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FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Schedule of carrying amount and fair value of the long-term debt | At June 30, 2022, the carrying values and fair values of the following financial assets and liabilities were as follows (in thousands):
|  | Carrying Value |  | Fair Value Measurements Using
|  |  | Level 1 |  | Level 2 |  | Level 3
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |
Equity investments |  | $ | 25,627 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,627 |
Convertible notes receivable |  | $ | 5,299 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,299 |
Financial Liabilities: |  |  |  |  |  |  |  |
Acquisition-related contingent consideration |  | $ | 35,247 |  |  | $ | — |  |  | $ | — |  |  | $ | 35,247 |
Financial Liabilities Measured at Amortized Cost: |  |  |  |  |  |  |  |
Term loan facility due December 2026 |  | $ | 352,120 |  |  | $ | — |  |  | $ | 366,562.5 |  |  | $ | — |
0.750% convertible senior notes due 2025 (1) |  | $ | 394,894 |  |  | $ | — |  |  | $ | 417,855 |  |  | $ | — |
3.375% convertible senior notes due 2024 (2) |  | $ | 8,640 |  |  | $ | — |  |  | $ | 8,606 |  |  | $ | — |
(1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $58.30 per share at June 30, 2022 compared to a conversion price of $71.78 per share. Therefore, at June 30, 2022, the conversion price was above the stock price. The maximum conversion premium that could have been due on the 2025 Notes is 5.6 million shares of the Company’s common stock, which assumes no increase in the conversion rate for certain corporate events. (2) Relates to the Flexion 2024 Notes. For more information, See Note 9, Debt.
Schedule of investments without readily determinable fair value | The following investments have no readily determinable fair value and are recorded at cost minus impairment, if any, plus or minus observable price changes of identical or similar investments (in thousands):
| Equity Investments |  | Convertible Notes Receivable |  | Total
Balance at December 31, 2021 | $ | 14,127 |  |  | $ | 4,132 |  |  | $ | 18,259 |
Purchases | 11,500 |  |  | 1,250 |  |  | 12,750 |
Foreign currency adjustments | — |  |  | (83) |  |  | (83) |
Balance at June 30, 2022 | $ | 25,627 |  |  | $ | 5,299 |  |  | $ | 30,926 |
Schedule of key assumptions used in the valuation of contingent consideration | The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:
Assumption |  | Flexion Ranges Utilized as of June 30, 2022 |  | MyoScience Ranges Utilized as of June 30, 2022
Discount rates |  | 12.64% to 14.37% |  | 11.69% to 13.34%
Probabilities of payment for regulatory milestones |  | 5% to 15% |  | 0%
Projected years of payment for regulatory and commercial milestones |  | 2027 to 2030 |  | 2023
Schedule of change in contingent consideration recorded at fair value using Level 3 measurements | The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):
|  | Contingent Consideration Fair Value
Balance at December 31, 2021 |  | $ | 57,598 |
Fair value adjustments and accretion |  | (22,351) |
Balance at June 30, 2022 |  | $ | 35,247 |
Schedule of short-term investments | The following summarizes the Company’s short-term available-for-sale investments at June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022 Investments |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (Level 2)
Asset-backed securities |  | $ | 30,906 |  |  | $ | — |  |  | $ | (239) |  |  | $ | 30,667 |
Commercial paper |  | 138,705 |  |  | — |  |  | (796) |  |  | 137,909 |
Corporate bonds |  | 6,288 |  |  | — |  |  | (31) |  |  | 6,257 |
U.S. Government bonds |  | 19,531 |  |  | — |  |  | (32) |  |  | 19,499 |
Total |  | $ | 195,430 |  |  | $ | — |  |  | $ | (1,098) |  |  | $ | 194,332 |
December 31, 2021 Investments |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (Level 2)
Asset-backed securities |  | $ | 3,182 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,182 |
Commercial paper |  | 57,533 |  |  | 80 |  |  | (2) |  |  | 57,611 |
Corporate bonds |  | 9,936 |  |  | 102 |  |  | — |  |  | 10,038 |
Total |  | $ | 70,651 |  |  | $ | 182 |  |  | $ | (2) |  |  | $ | 70,831 |

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- Definition Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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