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DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIESThe Company uses foreign currency exchange forward contracts (forward contracts) to protect against the reduction in value of forecasted foreign currency cash flows resulting from product revenues, royalty revenues and operating expenses denominated in currencies other than the U.S. Dollar (USD), primarily the Euro. Certain of these forward contracts are designated as cash flows hedges and have maturities of up to one year and nine months. The Company also enters into forward contracts to manage foreign exchange risk related to asset or liability positions denominated in currencies other than USD. Such forward contracts are considered to be economic hedges, are not designated as hedging instruments and have maturities of up to six months. The Company does not use derivative instruments for speculative trading purposes. The Company is exposed to counterparty credit risk on its derivatives. The Company has established and maintains strict counterparty credit guidelines and
enters into hedging agreements with financial institutions that are investment grade or better to minimize the Company’s exposure to potential defaults. The Company is not required to pledge collateral under these agreements.
The following table summarizes the aggregate notional amounts for the Company’s derivatives outstanding as of the periods presented.
Foreign Exchange ContractsJune 30, 2021December 31, 2020
Derivatives designated as hedging instruments:
Sell$624,409 $782,327 
Purchase$165,922 $189,540 
Derivatives not designated as hedging instruments:
Sell$148,629 $98,343 
Purchase$92,944 $12,277 
The fair value carrying amounts of the Company’s derivatives, as classified within the fair value hierarchy, were as follows:
Balance Sheet LocationJune 30, 2021December 31, 2020
Derivatives designated as hedging instruments:
Asset Derivatives - Level 2 (1)
Other current assets$8,338 $6,268 
Other assets2,433 3,148 
Subtotal$10,771 $9,416 
Liability Derivatives - Level 2 (1)
Accounts payable and accrued liabilities$10,392 $17,551 
Other long-term liabilities2,895 11,020 
Subtotal$13,287 $28,571 
Derivatives not designated as hedging instruments:
Asset Derivatives - Level 2 (1)
Other current assets$1,932 $84 
Liability Derivatives - Level 2 (1)
Accounts payable and accrued liabilities$642 $247 
Total Derivatives Assets$12,703 $9,500 
Total Derivatives Liabilities$13,929 $28,818 
(1)    For additional discussion of fair value measurements, see Note 3 – Summary of Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
The following tables summarize the impact of gains and losses from the Company's derivatives on its Condensed Consolidated Statements of Comprehensive Income (Loss) for the periods presented.
Three Months Ended June 30,
20212020
Derivatives Designated as Cash Flow Hedging InstrumentsCash Flow Hedging Gains (Losses)
Reclassified into Earnings		Cash Flow Hedging Gains (Losses)
Reclassified into Earnings
Net product revenues as reported$486,670 $(2,678)$419,032 $8,279 
Operating expenses as reported$490,021 $344 $470,430 $(1,786)
Derivatives Not Designated as Hedging InstrumentsGains (Losses) Recognized in EarningsGains (Losses) Recognized in Earnings
Operating expenses$(3,260)$1,729 
Six Months Ended June 30,
20212020
Derivatives Designated as Cash Flow Hedging InstrumentsCash Flow Hedging Gains (Losses)
Reclassified into Earnings		Cash Flow Hedging Gains (Losses)
Reclassified into Earnings
Net product revenues as reported$954,439 $(5,435)$908,075 $14,608 
Operating expenses as reported$950,965 $349 $867,538 $(3,459)
Derivatives Not Designated as Hedging InstrumentsGains (Losses) Recognized in EarningsGains (Losses) Recognized in Earnings
Operating expenses$1,009 $5,538 
As of June 30, 2021, the Company expects to reclassify unrealized gains of $2.3 million from Accumulated Other Comprehensive Income (AOCI) to earnings as the forecasted revenues and operating expense transactions occur over the next 12 months. For additional discussion of balances in AOCI see Note 10 – Accumulated Other Comprehensive Income.