Indirect Cash Flow (Tables)

12 Months Ended

Dec. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

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


	Years Ended December 31,
	2022		2021		2020
Cash flow from operating activities:
Consolidated net income	$	230,064	$	1,241,201	$	1,701,954
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Income from financial royalty assets	(2,125,096)		(2,065,083)		(1,959,975)
Provision for changes in expected cash flows from financial royalty assets	904,244		452,842		230,839
Amortization of intangible assets	5,670		22,996		23,058
Amortization of debt discount and issuance costs	21,356		20,162		11,715

(Gains)/losses on derivative financial instruments	(96,610)		21,532		42,076
Losses/(gains) on equity securities	33,442		48,066		(247,073)
Equity in losses/(earnings) of equity method investees	8,973		19,490		(44,459)


Distributions from equity method investees	39,142		34,384		42,334

Loss on extinguishment of debt	419		358		30,272

Share-based compensation	2,170		2,443		5,428
Interest income accretion	(53,432)		(50,896)		(20,551)
Losses/(gains) on available for sale debt securities	6,815		(17,859)		(18,600)
Financial royalty asset impairment	615,827		—		65,053
Termination of derivative financial instruments	—		(16,093)		(34,952)
Other	11,098		4,461		9,621
Decrease/(increase) in operating assets:
Cash collected on financial royalty assets	2,507,236		2,315,854		2,121,923

Accrued royalty receivable	36,456		(20,131)		370

Other royalty income receivable	(4,744)		(9,012)		(770)
Other current assets	2,198		1,857		34,986
Increase/(decrease) in operating liabilities:
Accounts payable and accrued expenses	2,286		(4,586)		(766)
Interest payable	(3,534)		15,550		42,146


Net cash provided by operating activities	$	2,143,980	$	2,017,536	$	2,034,629

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


	Years Ended December 31,
Supplemental Schedule of Non-cash Investing/Financing Activities:	2022		2021		2020
Receipt of contribution of investment in Legacy Investors Partnerships (Note 9)	$	—	$	—	$	303,679
Settlement of Epizyme forward purchase contract (Note 4)	—		—		5,700
Accrued purchase obligation - Tazverik (1)	—		—		110,000
Repayments of long-term debt by contributions from non-controlling interests (2)	—		—		1,103,774
Milestone payable - Erleada (3)	12,400		—		18,600

(1)Related to our obligation under our agreement with Eisai to fund the final tranche of the Tazverik royalty for $110.0 million following the June 2020 FDA approval of additional indications of Tazverik.

(2)Related to the pro rata portion of RPIFT’s outstanding debt repaid by the Legacy Investors Partnerships.

(3)Related to the achievement of sales-based milestones that were not paid as of December 31, 2022 and 2020.