Balance Sheet Account Details

12 Months Ended

Dec. 31, 2018

Other Balance Sheet Details [Abstract]

Balance Sheet Account DetailsShort-term Investments

The following table summarizes the various investment categories at December 31, 2018 and 2017 (in thousands):


	Cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
December 31, 2018
Short-term investments
Bank deposits	$	311,066	$	26	$	(29)	$	311,063
Corporate bonds	53,223		1		(45)		53,179
Corporate equity securities	135		1,191		—		1,326
Commercial paper	225,731		8		(76)		225,663
U.S. Government bonds	7,982		—		(9)		7,973
Municipal bonds	2,017		—		(4)		2,013
	$	600,154	$	1,226	$	(163)	$	601,217
December 31, 2017
Short-term investments
Bank deposits	$	80,095	$	6	$	(42)	$	80,059
Corporate bonds	55,335		—		(96)		55,239
Corporate equity securities	207		1689		—		1,896
Commercial paper	27,933		—		(20)		27,913
Agency bonds	4,991		—		(1)		4,990
U.S. Government bonds	8,939		—		(10)		8,929
Municipal bonds	2,028		—		(13)		2,015
	$	179,528	$	1,695	$	(182)	$	181,041

Other current assets consist of the following (in thousands):


	December 31,
	2018		2017
Restricted cash	$	2,616	$	—
Investment in Viking warrants	9,257		—
Other	8,545		1,514
	$	20,418	$	1,514

Property and equipment is stated at cost and consists of the following (in thousands):


	December 31,
	2018		2017
Lab and office equipment	$	4,183	$	3,460
Leasehold improvements	2,418		1,917
Computer equipment and software	936		697
	7,537		6,074
Less accumulated depreciation and amortization	(2,165)		(1,862)
	$	5,372	$	4,212

Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets which range from three to ten years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense of $0.9 million, $0.4 million, and $0.2 million was recognized for the years ended December 31, 2018, 2017, and 2016, respectively, and is included in operating expenses.

Goodwill and identifiable intangible assets consist of the following (in thousands):


	December 31,
	2018		2017
Indefinite lived intangible assets
IPR&D	$	—	$	7,923
Goodwill	86,646		85,959
Definite lived intangible assets
Complete technology	235,413		222,900
Less: Accumulated amortization	(35,070)		(23,301)
Trade name	2,642		2,642
Less: Accumulated amortization	(1,048)		(916)
Customer relationships	29,600		29,600
Less: Accumulated amortization	(11,744)		(10,264)
Total goodwill and other identifiable intangible assets, net	$	306,439	$	314,543

Amortization of finite lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of 20 years. Amortization expense of $15.8 million, $11.3 million, and $10.6 million was recognized for the years ended December 31, 2018 and 2017, and 2016, respectively. Estimated amortization expense for the years ending December 31, 2018 through 2023 is $13.6 million per year. For each of the years ended December 31, 2018, 2017, and 2016, there was no impairment of intangible assets with finite lives.

Accrued liabilities consist of the following (in thousands):


	December 31,
	2018		2017
Compensation	$	4,045	$	4,085
Legal	942		430
Amounts owed to former licensees	428		396
Royalties owed to third parties	1,025		954

Payments due to broker for share repurchases	4,613		—
Return reserve	3,590		—
Restructuring	1,093		—
Other	3,464		1,512
	$	19,200	$	7,377

Contingent liabilities:

In connection with the acquisition of CyDex in January 2011, we issued a series of CVRs and also assumed certain contingent liabilities. We may be required to make additional payments upon achievement of certain clinical and regulatory milestones to the CyDex shareholders and former license holders. We paid CyDex shareholders, through 2016, 20% of all CyDex-related revenue, but only to the extent that, and beginning only when, CyDex-related revenue for the year exceeds $15.0 million; plus an additional 10% of all CyDex-related revenue recognized during such year, but only to the extent, and beginning only when aggregate CyDex-related revenue for such year exceeds $35.0 million.

In connection with the acquisition of Metabasis in January 2010, we entered into four CVR agreements with Metabasis shareholders. The CVRs entitle the holders to cash payments as frequently as every six months as proceeds are received by us upon the sale or licensing of any of the Metabasis drug development programs and upon the achievement of specified milestones.

The following table summarizes contingent liabilities as of December 2018 and 2017 (in thousands):


	December 31, 2016		Payments		Fair Value Adjustment		Additions		December 31, 2017		Payments		Fair Value Adjustment		December 31, 2018
Cydex	$	6,600	$	(5,000)	$	—	$	—	$	1,600	$	(25)	$	(1,050)	$	525
Metabasis	$	1,500	$	—	$	2,500	$	—	$	4,000	$	(3,900)	$	5,400	$	5,500
Crystal	$	—	$	—	$	—	$	8,400	$	8,400	$	(1,000)	$	(924)	$	6,476
Total	$	8,100	$	(5,000)	$	2,500	$	8,400	$	14,000	$	(4,925)	$	3,426	$	12,501