangibles may be adversely affected. Significant Accounting Policies Assets Held for Sale Assets and liabilities are classified as held for sale when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. When all of these criteria have been met, the assets and liabilities are classified as held for sale in the balance sheet. Assets classified as held for sale are reported at the lower of their carrying value or fair value less costs to sell. Depreciation and amortization of assets ceases upon designation as held for sale. The assets and liabilities held for sale are recorded on the Company’s Condensed Consolidated Balance Sheets as Assets held for sale and Liabilities held for sale, respectively. Discontinued Operations Discontinued operations comprise those activities that were disposed of during the period or which were classified as held for sale at the end of the period, represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes and represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. The profits and losses are presented on the Condensed Consolidated Statements of Operations as discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information. Severance and retention After the Company announced its monetization strategy, it recognized that its ability to execute on its plan and optimize returns to its stockholders depended to a large extent on its ability to retain the necessary expertise to effectively transact with respect to its assets. On December 21, 2019, the Compensation Committee of the Board adopted a Wind Down Retention Plan in which the Company’s executive officers and other employees who are participants in the Company’s Severance Plan are eligible to participate. Under the Wind Down Retention Plan, participants are eligible to earn a retention benefit in consideration for their continued employment with the Company. The Wind Down Retention benefits are equivalent to previously disclosed compensation payments contemplated in connection with a change in control under the Company’s existing Severance Plan. Under the Wind Down Retention Plan, payment of the retention benefit to any participant will occur upon termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason. The retention benefit, if paid, would be in lieu of (and not in addition to) any other severance compensation that could become payable to the participant under the Company’s Severance Plan. In connection with the adoption of the Wind Down Retention Plan, a severance liability is being recorded over the remaining service period for the participating employees. As of June 30, 2020, the Company has recorded a severance liability of $6.0 million. Expenses associated with severance payments and accruals are reflected in Severance and retention on the Company’s Condensed Consolidated Statements of Operations. The Wind Down Retention Plan also provides that, consistent with the existing terms of the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Equity Plan”), the vesting of all outstanding equity awards held by participants as of the date the Wind Down Retention Plan was adopted will be accelerated upon the earlier of: (i) a termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason or (ii) the consummation of a change in control (as defined in the Equity Plan) of the Company. In addition, the post-termination exercise period for all outstanding stock options will be extended until their expiration date. In connection with the Board adopting the Plan of Liquidation in the first quarter of 2020, all of the outstanding and unvested stock options and restricted stock granted to the Company’s employees and executive officers, with the exception of certain outstanding awards under the 2016/20 Long-Term Incentive Plan, accelerated and vested under the change in control definition in the Equity Plan. The expense associated with the accelerated vesting, totaling $15.7 million is reported as Severance and retention on the Company’s Condensed Consolidated Statements of Operations. For a discussion of other accounting policies, refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Summarized below are the accounting pronouncements and policies adopted subsequent to December 31, 2019 in addition to those described above. Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. The Company adopted ASU No. 2016-13 on January 1, 2020 using a modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. As a consequence of adopting ASU 2016-13, the Company’s accounts receivable accounting policy has been updated, as follows: Accounts and Notes Receivable The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely and the Company ceases collection efforts. The Company applies the practical expedient for its collateral-dependent notes receivable. Estimated credit losses are based on the fair value of the collateral (less costs to sell, as applicable). In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The Company adopted ASU No. 2018-13 on January 1, 2020. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company adopted ASU No. 2018-15 on January 1, 2020 using the prospective transition option. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. Recently Issued Accounting Pronouncements In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently-asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract. As a result of the COVID-19 pandemic, LENSAR entered into agreements with 22 customers through which LENSAR agreed to waive monthly rental and minimum monthly license fees ranging from one to four months for an aggregate of $0.9 million of revenue, consisting of $0.5 million in Product revenue, $0.3 million in Lease revenue, and $0.1 million in Service revenue. In return for these concessions the related contracts were extended by the same number of months waived. No amounts of accounts receivable or notes receivable were deemed uncollectible due to COVID-19 during the quarter ended June 30, 2020; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period. In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. For public companies, the amendments in ASU No. 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

Discontinued Operations Classified as Assets Held for Sale

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations Classified as Assets Held for Sale

2. Discontinued Operations Classified as Assets and Liabilities Held for Sale

In February 2020, the Company’s board of directors approved the Plan of Liquidation and passed a resolution to seek stockholder approval at the Company’s next Annual Meeting of Stockholders to dissolve the Company under Delaware state law in the event that the Board concludes that a whole Company sale is unlikely to maximize the value that can be returned to the stockholders. The Company has not set a definitive timeline for the liquidation and intends to pursue the liquidation strategy in a disciplined and cost-effective manner seeking to maximize returns to stockholders. As a result of these actions and subsequent efforts to monetize the Company’s key assets, as well as the sale of these key assets representing a strategic shift in the operations of the Company, the assets held for sale and discontinued operations criteria were met for the Company’s royalty assets (Income Generating Assets segment) and its subsidiary Noden (Pharmaceutical segment) during the first quarter of 2020. The discontinued operations criteria were met for the Company’s investment in Evofem (Strategic Positions segment) during the second quarter of 2020 after the Company distributed all of its shares of common stock of Evofem to the Company’s stockholders. The historical financial results of the investment in Evofem, royalty assets and Noden are reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented, and assets and liabilities were retrospectively reclassified as assets and liabilities held for sale.

Components of amounts reflected in (Loss) income from discontinued operations on the Company’s Condensed Consolidated Statement of Operations are as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019
Revenues
Product revenue, net	$	8,167	$	10,415	$	23,198	$	30,375
Royalty rights - change in fair value	(16,304)		(40,399)		(6,910)		(28,142)
Total revenues	(8,137)		(29,984)		16,288		2,233
Operating expenses
Cost of product revenue (excluding intangible asset amortization)	4,901		7,419		13,682		16,429
Amortization of intangible assets	—		1,254		389		2,507
General and administrative	2,151		1,788		4,565		3,940
Sales and marketing	81		212		198		1,368
Research and development	—		—		—		(41)
Total operating expenses	7,133		10,673		18,834		24,203
Operating loss from discontinued operations	(15,270)		(40,657)		(2,546)		(21,970)
Non-operating (expense) income, net
Equity affiliate - change in fair value	(12,864)		45,487		(26,662)		45,487
Loss on classification as held for sale	(16,143)		—		(28,904)		—
Total non-operating (expense) income, net	(29,007)		45,487		(55,566)		45,487
(Loss) income from discontinued operations before income taxes	(44,277)		4,830		(58,112)		23,517
Income tax (benefit) expense from discontinued operations	(6,878)		1,328		(7,961)		4,948
(Loss) income from discontinued operations	$	(37,399)	$	3,502	$	(50,151)	$	18,569

The carrying amounts of the major classes of assets reported as “Assets held for sale” on the Company’s Condensed Consolidated Balance Sheets consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Cash and cash equivalents ⁽¹⁾	$	19,875	$	24,469
Accounts receivable, net	7,114		6,993
Inventory	29,485		31,712
Prepaid and other current assets	7,357		7,192
Property and equipment, net	2,949		2,960
Royalty rights - at fair value	234,242		266,196
Investment in equity affiliate	—		82,267
Intangible assets, net	9,723		10,112
Other assets	7,083		15,956
Less: Estimated remaining cost to sell and fair value adjustment	(28,402)		—
Total assets held for sale ⁽²⁾	$	289,426	$	447,857

________________

⁽¹⁾Cash and cash equivalents represent balances maintained by Noden, which will remain with the buyer upon consummation of the sale of the Noden business and applied to the commitment with Novartis as further described in Note 13, Commitments and Contingencies and in Note 21, Subsequent Events.

⁽²⁾The assets of the disposal groups classified as held for sale are classified as current on the June 30, 2020 Balance Sheet because it is probable that the sales will occur and the proceeds will be collected within one year.

The carrying amounts of the major classes of liabilities reported as “Liabilities held for sale” on the Company’s Condensed Consolidated Balance Sheets consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Accounts payable	$	3,017	$	14,695
Accrued liabilities	15,196		16,400
Other long-term liabilities	—		120
Total liabilities held for sale ⁽¹⁾	$	18,213	$	31,215

________________

⁽¹⁾The liabilities of the disposal groups classified as held for sale are classified as current on the June 30, 2020 Balance Sheet because it is probable that the sales will occur and the proceeds will be collected within one year.

Investment in Evofem Biosciences, Inc.	6 Months Ended
Investment in Evofem Biosciences, Inc.	Jun. 30, 2020
Investments, Equity Securities [Abstract]
Investment in Evofem Biosciences, Inc.	3. Investment in Evofem Biosciences, Inc. On April 10, 2019, the Company entered into a securities purchase agreement with Evofem and two other purchasers pursuant to which the Company purchased $60.0 million of Evofem securities in a private placement. The transaction was structured in two tranches. The first tranche closed on April 11, 2019, pursuant to which the Company invested $30.0 million to purchase 6,666,667 shares of Evofem common stock at $4.50 per share and was also issued warrants to purchase up to 1,666,667 shares of Evofem common stock. The warrants are exercisable beginning six months after the issuance date for a period of seven years from the issuance date at an exercise price of $6.38 per share. The second tranche closed on June 10, 2019, pursuant to which the Company invested an additional $30.0 million to purchase 6,666,667 additional shares of Evofem common stock at $4.50 per share and was also issued warrants to purchase up to an additional 1,666,667 shares of Evofem common stock with the same terms as the warrants issued in the first tranche. On May 21, 2020, the Company announced that it had completed the distribution of all of the Company’s 13,333,334 shares of common stock of Evofem to the Company’s stockholders, which represented approximately 26.7% of the outstanding shares of Evofem common stock as of the close of business on May 15, 2020. The distribution was recorded as a noncash distribution of $64.4 million, reducing retained earnings. Following the distribution, PDL continues to hold warrants to purchase up to 3,333,334 shares of Evofem common stock. As of June 30, 2020, the Evofem warrants were valued at $5.3 million and are classified as “Assets held for sale” on the Company’s Condensed Consolidated Balance Sheet. The Evofem common stock and the Evofem warrants are included in “Long-term assets held for sale” on the Company’s December 31, 2019 Condensed Consolidated Balance Sheet. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information. For the three and six months ended June 30, 2020, the Company recorded a loss of $6.5 million and $17.9 million, respectively, in (Loss) income from discontinued operations before income taxes on the Company’s Condensed, Consolidated Statements of Operations for the change in fair value of the Evofem common stock. For the three and six months ended June 30, 2020, the Company recorded an unrealized loss of $6.3 million and $8.8 million, respectively, for the change in fair value of the Evofem warrants. These losses are included in (Loss) income from discontinued operations before income taxes on the Company’s Condensed, Consolidated Statements of Operations. The latest Evofem financial statements can be found on their corporate website at www.evofem.com or filed with the SEC at www.sec.gov.

Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2020

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

4. Cash and Cash Equivalents

As of June 30, 2020 and December 31, 2019, the Company had invested its excess cash balances primarily in cash and money market funds. The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

The following table summarizes the Company’s cash and cash equivalents by significant investment category reported as cash and cash equivalents as of June 30, 2020 and December 31, 2019:



(in thousands)	June 30, 2020		December 31, 2019

Cash⁽¹⁾	$	23,527	$	37,718
Money market funds	81,919		131,264

Total	$	105,446	$	168,982

________________

⁽¹⁾The amounts above exclude $19.8 million and $24.5 million of cash at Noden classified as held for sale as of June 30, 2020 and December 31, 2019, respectively. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Inventories

6 Months Ended

Jun. 30, 2020

Inventory [Abstract]

Inventories

5. Inventories

Inventories consisted of the following:


(in thousands)	June 30, 2020		December 31, 2019

Raw materials	$	4,381	$	3,739
Work in process	1,612		1,170
Finished goods	6,640		3,152

Total inventory ⁽¹⁾	$	12,633	$	8,061

____________

⁽¹⁾ The amounts above exclude $29.5 million and $31.7 million of inventory at Noden classified as held for sale as of June 30, 2020 and December 31, 2019, respectively. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Notes Receivable and Other Long-term Receivables	6 Months Ended
Notes Receivable and Other Long-term Receivables	Jun. 30, 2020
Receivables [Abstract]
Notes and Other Long-term Receivables	. Notes and Other Long-Term Receivables Notes and other long-term receivables included the following significant agreements: Wellstat Diagnostics Note Receivable and Credit Agreement and Related Litigation On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company was to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, the Company was to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics’ net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics’ products, if any, commencing upon the commercialization of its products. A portion of the proceeds of the $40.0 million credit agreement were used to repay certain notes receivable which Wellstat Diagnostics entered into in March 2012. In January 2013, the Company was informed that, as of December 31, 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. The Company sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, the Company exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to the Company and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby the Company agreed to refrain from exercising additional remedies for 120 days. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. Except as otherwise described herein, the material terms of the amended and restated credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, the Company was to continue to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics’ net revenues. However, pursuant to the amended and restated credit agreement: (i) the principal amount was reset to approximately $44.1 million, which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics’ obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics were required to contribute additional capital to Wellstat Diagnostics upon the sale of an affiliate entity. The amended and restated credit agreement had an ultimate maturity date of December 31, 2021 (but has subsequently been accelerated as described below). In June 2014, the Company received information from Wellstat Diagnostics showing that it was generally unable to pay its debts as they became due, constituting an event of default under the amended and restated credit agreement. On August 5, 2014, the Company delivered a notice of default to Wellstat Diagnostics, which accelerated all obligations under the amended and restated credit agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, included an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered a notice to each of the guarantors of Wellstat Diagnostics’ obligations to the Company (collectively, the “Wellstat Diagnostics Guarantors”) under the credit agreement, which included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ stockholders. On September 24, 2014, the Company filed an ex-parte petition for appointment of receiver with the Circuit Court of Montgomery County, Maryland, which was granted on the same day. Wellstat Diagnostics remained in operation during the period of the receivership with incremental additional funding from the Company. On May 24, 2017, Wellstat Diagnostics transferred substantially all of its assets to the Company pursuant to a credit bid. The credit bid reduced the outstanding balance of the loan by an immaterial amount. On September 4, 2015, the Company filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against certain of the Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On September 23, 2015, the Company filed in the same court an ex parte application for a temporary restraining order and order of attachment of the Wellstat Diagnostics Guarantor defendants’ assets. Although the court denied the Company’s request for a temporary restraining order at a hearing on September 24, 2015, it ordered that assets of the Wellstat Diagnostics Guarantor defendants should be held in status quo ante and only used in the normal course of business. On July 29, 2016, the Supreme Court of New York granted the Company’s motion for summary judgment and held that the Wellstat Diagnostics Guarantor defendants are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. After appeal by the Wellstat Diagnostics Guarantor defendants on February 14, 2017, the Appellate Division of the Supreme Court of New York reversed on procedural grounds a portion of the Memorandum of Decision granting the Company summary judgment in lieu of complaint, but affirmed the portion of the Memorandum of Decision denying the Wellstat Diagnostics Guarantor defendants’ motion for summary judgment in which they sought a determination that the guarantees had been released. As a result, the litigation has been remanded to the Supreme Court of New York to proceed on the Company’s claims as a plenary action. On June 21, 2017, the Supreme Court of New York ordered the Company to file a Complaint, which was filed by the Company on July 20, 2017. The Wellstat Diagnostics Guarantors filed their answer on August 9, 2017, including counterclaims against the Company alleging breach of contract, breach of fiduciary duty, and tortious interference with prospective economic advantage. On October 14, 2016, the Company sent a notice of default and reference to foreclosure proceedings to certain of the Wellstat Diagnostics Guarantors which are not defendants in the New York action, but which are owners of real estate assets over which a deed of trust in favor of the Company securing the guarantee of the loan to Wellstat Diagnostics had been executed. On March 2, 2017, the Company sent a second notice to foreclose on the real estate assets, and noticed the sale for March 29, 2017. The sale was taken off the calendar by the trustee under the deed of trust and has not been re-scheduled yet. On March 6, 2017, the Company sent a letter to the Wellstat Diagnostics Guarantors seeking information in preparation for a UCC Article 9 sale of some or all of the intellectual property-related collateral of the Wellstat Diagnostics Guarantors. The Wellstat Diagnostics Guarantors did not respond to the Company’s letter, but on March 17, 2017, filed an order to show cause with the Supreme Court of New York to enjoin the Company’s sale of the real estate or enforcing its security interests in the Wellstat Diagnostics Guarantors’ intellectual property during the pendency of any action involving the guarantees at issue. On February 6, 2018, the Supreme Court of New York issued an order from the bench which enjoins the Wellstat Diagnostics Guarantors from selling, encumbering, removing, transferring or altering the collateral pending the outcome of the proceedings before it. The Supreme Court of New York also issued an order precluding the Company from foreclosing on certain of the Wellstat Diagnostics Guarantors’ collateral pending the outcome of the proceedings before it. In September of 2018, discovery in the New York action was completed. Summary judgment motions were filed by Wellstat Diagnostics and the Company in 2018 and a hearing was held on May 22, 2019. On September 11, 2019, the Supreme Court of New York granted the Company’s summary judgment motion, the court holding that the guarantees executed by the Wellstat Diagnostics Guarantors are valid and enforceable, and that the Wellstat Diagnostics Guarantors are liable for the amount owed under the loan agreement. The court ordered a damages inquest before a special referee to calculate the amount owed under the loan agreement between Wellstat Diagnostics and the Company. On September 12, 2019, the Wellstat Diagnostics Guarantors filed a notice of appeal in relation to the court’s decision. On September 17, 2019, the Wellstat Diagnostics Guarantors requested a stay of the enforcement of the New York Supreme Court’s decision pending their appeal of the decision, which was denied on November 21, 2019. A damages hearing was scheduled to begin before a judicial hearing officer on December 17, 2019. At the request of the judicial hearing officer, the parties agreed to mediate their dispute prior to the commencement of the damages hearing. As a result, no decision has been made by the hearing officer with respect to the amount of damages owed to the Company. In an unrelated litigation, Wellstat Therapeutics filed a lawsuit against BTG International, Inc. for breach of contract (the “BTG Litigation”). In September 2017, the Delaware Chancery Court found in favor of Wellstat Therapeutics and awarded a judgment of $55.8 million in damages, plus interest. In October 2017, the Company filed a motion with the Supreme Court of New York requesting a pre-judgement attachment of the award. In June 2018, the Delaware Supreme Court largely affirmed the September 2017 decision of the Delaware Chancery Court, including the $55.8 million awarded in judgment. In August of 2018, in a letter to the Company’s counsel, Wellstat Diagnostics Guarantors’ counsel confirmed that the Wellstat Diagnostics Guarantors are preserving the BTG Litigation judgment award proceeds consistent with the New York Court’s prior directions. On October 22, 2015, certain of the Wellstat Diagnostics Guarantors filed a separate complaint against the Company in the Supreme Court of New York seeking a declaratory judgment that certain contractual arrangements entered into between the parties subsequent to Wellstat Diagnostics’ default, and which relate to a split of proceeds in the event that the Wellstat Diagnostics Guarantors voluntarily monetize any assets that are the Company’s collateral, is of no force or effect. This case has been joined for all purposes, including discovery and trial, and consolidated with the pending case filed by the Company. The Wellstat Diagnostic Guarantors filed a summary judgment motion with regard to this case, which was also heard by the court at the hearing on May 22, 2019. The court, in its September 11, 2019 decision, denied in its entirety the Wellstat Diagnostics Guarantors’ motion for summary judgment. Effective April 1, 2014, and as a result of the event of default, the Company determined the loan to be impaired and it ceased to accrue interest revenue. At that time and as of June 30, 2020, 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 is in-line with the carrying value of the asset and is sufficient to enable the Company to recover the current carrying value of $50.2 million. The Company continues to closely monitor the timing and expected recovery of amounts due, including litigation and other matters related to Wellstat Diagnostics Guarantors’ assets. There can be no assurance that an allowance on the carrying value of the notes receivable investment will not be necessary in a future period depending on future developments. Hyperion Agreement On January 27, 2012, the Company and Hyperion (which is also a Wellstat Diagnostics Guarantor) entered into an agreement whereby Hyperion sold to the Company the royalty streams accruing from January 1, 2012 through December 31, 2013 due from Showa Denko K.K. (“SDK”) related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. In exchange for the lump sum payment to Hyperion of $2.3 million, in addition to any royalties from SDK, the Company was to receive two equal payments of $1.2 million on March 5, 2013 and March 5, 2014. The first payment of $1.2 million was paid on March 5, 2013, but the second payment that was due on March 5, 2014 has not been made by Hyperion. Effective as of such date and as a result of the event of default, the Company ceased to accrue interest revenue. As of June 30, 2020, the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance of realizing value from such collateral in the event of the Company’s foreclosure on the collateral. CareView Credit Agreement On June 26, 2015, the Company entered into a credit agreement with CareView, under which the Company made available to CareView up to $40.0 million in loans comprised of two tranches of $20.0 million each, subject to CareView’s attainment of specified milestones relating to the placement of CareView Systems. On October 7, 2015, the Company and CareView entered into an amendment of the credit agreement to modify certain definitions related to the first and second tranche milestones and the Company funded the first tranche of $20.0 million, net of fees, based on CareView’s attainment of the first milestone, as amended. The second $20.0 million tranche was not funded due to CareView’s failure to achieve the related funding milestones and there is no additional funding obligation due from the Company. Outstanding borrowings under the credit agreement bear interest at the rate of 13.5% per annum and are payable quarterly in arrears. As part of the original credit agreement, the Company received a warrant to purchase approximately 4.4 million shares of common stock of CareView at an exercise price of $0.45 per share. The Company has accounted for the warrant as a derivative asset with an offsetting credit as debt discount. At each reporting period the warrant is marked to market for changes in fair value. In connection with the October 2015 amendment of the credit agreement, the Company and CareView also agreed to amend the warrant to purchase common stock agreement by reducing the warrant’s exercise price from $0.45 to $0.40 per share. In February 2018, the Company entered into a modification agreement with CareView (the “February 2018 Modification Agreement”) whereby the Company agreed, effective December 28, 2017, to modify the credit agreement before remedies could otherwise have become available to the Company under the credit agreement in relation to certain obligations of CareView that would potentially not be met, including the requirement to make principal payments. Under the February 2018 Modification Agreement, the Company agreed that (i) a lower liquidity covenant would be applicable and (ii) principal repayment would be delayed until December 31, 2018. In exchange for agreeing to these modifications, among other things, the exercise price of the Company’s warrants to purchase 4.4 million shares of common stock of CareView was repriced from $0.40 to $0.03 per share and, subject to the occurrence of certain events, CareView agreed to grant the Company additional equity interests. As a result of the February 2018 Modification Agreement, the Company determined the loan to be impaired and it ceased to accrue interest revenue effective October 1, 2017. In September 2018, the Company entered into an amendment to the February 2018 Modification Agreement with CareView whereby the Company agreed, effective as of September 28, 2018, that a lower liquidity covenant would be applicable. In December 2018, the Company further modified the loan by agreeing that (i) a lower liquidity covenant would be applicable, (ii) the first principal payment would be deferred until January 31, 2019, and (iii) the scheduled interest payment due December 31, 2018 would be deferred until January 31, 2019. In December 2018, and in consideration of the further modification to the credit agreement, the Company completed an impairment analysis and determined that the note was impaired and recorded an impairment loss of $8.2 million. For additional information see Note 6, Fair Value Measurements. As of March 31, 2019, the principal repayment and interest payments were deferred until April 30, 2019. The principal repayment and interest payment were subsequently deferred until May 15, 2019 under additional amendments. In May 2019, and in consideration of additional capital raised by CareView, the Company further modified the loan by agreeing that (i) the first principal and interest payments would be deferred until September 30, 2019 and (ii) the remaining liquidity covenant would be removed. In September 2019, the Company further modified the loan by agreeing that the first principal and interest payments would be deferred, and (iii) the interest rate would be increased to 15.5%. Pursuant to further amendments to the February 2018 Modification Agreement in September 2019, December 2019, January 2020 and April 2020, the Company agreed to defer principal and interest payments until September 30, 2020. In December 2019, and in consideration of the further modification to the credit agreement and February 2018 Modification Agreement, the Company updated its impairment analysis and determined that an additional impairment was necessary and recorded an impairment loss of $10.8 million. At June 30, 2020, the Company estimated the fair value of the warrant to be less than $0.1 million.

Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

8. Leases

Lessor arrangements

The Company has operating leases for medical device equipment generated from its medical devices segment. The components of Lease revenue are as follows:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(in thousands)	Classification	2020		2019		2020		2019









Operating lease income	Lease revenue	$	359	$	1,308	$	1,436	$	2,532

Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

. Intangible Assets

LENSAR

In April 2019, LENSAR acquired certain intellectual property from a third-party for $2.0 million in cash and contingent obligations to pay a $0.3 million milestone payment and royalties upon the completion of certain events, which were met prior to December 31, 2019.

In September 2019, LENSAR exclusively licensed certain intellectual property from a third-party for $3.5 million in cash for use in research and development activities. The amount was immediately expensed to Research and development expense.

The components of intangible assets as of June 30, 2020 and December 31, 2019 were as follows:


	June 30, 2020										December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	—	$	—	$	—	$	—	$	—	$	—
Customer relationships^{(1) (2) (3)}	4,045		(1,079)		2,966		4,045		(884)		3,161
Acquired technology^{(2) (4)}	11,500		(2,125)		9,375		11,500		(1,741)		9,759
Acquired trademarks⁽²⁾	570		(361)		209		570		(304)		266
	$	16,115	$	(3,565)	$	12,550	$	16,115	$	(2,929)	$	13,186

________________

⁽¹⁾ The Company acquired certain intangible assets as part of the Noden transaction. Those intangible assets are excluded from the table above and included in “Assets held for sale.” See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

⁽²⁾ The Company acquired certain intangible assets as part of its acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

⁽³⁾ LENSAR acquired certain intangible assets for customer relationships resulting from its acquisition of Precision Eye Services, which are being amortized using a straight-line method over a period of 10 years.

⁽⁴⁾LENSAR acquired certain intangible assets from a third-party, which are being amortized on a straight-line basis over a period of 15 years.

For the three and six months ended June 30, 2020, amortization expense was $0.3 million and $0.6 million, respectively, and for the three and six months ended June 30, 2019, amortization expense was $0.3 million and $0.7 million, respectively.

Based on the intangible assets recorded at June 30, 2020, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows (in thousands):


Fiscal Year	Amount

2020 (Remaining six months)	$	613
2021	1,215
2022	1,124
2023	1,072
2024	1,060
Thereafter	7,466
Total remaining amortization expense	$	12,550

Accrued Liabilities

6 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Accrued Liabilities

. Accrued Liabilities

Accrued liabilities consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Compensation	$	4,013	$	6,823
Severance	5,973		—
Deferred revenue	864		959
Interest	34		70
Legal	960		921





Accrued rebates, chargebacks and other revenue reserves	6		5
Other	2,648		3,145
Total ⁽¹⁾	$	14,498	$	11,923

________________

⁽¹⁾The amounts above exclude $15.2 million and $16.4 million of accrued liabilities at Noden classified as held for sale as of June 30, 2020 and December 31, 2019, respectively. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

As previously discussed, in February 2020 the Board approved the Plan of Liquidation. In addition, the Company has entered into severance agreements with its employees under the Wind Down Retention Plan. The total amount of severance expected to be incurred during 2020 is $13.0 million, of which $3.6 million and $6.6 million was expensed in the three and six months ended June 30, 2020, respectively. The severance amount paid in the three and six months ended June 30, 2020 was zero and $0.6 million, respectively. All severance costs are included in the Income Generating Assets segment, as all corporate personnel salary and benefit costs are allocated to this segment.

Convertible Notes

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Convertible Senior Notes

. Convertible Senior Notes


		Principal Balance Outstanding		Carrying Value
		June 30,		June 30,		December 31,
Description	Maturity Date	2020		2020		2019
(in thousands)
Convertible Senior Notes
December 2021 Notes	December 1, 2021	$	13,805	$	12,601	$	16,950
December 2024 Notes	December 1, 2024	1,000		906		10,300
Total		$	14,805	$	13,507	$	27,250

December 2021 Notes

On November 22, 2016, the Company issued $150.0 million in aggregate principal amount, at par, of 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”) in an underwritten public offering, for net proceeds of $145.7 million. The December 2021 Notes are due December 1, 2021, and the Company pays interest at 2.75% on the December 2021 Notes semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2017.

In September 2019, the Company entered into privately negotiated exchange agreements with certain holders of approximately $86.1 million aggregate principal amount of outstanding December 2021 Notes. The Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical principal amount of 2.75% Convertible Senior Notes due December 1, 2024 (the “December 2024 Notes”), plus a cash payment of $70.00 for each $1,000 principal amount tendered (“September Exchange Transaction”). See “December 2024 Notes” below. The terms of the remaining December 2021 Notes remained unchanged. The September Exchange Transaction qualified as a debt extinguishment and the Company recognized a loss on exchange of the convertible notes of $3.9 million in the third quarter of 2019.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2021 Notes (the “December 2021 Notes Indenture”), holders have the option to require the Company to repurchase their December 2021 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

The December 2021 Notes are convertible under any of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2021 (or at any time beginning on June 1, 2021 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

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

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

•Upon the occurrence of specified corporate events as described in the December 2021 Notes Indenture.

The initial conversion rate for the December 2021 Notes was 262.2951 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes, equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2021 Notes Indenture. After the distribution by the Company of its stock in Evofem to the PDL stockholders in May 2020, the conversion rate for the December 2021 Notes was increased to 316.5801 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes equating to a conversion price of $3.16 per share of common stock.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, the Company was required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, the Company separated the principal balance of the December 2021 Notes between the fair value of the debt component with the remainder of the consideration being allocated to the equity component. Using an assumed borrowing rate of 9.5%, which represented the estimated market interest rate for a similar nonconvertible instrument available to the Company on the date of issuance, the Company recorded a debt discount of $4.3 million, allocated $23.8 million to Additional paid-in capital for the conversion feature and allocated $12.8 million to deferred tax liability. The debt discount, including the conversion feature and issuance costs allocated to debt, which remained after amortization and the effect of the September Exchange Transaction, is being amortized to interest expense over the term of the December 2021 Notes and increases interest expense during the term of the December 2021 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 9.7%. As of June 30, 2020, the remaining discount amortization period is 1.4 years.

On December 17, 2019, the Company repurchased $44.8 million in aggregate principal amount of its December 2021 Notes for $39.9 million in cash and 3.5 million shares of its common stock in privately negotiated transactions (the “December Exchange Transaction”). It was determined that the repurchase of the principal amount should be accounted for as a partial extinguishment of the December 2021 Notes. As a result, a loss on extinguishment of $2.5 million was recorded at closing of the transaction.

During the six months ended June 30, 2020, the Company repurchased $5.4 million in aggregate principal amount of its December 2021 notes for $6.0 million in cash. It was determined that the repurchase of the principal amount should be accounted for as a partial extinguishment of the December 2021 Notes. As a result, a loss on extinguishment of $0.1 million was recorded at closing of the transaction.

The carrying value and unamortized discount of the December 2021 Notes as of June 30, 2020 and December 31, 2019 were as follows:


(in thousands)	June 30, 2020		December 31, 2019

Principal amount of the December 2021 Notes	$	13,805	$	19,170
Unamortized discount of liability component	(1,204)		(2,220)
Net carrying value of the December 2021 Notes	$	12,601	$	16,950

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Contractual coupon interest	$	95	$	1,032	$	218	$	2,063
Amortization of debt issuance costs	2		20		25		40
Amortization of debt discount	13		138		10		276
Amortization of conversion feature	185		1,794		419		3,560
Total	$	295	$	2,984	$	672	$	5,939

As of June 30, 2020, the December 2021 Notes are not convertible.

Capped Call Transaction

In connection with the offering of the December 2021 Notes, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $14.4 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2021 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2021 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponded to the approximate $3.81 per share conversion price of the December 2021 Notes and was subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2021 Notes. The cap price of the capped call transaction was initially $4.88 per share subject to certain adjustments under the terms of the capped call transaction. Upon the distribution by the Company of its stock in Evofem to the PDL stockholders in May 2020, the cap price was adjusted to $4.04 per share. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

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

In connection with the September 2019 Exchange Transaction, the Company unwound a portion of the capped call entered into when the December 2021 Notes were issued, as they were no longer scheduled to mature in 2021. In connection with the December Exchange Transaction, the Company unwound a corresponding portion of the capped call related to the notes and repurchased 1.6 million shares of its common stock from the counterparty. In connection with the repurchases of the December 2021 Notes in the six months ended June 30, 2020, the Company unwound a corresponding portion of the capped call related to the notes.

December 2024 Notes

On September 17, 2019, in connection with the September Exchange Transaction, the Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical aggregate original principal amount of December 2024 Notes, plus a cash payment of $70.00 for each $1,000 principal amount exchanged, totaling approximately $6.0 million. The December 2024 Notes are due December 1, 2024, and the Company pays interest at 2.75% on the December 2024 Notes semiannually in arrears on June 1 and December 1 of each year, beginning December 1, 2019. The original principal of the December 2024 Notes will accrete at a rate of 2.375% per year (“Accretion Interest”) commencing September 17, 2019 through the maturity of the December 2024 Notes. The accreted principal amount of the December 2024 Notes is payable in cash upon maturity and is included in Other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2024 Notes (the “December 2024 Notes Indenture”), holders have the option to require the Company to repurchase their December 2024 Notes at a purchase price equal to 100% of the accreted principal amount of such December 2024 Notes, plus accrued interest on the original principal amount thereon.

The December 2024 Notes are convertible under any of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2024 (or at any time beginning on June 1, 2024 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

•During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ended December 31, 2019, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day;

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

•Upon the occurrence of specified corporate events or upon a redemption of the notes, in each case as described in the December 2024 Notes Indenture; or

•On or after June 1, 2024, at the option of the holder prior to the second scheduled trading day preceding December 1, 2024.

In accordance with the terms of the December 2024 Notes Indenture, the Company has the right, but not the obligation, to redeem all or any portion of the December 2024 Notes that is equal to $1,000 original principal amount or an integral multiple of $1,000 prior to their scheduled maturity on a redemption date beginning on or after December 1, 2021 and on or before the 60th scheduled trading day before December 1, 2024, for a cash purchase price equal to the redemption price, but only if the last reported sale price of Company common stock exceeds 128% of the conversion price for the December 2024 Notes on (i) each of at least 20 trading Days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the redemption notice date for such redemption; and (ii) the trading day immediately before such redemption notice date. The redemption price for the December 2024 Notes called for redemption is equal to the then accreted principal amount of such December 2024 Notes plus accrued but unpaid interest on the original principal amount thereon. The calling of any December 2024 Notes for redemption will constitute a make-whole fundamental change with

respect to such notes, entitling the holders who convert such December 2024 Notes called for redemption prior to the applicable redemption date to receive an increase in the applicable conversion rate, as described in the December 2024 Notes Indenture.

The initial conversion rate for the December 2024 Notes was 262.2951 shares of the Company’s common stock per $1,000 original principal amount of December 2024 Notes, equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2024 Notes Indenture. After the distribution by the Company of its stock in Evofem to the PDL stockholders, the conversion rate for the December 2024 Notes is 316.5801 shares of the Company’s common stock per $1,000 principal amount of December 2024 Notes equating to a conversion price of $3.16 per share of common stock.

In accordance with the accounting guidance for an extinguishment of convertible debt instruments with a cash conversion feature, the Company was required to allocate the fair value of the consideration transferred between the liability component and the equity component. To calculate the fair value of the debt immediately prior to derecognition, the carrying value was recalculated in a manner that reflected the estimated market interest rate for a similar nonconvertible instrument at the date of issuance. Using an assumed borrowing rate of 7.05% the Company calculated the fair value of the debt representing the amount allocated to the liability component of the December 2024 Notes with the remainder of the consideration allocated to the equity conversion feature, to reflect the reacquisition of the embedded conversion option. The conversion feature together with the fees allocated to the debt are accounted for as a debt discount. As a result of the September Exchange Transaction, the Company recorded a total debt discount of $9.4 million, which included the cash conversion feature of $8.1 million and the debt issuance fees of $1.3 million, charged $5.5 million to Additional paid-in capital ($13.5 million charge to Additional paid-in capital representing the reduction to the 2021 equity component, partially offset by the $8.1 million allocated to equity for the 2024 notes) and recorded $1.2 million to deferred tax liability. The net amount charged to Additional paid-in capital represents the difference between the consideration paid for the September Exchange Transaction and the fair value of the convertible debt prior to the extinguishment.

The Accretion Interest and debt discount, including the conversion feature and issuance costs allocated to debt, are being amortized to interest expense over the term of the December 2024 Notes which increases interest expense during the term of the December 2024 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 7.5%. As of June 30, 2020, the remaining discount amortization period is 4.4 years.

On December 17, 2019, in connection with the December Exchange Transaction, the Company repurchased $74.6 million in aggregate principal amount of its December 2024 Notes for $58.0 million in cash and 9.9 million shares of its common stock in privately negotiated transactions, resulting in a loss on extinguishment of $2.1 million.

During the six months ended June 30, 2020 the Company repurchased $10.5 million in aggregate principal amount of its December 2024 notes for $12.9 million in cash, resulting in a loss on extinguishment of $0.5 million.

The carrying value, accretion and unamortized discount of the December 2024 Notes as of June 30, 2020 and December 31, 2019 were as follows:


(in thousands)	June 30, 2020		December 31, 2019

Principal amount of the December 2024 Notes	$	1,000	$	11,500
Unamortized discount of liability component	(94)		(1,200)

Net carrying value of the December 2024 Notes	$	906	$	10,300

Interest expense for the December 2024 Notes included in the Company’s Condensed Consolidated Statements of Operations was as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Contractual coupon interest	$	7	$	—	$	44	$	—
Accretion interest on outstanding principal	5		—		38		—
Amortization of debt issuance costs	1		—		5		—
Amortization of conversion feature	4		—		27		—
Total	$	17	$	—	$	114	$	—

Capped Call Transaction

In connection with the issuance of the December 2024 Notes in the September Exchange Transaction, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $4.5 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2024 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2024 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponded to the approximate $3.81 per share conversion price of the December 2024 Notes subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2024 Notes. The cap price of the capped call transaction was initially $4.88 per share subject to certain adjustments under the terms of the capped call transaction. Upon the distribution by the Company of its stock in Evofem to the PDL stockholders in May 2020, the cap price was adjusted to $4.04 per share. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that it should be accounted for as a separate transaction and classified as a net reduction to Additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded. In connection with the December Exchange Transaction, the Company unwound a corresponding portion of the capped call related to the notes and repurchased 1.6 million shares of its common stock from the counterparty. In connection with the repurchases of the December 2024 Notes in the six months ended June 30, 2020, the Company unwound a corresponding portion of the capped call entered into when the December 2024 Notes were issued.

Other Long-Term Liabilities

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Other Long-Term Liabilities

12. Other Long-Term Liabilities

Other long-term liabilities consist of the following:


	June 30,		December 31,
(in thousands)	2020		2019

Uncertain tax positions	$	38,295	$	37,574
Deferred tax liabilities	1,414		1,571
Accrued lease guarantee	10,700		10,700



Other	504		1,020
Total ⁽¹⁾	$	50,913	$	50,865

________________

⁽¹⁾The amounts above exclude $0.1 million of Other long-term liabilities at Noden classified as held for sale as of December 31, 2019. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Lease Guarantee In connection with the spin-off by the Company of Facet Biotech Corporation (“Facet”), the Company entered into amendments to the leases for the Company’s former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify the Company for all matters related to the leases attributable to the period after the spin-off date. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. (“AbbVie”). If AbbVie were to default under its lease obligations, the Company could be held liable by the landlord as a co-tenant and, thus, the Company has in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of June 30, 2020, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $16.9 million. The Company prepared a discounted, probability weighted cash flow analysis to calculate the estimated fair value of the lease guarantee as of the spin-off. The Company was required to make assumptions regarding the probability of Facet’s default on the lease payment, the likelihood of a sublease being executed and the times at which these events could occur. These assumptions are based on information that the Company received from real estate brokers and the then-current economic conditions, as well as expectations of future economic conditions. The fair value of this lease guarantee was charged to Additional paid-in capital upon the spin-off and any future adjustments to the carrying value of the obligation will also be recorded in Additional paid-in capital. The Company has recorded a liability of $10.7 million on its Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, related to this guarantee. In future periods, the Company may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable. Purchase Obligations Noden DAC and Novartis entered into a supply agreement pursuant to which Novartis will manufacture and supply to Noden DAC a bulk tableted form of the Noden Products and active pharmaceutical ingredient (“API”). In May 2019, Noden DAC and Novartis entered into an amended supply agreement pursuant to which Novartis will supply to Noden DAC a bulk tableted form of the Noden Products through 2020 and API through June 2021. While the supply agreement provides that the parties will agree to reasonable accommodations with respect to changes in firm orders, the Company expects that Noden DAC will meet the requirements of the supply agreement, unless otherwise negotiated. The supply agreement may be terminated by either party for material breach that remains uncured for a specified time period. Under the terms of the amended supply agreement, Noden DAC is committed to purchase certain quantities of bulk product and API that would amount to approximately $37.4 million through June 2021, which is guaranteed by the Company. On July 30, 2020 we announced the signing of a definitive agreement for the sale of 100% of the outstanding stock in Noden Pharma DAC and Noden Pharma USA. Upon closing, the Company will be released of its guarantee to Novartis in connection with Noden’s supply agreement. See Note 21, Subsequent Events, for additional information. LENSAR entered into various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $5.3 million, of which $3.9 million is due over the next twelve months. The Company has guaranteed up to $1.0 million of this commitment. LENSAR expects to meet these requirements. PDL Parental Financial Support for LENSAR On July 17, 2020, the Company announced that LENSAR confidentially submitted a registration statement on Form 10 to the Securities and Exchange Commission relating to a potential spin-off as a stand-alone publicly-traded company. The Company continues to pursue various strategic alternatives for LENSAR in addition to a spin-off. On June 19, 2020, in connection with the confidential Form 10 filing for the potential spin-off, the Company issued a letter to LENSAR’s management and board of directors committing financial support to LENSAR up to $20.0 million through June 20, 2021.

Stockholders’ Equity	6 Months Ended
Stockholders’ Equity	Jun. 30, 2020
Stockholders' Equity Attributable to Parent [Abstract]
Stockholders’ Equity	14. Stockholders’ Equity Stock Repurchase Program On September 24, 2018, the Company announced that the Board authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. The Company repurchased 31.0 million shares of its common stock under the share repurchase program for an aggregate purchase price of $100.0 million, or an average cost of $3.22 per share, including trading commissions. This program was completed in July 2019. On December 9, 2019, the Company announced that the Board authorized the repurchase of issued and outstanding shares of the Company’s common stock and convertible notes up to an aggregate value of $200 million. On December 16, 2019, the Company announced that the Board approved a $75 million increase to the aforementioned $200 million repurchase program to acquire outstanding PDL common stock and convertible notes. Repurchases under the Board authorized repurchase program can be made from time to time in the open market or in privately negotiated transactions and funded from the Company’s working capital. The amount and timing of such repurchases will depend upon the price and availability of shares or convertible notes, general market conditions and the availability of cash. Repurchases may also be made under a trading plan under Rule 10b5-1, which would permit shares or convertible notes to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. On December 17, 2019, the Company entered into a 10b5-1 plan. This plan was terminated on May 31, 2020. All shares of common stock repurchased under this share repurchase program are expected to be retired and restored to authorized but unissued shares of common stock. All convertible notes repurchased under the program will be retired. During the year ended December 31, 2019, the Company repurchased $44.8 million in aggregate principal amount of 2021 Convertible Notes and $74.6 million in aggregate principal amount of 2024 Convertible Notes for consideration consisting of a cash payment of $97.9 million and the issuance of 13.4 million shares of the Company’s common stock. During the six months ended June 30, 2020, the Company repurchased $5.4 million in aggregate principal amount of 2021 Convertible Notes and $10.5 million in aggregate principal amount of 2024 Convertible Notes for cash payments totaling $18.8 million. As of June 30, 2020 the Company repurchased 12.3 million shares of its common stock under the share repurchase program for an aggregate purchase price of $39.4 million, or an average cost of $3.20 per share, including trading commissions. This repurchase program may be suspended or discontinued at any time without notice.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

15. Stock-Based Compensation

The Company grants restricted stock awards and stock options pursuant to the stockholder approved Equity Plan. On February 7, 2020, the Board approved the Plan of Liquidation, which accelerated the vesting of a significant portion of the Company’s outstanding equity awards pursuant to provisions in the Wind Down Retention Plan.

The Wind Down Retention Plan further provides for equitable adjustments to outstanding stock options held by participants to ensure such participants realize the same benefits provided to shareholders in the event one or more cash dividends or other distributions become payable to shareholders. Consistent with the existing terms of the Equity Plan, in the event one or more cash dividends or other distributions are paid to shareholders, the exercise price of outstanding stock options will be reduced on

a dollar-for-dollar basis to reflect the per share value of such dividends or distribution; provided that such exercise price will not be reduced below the par value of the shares subject to the option. Furthermore, in the event that the Company declares a cash dividend or other distribution that exceeds the difference between the exercise price of an outstanding stock option and the par value of the underlying shares, the holder of such stock option will be entitled to receive from the Company, in lieu of such equitable adjustment, a cash payment in an amount equal to the number of shares subject to such stock option multiplied by the per share amount of the cash dividend that exceeds the difference between exercise price of the outstanding option and the par value of the underlying shares (a “true-up payment”). In May 2020, in accordance with this provision and in conjunction with the Evofem distribution, the exercise prices of the outstanding option awards was decreased by $0.58 per share.

The following table summarizes the Company’s stock option and restricted stock award activity during the six months ended June 30, 2020:


	Stock Options				Restricted Stock Awards
(in thousands, except per share amounts)	Number of Shares Outstanding	Weighted Average Exercise Price		Number of Shares Outstanding	Weighted Average Grant-date Fair Value Per Share

Balance at December 31, 2019	12,613	$	2.55	1,013	$	3.53
Granted	37	$	2.49	2,878	$	3.08
Exercised / vested	(176)	$	2.61	(2,746)	$	3.12
Forfeited / canceled	(728)	$	3.08	(1,089)	$	3.39

Balance at June 30, 2020	11,746	$	2.56	56	$	3.20

Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customers [Abstract]

Revenue from Contracts with Customers

16. Revenue from Contracts with Customers

Revenue

Nature of Goods and Services

The following is a description of principal activities - separated by reportable segments - from which the Company generates its revenue. For more detailed information about reportable segments, see Note 17, Segment Information.

Medical Devices

Product and Service Revenue Recognition

Product and Service revenue are recognized from our Medical Device segment. Revenue is recognized from the sale of products and services when the company transfers control of such promised products and services. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products and services. A five-step model is utilized to achieve the core principle and includes the following steps: (1) identify the customer contract; (2) identify the contract’s performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when the distinct performance obligations are satisfied.

We principally derive our revenue from the sale and lease of the LENSAR Laser System and the sale of other related products and services, including PIDs, procedure licenses, and extended warranty service agreements. A procedure license represents a one-time right to utilize the LENSAR Laser System surgical application in connection with a surgery procedure. Without separately procuring procedure licenses granted by us, either together with the purchase of the LENSAR Laser System or under separate subsequent contracts, the customer does not have the right to use the surgical software application to perform surgical procedures. Typically, returns are not allowed.

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the level of interdependency between the LENSAR Laser System and the sale of other related products and services. We evaluate each product or service promised in a

contract to determine whether it represents a distinct performance obligation. A performance obligation is distinct if (1) the customer can benefit from the product or service on its own or with other resources that are readily available to the customer and (2) the products or service is separately identifiable from other promises in the contract.

For contracts involving the sale or lease of the LENSAR Laser System, our performance obligations generally include the LENSAR Laser System, PID, procedure license, and extended warranty service agreements. In addition, our customer contracts contain provisions for installation and training services, which are not assessed as performance obligations as they are determined to be immaterial promises in the context of the contract and are required for a customer to use the LENSAR Laser System.

We have determined that the LENSAR Laser System, PID and procedure license are each capable of being distinct because they are each sold separately and the customer can benefit from these products with the other readily available resources that are sold by us. In addition, we have determined each are separately identifiable because the LENSAR Laser System, PID and procedure license (1) are not highly interdependent or interrelated; (2) do not modify or customize one another; and (3) we do not provide a significant service of integrating the promised goods into a bundled output. This is because we are able to fulfill each promise in the contract independently of the others. That is, we would be able to fulfill our promise to transfer the LENSAR Laser System even if the customer did not purchase a PID or procedure license and we would be able to fulfill our promise to provide the PID or the procedure license even if the customer acquired the LENSAR Laser System separately.

The extended warranty, unlike our standard product warranty, is a performance obligation because it provides an incremental service that is beyond ensuring the product delivered will be consistent with stated contractual specifications.

When a contract contains multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price.

We recognize revenue as the performance obligations are satisfied by transferring control of the product or service to a customer as described below. We record a contract liability, or deferred revenue, when we have an obligation to provide a product or service to the customer and payment is received or due in advance of our performance.

Product revenue. We recognize revenue for the sale of the products at a point in time when control is transferred to customers.

Equipment. LENSAR Laser System sales are recognized as Product revenue when the Company transfers control of the system. This usually occurs after the customer signs a contract, LENSAR installs the system, and LENSAR performs the requisite training for use of the system for direct customers. LENSAR Laser System sales to distributors are recognized as revenue upon shipment.

PID and procedure licenses. The LENSAR Laser System requires both a PID and a procedure license to perform each procedure. We recognize Product revenue for PIDs when the company transfers control of the PID. We recognize Product revenue for procedure licenses, which represents a one-time right to utilize the LENSAR Laser System surgical software application, at the point in time when control of the procedure is transferred to the customer. Control transfers at the time a customer receives the license key. For the sale of PIDs and procedure licenses, the Company may offer volume discounts to certain customers. To determine the amount of revenue that should be recognized at the time control over these products transfers to the customer, the Company estimates the average per unit price, net of discounts.

Service revenue. We offer an extended warranty that provides additional maintenance services beyond the standard limited warranty. We recognize Service revenue from the sale of extended warranties over the warranty period on a ratable basis. Customers have the option of renewing the warranty period, which is considered a new and separate contract.

Lease Revenue

Lease revenue is recognized from our Medical Device segment. For LENSAR Laser System operating leases, we recognize Lease revenue over the length of the lease. For additional information regarding accounting for leases, see Note 1, Summary of Significant Accounting Policies—Revenue Recognition and Note 8, Leases to our financial statements included in this information statement.

We lease equipment to customers under operating lease arrangements. At contract inception we perform an evaluation to determine if a lease arrangement conveys the right to control the use of an identified asset. To the extent such rights of control are conveyed, we further make an assessment as to the applicable lease classification. The identification of specified assets and determination of appropriate lease classification may require the use of management judgement.

Some of our operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement, subject to a new contract. We do not believe the purchase price qualifies as a bargain purchase option.

For lease arrangements with lease and non-lease components where we are the lessor, we allocate the contract’s transaction price (including discounts) to the lease and non-lease components on a relative standalone selling price which requires judgments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and PIDs used with the leased equipment.

For operating leases, rental income is recognized on a straight-line basis over the lease term as lease revenue. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in cost of lease in the statements of operations.

Pharmaceutical

The Company’s Pharmaceutical segment consists of revenue derived from the Noden Products. Noden’s revenue is included in (Loss) income from discontinued operations.

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

Sales to customers are initially invoiced at contractual list prices. Payment terms are typically 30 to 90 days based on customary practice in each country. Revenue is reduced from the list price at the time of recognition for expected chargebacks, discounts, rebates, sales allowances and product returns, which are collectively referred to as gross-to-net adjustments. These reductions are attributed to various commercial agreements, managed healthcare organizations and government programs such as Medicare, Medicaid, and the 340B Drug Pricing Program containing various pricing implications such as mandatory discounts, pricing protection below wholesaler list price and other discounts when Medicare Part D beneficiaries are in the coverage gap. These various reductions in the transaction price have been estimated using either a most likely amount, in the case of prompt pay discounts, or expected value method for all other variable consideration and have been reflected as liabilities and are settled through cash payments, typically within time periods ranging from a few months to one year. Significant judgment is required in estimating gross-to-net adjustments considering legal interpretations of applicable laws and regulations, historical experience, payer channel mix, current contract prices under applicable programs, unbilled claims, processing time lags and inventory levels in the distribution channel.

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

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by segment and geographic location as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic

factors. In the following tables, revenue is disaggregated by segment and primary geographical market for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended						Three Months Ended
	June 30, 2020						June 30, 2019
(in thousands)	Medical Devices		Pharmaceutical ⁽¹⁾		Medical Devices		Pharmaceutical ⁽¹⁾

Primary geographical markets:
North America	$	1,757	$	4,198	$	2,203	$	3,038
Europe	633		4,104		705		5,454
Asia	2,399		(135)		3,093		1,923
Other	1		—		66		—
Total revenue from contracts with customers ⁽²⁾	$	4,790	$	8,167	$	6,067	$	10,415


	Six Months Ended						Six Months Ended
	June 30, 2020						June 30, 2019
(in thousands)	Medical Devices		Pharmaceutical ⁽¹⁾		Medical Devices		Pharmaceutical ⁽¹⁾

Primary geographical markets:
North America	$	4,484	$	8,384	$	4,287	$	15,176
Europe	1,556		9,863		1,722		11,036
Asia	3,519		4,951		5,362		4,163
Other	137		—		185		—
Total revenue from contracts with customers⁽²⁾	$	9,696	$	23,198	$	11,556	$	30,375

________________

⁽¹⁾ The revenue from the Company’s Pharmaceutical segment for the three and six months ended June 30, 2020 and 2019 is included in (Loss) income from discontinued operations. For additional information, see Note 2, Discontinued Operations Classified as Assets held for sale.

⁽²⁾The tables above do not include lease revenue from the Company’s Medical Devices segment for the three months ended June 30, 2020 and 2019, of $0.4 million and $1.4 million, respectively and $1.5 million and $2.6 million, for the six-month periods ended June 30, 2020 and 2019, respectively. For additional information, see Note 8, Leases.

Contract Balances

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


(in thousands)	June 30, 2020		December 31, 2019

Receivables, net	$	6,154	$	10,377
Contract assets	$	4,069	$	3,512
Contract liabilities	$	5,230	$	4,024

Receivables, Net—Receivables, net, include amounts billed and due from customers. The amounts due are stated at their net estimated realizable value and are classified as current or noncurrent based on the timing of when the Company expects to receive payment. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, collateral to the extent applicable and reflects the possible impact of current conditions and reasonable forecasts not already reflected in historical loss information. Receivables, net for the Company’s Pharmaceutical

segment are classified as a current asset and included in Assets held for sale. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Contract Assets—The Company’s contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales has not yet occurred. The Company’s contract assets are only attributable to the Pharmaceutical segment, and as such these contract assets are classified as current in Assets held for sale in the Company’s Condensed Consolidated Balance Sheets.


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at December 31, 2019	$	—	$	3,512	$	3,512
Contract assets recognized	—		(4,765)		(4,765)
Payments received	—		5,322		5,322
Contract assets at June 30, 2020	$	—	$	4,069	$	4,069

Contract Liabilities—The Company’s contract liabilities consist of deferred revenue for products sold to customers for which the performance obligation has not been completed by the Company. The Company classifies Medical Devices deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets. The Pharmaceutical deferred revenue is classified as a current liability and included in Liabilities held for sale.


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract liabilities at December 31, 2019	$	1,075	$	2,949	$	4,024
Contract liabilities recognized	540		2,175		2,715
Amounts recognized into revenue	(695)		(814)		(1,509)
Contract liabilities at June 30, 2020	$	920	$	4,310	$	5,230

Transaction Price Allocated to Future Performance Obligations

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


	Six Months Ended
(in thousands)	December 31, 2020		Thereafter		Total

Medical device sales	$	3,052	$	7,259	$	10,311
Pharmaceutical product sales	$	191	$	3,443	$	3,634

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

Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Information regarding the Company’s segments for the three and six months ended June 30, 2020 and 2019 is as follows:


Revenues by segment	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Medical Devices	$	5,148	$	7,422	$	11,133	$	14,148
Strategic Positions	—		—		—		—
Pharmaceutical	—		—		—		—
Income Generating Assets	63		36		73		6
Total revenues	$	5,211	$	7,458	$	11,206	$	14,154

________________

The table above excludes revenues related to discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.


(Loss) income by segment	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Medical Devices	$	(2,559)	$	(1,678)	$	(4,670)	$	(2,893)
Strategic Positions ⁽¹⁾	(4,823)		19,044		(15,723)		19,044
Pharmaceutical ⁽¹⁾	(14,475)		(345)		(16,542)		5,300
Income Generating Assets ⁽¹⁾	(22,773)		(21,440)		(39,418)		(19,190)
Total	(44,630)		(4,419)		(76,353)		2,261
Change in fair value of warrants not allocated to segments ⁽²⁾	(5,341)		—		(5,341)		—
Net (loss) income attributable to PDL’s shareholders	$	(49,971)	$	(4,419)	$	(81,694)	$	2,261

________________

⁽¹⁾The (Loss) income by segment presented above includes amounts related to both continuing and discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

⁽²⁾The change in fair value of warrants not allocated to segments presented above includes the amounts related to the change in fair value of the Evofem warrants after the distribution of the Evofem common stock to PDL stockholders on May 21, 2020. The Strategic Positions segment ceased to be a reporting segment as of this date.

Information regarding the Company’s segments as of June 30, 2020 and December 31, 2019 is as follows:


Long-lived assets by segment
(in thousands)	June 30, 2020		December 31, 2019

Medical Devices	$	2,974	$	2,435
Strategic Positions	—		—
Pharmaceutical ⁽¹⁾	2,949		2,960
Income Generating Assets	64		125
Total long-lived assets ⁽¹⁾	$	5,987	$	5,520

________________

⁽¹⁾The amounts above include Property and Equipment in the Pharmaceutical segment classified as Assets held for sale. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

The operations for the Medical Devices segment are primarily located in the United States and the operations for the Pharmaceutical segment are primarily located in Italy, Ireland and the United States.

Concentration of Credit Risk

6 Months Ended

Jun. 30, 2020

Customer Concentration [Abstract]

Concentration of Credit Risk

Product Line Concentration

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

Three Months Ended June 30,

Six Months Ended June 30,

2020 ⁽¹⁾

2019 ⁽¹⁾

2020 ⁽¹⁾

2019 ⁽¹⁾

LENSAR

99%

100%

99%

100%

________________

⁽¹⁾The amounts above exclude product sales in the Company’s Pharmaceutical segment and royalty rights in the Income Generating Assets segment, each of which is included in the Statements of Operations as (Loss) income from discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax benefit from continuing operations for the three months ended June 30, 2020 and 2019, was $1.1 million and $2.6 million, respectively, and for the six months ended June 30, 2020 and 2019, was $14.1 million and $3.4 million, respectively, which in the current period resulted primarily from anticipated use of net operating loss carrybacks as allowed by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The Company’s effective tax rate for the current period differs from the U.S. federal statutory rate of 21% due primarily to the effect of state income taxes, non-deductible executive compensation and the tax provisions of the CARES Act. The uncertain tax positions did not change during the six months ended June 30, 2020 and 2019. The Company’s income tax returns are subject to examination by U.S. federal, foreign, state and local tax authorities for tax years 2000 forward. The Company is currently under audit by the California Franchise Tax Board (the “CFTB”) for the tax years 2009 through 2015 and the Internal Revenue Service (the “IRS”) for the tax year 2016. The timing of the resolutions to these audits and the amount to be ultimately paid, if any, is uncertain. Final resolution of these complex matters could have a material impact on our Condensed Consolidated Financial Statements. The Company believes its accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law and judgments; however, the outcome of these audits could result in the payment of tax amounts that substantially differ from the amounts the Company has reserved resulting in incremental expense or a reversal of the Company’s reserves in a future period. At this time, the Company does not anticipate a material change in the unrecognized tax benefits related to the CFTB or IRS audits that would affect the effective tax rate or deferred tax assets over the next 12 months.

Net (Loss) Income per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Net (Loss) Income per Share

20. Net (Loss) Income per Share


	Three Months Ended						Six Months Ended
	June 30,						June 30,
Net (Loss) Income per Basic and Diluted Share	2020		2019		2020		2019
(in thousands, except per share amounts)
Numerator


Net loss from continuing operations	$	(12,929)	$	(8,016)	$	(32,188)	$	(16,466)
(Loss) income from discontinued operations	$	(37,399)	$	3,502	$	(50,151)	$	18,569
Less: Net loss attributable to noncontrolling interests	$	(357)	$	(95)	$	(645)	$	(158)
Net (loss) income attributable to PDL’s stockholders used to compute net (loss) income per basic and diluted share	$	(49,971)	$	(4,419)	$	(81,694)	$	2,261

Denominator
Total weighted-average shares used to compute net (loss) income attributable to PDL’s stockholders, per basic share	115,908		118,285		119,402		123,484







Shares used to compute net (loss) income attributable to PDL’s stockholders, per diluted share	115,908		118,285		119,402		123,484

Net (loss) income per share - basic:
Continuing operations	$	(0.11)	$	(0.07)	$	(0.26)	$	(0.13)
Discontinued operations	(0.32)		0.03		(0.42)		0.15
Net (loss) income attributable to PDL’s stockholders per basic share	$	(0.43)	$	(0.04)	$	(0.68)	$	0.02

Net (loss) income per share - diluted:
Continuing operations	$	(0.11)	$	(0.07)	$	(0.26)	$	(0.13)
Discontinued operations	(0.32)		0.03		(0.42)		0.15
Net (loss) income attributable to PDL’s stockholders per diluted share	$	(0.43)	$	(0.04)	$	(0.68)	$	0.02

The Company computes net (loss) income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net (loss) income per diluted share include shares that may be issued pursuant to outstanding stock options and restricted stock awards in each case, on a weighted-average basis for the period they were outstanding, including, if applicable, the underlying shares using the treasury stock method.

The December 2021 Notes and the December 2024 Notes allow for the settlement entirely or partially in cash, and are accounted for under the treasury stock method. Under the treasury stock method, the shares issuable upon conversion of the notes are not included in the calculation of diluted earnings per share except to the extent that the conversion value of the notes exceeds their principal amount. The effect of which, for diluted earnings per share purposes, is that only the number of shares of common stock that would be necessary to settle such excess, if the Company elected to settle such excess in shares, are included in the computation.

December 2021 Notes and December 2024 Notes Capped Call Potential Dilution

In November 2016, the Company issued $150.0 million in aggregate principal of the December 2021 Notes. The Company entered into an Exchange Transaction in September 2019 through which it exchanged a portion of the December 2021 Notes for the December 2024 Notes with a later maturity of December 2024. Both the notes that mature in December 2021 and those that mature in December 2024 provide in certain situations for the conversion of the outstanding principal amount into shares of the Company’s common stock at a predefined conversion rate. In conjunction with the issuance of the December 2021 Notes and the issuance of the December 2024 Notes pursuant to the Exchange Transaction, the Company entered into capped call transactions with a hedge counterparty. The capped call transactions are expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion

of the December 2021 Notes or the December 2024 Notes. The Company has excluded the capped call transaction from the net (loss) income per diluted share computation as such securities would have an anti-dilutive effect and those securities should be considered separately rather than in the aggregate in determining whether their effect on net (loss) income per diluted share would be dilutive or anti-dilutive. For additional information regarding the conversion rates and the capped call transaction related to the Company’s December 2021 Notes and December 2024 Notes, see Note 11, Convertible Senior Notes.

Anti-Dilutive Effect of Restricted Stock Awards and Stock Options

For the three months ended June 30, 2020 and 2019, the Company excluded approximately 0.1 million and 1.1 million shares underlying restricted stock awards, respectively, and for the six months ended June 30, 2020 and 2019, the Company excluded approximately 0.1 million and 0.8 million shares underlying restricted stock awards, respectively, in each case calculated on a weighted-average basis, from its net (loss) income per diluted share calculations because their effect was anti-dilutive.

For the three months ended June 30, 2020 and 2019, the Company excluded approximately 11.7 million and 12.7 million shares underlying outstanding stock options, respectively, and for the six months ended June 30, 2020 and 2019, the Company excluded approximately 11.7 million and 10.4 million shares underlying outstanding stock options, respectively, in each case calculated on a weighted-average basis, from its net (loss) income per diluted share calculations because their effect was anti-dilutive.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Noden On July 30, 2020, the Company signed a definitive agreement for the sale of the Noden subsidiaries to Stanley Capital. The total value of the transaction will result in payments to the Company of up to $48.3 million in cash. After taking into account the expected adjustments for transaction expenses, indebtedness and working capital, payments to the Company are expected to be approximately $12.0 million in connection with the closing of the transaction. The agreement provides for an additional $33.0 million to be paid to the Company in twelve equal quarterly installments from January 2021 to October 2023. The agreement also provides the Company with the potential for two additional contingent payments totaling $3.3 million. Upon closing, the Company will be released of its guarantee to Novartis in connection with Noden’s supply agreement. PDL Parental Financial Support for LENSAR On August 4, 2020, PDL issued a new parental support letter to LENSAR’s management and board of directors committing financial support to LENSAR up to $20.0 million through August 5, 2021. This letter replaced the letter dated June 19, 2020 discussed in Note 13, Commitments and Contingencies.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation, Policy	Basis of Presentation Throughout its history, the mission of PDL BioPharma, Inc. and its subsidiaries (collectively, the “Company” or “PDL”) has been to improve the lives of patients by aiding in the successful development of innovative therapeutics and healthcare technologies. PDL was founded in 1986 as Protein Design Labs, Inc. when it pioneered the humanization of monoclonal antibodies, enabling the discovery of a new generation of targeted treatments that have had a profound impact on patients living with different cancers as well as a variety of other debilitating diseases. In 2006, the Company changed its name to PDL BioPharma, Inc. Historically, the Company generated a substantial portion of its revenues through license agreements related to patents covering the humanization of antibodies, which it refers to as the Queen et al. patents. In 2012, the Company began providing alternative sources of capital through royalty monetizations and debt facilities, and, in 2016, the Company began acquiring commercial-stage products and launching specialized companies dedicated to the commercialization of these products. In 2019, and as a further evolution of the Company’s strategy, it began to enter into strategic transactions involving innovative late clinical-stage or early commercial-stage therapeutics. Consistent with this strategy, on April 10, 2019, the Company entered into a securities purchase agreement with Evofem Biosciences, Inc. (“Evofem”), pursuant to which it invested $60.0 million in a private placement of securities structured in two tranches. Overall, the Company consummated eighteen transactions, nine of which are active and outstanding. In September 2019, the Company engaged financial and legal advisors and initiated a review of its strategy. In December 2019, the Company announced that it decided to halt the execution of its growth strategy, cease additional strategic transactions and investments and instead pursue a formal process to unlock value by monetizing its assets and returning net proceeds to stockholders (the “monetization strategy”). Pursuant to the Company’s monetization strategy, the Company does not expect to enter into any additional strategic investments. The Company further announced in December 2019 that it would explore a variety of potential transactions in connection with the monetization strategy, including a whole Company sale, divestiture of assets, spin-offs of operating entities, merger opportunities or a combination thereof. Over the subsequent months, the Company’s Board of Directors (the “Board”) and management analyzed, together with outside financial and legal advisors, how to best capture value pursuant to the monetization strategy and best return the value of the assets in its portfolio to its stockholders. During the first quarter of 2020, the Board approved a plan of complete liquidation (the “Plan of Liquidation”) and passed a resolution to seek stockholder approval at its next Annual Meeting of Stockholders to dissolve the Company as permitted by the General Corporation Law of the State of Delaware (the “DGCL”). In the event the proposal is approved by stockholders and the Board concludes that the whole Company sale process is unlikely to maximize the value that can be returned to the stockholders from our monetization process, the Company intends to file a Certificate of Dissolution with the Secretary of State of Delaware after monetizing its key assets and then proceed to wind-down and dissolve the Company in accordance with the DGCL. The Company has not set a definitive timeline to file for dissolution and intends to pursue its monetization strategy in a disciplined and cost-effective manner seeking to maximize returns to stockholders. Pursuant to the Company’s monetization strategy, the Company began a comprehensive program to market and sell its investments. During the quarter ended March 31, 2020, the Company’s Pharmaceutical segment and the royalty right assets within the Income Generating Assets segment met the criteria to be classified as held for sale. Those investments are reported as discontinued operations on the Condensed Consolidated Statements of Operations and as Assets and Liabilities held for sale on the Condensed Consolidated Balance Sheets. See Note 21, Subsequent Events, for additional information about the Pharmaceutical segment. During the quarter ended June 30, 2020, the Evofem common stock held within the Strategic Positions segment was distributed to the Company’s stockholders and as a result the Strategic Positions segment and all investments included in the segment met the criteria to be classified as discontinued operations. Therefore, the Strategic Positions segment is also presented as discontinued operations on the Condensed Consolidated Statements of Operations. While the Company cannot provide a definitive timeline for the liquidation process, it has been targeting the end of 2020 for completing the monetization or other distribution of its key assets. However, the Company recognizes that the duration and extent of the public health issues related to the COVID-19 pandemic make it possible, and perhaps probable, that the timing may be delayed. The accompanying unaudited Condensed Consolidated Financial Statements of PDL have been prepared in accordance with Generally Accepted Accounting Principles (United States) (“GAAP”) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), that management of the Company believes are necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year. The accompanying unaudited Condensed Consolidated Financial Statements and related financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements and the related notes thereto for the fiscal year ended December 31, 2019, included in its Annual Report on Form 10-K (the “2019 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on March 11, 2020 and the Company’s Current Report on Form 8-K, filed with the SEC on June 29, 2020, which revises and re-casts certain historical financial information included in the 2019 Form 10-K to present the Pharmaceutical segment and the royalty right assets within the Income Generating Assets segment as discontinued operations for all periods presented. The Condensed Consolidated Balance Sheet at December 31, 2019, included herein, has been derived from the audited Consolidated Financial Statements at that date, as adjusted to conform with the financial statement presentation as of and for the three and six months ended June 30, 2020 as discussed in Note 2, Discontinued Operations Classified as Assets Held for Sale, but does not include all disclosures required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying Notes to the Condensed Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include, assets and liabilities held for sale, including the valuation of royalty rights - at fair value, product revenue recognition and allowances for customer rebates, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and the valuation of warrants to acquire shares of common stock. Furthermore, the impact on accounting estimates and judgments on the Company’s financial condition and results of operations due to COVID-19 has introduced additional uncertainties. Actual results could differ from those estimates. The Condensed Consolidated Financial Statements included herein include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Based on the composition of its investment portfolio, the Company historically structured its operations in four segments designated as Medical Devices, Strategic Positions, Pharmaceutical and Income Generating Assets. During the second quarter of 2020, and in connection with the distribution of shares of Evofem common stock to stockholders, the Company determined that Strategic Positions was no longer an operating segment. Following is a summary of the Company’s segments including those that have been classified as discontinued operations: •The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales made by the Company’s subsidiary, LENSAR, Inc. (“LENSAR”), which may include equipment, Patient Interface Devices (“PIDs” or “consumables”), procedure licenses, training, installation, warranty and maintenance agreements. •The Company’s Strategic Positions segment consisted of an investment in Evofem, which included shares of common stock and warrants to purchase shares of common stock. During the second quarter of 2020, the Company distributed its shares of common stock in Evofem to the Company’s stockholders at which time the segment ceased to be a reportable segment. The Company continues to hold warrants to purchase shares of Evofem’s common stock. Evofem is a publicly-traded commercial-stage biopharmaceutical company committed to developing and commercializing innovative products to address unmet needs in women’s sexual and reproductive health. Evofem is leveraging its proprietary Multipurpose Vaginal pH Regulator (MVP-R™) platform for Phexxi^TM (L-lactic acid, citric acid and potassium bitartrate) for hormone-free birth control. •The Company’s Pharmaceutical segment consisted of revenue derived from branded prescription medicine products sold under the name Tekturna^® and Tekturna HCT^® in the United States and Rasilez^® and Rasilez HCT^® in the rest of the world and an authorized generic form of Tekturna sold in the United States (collectively, the “Noden Products”). The branded prescription Noden Products were acquired from Novartis Pharma AG (“Novartis”) in July 2016 (the “Noden Transaction”) by the Company’s wholly-owned subsidiary, Noden Pharma DAC (“Noden DAC”). The Company, through its wholly-owned subsidiary, Noden Pharma USA Inc. (“Noden USA”) launched its authorized generic form of Tekturna in the United States in March 2019. •The Company’s Income Generating Assets segment consists of revenue derived from (i) notes and other long-term receivables, (ii) equity investments and (iii) royalties from issued patents in the United States and elsewhere covering the humanization of antibodies (“Queen et al. patents”). As noted above, the royalty rights assets previously included in the Income Generating Assets segment are classified as held for sale and are reported as discontinued operations. The worldwide spread of coronavirus, or COVID-19, has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. If the financial markets or the overall economy are impacted for an extended period, the Company’s liquidity, revenues, supplies and intangibles may be adversely affected. Significant Accounting Policies Assets Held for Sale Assets and liabilities are classified as held for sale when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. When all of these criteria have been met, the assets and liabilities are classified as held for sale in the balance sheet. Assets classified as held for sale are reported at the lower of their carrying value or fair value less costs to sell. Depreciation and amortization of assets ceases upon designation as held for sale. The assets and liabilities held for sale are recorded on the Company’s Condensed Consolidated Balance Sheets as Assets held for sale and Liabilities held for sale, respectively. Discontinued Operations Discontinued operations comprise those activities that were disposed of during the period or which were classified as held for sale at the end of the period, represent a separate major line of business or geographical area that can be clearly distinguished for operational and financial reporting purposes and represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. The profits and losses are presented on the Condensed Consolidated Statements of Operations as discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information. Severance and retention After the Company announced its monetization strategy, it recognized that its ability to execute on its plan and optimize returns to its stockholders depended to a large extent on its ability to retain the necessary expertise to effectively transact with respect to its assets. On December 21, 2019, the Compensation Committee of the Board adopted a Wind Down Retention Plan in which the Company’s executive officers and other employees who are participants in the Company’s Severance Plan are eligible to participate. Under the Wind Down Retention Plan, participants are eligible to earn a retention benefit in consideration for their continued employment with the Company. The Wind Down Retention benefits are equivalent to previously disclosed compensation payments contemplated in connection with a change in control under the Company’s existing Severance Plan. Under the Wind Down Retention Plan, payment of the retention benefit to any participant will occur upon termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason. The retention benefit, if paid, would be in lieu of (and not in addition to) any other severance compensation that could become payable to the participant under the Company’s Severance Plan. In connection with the adoption of the Wind Down Retention Plan, a severance liability is being recorded over the remaining service period for the participating employees. As of June 30, 2020, the Company has recorded a severance liability of $6.0 million. Expenses associated with severance payments and accruals are reflected in Severance and retention on the Company’s Condensed Consolidated Statements of Operations. The Wind Down Retention Plan also provides that, consistent with the existing terms of the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Equity Plan”), the vesting of all outstanding equity awards held by participants as of the date the Wind Down Retention Plan was adopted will be accelerated upon the earlier of: (i) a termination of the participant’s employment with the Company either by the Company without cause or by the participant for good reason or (ii) the consummation of a change in control (as defined in the Equity Plan) of the Company. In addition, the post-termination exercise period for all outstanding stock options will be extended until their expiration date. In connection with the Board adopting the Plan of Liquidation in the first quarter of 2020, all of the outstanding and unvested stock options and restricted stock granted to the Company’s employees and executive officers, with the exception of certain outstanding awards under the 2016/20 Long-Term Incentive Plan, accelerated and vested under the change in control definition in the Equity Plan. The expense associated with the accelerated vesting, totaling $15.7 million is reported as Severance and retention on the Company’s Condensed Consolidated Statements of Operations. For a discussion of other accounting policies, refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Summarized below are the accounting pronouncements and policies adopted subsequent to December 31, 2019 in addition to those described above.
Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. The Company adopted ASU No. 2016-13 on January 1, 2020 using a modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. As a consequence of adopting ASU 2016-13, the Company’s accounts receivable accounting policy has been updated, as follows: Accounts and Notes Receivable The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for credit losses. Amounts are charged off against the allowance for credit losses when the Company determines that recovery is unlikely and the Company ceases collection efforts. The Company applies the practical expedient for its collateral-dependent notes receivable. Estimated credit losses are based on the fair value of the collateral (less costs to sell, as applicable). In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The Company adopted ASU No. 2018-13 on January 1, 2020. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company adopted ASU No. 2018-15 on January 1, 2020 using the prospective transition option. The adoption did not have an effect on the Consolidated Financial Statements on the adoption date and no adjustment to prior year Consolidated Financial Statements was required. Recently Issued Accounting Pronouncements In April 2020, the FASB issued a staff question-and-answer document, “Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic” (the “COVID-19 Q&A”), to address certain frequently-asked questions pertaining to lease concessions arising from the effects of the COVID-19 pandemic. Existing lease guidance requires entities to determine if a lease concession was a result of a new arrangement reached with the lessee (which would be addressed under the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (which would not fall under the lease modification framework). The COVID-19 Q&A clarifies that entities may elect to not evaluate whether lease-related relief granted in light of the effects of COVID-19 is a lease or obligations of the lease. This election is available for concessions that result in the total payments required by the modified contract being substantially the same or less than the total payments required by the original contract. As a result of the COVID-19 pandemic, LENSAR entered into agreements with 22 customers through which LENSAR agreed to waive monthly rental and minimum monthly license fees ranging from one to four months for an aggregate of $0.9 million of revenue, consisting of $0.5 million in Product revenue, $0.3 million in Lease revenue, and $0.1 million in Service revenue. In return for these concessions the related contracts were extended by the same number of months waived. No amounts of accounts receivable or notes receivable were deemed uncollectible due to COVID-19 during the quarter ended June 30, 2020; however, the Company considered the effects of COVID-19 in estimating its credit losses for the period. In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. For public companies, the amendments in ASU No. 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

Discontinued Operations Classified as Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of discontinued operations

Components of amounts reflected in (Loss) income from discontinued operations on the Company’s Condensed Consolidated Statement of Operations are as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019
Revenues
Product revenue, net	$	8,167	$	10,415	$	23,198	$	30,375
Royalty rights - change in fair value	(16,304)		(40,399)		(6,910)		(28,142)
Total revenues	(8,137)		(29,984)		16,288		2,233
Operating expenses
Cost of product revenue (excluding intangible asset amortization)	4,901		7,419		13,682		16,429
Amortization of intangible assets	—		1,254		389		2,507
General and administrative	2,151		1,788		4,565		3,940
Sales and marketing	81		212		198		1,368
Research and development	—		—		—		(41)
Total operating expenses	7,133		10,673		18,834		24,203
Operating loss from discontinued operations	(15,270)		(40,657)		(2,546)		(21,970)
Non-operating (expense) income, net
Equity affiliate - change in fair value	(12,864)		45,487		(26,662)		45,487
Loss on classification as held for sale	(16,143)		—		(28,904)		—
Total non-operating (expense) income, net	(29,007)		45,487		(55,566)		45,487
(Loss) income from discontinued operations before income taxes	(44,277)		4,830		(58,112)		23,517
Income tax (benefit) expense from discontinued operations	(6,878)		1,328		(7,961)		4,948
(Loss) income from discontinued operations	$	(37,399)	$	3,502	$	(50,151)	$	18,569

The carrying amounts of the major classes of assets reported as “Assets held for sale” on the Company’s Condensed Consolidated Balance Sheets consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Cash and cash equivalents ⁽¹⁾	$	19,875	$	24,469
Accounts receivable, net	7,114		6,993
Inventory	29,485		31,712
Prepaid and other current assets	7,357		7,192
Property and equipment, net	2,949		2,960
Royalty rights - at fair value	234,242		266,196
Investment in equity affiliate	—		82,267
Intangible assets, net	9,723		10,112
Other assets	7,083		15,956
Less: Estimated remaining cost to sell and fair value adjustment	(28,402)		—
Total assets held for sale ⁽²⁾	$	289,426	$	447,857

________________

The carrying amounts of the major classes of liabilities reported as “Liabilities held for sale” on the Company’s Condensed Consolidated Balance Sheets consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Accounts payable	$	3,017	$	14,695
Accrued liabilities	15,196		16,400
Other long-term liabilities	—		120
Total liabilities held for sale ⁽¹⁾	$	18,213	$	31,215

________________

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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+ Details

Cash and Cash Equivalents (Tables)

6 Months Ended

Jun. 30, 2020

Cash and Cash Equivalents [Abstract]

Summary of cash and available-for-sale securities

The following table summarizes the Company’s cash and cash equivalents by significant investment category reported as cash and cash equivalents as of June 30, 2020 and December 31, 2019:



(in thousands)	June 30, 2020		December 31, 2019

Cash⁽¹⁾	$	23,527	$	37,718
Money market funds	81,919		131,264

Total	$	105,446	$	168,982

________________

Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventory [Abstract]

Schedule of Inventory

Inventories consisted of the following:


(in thousands)	June 30, 2020		December 31, 2019

Raw materials	$	4,381	$	3,739
Work in process	1,612		1,170
Finished goods	6,640		3,152

Total inventory ⁽¹⁾	$	12,633	$	8,061

____________

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value of financial instruments measured on recurring basis

The following table presents the fair value of the Company’s financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy:


	June 30, 2020														December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Financial assets:
Money market funds	$	81,919	$	—	$	—	$	81,919	$	131,264	$	—	$	—	$	131,264


Corporate securities⁽¹⁾	—		—		—		—		82,267		—		—		82,267


Warrants⁽²⁾	—		5,431		—		5,431		—		14,152		—		14,152
Royalty rights - at fair value ⁽³⁾	—		—		234,242		234,242		—		—		266,196		266,196
Total	$	81,919	$	5,431	$	234,242	$	321,592	$	213,531	$	14,152	$	266,196	$	493,879

___________________

⁽¹⁾Corporate securities are classified as “Long-term assets held for sale” on the December 31, 2019 Condensed Consolidated Balance Sheet.

⁽²⁾ Warrants consist of Evofem warrants, which are classified as held for sale and CareView Communications, Inc. (“CareView”) warrants, classified as “Other assets” on the Condensed Consolidated Balance Sheets.

⁽³⁾ Royalty rights - at fair value are included in “Assets held for sale” and “Long-term assets held for sale” on the Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, respectively.

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

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the six months ended June 30, 2020:


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

(in thousands)				Royalty Rights - At Fair Value
Fair value as of December 31, 2019					$	266,196



	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value	(6,910)
		Proceeds from royalty rights	(25,044)
		Total net change in fair value for the period		(31,954)

Fair value as of June 30, 2020					$	234,242

The table above does not include the aggregate remaining estimated cost to sell the royalty right assets of $5.0 million.


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

	Fair Value as of		Royalty Rights -		Fair Value as of
(in thousands)	December 31, 2019		Change in Fair Value		June 30, 2020 ⁽¹⁾

Assertio	$	218,672	$	(6,438)	$	212,234
VB	13,590		(9,199)		4,391
U-M	20,398		(2,948)		17,450
AcelRx	12,952		(12,952)		—

KYBELLA	584		(417)		167
	$	266,196	$	(31,954)	$	234,242

________________

⁽¹⁾ Excludes the aggregate remaining estimated costs to sell of $5.0 million.

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The following table represents significant unobservable inputs used in determining the estimated fair value of the Wellstat Diagnostics note receivable investment:

Asset

Valuation
Technique

Unobservable
Input

June 30, 2020

December 31, 2019

Wellstat Diagnostics

Wellstat Guarantors intellectual property

Income Approach

Discount rate

12%

Undiscounted royalty amount

$26 million

$21 million

Settlement Amount

Income Approach

Discount rate

15%

Undiscounted settlement amount

$23 million

$28 million

Real Estate Property

Market Approach

Annual appreciation rate

—%

Estimated realtor fee

Undiscounted market value

$16 million

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Components of lease

The components of Lease revenue are as follows:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(in thousands)	Classification	2020		2019		2020		2019









Operating lease income	Lease revenue	$	359	$	1,308	$	1,436	$	2,532

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

The components of intangible assets as of June 30, 2020 and December 31, 2019 were as follows:


	June 30, 2020										December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	—	$	—	$	—	$	—	$	—	$	—
Customer relationships^{(1) (2) (3)}	4,045		(1,079)		2,966		4,045		(884)		3,161
Acquired technology^{(2) (4)}	11,500		(2,125)		9,375		11,500		(1,741)		9,759
Acquired trademarks⁽²⁾	570		(361)		209		570		(304)		266
	$	16,115	$	(3,565)	$	12,550	$	16,115	$	(2,929)	$	13,186

________________

⁽⁴⁾LENSAR acquired certain intangible assets from a third-party, which are being amortized on a straight-line basis over a period of 15 years.

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


Fiscal Year	Amount

2020 (Remaining six months)	$	613
2021	1,215
2022	1,124
2023	1,072
2024	1,060
Thereafter	7,466
Total remaining amortization expense	$	12,550

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Sales Allowances and Accruals [Table Text Block]

Accrued liabilities consist of the following:


(in thousands)	June 30, 2020		December 31, 2019

Compensation	$	4,013	$	6,823
Severance	5,973		—
Deferred revenue	864		959
Interest	34		70
Legal	960		921





Accrued rebates, chargebacks and other revenue reserves	6		5
Other	2,648		3,145
Total ⁽¹⁾	$	14,498	$	11,923

________________

Convertible Notes (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of convertible and non-recourse notes activity


		Principal Balance Outstanding		Carrying Value
		June 30,		June 30,		December 31,
Description	Maturity Date	2020		2020		2019
(in thousands)
Convertible Senior Notes
December 2021 Notes	December 1, 2021	$	13,805	$	12,601	$	16,950
December 2024 Notes	December 1, 2024	1,000		906		10,300
Total		$	14,805	$	13,507	$	27,250

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

The carrying value and unamortized discount of the December 2021 Notes as of June 30, 2020 and December 31, 2019 were as follows:


(in thousands)	June 30, 2020		December 31, 2019

Principal amount of the December 2021 Notes	$	13,805	$	19,170
Unamortized discount of liability component	(1,204)		(2,220)
Net carrying value of the December 2021 Notes	$	12,601	$	16,950

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

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Contractual coupon interest	$	95	$	1,032	$	218	$	2,063
Amortization of debt issuance costs	2		20		25		40
Amortization of debt discount	13		138		10		276
Amortization of conversion feature	185		1,794		419		3,560
Total	$	295	$	2,984	$	672	$	5,939

Schedule of carrying value and unamortized discount on December 2024

The carrying value, accretion and unamortized discount of the December 2024 Notes as of June 30, 2020 and December 31, 2019 were as follows:


(in thousands)	June 30, 2020		December 31, 2019

Principal amount of the December 2024 Notes	$	1,000	$	11,500
Unamortized discount of liability component	(94)		(1,200)

Net carrying value of the December 2024 Notes	$	906	$	10,300

Schedule of interest expense for December 2024 Notes

Interest expense for the December 2024 Notes included in the Company’s Condensed Consolidated Statements of Operations was as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Contractual coupon interest	$	7	$	—	$	44	$	—
Accretion interest on outstanding principal	5		—		38		—
Amortization of debt issuance costs	1		—		5		—
Amortization of conversion feature	4		—		27		—
Total	$	17	$	—	$	114	$	—

Other Long-Term Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Schedule of other liabilities

Other long-term liabilities consist of the following:


	June 30,		December 31,
(in thousands)	2020		2019

Uncertain tax positions	$	38,295	$	37,574
Deferred tax liabilities	1,414		1,571
Accrued lease guarantee	10,700		10,700



Other	504		1,020
Total ⁽¹⁾	$	50,913	$	50,865

________________

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Statement of Stockholders' Equity [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

The following table summarizes the Company’s stock option and restricted stock award activity during the six months ended June 30, 2020:


	Stock Options				Restricted Stock Awards
(in thousands, except per share amounts)	Number of Shares Outstanding	Weighted Average Exercise Price		Number of Shares Outstanding	Weighted Average Grant-date Fair Value Per Share

Balance at December 31, 2019	12,613	$	2.55	1,013	$	3.53
Granted	37	$	2.49	2,878	$	3.08
Exercised / vested	(176)	$	2.61	(2,746)	$	3.12
Forfeited / canceled	(728)	$	3.08	(1,089)	$	3.39

Balance at June 30, 2020	11,746	$	2.56	56	$	3.20

Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

factors. In the following tables, revenue is disaggregated by segment and primary geographical market for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended						Three Months Ended
	June 30, 2020						June 30, 2019
(in thousands)	Medical Devices		Pharmaceutical ⁽¹⁾		Medical Devices		Pharmaceutical ⁽¹⁾

Primary geographical markets:
North America	$	1,757	$	4,198	$	2,203	$	3,038
Europe	633		4,104		705		5,454
Asia	2,399		(135)		3,093		1,923
Other	1		—		66		—
Total revenue from contracts with customers ⁽²⁾	$	4,790	$	8,167	$	6,067	$	10,415


	Six Months Ended						Six Months Ended
	June 30, 2020						June 30, 2019
(in thousands)	Medical Devices		Pharmaceutical ⁽¹⁾		Medical Devices		Pharmaceutical ⁽¹⁾

Primary geographical markets:
North America	$	4,484	$	8,384	$	4,287	$	15,176
Europe	1,556		9,863		1,722		11,036
Asia	3,519		4,951		5,362		4,163
Other	137		—		185		—
Total revenue from contracts with customers⁽²⁾	$	9,696	$	23,198	$	11,556	$	30,375

________________

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

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


(in thousands)	June 30, 2020		December 31, 2019

Receivables, net	$	6,154	$	10,377
Contract assets	$	4,069	$	3,512
Contract liabilities	$	5,230	$	4,024

segment are classified as a current asset and included in Assets held for sale. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract assets at December 31, 2019	$	—	$	3,512	$	3,512
Contract assets recognized	—		(4,765)		(4,765)
Payments received	—		5,322		5,322
Contract assets at June 30, 2020	$	—	$	4,069	$	4,069


(in thousands)	Medical Devices		Pharmaceutical		Total

Contract liabilities at December 31, 2019	$	1,075	$	2,949	$	4,024
Contract liabilities recognized	540		2,175		2,715
Amounts recognized into revenue	(695)		(814)		(1,509)
Contract liabilities at June 30, 2020	$	920	$	4,310	$	5,230

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]


	Six Months Ended
(in thousands)	December 31, 2020		Thereafter		Total

Medical device sales	$	3,052	$	7,259	$	10,311
Pharmaceutical product sales	$	191	$	3,443	$	3,634

Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Information regarding the Company’s segments for the three and six months ended June 30, 2020 and 2019 is as follows:


Revenues by segment	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Medical Devices	$	5,148	$	7,422	$	11,133	$	14,148
Strategic Positions	—		—		—		—
Pharmaceutical	—		—		—		—
Income Generating Assets	63		36		73		6
Total revenues	$	5,211	$	7,458	$	11,206	$	14,154

________________

The table above excludes revenues related to discontinued operations. See Note 2, Discontinued Operations Classified as Assets Held for Sale, for additional information.


(Loss) income by segment	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020		2019		2020		2019

Medical Devices	$	(2,559)	$	(1,678)	$	(4,670)	$	(2,893)
Strategic Positions ⁽¹⁾	(4,823)		19,044		(15,723)		19,044
Pharmaceutical ⁽¹⁾	(14,475)		(345)		(16,542)		5,300
Income Generating Assets ⁽¹⁾	(22,773)		(21,440)		(39,418)		(19,190)
Total	(44,630)		(4,419)		(76,353)		2,261
Change in fair value of warrants not allocated to segments ⁽²⁾	(5,341)		—		(5,341)		—
Net (loss) income attributable to PDL’s shareholders	$	(49,971)	$	(4,419)	$	(81,694)	$	2,261

________________

Information regarding the Company’s segments as of June 30, 2020 and December 31, 2019 is as follows:


Long-lived assets by segment
(in thousands)	June 30, 2020		December 31, 2019

Medical Devices	$	2,974	$	2,435
Strategic Positions	—		—
Pharmaceutical ⁽¹⁾	2,949		2,960
Income Generating Assets	64		125
Total long-lived assets ⁽¹⁾	$	5,987	$	5,520

________________

Concentration of Credit Risk (Tables)

6 Months Ended

Jun. 30, 2020

Customer Concentration [Abstract]

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

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

Three Months Ended June 30,

Six Months Ended June 30,

2020 ⁽¹⁾

2019 ⁽¹⁾

2020 ⁽¹⁾

2019 ⁽¹⁾

LENSAR

99%

100%

99%

100%

________________

Net (Loss) Income per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share


	Three Months Ended						Six Months Ended
	June 30,						June 30,
Net (Loss) Income per Basic and Diluted Share	2020		2019		2020		2019
(in thousands, except per share amounts)
Numerator


Net loss from continuing operations	$	(12,929)	$	(8,016)	$	(32,188)	$	(16,466)
(Loss) income from discontinued operations	$	(37,399)	$	3,502	$	(50,151)	$	18,569
Less: Net loss attributable to noncontrolling interests	$	(357)	$	(95)	$	(645)	$	(158)
Net (loss) income attributable to PDL’s stockholders used to compute net (loss) income per basic and diluted share	$	(49,971)	$	(4,419)	$	(81,694)	$	2,261

Denominator
Total weighted-average shares used to compute net (loss) income attributable to PDL’s stockholders, per basic share	115,908		118,285		119,402		123,484







Shares used to compute net (loss) income attributable to PDL’s stockholders, per diluted share	115,908		118,285		119,402		123,484

Net (loss) income per share - basic:
Continuing operations	$	(0.11)	$	(0.07)	$	(0.26)	$	(0.13)
Discontinued operations	(0.32)		0.03		(0.42)		0.15
Net (loss) income attributable to PDL’s stockholders per basic share	$	(0.43)	$	(0.04)	$	(0.68)	$	0.02

Net (loss) income per share - diluted:
Continuing operations	$	(0.11)	$	(0.07)	$	(0.26)	$	(0.13)
Discontinued operations	(0.32)		0.03		(0.42)		0.15
Net (loss) income attributable to PDL’s stockholders per diluted share	$	(0.43)	$	(0.04)	$	(0.68)	$	0.02

Summary of Significant Accounting Policies (Narrative) (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) numberOfNotesRecivables	Mar. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Investment Owned, at Cost	$ 6,600		$ 6,600	$ 6,600
Number of Reportable Segments			4
Severance Costs	3,600		$ 6,600
Expense associated with accelerating vesting of outstanding awards		$ 15,700
Severance	$ 5,973		$ 5,973	0
Number of customers \| numberOfNotesRecivables	22
Revenues impacted	$ 900
Maximum [Member]
Duration of agreement	4 months
Minimum [Member]
Duration of agreement	1 month
Evofem [Member]
Investment Owned, at Cost				$ 60,000
Product Revenue [Member]
Revenues impacted	$ 500
Lease Revenue
Revenues impacted	300
Service
Revenues impacted	$ 100

Discontinued Operations Classified as Assets Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 5,211	$ 7,458	$ 11,206	$ 14,154
Cost of Revenue	2,639	4,929	5,499	8,729
Amortization of intangible assets	335	344	637	662
General and administrative	9,719	8,695	22,471	17,005
Selling and Marketing Expense	1,237	1,861	2,487	3,435
Research and Development Expense	1,465	886	3,321	1,796
Operating Income (Loss)	(13,763)	(9,257)	(45,522)	(17,473)
Total non-operating expense, net	(243)	(1,334)	(810)	(2,415)
Total non-operating (expense) income, net	(44,277)	4,830	(58,112)	23,517
Discontinued Operation, Tax Effect of Discontinued Operation	(6,878)	1,328	(7,961)	4,948
Less: (Loss) income from discontinued operations	(37,399)	3,502	(50,151)	18,569
Cash and cash equivalents (1)		28,447		28,447
Accounts receivable, net	6,154		6,154		$ 6,559
Inventory	12,633		12,633		8,061
Prepaid and other current assets	29,291		29,291		7,344
Property and equipment, net	3,039		3,039		2,560
Intangible assets, net	12,550		12,550		13,186
Assets	520,656		520,656		717,206
Accounts payable	3,524		3,524		2,675
Accrued liabilities	14,498		14,498		11,923
Total liabilities	100,655		100,655		123,928
Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	(8,137)	(29,984)	16,288	2,233
Cost of Revenue	4,901	7,419	13,682	16,429
Amortization of intangible assets	0	1,254	389	2,507
General and administrative	2,151	1,788	4,565	3,940
Selling and Marketing Expense	81	212	198	1,368
Research and Development Expense	0	0	0	(41)
Operating Expenses	7,133	10,673	18,834	24,203
Operating Income (Loss)	(15,270)	(40,657)	(2,546)	(21,970)
Equity affiliate - change in fair value	(12,864)	45,487	(26,662)	45,487
Loss on classification as held for sale	(16,143)	0	(28,904)	0
Total non-operating expense, net	(29,007)	45,487	(55,566)	45,487
Total non-operating (expense) income, net	(44,277)	4,830	(58,112)	23,517
Discontinued Operation, Tax Effect of Discontinued Operation	(6,878)	1,328	(7,961)	4,948
Less: (Loss) income from discontinued operations	(37,399)	3,502	(50,151)	18,569
Cash and cash equivalents (1)	19,875		19,875		24,469
Accounts receivable, net	7,114		7,114		6,993
Inventory	29,485		29,485		31,712
Prepaid and other current assets	7,357		7,357		7,192
Property and equipment, net	2,949		2,949		2,960
Royalty rights	234,242		234,242		266,196
Investment in equity affiliate	0		0		82,267
Intangible assets, net	9,723		9,723		10,112
Other Assets	7,083		7,083		15,956
Loss on classification as held for sale	(28,402)		(28,402)		0
Assets	289,426		289,426		447,857
Accounts payable	3,017		3,017		14,695
Accrued liabilities	15,196		15,196		16,400
Other long-term liabilities	0		0		120
Total liabilities	18,213		18,213		$ 31,215
Product Revenue [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	4,099	5,268	8,115	10,004
Product Revenue [Member] \| Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	8,167	10,415	23,198	30,375
Acquired rights [Member] \| Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ (16,304)	$ (40,399)	$ (6,910)	$ (28,142)

Investment in Evofem Biosciences, Inc. (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	May 21, 2020	Jun. 10, 2019	Apr. 11, 2019
Debt and Equity Securities, FV-NI [Line Items]
Investment Owned, at Cost	$ 6,600	$ 6,600		$ 6,600
Noncash liquidating distribution	$ 64,400	$ 64,400	$ 0
Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Investment Owned, at Cost				60,000
Tranche 1 of investment							$ 30,000
Investment Owned, Balance, Shares					13,333,334		6,666,667
Cost of tranche two investment option, per share						$ 4.50	$ 4.50
Warrants acquired						1,666,667	1,666,667
Warrants and Rights Outstanding, Term							7 years
Investment Warrants, Exercise Price		$ 6.38
Tranche 2 of investment						$ 30,000
Shares acquired						6,666,667
Noncash liquidating distribution				$ 64,400
Investment ownership percentage	26.70%	26.70%
Number of warrants to hold purchase of common shares					3,333,334
Fair value of warrants	$ 5,300	$ 5,300
Evofem [Member] \| Common Stock
Debt and Equity Securities, FV-NI [Line Items]
Equity affiliate - change in fair value	6,500	17,900
Warrant [Member] \| Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Gain (Loss) on Investments	$ 6,300	$ 8,800

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-For-Sale Securities [Line Items]
Cash and cash equivalents	$ 105,446	$ 168,982
Discontinued Operations, Held-for-sale [Member]
Schedule of Available-For-Sale Securities [Line Items]
Cash and cash equivalents	19,800	24,500
Cash [Member]
Schedule of Available-For-Sale Securities [Line Items]
Cash and cash equivalents	23,527	37,718
Money Market Funds [Member]
Schedule of Available-For-Sale Securities [Line Items]
Cash and cash equivalents	$ 81,919	$ 131,264

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory [Line Items]
Raw materials	$ 4,381	$ 3,739
Work in process	1,612	1,170
Finished goods	6,640	3,152
Inventory, Net	12,633	8,061
Discontinued Operations, Held-for-sale [Member]
Inventory [Line Items]
Inventory, Net	$ 29,485	$ 31,712

Fair Value Measurements (Narrative) (Detail) $ / shares in Units, shares in Millions			1 Months Ended	3 Months Ended			6 Months Ended
	Aug. 02, 2018 USD ($)	Jul. 08, 2016 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($) numberOfNotesRecivables	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2020 USD ($) numberOfNotesRecivables	Jun. 30, 2019 USD ($)	Mar. 31, 2020 USD ($)	Aug. 03, 2018 USD ($)	Jul. 09, 2016 USD ($)	Dec. 31, 2015 $ / shares	Dec. 15, 2015 shares	Sep. 18, 2015 USD ($)	Nov. 06, 2014 USD ($)	Jun. 26, 2014 USD ($)	Oct. 18, 2013 USD ($)
Intangible assets, net			$ 13,186,000	$ 12,550,000			$ 12,550,000
Investment Owned, at Cost			6,600,000	6,600,000			6,600,000
Financing Receivable, before Allowance for Credit Loss, Noncurrent				$ 52,100,000			$ 52,100,000
Cash payment for purchase of royalty right															$ 65,600,000
Purchase of royalty rights	$ 20,000,000.0
Reversionary interest period										$ 481,000,000.0
Sensitivity range for royalty disclosures				2.50%			2.50%
Sensitivity - decrease in fair value from increase in discount rate				$ 400,000			$ 400,000
Number of notes receivable assets \| numberOfNotesRecivables				2			2
Transfers from level 1 to level 2, amount			0	$ 0			$ 0
Transfers from level 2 to level 1, amount			0	0			0
Percentage of royalty acquired															75.00%
Revenues				5,211,000	$ 7,458,000		11,206,000	$ 14,154,000
Finite-Lived Intangible Assets, Gross			16,115,000	16,115,000			16,115,000
Asset Impairment Charges			10,800,000			$ 8,200,000
Convertible Notes Payable, Carrying Value			27,250,000	13,507,000			13,507,000
Notes Payable, Fair Value Disclosure			33,900,000	$ 16,200,000			16,200,000
Depomed [Member]
Cash payment for purchase of royalty right																	$ 240,500,000
Purchase of royalty rights																	241,300,000
Royalty right purchase transaction costs																	$ 800,000
Cash flow model expected royalty sales term				9 years
Sensitivity - decrease in fair value from increase in discount rate				$ 16,600,000			16,600,000
Sensitivity - increase in fair value from decrease in discount rate				19,400,000			19,400,000
Sensitivity to increase or decrease in expected royalty				5,300,000			5,300,000
Royalty rights				207,700,000			207,700,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				207,700,000			$ 207,700,000
Contractual cap on potential royalty asset multiple							2
VB [Member]
Purchase of royalty rights																$ 15,500,000
Royalty rights				4,300,000			$ 4,300,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 4,300,000			$ 4,300,000
Contractual cap on potential royalty asset multiple							2.3
University of Michigan [Member]
Cash flow model expected royalty sales term				2 years
Sensitivity - increase in fair value from decrease in discount rate				$ 400,000			$ 400,000
Sensitivity to increase or decrease in expected royalty				$ 400,000			$ 400,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				12.80%			12.80%
Royalty rights				$ 17,100,000			$ 17,100,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				17,100,000			$ 17,100,000
AcelRx [Member]
Purchase of royalty rights														$ 65,000,000.0
Period to give notice to terminate license agreement							180 days
Royalty rights				0			$ 0
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				0			$ 0
Percentage of royalty acquired														75.00%
Percentage of first four milestone payments acquired														80.00%
Number of potential milestone royalties														4
Contractual cap on potential royalty asset multiple							3
Kybella [Member]
Purchase of royalty rights											$ 9,500,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				$ 200,000			$ 200,000
Maximum amount of additional funds, upon attainment of milestones		$ 1,000,000.0
Alphaeon [Member]
Investment Owned, Balance, Shares \| shares													1.7
Investment estimated fair value, per share \| $ / shares												$ 3.84
Minimum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				10.00%			10.00%
Maximum [Member] \| Depomed [Member]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				24.00%			24.00%
Income generating assets [Member]
Revenues				$ 63,000	36,000		$ 73,000	6,000
Pharmaceutical [Member]
Revenues				0	0		0	0
Discontinued Operations, Held-for-sale [Member]
Loss on classification as held for sale				(16,143,000)	0		(28,904,000)	0
Intangible assets, net			10,112,000	9,723,000			9,723,000
Loss on classification as held for sale			0	(28,402,000)			(28,402,000)
Royalty rights			266,196,000	234,242,000			234,242,000
Revenues				(8,137,000)	$ (29,984,000)		16,288,000	$ 2,233,000
Discontinued Operations, Held-for-sale [Member] \| Depomed [Member]
Loss on classification as held for sale				4,500,000
Discontinued Operations, Held-for-sale [Member] \| VB [Member]
Loss on classification as held for sale				100,000
Discontinued Operations, Held-for-sale [Member] \| University of Michigan [Member]
Loss on classification as held for sale				400,000
Discontinued Operations, Held-for-sale [Member] \| AcelRx [Member]
Loss on classification as held for sale				0
Discontinued Operations, Held-for-sale [Member] \| Kybella [Member]
Loss on classification as held for sale				100,000
Discontinued Operations, Held-for-sale [Member] \| Income generating assets [Member]
Loss on classification as held for sale				5,000,000.0
Discontinued Operations, Held-for-sale [Member] \| Pharmaceutical [Member]
Estimated cost to sell									$ 1,800,000
Loss on classification as held for sale, fair value adjustment									4,900,000
Loss on classification as held for sale				$ 16,800,000			$ 16,800,000		$ 6,700,000
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate				17.00%			17.00%		19.00%
Fair Value Level 3 [Member]
Royalty rights			$ 266,196,000	$ 234,242,000			$ 234,242,000
Notes Receivable, Fair Value Disclosure				$ 57,300,000			$ 57,300,000

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Financial assets:
Assets, Fair Value	$ 321,592	$ 493,879
Warrants and Rights Outstanding	5,431	14,152
Equity Securities [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in and Advances to Affiliates, at Fair Value	0	82,267
Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	81,919	131,264
Fair Value Level 1 [Member]
Financial assets:
Assets, Fair Value	81,919	213,531
Fair Value Level 1 [Member] \| Equity Securities [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in and Advances to Affiliates, at Fair Value	0	82,267
Fair Value Level 1 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	81,919	131,264
Fair Value Level 2 [Member]
Financial assets:
Assets, Fair Value	5,431	14,152
Warrants and Rights Outstanding	5,431	14,152
Fair Value Level 2 [Member] \| Equity Securities [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in and Advances to Affiliates, at Fair Value	0	0
Fair Value Level 2 [Member] \| Money Market Funds [Member]
Financial assets:
Cash and Cash Equivalents, Fair Value	0	0
Fair Value Level 3 [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty rights	234,242	266,196
Financial assets:
Assets, Fair Value	234,242	$ 266,196
Warrants and Rights Outstanding	0
Royalty right [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(31,954)
VB [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty rights	4,300
VB [Member] \| Royalty right [Member]
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ (9,199)

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) $ in Thousands	Jun. 30, 2020 USD ($)	Dec. 31, 2019
Assets
Notes receivable, Carrying Value	$ 52,100
Fair Value Level 3 [Member]
Assets
Notes receivable, Fair Value	$ 57,300
Real estate appreciation [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0	0
Estimated realtor fee [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.06	0.06
Minimum [Member] \| Measurement Input, Discount Rate [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.12	0.12
Maximum [Member] \| Measurement Input, Discount Rate [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.15	0.15

Fair Value Measurements Level 3 Unobservable Input Reconciliation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 266,196
Change in fair value of acquired royalty rights, Level 3 Rollforward	(6,910)
Ending balance	234,242
Payments for (Proceeds from) Productive Assets	(25,044)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(31,954)
Depomed [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	218,672
Ending balance	212,234
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(6,438)
VB [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	13,590
Ending balance	4,391
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ (9,199)
University of Michigan [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	12.80%
University of Michigan [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 20,398
Ending balance	17,450
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(2,948)
AcelRx [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	12,952
Ending balance	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(12,952)
Kybella [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	584
Ending balance	167
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(417)
Measurement Input, Discount Rate [Member] \| Intellectual Property [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	21,000
Ending balance	26,000
Measurement Input, Discount Rate [Member] \| Other [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	28,000
Ending balance	23,000
Measurement Input, Discount Rate [Member] \| Real Estate [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	16,000
Ending balance	$ 16,000

Notes Receivable and Other Long-term Receivables (Narrative) (Detail) $ / shares in Units, $ in Thousands, shares in Millions				1 Months Ended		3 Months Ended				6 Months Ended
	Jun. 26, 2015 USD ($) $ / shares shares	Aug. 15, 2013 USD ($)	Feb. 28, 2013	Dec. 31, 2019 USD ($)	Jan. 31, 2013 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2014 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Feb. 02, 2018 $ / shares	Oct. 07, 2015 $ / shares	Dec. 31, 2014 USD ($)	Jun. 28, 2013 USD ($)	Mar. 05, 2013 USD ($)	Nov. 02, 2012 USD ($)	Jan. 27, 2012 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Revenues						$ 5,211	$ 7,458			$ 11,206	$ 14,154
Investment Owned, at Cost				$ 6,600		6,600				6,600
Commitments and Contingencies
Asset Impairment Charges				$ 10,800				$ 8,200
Increase in interest rate percentage				15.50%
Financial Instruments, Owned, Other, at Fair Value				$ 14,152		5,431				5,431
Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss														$ 53,900
Gain Contingency, Unrecorded Amount						55,800				55,800
Financing Receivable, after Allowance for Credit Loss						50,200				50,200
Interest rate of note receivable (in Percent)		5.00%
Hyperion [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss																		$ 2,300
Number of payments to be received																		2
Periodic contractual payments																$ 1,200
CareView [Member]
Accounts Notes And Loans Receivable [Line Items]
Interest rate of note receivable (in Percent)	13.50%
Amount company has agreed to advance under agreement	$ 40,000
Tranche 1 of note receivable	20,000
Tranche 2 of note receivable	$ 20,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares	4.4
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 0.45											$ 0.03	$ 0.40
Financial Instruments, Owned, Other, at Fair Value						100				100
Credit Agreement [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss																	$ 40,000
Credit agreement, stated interest rate (in Percent)																	5.00%
Proceeds received under remedies available for borrower's breach of terms credit agreement					$ 8,100
Forbearance number of days under terms of credit agreement (in Duration)			120 days
Amount company has agreed to advance under agreement									$ 8,700
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 44,100
Initial Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification		33,700
Additional Loan [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss															$ 1,300
Term loan and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification		1,300
Forbearance principal and interest [Member] \| Wellstat Diagnostics [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 9,100
License and other [Member]
Accounts Notes And Loans Receivable [Line Items]
Revenues						$ 63	$ 30			$ 73	$ (3)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating Lease, Lease Income	$ 359	$ 1,308	$ 1,436	$ 2,532

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Apr. 22, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 16,115		$ 16,115		$ 16,115
Finite-Lived Intangible Assets, Accumulated Amortization	(3,565)		(3,565)		(2,929)
Finite-Lived Intangible Assets, Net	12,550		12,550		13,186
Amortization of intangible assets	335	$ 344	637	$ 662
Research and Development Expense	1,465	$ 886	3,321	$ 1,796
Contractual Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	0		0		0
Finite-Lived Intangible Assets, Accumulated Amortization	0		0		0
Finite-Lived Intangible Assets, Net	0		0		0
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	4,045		4,045		4,045
Finite-Lived Intangible Assets, Accumulated Amortization	(1,079)		(1,079)		(884)
Finite-Lived Intangible Assets, Net	2,966		2,966		3,161
Patented Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	11,500		11,500		11,500
Finite-Lived Intangible Assets, Accumulated Amortization	(2,125)		(2,125)		(1,741)
Finite-Lived Intangible Assets, Net	9,375		9,375		9,759
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	570		570		570
Finite-Lived Intangible Assets, Accumulated Amortization	(361)		(361)		(304)
Finite-Lived Intangible Assets, Net	209		$ 209		$ 266
Original acquisition [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years
Precision Eye Services [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			10 years
third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years
Research and Development Expense	$ 3,500
Cash paid [Member] \| third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross						$ 2,000
Milestone [Member] \| third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross						$ 300

Intangible Assets - Schedule of Finite-Lived Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 613
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,215
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,124
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,072
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,060
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	7,466
Finite-Lived Intangible Assets, Net	$ 12,550	$ 13,186

Accrued Liabilities (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Accrued liabilities	$ 14,498	$ 14,498		$ 11,923
Severance Costs	3,600	6,600
Severance paid	0	600
Forecast [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Severance Costs			$ 13,000
Discontinued Operations, Held-for-sale [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Accrued liabilities	$ 15,196	$ 15,196		$ 16,400

Accrued Liabilities (Accrued Liabilities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Compensation	$ 4,013	$ 6,823
Severance	5,973	0
Deferred revenue	864	959
Interest	34	70
Legal	960	921
Accrued rebates, chargebacks and other revenue reserves	6	5
Other	2,648	3,145
Accrued liabilities	$ 14,498	$ 11,923

Convertible Notes (Narrative) (Detail) $ / shares in Units, shares in Millions			2 Months Ended	3 Months Ended				6 Months Ended		12 Months Ended
	Sep. 18, 2019 USD ($)	Nov. 21, 2016 USD ($)	Nov. 18, 2019 USD ($)	Jun. 30, 2020 USD ($) $ / shares	Mar. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) $ / shares	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) shares	Jun. 01, 2020 $ / shares	Dec. 12, 2019 shares	Sep. 17, 2019 USD ($) $ / shares	Nov. 22, 2016 USD ($) $ / shares	Nov. 20, 2015 USD ($)
Debt Instrument [Line Items]
Exchange of debt				$ 86,100,000
Cash paid per round lot to exchange debt													$ 70.00
Cash paid to exchange convertible note													6,000,000.0
Debt Instrument, Face Amount				14,805,000				$ 14,805,000
Round lot of notes													$ 1,000
Net receipts for capped call transactions								801,000	$ 0
Gain on conversion of convertible notes				0		$ 3,900,000	$ 0	606,000	$ 0
December 2021 Notes [Member]
Debt Instrument [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost				6,000,000.0	$ 39,900,000
Stock Issued During Period, Shares, Other \| shares					3.5
Convertible notes				12,601,000		16,950,000		12,601,000		$ 16,950,000				$ 150,000,000.0	$ 150,000,000.0
Debt Instrument, Interest Rate, Stated Percentage														2.75%
Unamortized discount of liability component				$ (1,204,000)		(2,220,000)		(1,204,000)		(2,220,000)				$ (4,300,000)
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature	$ 13,500,000
Convertible note rate conversion trading days (in days)								20
Convertible Notes rate conversion consecutive trading days (in days)								$ 30
Debt discount recorded to additional paid in capital														23,800,000
Debt discount recorded to deferred tax liability														$ 12,800,000
Minimum conversion price percent for note conversion (in Percent)								130.00%
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)								98.00%
Debt Instrument, Interest Rate, Effective Percentage														9.70%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares				$ 3.16				$ 3.16					$ 3.81	$ 3.81
Cap Price capped call \| $ / shares											$ 4.04			$ 4.88
Capped call unwind shares repurchased \| shares												1.6
Estimated market interest rate for similar nonconvertible instrument														9.50%
Debt instrument, convertible, remaining amortization period (in Duration)								1 year 4 months 24 days
Extinguishment of Debt, Amount				$ 5,400,000	$ 44,800,000					44,800,000
Net proceeds from the issuance of convertible notes		$ 145,700,000
Debt Instrument, Face Amount				13,805,000		19,170,000		$ 13,805,000		19,170,000
Conversion Rate per $1,000 Principal Amount (in Ratio)		262.2951						316.5801
Net receipts for capped call transactions		$ 14,400,000
Gain on conversion of convertible notes				$ (100,000)	$ (2,500,000)
December 2024 Notes [Member]
Debt Instrument [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost								$ 12,900,000		$ 58,000,000.0
Stock Issued During Period, Shares, Other \| shares										9.9
Debt Instrument, Interest Rate, Stated Percentage													2.75%
Debt instrument, accretion rate				2.375%
Unamortized discount of liability component				$ (94,000)		(1,200,000)		(94,000)		$ (1,200,000)			$ (9,400,000)
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature	$ 8,100,000							8,100,000
Adjustments to Additional Paid in Capital, Other								$ 1,300,000
Debt discount recorded to additional paid in capital													5,500,000
Debt discount recorded to deferred tax liability													$ 1,200,000
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)				98.00%
Debt Instrument, Interest Rate, Effective Percentage				7.50%				7.50%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares				$ 3.16				$ 3.16					$ 3.81
Cap Price capped call \| $ / shares											$ 4.04		$ 4.88
Capped call unwind shares repurchased \| shares												1.6
Estimated market interest rate for similar nonconvertible instrument													7.05%
Debt instrument, convertible, remaining amortization period (in Duration)								4 years 4 months 24 days
Extinguishment of Debt, Amount								$ 10,500,000		74,600,000
Repurchase price upon fundamental change as described in 2021 Notes indenture								100.00%
Debt Instrument, Face Amount				$ 1,000,000		$ 11,500,000		$ 1,000,000		11,500,000
Debt Instrument, Redeemable, Threshold Percentage of Stock Price Minimum				128.00%
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger				130.00%
Debt Instrument, Convertible, Threshold Consecutive Trading Days				20
Debt Instrument, Convertible, Threshold Trading Days				30
Net receipts for capped call transactions			$ 4,500,000
Gain on conversion of convertible notes								$ (500,000)		$ (2,100,000)

Convertible Notes (Summary of Convertible Notes) (Detail) $ / shares in Units, $ in Thousands		6 Months Ended
	Nov. 21, 2016	Jun. 30, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)	Sep. 17, 2019 $ / shares	Nov. 22, 2016 $ / shares
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding		$ 14,805
Convertible Notes Payable, Carrying Value		$ 13,507	$ 27,250
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					2.75%
Debt Instrument, Convertible, Conversion Ratio	262.2951	316.5801
Convertible notes, conversion price (in Dollars per Share) \| $ / shares		$ 3.16		$ 3.81	$ 3.81
Convertible Notes, Maturity Date (Date)		Dec. 01, 2021
Convertible Notes, Principal Balance Outstanding		$ 13,805	19,170
Convertible Notes Payable, Carrying Value		$ 12,601	16,950
December 2024 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				2.75%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares		$ 3.16		$ 3.81
Convertible Notes, Principal Balance Outstanding		$ 1,000	11,500
Convertible Notes Payable, Carrying Value		$ 906	$ 10,300

Convertible Notes (Summary of Series 2012 Notes) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding	$ 14,805
Convertible Notes Payable, Carrying Value	$ 13,507	$ 27,250

Convertible Notes (Summary of May 2015 Notes) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 14,805
Convertible Notes Payable, Carrying Value	$ 13,507	$ 27,250

Convertible Notes Convertible Notes (Summary of February 2018 Notes) (Detail) (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 14,805

Convertible Notes Convertible Notes (Summary of December 2021 Notes) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Nov. 22, 2016	Nov. 20, 2015
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 14,805
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	13,805	$ 19,170
Debt Instrument, Unamortized Discount	(1,204)	(2,220)	$ (4,300)
Convertible notes	$ 12,601	$ 16,950	$ 150,000	$ 150,000

Convertible Notes Convertible Notes (Interest Expense for December 2021 Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 185	$ 1,794	$ 419	$ 3,560
December 2021 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	95	1,032	218	2,063
Amortization of debt issuance costs	2	20	25	40
Amortization of debt discount	13	138	10	276
Interest Expense, Debt	$ 295	$ 2,984	$ 672	$ 5,939

Convertible Notes Summary of December 2024 Notes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Sep. 17, 2019
Debt Instrument [Line Items]
Accreted interest on convertible note principal			$ 38	$ 0
Amortization of convertible notes conversion option and debt issuance costs			485	3,876
Debt Instrument, Face Amount	$ 14,805		14,805
Convertible notes payable	13,507		13,507		$ 27,250
Debt Instrument, Convertible, Beneficial Conversion Feature	185	$ 1,794	419	3,560
December 2024 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	7	0	44	0
Accreted interest on convertible note principal	5	0	38	0
Amortization of convertible notes conversion option and debt issuance costs	1	0	5	0
Debt Instrument, Face Amount	1,000		1,000		11,500
Debt Instrument, Unamortized Discount	(94)		(94)		(1,200)	$ (9,400)
Convertible notes payable	906		906		$ 10,300
Debt Instrument, Convertible, Beneficial Conversion Feature	4	0	27	0
Interest Expense, Debt	$ 17	$ 0	$ 114	$ 0

Convertible Notes Interest Expense for December 2024 Notes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 185	$ 1,794	$ 419	$ 3,560
Accreted interest on convertible note principal			38	0
Amortization of convertible notes conversion option and debt issuance costs			485	3,876
December 2024 Notes [Member]
Debt Instrument [Line Items]
Interest Expense, Debt	17	0	114	0
Debt Instrument, Convertible, Beneficial Conversion Feature	4	0	27	0
Contractual coupon interest	7	0	44	0
Accreted interest on convertible note principal	5	0	38	0
Amortization of convertible notes conversion option and debt issuance costs	$ 1	$ 0	$ 5	$ 0

Other Long-Term Liabilities (Narrative) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Other Liabilities [Line Items]
Accrued lease guarantee	$ 10,700	$ 10,700
Discontinued Operations, Held-for-sale [Member]
Schedule of Other Liabilities [Line Items]
Other long-term liabilities	$ 0	$ 120

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Uncertain tax positions	$ 38,295	$ 37,574
Deferred tax liabilities	1,414	1,571
Accrued lease guarantee	10,700	10,700
Other	504	1,020
Total	$ 50,913	$ 50,865

Commitments and Contingencies (Narrative) (Detail) - USD ($)	Aug. 04, 2020	Jul. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Total lease payments for the duration of the guarantee			$ 16,900,000
Total lease payments for the duration of the guarantee			16,900,000
Accrued lease guarantee			10,700,000	$ 10,700,000
Subsequent Event [Member]
Guarantor Obligations [Line Items]
Percentage of Stock		100.00%
Noden [Member] \| Next twenty-four months [Member] [Member]
Guarantor Obligations [Line Items]
Purchase Obligation			37,400,000
LENSAR [Member]
Guarantor Obligations [Line Items]
Purchase Obligation			5,300,000
Purchase Obligation, Due in Next Twelve Months			3,900,000
Guarantor Obligations, Current Carrying Value			1,000,000.0
Total lease payments for the duration of the guarantee			20,000,000.0
Total lease payments for the duration of the guarantee			$ 20,000,000.0
LENSAR [Member] \| Subsequent Event [Member]
Guarantor Obligations [Line Items]
Total lease payments for the duration of the guarantee	$ 20,000,000.0
Total lease payments for the duration of the guarantee	$ 20,000,000.0

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended		10 Months Ended	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Aug. 07, 2019	Dec. 31, 2019	Dec. 16, 2019	Dec. 09, 2019	Sep. 21, 2018
Debt Instrument [Line Items]
Stock Repurchase Program, Authorized Amount							$ 75,000	$ 200,000	$ 100,000
Stock Repurchased During Period, Shares			12.3		31.0
Stock Repurchased During Period, Value			$ 39,400		$ 100,000
Treasury Stock Acquired, Average Cost Per Share			$ 3.20		$ 3.22
Cash payment for repurchase of convertible notes			$ 18,845	$ 0		$ 97,900
Stock Issued During Period, Shares, New Issues						13.4
December 2021 Notes [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount	$ 5,400	$ 44,800				$ 44,800
Cash payment for repurchase of convertible notes			5,400
December 2024 Notes [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount			$ 10,500			$ 74,600

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
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	2,746
Share-based Payment Arrangement, Option [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(728)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 3.08
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	11,746	12,613
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	37
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ (2.49)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(176)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 2.56	$ 2.55
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)	1,013
Restricted Stock Awards, Number of Shares Granted (in Shares)	2,878
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	56
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 3.53
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	3.08
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	3.20
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	3.12
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 3.39
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations	(1,089)

Stock-Based Compensation - Narrative (Details) - $ / shares	1 Months Ended	6 Months Ended
	May 31, 2020	Jun. 30, 2020
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Exercise price of the outstanding employee option awards were decreased (in USD per share)		$ (2.61)
Share-based Payment Arrangement, Option [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Exercise price of the outstanding employee option awards were decreased (in USD per share)	$ 0.58

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 5,211	$ 7,458	$ 11,206	$ 14,154
License and other [Member]
Disaggregation of Revenue [Line Items]
Revenues	63	30	73	(3)
Medical devices [Member]
Disaggregation of Revenue [Line Items]
Revenues	5,148	7,422	11,133	14,148
Non ASC 606 revenue	400	1,400	1,500	2,600
Revenue from Contract with Customer, Excluding Assessed Tax	4,790	6,067	9,696	11,556
Medical devices [Member] \| North America [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1,757	2,203	4,484	4,287
Medical devices [Member] \| Europe [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	633	705	1,556	1,722
Medical devices [Member] \| Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	2,399	3,093	3,519	5,362
Medical devices [Member] \| Non-US [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1	66	137	185
Pharmaceutical [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Revenue from Contract with Customer, Excluding Assessed Tax	8,167	10,415	23,198	30,375
Pharmaceutical [Member] \| North America [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	4,198	3,038	8,384	15,176
Pharmaceutical [Member] \| Europe [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	4,104	5,454	9,863	11,036
Pharmaceutical [Member] \| Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	(135)	1,923	4,951	4,163
Pharmaceutical [Member] \| Non-US [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0	$ 0	$ 0	$ 0
Minimum [Member]
Disaggregation of Revenue [Line Items]
Term of receivable (in Duration)			30 days
Maximum [Member]
Disaggregation of Revenue [Line Items]
Term of receivable (in Duration)			90 days

Revenue from Contracts with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contracts with Customers [Abstract]
Accounts Receivable, after Allowance for Credit Loss	$ 6,154	$ 10,377
Movement in Deferred Revenue [Roll Forward]
Contract assets at December 31, 2019	3,512
Contract assets recognized	(4,765)
Payments received	5,322
Contract assets at June 30, 2020	4,069
Contract liabilities at December 31, 2019	4,024
Contract liabilities recognized	2,715
Amounts recognized into revenue	(1,509)
Contract liabilities at June 30, 2020	5,230
Medical devices [Member]
Movement in Deferred Revenue [Roll Forward]
Contract assets at December 31, 2019	0
Contract assets recognized	0
Payments received	0
Contract assets at June 30, 2020	0
Contract liabilities at December 31, 2019	1,075
Contract liabilities recognized	540
Amounts recognized into revenue	(695)
Contract liabilities at June 30, 2020	920
Pharmaceutical [Member]
Movement in Deferred Revenue [Roll Forward]
Contract assets at December 31, 2019	3,512
Contract assets recognized	(4,765)
Payments received	5,322
Contract assets at June 30, 2020	4,069
Contract liabilities at December 31, 2019	2,949
Contract liabilities recognized	2,175
Amounts recognized into revenue	(814)
Contract liabilities at June 30, 2020	$ 4,310

Revenue from Contracts with Customers Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Pharmaceutical [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 3,634
Pharmaceutical [Member] \| Less than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	191
Pharmaceutical [Member] \| Greater than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	3,443
Medical devices [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	10,311
Medical devices [Member] \| Less than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	3,052
Medical devices [Member] \| Greater than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 7,259

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 5,211	$ 7,458	$ 11,206	$ 14,154
Net Income (Loss) Attributable to Parent	(49,971)	(4,419)	(81,694)	2,261
Operating segment net income	(44,630)	(4,419)	(76,353)	2,261
Net income (loss) not allocated to a segment	(5,341)	0	(5,341)	0
Long-Lived Assets	5,987		5,987		$ 5,520
Income generating assets [Member]
Segment Reporting Information [Line Items]
Revenues	63	36	73	6
Net Income (Loss) Attributable to Parent	(22,773)	(21,440)	(39,418)	(19,190)
Long-Lived Assets	64		64		125
Pharmaceutical [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Net Income (Loss) Attributable to Parent	(14,475)	(345)	(16,542)	5,300
Long-Lived Assets	2,949		2,949		2,960
Medical devices [Member]
Segment Reporting Information [Line Items]
Revenues	5,148	7,422	11,133	14,148
Net Income (Loss) Attributable to Parent	(2,559)	(1,678)	(4,670)	(2,893)
Long-Lived Assets	2,974		2,974		2,435
Strategic positions [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Net Income (Loss) Attributable to Parent	(4,823)	19,044	(15,723)	$ 19,044
Long-Lived Assets	0		$ 0		$ 0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 5,211	$ 7,458

Concentration of Credit Risk (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
LENSAR [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	99.00%	100.00%	99.00%	100.00%
Royalty right [Member]
Revenue, Major Customer [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (31,954)
AcelRx [Member] \| Royalty right [Member]
Revenue, Major Customer [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (12,952)

Income Taxes (Narrative) (Detail) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Narrative) (Detail) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investments, Owned, Federal Income Tax Note [Line Items]
Change in Uncertain Tax Positions	$ 0	$ 0
Income Tax Expense	$ (1,077,000)	$ (2,575,000)	$ (14,144,000)	$ (3,422,000)
Federal income tax rate			21.00%

Net (Loss) Income per Share (Net Income Per Basic and Diluted Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator
Net loss from continuing operations	$ (12,929)	$ (8,016)	$ (32,188)	$ (16,466)
Less: (Loss) income from discontinued operations	(37,399)	3,502	(50,151)	18,569
Net Income (Loss) Attributable to Parent	$ (49,971)	$ (4,419)	$ (81,694)	$ 2,261
Denominator
Total weighted-average shares used to compute net income per basic share (in Shares)	115,908	118,285	119,402	123,484
Diluted (in Shares)	115,908	118,285	119,402	123,484
Income (Loss) from Continuing Operations, Per Basic Share	$ (0.11)	$ (0.07)	$ (0.26)	$ (0.13)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share	(0.32)	0.03	(0.42)	0.15
Basic (in Dollars per Share)	(0.43)	(0.04)	(0.68)	0.02
Income (Loss) from Continuing Operations, Per Diluted Share	(0.11)	(0.07)	(0.26)	(0.13)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share	(0.32)	0.03	(0.42)	0.15
Net income per diluted share (in Dollars per Share)	$ (0.43)	$ (0.04)	$ (0.68)	$ 0.02

Net (Loss) Income per Share (Narrative) (Detail) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Nov. 22, 2016	Nov. 20, 2015
December 2021 Notes [Member]
Debt Instrument [Line Items]
Convertible notes	$ 12,601		$ 12,601		$ 16,950	$ 150,000	$ 150,000
Restricted Stock [Member]
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in Shares)	0.1	1.1	0.1	0.8
Option on Securities [Member]
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in Shares)	11.7	12.7	11.7	10.4

Subsequent Events (Narrative) (Detail)		34 Months Ended
Subsequent Events (Narrative) (Detail)	Jul. 30, 2020 USD ($) numberOfPayments	Oct. 31, 2023 USD ($)	Aug. 04, 2020 USD ($)	Jun. 30, 2020 USD ($)
Subsequent Event [Line Items]
Total lease payments for the duration of the guarantee				$ 16,900,000
LENSAR [Member]
Subsequent Event [Line Items]
Total lease payments for the duration of the guarantee				$ 20,000,000.0
Forecast [Member]
Subsequent Event [Line Items]
Proceeds from Divestiture of Interest in Consolidated Subsidiaries		$ 33,000,000.0
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	$ 12,000,000.0
Contingent Considerations, Divestiture of Interest in Consolidated Subsidiaries	3,300,000
Divestiture of Interest in Consolidated Subsidiaries	$ 48,300,000
Contingent Considerations, Number Of Payments \| numberOfPayments	2
Subsequent Event [Member] \| LENSAR [Member]
Subsequent Event [Line Items]
Total lease payments for the duration of the guarantee			$ 20,000,000.0