Indirect Cash Flow

12 Months Ended

Dec. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Adjustments to reconcile consolidated net income to net cash provided by operating activities are summarized below (in thousands).


	Years Ended December 31,
	2021		2020		2019
Cash flow from operating activities:
Consolidated net income	$	1,241,201	$	1,701,954	$	2,461,419
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Income from financial royalty assets	(2,065,083)		(1,959,975)		(1,648,837)
Provision for changes in expected cash flows from financial royalty assets	452,842		230,839		(1,019,321)
Amortization of intangible assets	22,996		23,058		23,924
Amortization of debt discount and issuance costs	20,162		11,715		12,790

Losses on derivative financial instruments	21,532		42,076		39,138
Losses/(gains) on equity securities	48,066		(247,073)		(155,749)
Equity in losses/(earnings) of non-consolidated affiliates	19,490		(44,459)		32,517


Distributions from non-consolidated affiliates	34,384		42,334		14,059

Loss on extinguishment of debt	358		30,272		—

Share-based compensation	2,443		5,428		—
Interest income accretion	(50,896)		(20,551)		—
Unrealized gains on available for sale debt securities	(17,859)		(18,600)		—
Impairment charge	—		65,053		—
Termination of derivative financial instruments	(16,093)		(34,952)		—
Other	4,461		9,621		(2,122)
Decrease/(increase) in operating assets:
Cash collected on financial royalty assets	2,315,854		2,121,923		1,934,092
Available for sale debt securities	—		—		(150,000)
Accrued royalty receivable	(20,131)		370		2,471
Other receivables	—		—		150,000
Other royalty income receivable	(9,012)		(770)		7,390
Other current assets and other assets	1,857		34,986		(41,028)
(Decrease)/increase in operating liabilities:
Accounts payable and accrued expenses	(4,586)		(766)		6,496
Interest payable	15,550		42,146		—


Net cash provided by operating activities	$	2,017,536	$	2,034,629	$	1,667,239

Non-cash investing and financing activities are summarized below (in thousands).


	Years Ended December 31,
Supplemental Schedule of Non-cash Investing/Financing Activities:	2021		2020		2019
Receipt of contribution of investment in Legacy Investors Partnerships (Note 9)	$	—	$	303,679	$	—
Settlement of Epizyme forward purchase contract	—		5,700		—
Accrued purchase obligation - Tazverik (Note 17)	—		110,000		—
Repayments of long-term debt by contributions from non-controlling interest (1)	—		1,103,774		—

Milestone payable - Erleada (2)	—		18,600		—

(1) Related to the pro rata portion of RPIFT’s outstanding debt repaid by the Legacy Investors Partnerships.
(2) Related to the achievement of a sales-based milestone that was not paid as of December 31, 2020 as recorded within Other current liabilities on the consolidated balance sheet.