FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Carrying Amount and Fair Value of the Long-Term Debt

At June 30, 2024, 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	$	15,877	$	—	$	—	$	15,877
Convertible notes receivable	$	11,995	$	—	$	—	$	11,995
Financial Liabilities:
Acquisition-related contingent consideration	$	22,401	$	—	$	—	$	22,401

Financial Liabilities Measured at Amortized Cost:
Term loan A facility due March 2028	$	109,751	$	—	$	110,383	$	—
2.125% convertible senior notes due 2029 (1)	$	278,394	$	—	$	286,422	$	—
0.750% convertible senior notes due 2025 (2)	$	201,155	$	—	$	189,971	$	—

(1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $28.61 per share on June 28, 2024, the last trading day of the quarter ended June 30, 2024, compared to a conversion price of $39.56 per share. At June 30, 2024, as the conversion price was above the stock price, the requirements for conversion have not been met.

(2) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $28.61 per share on June 28, 2024, the last trading day of the quarter ended June 30, 2024, compared to a conversion price of $71.78 per share. At June 30, 2024, as the conversion price was above the stock price, the requirements for conversion have not been met. The maximum conversion on the principal that could have been due on the 2025 Notes is 2.8 million shares of the Company’s common stock, which assumes no increase in the conversion rate for certain corporate events.

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, 2022	$	15,877	$	5,315	$	21,192
Purchases	—		6,758		6,758

Foreign currency adjustments	—		61		61
Balance at December 31, 2023	15,877		12,134		28,011


Foreign currency adjustments	—		(139)		(139)
Balance at June 30, 2024	$	15,877	$	11,995	$	27,872

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						Ranges Utilized as of June 30, 2024
Discount rates						7.8% to 9.1%
Probability of payment for remaining regulatory milestone						0%

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, 2022	$	28,122
Fair value adjustments and accretion	(3,424)
Balance at December 31, 2023	24,698
Fair value adjustments and accretion	(2,297)

Balance at June 30, 2024	$	22,401

Schedule of Short-Term and Noncurrent Available-for-Sale Investments

The following summarizes the Company’s short-term and noncurrent available-for-sale investments at June 30, 2024 and December 31, 2023 (in thousands):


June 30, 2024 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Current:
Asset-backed securities	$	37,080	$	—	$	(43)	$	37,037
Commercial paper	95,898		9		(91)		95,816
Corporate bonds	18,362		—		(17)		18,345
U.S. federal agency bonds	5,983		—		(8)		5,975








Total	$	157,323	$	9	$	(159)	$	157,173


December 31, 2023 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 1)		Fair Value (Level 2)
Current:
Asset-backed securities	$	9,539	$	1	$	—	$	—	$	9,540
Commercial paper	77,941		103		—		—		78,044

U.S. federal agency bonds	22,849		—		(29)		—		22,820
U.S. government bonds	14,899		—		(20)		14,879		—
Subtotal	125,228		104		(49)		14,879		110,404
Noncurrent:
Asset-backed securities	2,403		7		—		—		2,410



Subtotal	2,403		7		—		—		2,410
Total	$	127,631	$	111	$	(49)	$	14,879	$	112,814

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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