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FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

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 input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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.

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