0001232524-20-000016 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2019	Feb. 18, 2020	Jun. 28, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-33500
Entity Registrant Name	Jazz Pharmaceuticals plc
Entity Incorporation, State or Country Code	L2
Entity Tax Identification Number	98-1032470
Entity Address, Address Line One	Fifth Floor, Waterloo Exchange
Entity Address, Address Line Two	Waterloo Road
Entity Address, City or Town	Dublin 4
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 E5W7
Country Region	353
City Area Code	1
Local Phone Number	634-7800
Title of 12(b) Security	Ordinary shares, nominal value $0.0001 per share
Trading Symbol	JAZZ
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 7,869,781,340
Entity Common Stock, Shares Outstanding (in shares)		56,133,306
Documents Incorporated by Reference	Certain information required by Part III, Items 10-14 of this Form 10‑K is incorporated by reference to the registrant’s definitive Proxy Statement for the 2020 Annual General Meeting of Shareholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10‑K, provided that if such Proxy Statement is not filed within such period, such information will be included in an amendment to this Form 10‑K to be filed within such 120-day period.
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0001232524
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 637,344	$ 309,622
Investments	440,000	515,000
Accounts receivable, net of allowances of $1,296 and $534 at December 31, 2019 and 2018, respectively	355,987	263,838
Inventories	78,608	52,956
Prepaid expenses	39,434	25,017
Other current assets	78,895	67,572
Total current assets	1,630,268	1,234,005
Property, plant and equipment, net	131,506	200,358
Operating lease assets	139,385
Intangible assets, net	2,440,977	2,731,334
Goodwill	920,018	927,630
Deferred tax assets, net	221,403	57,879
Deferred financing costs	7,426	9,589
Other non-current assets	47,914	42,696
Total assets	5,538,897	5,203,491
Current liabilities:
Accounts payable	47,545	40,602
Accrued liabilities	267,873	264,887
Current portion of long-term debt	33,387	33,387
Income taxes payable	10,965	1,197
Deferred revenue	4,720	5,414
Total current liabilities	364,490	345,487
Deferred revenue, non-current	4,861	9,581
Long-term debt, less current portion	1,573,870	1,563,025
Operating lease liabilities, less current portion	151,226
Deferred tax liabilities, net	224,095	309,097
Other non-current liabilities	109,374	218,879
Commitments and contingencies (Note 13)
Shareholders’ equity:
Ordinary shares, nominal value $0.0001 per share; 300,000 shares authorized; 56,140 and 57,504 shares issued and outstanding at December 31, 2019 and 2018, respectively	6	6
Non-voting euro deferred shares, €0.01 par value per share; 4,000 shares authorized, issued and outstanding at both December 31, 2019 and 2018	55	55
Capital redemption reserve	472	472
Additional paid-in capital	2,266,026	2,113,630
Accumulated other comprehensive loss	(223,393)	(197,791)
Retained earnings	1,067,815	841,050
Total shareholders’ equity	3,110,981	2,757,422
Total liabilities and shareholders’ equity	$ 5,538,897	$ 5,203,491

Consolidated Balance Sheets (Parenthetical) $ in Thousands	Dec. 31, 2019 € / shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 € / shares	Dec. 31, 2018 USD ($) $ / shares shares
Current assets:
Accounts receivable, allowances \| $		$ 1,296		$ 534
Shareholders’ equity:
Ordinary shares, nominal value (in dollars per share) \| $ / shares		$ 0.0001		$ 0.0001
Ordinary shares, authorized (in shares)		300,000,000		300,000,000
Ordinary shares, issued (in shares)		56,140,000		57,704,000
Ordinary shares, outstanding (in shares)		56,140,000		57,704,000
Nonvoting Euro Deferred shares, par value (in euros per share) \| € / shares	€ 0.01		€ 0.01
Nonvoting Euro Deferred shares, authorized (in shares)		4,000,000		4,000,000
Nonvoting Euro Deferred shares, issued (in shares)		4,000,000		4,000,000
Nonvoting Euro Deferred shares, outstanding (in shares)		4,000,000		4,000,000

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 2,161,761	$ 1,890,922	$ 1,618,693
Operating expenses:
Cost of product sales (excluding amortization of acquired developed technologies)	127,930	121,544	110,188
Selling, general and administrative	736,942	683,530	544,156
Research and development	299,726	226,616	198,442
Intangible asset amortization	354,814	201,498	152,065
Impairment charges	0	42,896	0
Acquired in-process research and development	109,975	0	85,000
Total operating expenses	1,629,387	1,276,084	1,089,851
Income from operations	532,374	614,838	528,842
Interest expense, net	(72,261)	(77,075)	(77,756)
Foreign exchange loss	(5,811)	(6,875)	(9,969)
Loss on extinguishment and modification of debt	0	(1,425)	0
Income before income tax provision (benefit) and equity in loss of investees	454,302	529,463	441,117
Income tax provision (benefit)	(73,154)	80,162	(47,740)
Equity in loss of investees	4,089	2,203	1,009
Net income	$ 523,367	$ 447,098	$ 487,848
Net income per ordinary share:
Basic (in dollars per share)	$ 9.22	$ 7.45	$ 8.13
Diluted (in dollars per share)	$ 9.09	$ 7.30	$ 7.96
Weighted-average ordinary shares used in per share calculations - basic (in shares)	56,749	59,976	60,018
Weighted-average ordinary shares used in per share calculations - diluted (in shares)	57,550	61,221	61,317
Product sales, net
Revenues:
Total revenues	$ 2,135,601	$ 1,869,473	$ 1,601,399
Royalties and contract revenues
Revenues:
Total revenues	$ 26,160	$ 21,449	$ 17,294

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 523,367	$ 447,098	$ 487,848
Other comprehensive income (loss):
Foreign currency translation adjustments	(20,720)	(58,988)	174,973
Unrealized gain (loss) on hedging activities, net of income tax provision (benefit) of ($697), $289 and $212, respectively	(4,882)	2,022	1,482
Other comprehensive income (loss)	(25,602)	(56,966)	176,455
Total comprehensive income	$ 497,765	$ 390,132	$ 664,303

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on hedging activities, net of income tax provision (benefit)	$ (697)	$ 289	$ 212

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Ordinary Shares	Non-voting Euro Deferred	Capital Redemption Reserve	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2016		59,820	4,000
Beginning balance at Dec. 31, 2016	$ 1,877,339	$ 6	$ 55	$ 472	$ 1,665,232	$ (317,333)	$ 528,907
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Issuance of Exchangeable Senior Notes	149,767				149,767
Issuance of ordinary shares in conjunction with exercise of share options (in shares)		428
Issuance of ordinary shares in conjunction with exercise of share options	22,683				22,683
Issuance of ordinary shares under employee stock purchase plan (in shares)		104
Issuance of ordinary shares under employee stock purchase plan	9,141				9,141
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares)		250
Shares withheld for payment of employee's withholding tax liability	(18,589)				(18,589)
Share-based compensation	107,252				107,252
Shares repurchased (in shares)		(704)
Shares repurchased	(98,799)			0			(98,799)
Other comprehensive income (loss)	176,455					176,455
Net income	487,848						487,848
Ending balance (in shares) at Dec. 31, 2017		59,898	4,000
Ending balance at Dec. 31, 2017	2,713,097	$ 6	$ 55	472	1,935,486	(140,878)	917,956
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Issuance of ordinary shares in conjunction with exercise of share options (in shares)		772
Issuance of ordinary shares in conjunction with exercise of share options	82,918				82,918
Issuance of ordinary shares under employee stock purchase plan (in shares)		111
Issuance of ordinary shares under employee stock purchase plan	10,419				10,419
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares)		253
Shares withheld for payment of employee's withholding tax liability	(17,925)				(17,925)
Share-based compensation	102,732				102,732
Shares repurchased (in shares)		(3,530)
Shares repurchased	(523,672)						(523,672)
Other comprehensive income (loss)	(56,966)					(56,966)
Net income	447,098						447,098
Ending balance (in shares) at Dec. 31, 2018		57,504	4,000
Ending balance at Dec. 31, 2018	$ 2,757,422	$ 6	$ 55	472	2,113,630	(197,791)	841,050
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Issuance of ordinary shares in conjunction with exercise of share options (in shares)	515	515
Issuance of ordinary shares in conjunction with exercise of share options	$ 46,477				46,477
Issuance of ordinary shares under employee stock purchase plan (in shares)		106
Issuance of ordinary shares under employee stock purchase plan	11,354				11,354
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares)		265
Shares withheld for payment of employee's withholding tax liability	(16,739)				(16,739)
Share-based compensation	111,304				111,304
Shares repurchased (in shares)		(2,250)
Shares repurchased	(301,450)						(301,450)
Other comprehensive income (loss)	(25,602)					(25,602)
Net income	523,367						523,367
Ending balance (in shares) at Dec. 31, 2019		56,140	4,000
Ending balance at Dec. 31, 2019	$ 3,110,981	$ 6	$ 55	$ 472	$ 2,266,026	$ (223,393)	$ 1,067,815

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net income	$ 523,367	$ 447,098	$ 487,848
Adjustments to reconcile net income to net cash provided by operating activities:
Intangible asset amortization	354,814	201,498	152,065
Share-based compensation	110,563	102,441	106,900
Impairment charges	0	42,896	0
Depreciation	15,342	15,233	13,089
Acquired in-process research and development	109,975	0	85,000
Loss on disposal of assets	21	655	473
Deferred tax benefit	(236,610)	(88,815)	(225,591)
Provision for losses on accounts receivable and inventory	6,668	4,728	2,190
Loss on extinguishment and modification of debt	0	1,425	0
Amortization of debt discount and deferred financing costs	46,396	43,960	30,026
Other non-cash transactions	(4,051)	4,499	14,321
Changes in assets and liabilities:
Accounts receivable	(92,326)	(40,132)	12,278
Inventories	(32,790)	(18,512)	(8,667)
Prepaid expenses and other current assets	(25,650)	6,697	(26,874)
Other non-current assets	(14,830)	(320)	119
Operating lease assets	14,148
Accounts payable	4,770	17,040	214
Accrued liabilities	(5,565)	71,208	(6,578)
Income taxes payable	10,056	(19,735)	16,331
Deferred revenue	(5,414)	(7,497)	21,009
Other non-current liabilities	3,561	14,537	18,934
Operating lease liabilities, less current portion	(6,044)
Net cash provided by operating activities	776,401	798,904	693,087
Investing activities
Acquisition of investments	(917,100)	(1,165,915)	(385,000)
Proceeds from maturity of investments	985,000	855,000	230,000
Acquired in-process research and development	(61,700)	0	(85,000)
Purchases of property, plant and equipment	(40,135)	(20,370)	(28,950)
Asset acquisition, net of cash acquired	(55,074)	0	0
Acquisition of intangible assets	(80,500)	(111,100)	0
Net proceeds from sale of assets	14,209	47,898	0
Net cash used in investing activities	(155,300)	(394,487)	(268,950)
Financing activities
Proceeds from employee equity incentive and purchase plans	57,831	93,337	31,824
Share repurchases	(301,450)	(523,672)	(98,799)
Payment of employee withholding taxes related to share-based awards	(16,739)	(17,925)	(18,589)
Repayments of long-term debt	(33,387)	(25,717)	(36,094)
Payment of debt modification costs	0	(6,406)	0
Repayments under revolving credit facility	0	0	(850,000)
Proceeds from tenant improvement allowance on build-to-suit lease	0	1,253	3,154
Net proceeds from issuance of debt	0	0	559,393
Net cash used in financing activities	(293,745)	(479,130)	(409,111)
Effect of exchange rates on cash and cash equivalents	366	(1,700)	5,046
Net increase (decrease) in cash and cash equivalents	327,722	(76,413)	20,072
Cash and cash equivalents, at beginning of period	309,622	386,035	365,963
Cash and cash equivalents, at end of period	637,344	309,622	386,035
Supplemental disclosure of cash flow information:
Cash paid for interest	43,002	42,706	44,609
Cash paid for income taxes	183,610	164,217	174,124
Non-cash investing activities:
Amounts capitalized in connection with facility lease obligations	$ 0	$ 27,747	$ 40,970

Organization and Description of Business

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Jazz Pharmaceuticals plc is a global biopharmaceutical company dedicated to developing life-changing medicines for people with serious diseases – often with limited or no options. We have a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in key therapeutic areas. Our focus is in neuroscience, including sleep medicine and movement disorders, and in oncology, including hematologic and solid tumors. We actively explore new options for patients including novel compounds, small molecule advancements, biologics and innovative delivery technologies.

Our lead marketed products are:


•	Xyrem^® (sodium oxybate) oral solution, the only product approved by the U.S. Food and Drug Administration, or FDA, and marketed in the U.S. for the treatment of both cataplexy and excessive daytime sleepiness, or EDS, in both adult and pediatric patients with narcolepsy;


•	Sunosi^® (solriamfetol), a product approved by the FDA and marketed in the U.S. to improve wakefulness in adult patients with EDS associated with narcolepsy or obstructive sleep apnea and also approved in Europe in January 2020 by the European Commission;

•

Defitelio^®(defibrotide sodium), a product approved in the U.S. for the treatment of adult and pediatric patients with hepatic veno-occlusive disease, or VOD, also known as sinusoidal obstruction syndrome, with renal or pulmonary dysfunction following hematopoietic stem cell transplantation, or HSCT, and in Europe (where it is marketed as Defitelio^®(defibrotide)) for the treatment of severe VOD in adults and children undergoing HSCT therapy;


•	Erwinaze^® (asparaginase Erwinia chrysanthemi), a treatment approved in the U.S. and in certain markets in Europe (where it is marketed as Erwinase^®) for patients with acute lymphoblastic leukemia who have developed hypersensitivity to E. coli-derived asparaginase; and


•	Vyxeos^®(daunorubicin and cytarabine) liposome for injection, a product approved in the U.S. and in Europe (where it is marketed as Vyxeos^® liposomal 44 mg/100 mg powder for concentrate for solution for infusion) for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia, or AML, or AML with myelodysplasia-related changes.

In February 2020, the FDA accepted for filing with priority review the new drug application, or NDA, for lurbinectedin for the treatment of relapsed small cell lung cancer, or SCLC, a product candidate for which we recently acquired exclusive U.S. development and commercialization rights. In January 2020, we submitted an NDA to the FDA seeking marketing approval for JZP-258, an oxybate product candidate that contains 92%, or approximately 1,000 to 1,500 milligrams per day, less sodium than Xyrem, for the treatment of cataplexy and EDS in narcolepsy patients seven years of age and older. We also have in development JZP-458, a recombinant Erwinia asparaginase product candidate, for the treatment of pediatric and adult patients with ALL or lymphoblastic lymphoma, or LBL, who are hypersensitive to E. coli-derived asparaginase products.

Our strategy to create shareholder value is focused on:


•	Strong financial execution through growth in sales of our current lead marketed products;


•	Building a diversified product portfolio and development pipeline through a combination of our internal research and development efforts and obtaining rights to clinically meaningful and differentiated on- or near-market products and early- to late-stage product candidates through acquisitions, collaborations, licensing arrangements, partnerships and venture investments; and


•	Maximizing the value of our products and product candidates by continuing to implement our comprehensive global development plans, including through generating additional clinical data and seeking regulatory approval for new indications and new geographies.

Throughout this report, unless otherwise indicated or the context otherwise requires, all references to “Jazz Pharmaceuticals,” “the registrant,” “we,” “us,” and “our” refer to Jazz Pharmaceuticals plc and its consolidated subsidiaries. Throughout this report, all references to “ordinary shares” refer to Jazz Pharmaceuticals plc’s ordinary shares.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and include the accounts of Jazz Pharmaceuticals plc and our subsidiaries and intercompany transactions and balances have been eliminated. Our consolidated financial statements include the results of operations of businesses we have acquired from the date of each acquisition for the applicable reporting periods.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.

Adoption of New Accounting Standards

In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU No. 2016-02. Under the new guidance, lessees are required to recognize a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term, and a corresponding lease liability, which represents the lessee’s obligation to make lease payments under a lease, measured on a discounted basis. We adopted ASU No. 2016-02 on a modified retrospective basis applied to leases existing as of, or entered into after, January 1, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification of those leases in place as of January 1, 2019.

The adoption of ASU No. 2016-02 resulted in the recognition of right-of-use assets and lease liabilities of $149.4 million and $162.9 million, respectively, on the consolidated balance sheet as of January 1, 2019, and the de-recognition of the build-to-suit assets and related financing obligations on the consolidated balance sheet as of December 31, 2018 of $95.4 million and $109.8 million, respectively, with the balance impacting retained earnings, deferred rent and deferred tax liabilities. The right-of-use assets and lease liabilities primarily relate to real estate leases. Refer to Note 12 for lease-related disclosures.

The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2019 for the adoption of the ASU No. 2016-02 was as follows (in thousands):



	Balance at December 31, 2018		Transition Adjustments			Balance at January 1, 2019
Assets:
Property, plant and equipment, net	$	200,358	$	(95,397	)	$	104,961
Operating lease assets	—		149,442			149,442
Liabilities:
Accrued liabilities	264,887		8,165			273,052
Operating lease liabilities, less current portion	—		153,158			153,158
Deferred tax liabilities, net	309,097		1,489			310,586
Other non-current liabilities	218,879		(113,615		)	105,264
Shareholders' Equity:
Retained earnings	841,050		4,848			845,898

Significant Risks and Uncertainties

Our financial results are significantly influenced by sales of Xyrem. Our ability to maintain or increase Xyrem product sales is subject to a number of risks and uncertainties including, without limitation, the introduction of new products in the U.S. market that compete with, or otherwise disrupt the market for, Xyrem in the treatment of cataplexy and/or EDS in narcolepsy, including generic or authorized generic versions of sodium oxybate; increased pricing pressure from, changes in policies by, or restrictions on reimbursement imposed by, third party payors; challenges to our intellectual property around Xyrem; and continued acceptance of Xyrem by physicians and patients.

In addition to risks related specifically to Xyrem, we are subject to other challenges and risks specific to our business and our ability to execute on our strategy, as well as risks and uncertainties common to companies in the pharmaceutical industry

with development and commercial operations, including, without limitation, risks and uncertainties associated with: obtaining regulatory approval of our late-stage product candidates and effectively commercializing our approved products such as Sunosi and, if approved, JZP-258 and lurbinectedin; obtaining and maintaining adequate coverage and reimbursement for our products; increasing scrutiny of pharmaceutical product pricing and resulting changes in healthcare laws and policy; market acceptance; delays or problems in the supply of our products, loss of single source suppliers or failure to comply with manufacturing regulations; identifying, acquiring or in-licensing additional products or product candidates; pharmaceutical product development and the inherent uncertainty of clinical success; the challenges of protecting and enhancing our intellectual property rights; complying with applicable regulatory requirements; and possible restrictions on our ability and flexibility to pursue certain future opportunities as a result of our substantial outstanding debt obligations.

Concentrations of Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, investments and derivative contracts. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, maturities, and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments to the extent recorded on the balance sheet.

We manage our foreign currency transaction risk and interest rate risk within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes. As of December 31, 2019 and 2018, we had foreign exchange forward contracts with notional amounts totaling $180.9 million and $271.5 million, respectively. As of December 31, 2019 and 2018, the outstanding foreign exchange forward contracts had a net asset fair value of $2.3 million and a net liability fair value of $0.3 million, respectively. As of December 31, 2019 and 2018, we had interest rate swap contracts with notional amounts totaling $300.0 million. These outstanding interest rate swap contracts had a net liability fair value of $1.5 million and a net asset fair value of $4.1 million as of December 31, 2019 and 2018, respectively. The counterparties to these contracts are large multinational commercial banks, and we believe the risk of nonperformance is not significant.

We are also subject to credit risk from our accounts receivable related to our product sales. We monitor our exposure within accounts receivable and record a reserve against uncollectible accounts receivable as necessary. We extend credit to pharmaceutical wholesale distributors and specialty pharmaceutical distribution companies, primarily in the U.S., and to other international distributors and hospitals. Customer creditworthiness is monitored and collateral is not required. We monitor deteriorating economic conditions in certain European countries which may result in variability of the timing of cash receipts and an increase in the average length of time that it takes to collect accounts receivable outstanding. Historically, we have not experienced significant credit losses on our accounts receivable and as of December 31, 2019, allowances on receivables were not material. As of December 31, 2019, two customers accounted for 89% of gross accounts receivable, Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 77% of gross accounts receivable, and McKesson Corporation and affiliates, or McKesson, which accounted for 12% of gross accounts receivable. As of December 31, 2018, two customers accounted for 89% of gross accounts receivable, ESSDS, which accounted for 74% of gross accounts receivable, and McKesson, which accounted for 15% of gross accounts receivable.

We depend on single source suppliers for most of our products, product candidates and their APIs. With respect to Xyrem, the API is manufactured for us by a single source supplier and the finished product is manufactured both by us in our facility in Athlone, Ireland and by our U.S.-based Xyrem supplier.

Business Acquisitions

Our consolidated financial statements include the results of operations of an acquired business from the date of acquisition. We account for acquired businesses using the acquisition method of accounting. The acquisition method of accounting for acquired businesses requires, among other things, that assets acquired, liabilities assumed and any noncontrolling interests in the acquired business be recognized at their estimated fair values as of the acquisition date, with limited exceptions, and that the fair value of acquired in-process research and development, or IPR&D, be recorded on the balance sheet. Also, transaction costs are expensed as incurred. Any excess of the acquisition consideration over the assigned values of the net assets acquired is recorded as goodwill. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved and changes in fair value are recognized in earnings.

Cash Equivalents and Investments

We consider all highly liquid investments, readily convertible to cash, that mature within three months or less from date of purchase to be cash equivalents.

Investments consist of time deposits with initial maturities of greater than three months. Collectively, cash equivalents and investments are considered available-for-sale and are recorded at fair value. Unrealized gains and losses, net of tax, are recorded in accumulated other comprehensive loss in shareholders’ equity. We use the specific-identification method for calculating realized gains and losses on securities sold. Realized gains and losses and declines in value judged to be other than temporary on investments are included in interest expense, net in the consolidated statements of income.

Derivative Instruments and Hedging Activities

We record the fair value of derivative instruments as either assets or liabilities on the consolidated balance sheets. Changes in the fair value of derivative instruments are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative instrument is designated as part of a hedging transaction and, if it is, the type of hedging transaction. For a derivative to qualify as a hedge at inception and throughout the hedged period, we formally document the nature and relationships between the hedging instruments and hedged item. We assess, both at inception and on an on-going basis, whether the derivative instruments that are used in cash flow hedging transactions are highly effective in offsetting the changes in cash flows of hedged items. Gains or losses on cash flow hedges are reclassified from other comprehensive income (loss) to earnings when the hedged transaction occurs. If we determine that a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting and any related unrealized gain or loss on the derivative instrument is recognized in current earnings. Derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings.

Inventories

Inventories are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories. Our policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on our estimates of future demand for a particular product. If our estimate of future demand changes, we consider the impact on the reserve for excess inventory and adjust the reserve as required. Increases in the reserve are recorded as charges in cost of product sales.

We capitalize inventory costs associated with our products prior to regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The determination to capitalize inventory costs is based on various factors, including status and expectations of the regulatory approval process, any known safety or efficacy concerns, potential labeling restrictions, and any other impediments to obtaining regulatory approval. We had no pre-approval inventory on our consolidated balance sheet as of December 31, 2019 or 2018.

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows:



Buildings	40 years
Manufacturing equipment and machinery	5-10 years
Computer software and equipment	3-7 years
Furniture and fixtures	5 years

Leasehold improvements are amortized over the shorter of the noncancelable term of our leases or their economic useful lives. Maintenance and repairs are expensed as incurred.

Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease assets, other current liabilities, and operating lease liabilities on our consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. The operating lease asset also includes any lease payments made,

reduced by lease incentives and increased by initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. For vehicle leases we account for the lease and non-lease components as a single lease component.

We have elected the short-term lease exemption and, therefore, do not recognize a right-of-use asset or corresponding liability for lease arrangements with an original term of 12 months or less. Rent expense under short-term leases is recognized on a straight-line basis over the lease term.

Goodwill

Goodwill represents the excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed. We have determined that we operate in a single segment and have a single reporting unit associated with the development and commercialization of pharmaceutical products. The annual test for goodwill impairment is a two-step process. The first step is a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If this step indicates impairment, then, in the second step, the loss is measured as the excess of recorded goodwill over its implied fair value. Implied fair value is the excess of the fair value of the reporting unit over the fair value of all identified assets and liabilities. We test goodwill for impairment annually in October and when events or changes in circumstances indicate that the carrying value may not be recoverable.

Acquired In-Process Research and Development

The initial costs of rights to IPR&D projects acquired in an asset acquisition are expensed as IPR&D unless the project has an alternative future use. The fair value of IPR&D projects acquired in a business combination are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a finite-lived intangible asset, or discontinued, at which point the intangible asset will be written off. Development costs incurred after an acquisition are expensed as incurred.

Intangible Assets

Intangible assets with finite useful lives consist primarily of purchased developed technology and are amortized on a straight-line basis over their estimated useful lives, which range from two to 18 years. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset.

Revenue Recognition

Our revenue comprises product sales, net and royalty and contract revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Prior to recognizing revenue, we make estimates of the transaction price, including variable consideration that is subject to a constraint. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Product Sales, Net

Product sales revenue is recognized when control has transferred to the customer, which occurs at a point in time, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from our consigned inventory location for shipment directly to a patient.

Reserves for Variable Consideration

Revenues from sales of products are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which relate to returns, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans and commercial payor contracts. Calculating certain of these reserves involves estimates and judgments and we determine their expected value based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates, our expectations regarding future utilization rates for these programs and channel inventory data. These reserves reflect our best estimates of the amount

of consideration to which we are entitled based on the terms of the contract. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. We reassess our reserves for variable consideration at each reporting date. Historically, adjustments to estimates for these reserves have not been material.

Reserves for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans and commercial payor contracts are included within current liabilities in our consolidated balance sheets. Reserves for government chargebacks and prompt payment discounts are shown as a reduction in accounts receivable.

Royalties and Contract Revenues

We enter into out-licensing agreements under which we license certain rights to our products or product candidates to third parties. If a licensing arrangement includes multiple goods or services, we consider whether the license is distinct. If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenue from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. If the license to our intellectual property is determined not to be distinct, it is combined with other goods or services into a combined performance obligation. We consider whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. We evaluate the measure of progress each reporting date and, if necessary, adjust the measure of performance and related revenue recognition.

At the inception of each arrangement that includes development milestone payments, we evaluate whether the milestones are considered probable of being reached and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within our control or that of the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such development milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price.

For arrangements that include sales-based royalties and milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties and sales-based milestones relate, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty or sales-based milestone has been allocated has been satisfied (or partially satisfied).

Cost of Product Sales

Cost of product sales includes manufacturing and distribution costs, the cost of drug substance, royalties due to third parties on product sales, product liability and cargo insurance, FDA user fees, freight, shipping, handling and storage costs and salaries and related costs of employees involved with production. Excluded from cost of product sales shown on the consolidated statements of income is amortization of acquired developed technology of $243.7 million, $201.3 million and $149.1 million in 2019, 2018 and 2017, respectively.

Research and Development

Research and development expenses consist primarily of costs related to clinical studies and outside services, personnel expenses and other research and development costs, including milestone payments incurred prior to regulatory approval of products. Clinical study and outside services costs relate primarily to services performed by clinical research organizations, clinical studies performed at clinical sites, materials and supplies, and other third party fees. Personnel expenses relate primarily to salaries, benefits and share-based compensation. Other research and development expenses primarily include overhead allocations consisting of various support and facilities-related costs. Research and development costs are expensed as incurred. For product candidates that have not been approved by the FDA, inventory used in clinical trials is expensed at the time of production and recorded as research and development expense. For products that have been approved by the FDA, inventory used in clinical trials is expensed at the time the inventory is packaged for the trial.

Advertising Expenses

We expense the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $65.4 million, $37.4 million and $36.6 million in 2019, 2018 and 2017, respectively.

Income Taxes

We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. We recognize the benefits of a tax position if it is “more-likely-than-not” of being sustained. A recognized tax benefit is then measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Interest and penalties related to unrecognized tax benefits are included in the income tax provision and classified with the related liability on the consolidated balance sheets.

Foreign Currency

Our functional and reporting currency is the U.S. dollar. The assets and liabilities of our subsidiaries that have a functional currency other than the U.S. dollar are translated into U.S. dollars at the exchange rate prevailing at the balance sheet date with the results of operations of subsidiaries translated at the weighted average exchange rate for the reporting period. The cumulative foreign currency translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity.

Transactions in foreign currencies are translated into the functional currency of the relevant subsidiary at the weighted average exchange rate for the reporting period. Any monetary assets and liabilities arising from these transactions are translated into the relevant functional currency at exchange rates prevailing at the balance sheet date or on settlement. Resulting gains and losses are recorded in foreign exchange gain (loss) in our consolidated statements of income.

Deferred Financing Costs

Deferred financing costs are reported at cost, less accumulated amortization and are presented in the consolidated balance sheets as a direct deduction from the carrying value of the associated debt, with the exception of deferred financing costs associated with revolving-debt arrangements which are presented as assets. The related amortization expense is included in interest expense, net in our consolidated statements of income.

Contingencies

From time to time, we may become involved in claims and other legal matters arising in the ordinary course of business. We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. Legal fees and other expenses related to litigation are expensed as incurred and included in selling, general and administrative expenses.

Share-Based Compensation

We account for compensation cost for all share-based awards at fair value on the date of grant. The fair value is recognized as expense over the service period, net of estimated forfeitures, using the straight-line method. The estimation of share-based awards that will ultimately vest requires judgment, and, to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We primarily consider historical experience when estimating expected forfeitures.

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments are effective for annual reporting periods beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the impact of adopting this new accounting guidance.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for us beginning January 1, 2020 and early adoption is permitted. The new guidance is not expected to have a material impact on our results of operations and financial position.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Goodwill impairment will now be the amount by which the reporting unit’s carrying value exceeds

its fair value, limited to the carrying value of the goodwill. The standard is effective for us beginning January 1, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on our results of operations and financial position.

Asset Acquisition, Collaborations and Disposition

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Asset Acquisition, Collaborations and Disposition

Asset Acquisition

On August 12, 2019, we announced the acquisition of Cavion, Inc., or Cavion, a clinical-stage biotechnology company, for an upfront payment of $52.5 million with the potential for additional payments of up to $260.0 million upon the achievement of certain clinical, regulatory and commercial milestones, for a total potential consideration of $312.5 million. As a result of the acquisition, we added JZP-385, a modulator of T-type calcium channels, for the potential treatment of essential tremor, to our clinical pipeline. The acquisition of Cavion was accounted for as an asset acquisition because it did not meet the definition of a business.

The following table summarizes the total consideration for the acquisition and the value of assets acquired and liabilities assumed (in thousands):



Consideration
Upfront payment for acquisition of Cavion's outstanding shares	$	52,500
Cash acquired	397
Working capital adjustment	(255		)
Transaction costs	2,829
Total consideration	$	55,471

Assets Acquired and Liabilities Assumed
Cash	$	397
In-process research and development	48,275
Deferred tax assets	7,995
Other assets and liabilities	(1,196		)
Total net assets acquired	$	55,471

The value attributed to in-process research and development relates to JZP-385 and was expensed as it was determined to have no alternative future use.

Collaboration and License Agreement

On January 2, 2019, we entered into a strategic collaboration agreement with Codiak BioSciences, Inc., or Codiak, focused on the research, development and commercialization of exosome therapeutics to treat cancer. Codiak granted us an exclusive, worldwide, royalty-bearing license to develop, manufacture and commercialize therapeutic candidates directed at five targets to be developed using Codiak's engEx™ precision engineering platform for exosome therapeutics.

Under the terms of the agreement, Codiak is responsible for the execution of preclinical and early clinical development of therapeutic candidates directed at all five targets through Phase 1/2 proof of concept studies. Following the conclusion of the applicable Phase 1/2 study, we will be responsible for future development, potential regulatory submissions and commercialization for each product. Codiak has the option to participate in co-commercialization and cost/profit-sharing in the U.S. and Canada on up to two products.

As part of the agreement, we paid Codiak an upfront payment of $56.0 million in January 2019, which was recorded as acquired IPR&D expense in our consolidated statements of income for the year ended December 31, 2019. Codiak is eligible to receive up to $20 million in preclinical development milestone payments. Codiak is also eligible to receive milestone payments totaling up to $200 million per target based on investigational new drug application acceptance, clinical and regulatory milestones, including approvals in the U.S., the European Union and Japan, and certain sales milestones. Codiak is also eligible to receive tiered royalties on net sales of each approved product.

Collaboration and Option Agreement

In 2017, we entered into a collaboration and option agreement with ImmunoGen, Inc., or ImmunoGen, and we paid them a non-refundable upfront payment of $75.0 million, which was charged to acquired IPR&D expense upon closing of the transaction.

This agreement was amended in November 2019. Under the amended agreement we have the right to opt into an exclusive, worldwide license to develop and commercialize IMGN632, a CD123-targeted ADC for hematological malignancies, currently in Phase 1. ImmunoGen will be responsible for the development of IMGN632 prior to any potential opt-in by us. Following any opt-in, we would be responsible for any further development as well as for potential regulatory submissions and commercialization.

As part of the amended agreement, we will pay ImmunoGen up to $25 million in development funding. We may exercise our opt-in right at any time prior to a pivotal study or any time prior to a biologics license application upon payment of an option exercise fee. The option exercise fee depends on the timing of exercise and certain other conditions. If we elect to opt-in, ImmunoGen would be eligible to receive milestone payments based on receiving regulatory approval of the applicable product, plus tiered royalties as a percentage of commercial sales. After opt-in, we will share with ImmunoGen the costs associated with developing and obtaining regulatory approvals in the U.S. and the EU. ImmunoGen has the right to co-commercialize the product with us in the U.S. with U.S. profit-sharing in lieu of our payment of applicable U.S. milestone and royalties to ImmunoGen.

Disposition

On June 29, 2018, we entered into an asset purchase agreement, or APA, with TerSera Therapeutics LLC, or TerSera, pursuant to which TerSera agreed to purchase substantially all of our assets related to the manufacture, marketing and sale of Prialt, but excluding accounts receivable, and to assume certain related liabilities as set forth in the APA. We entered into an amendment to the APA, and the transaction closed, on September 27, 2018. The total sales price was $80.0 million, of which we received $50.0 million at closing and $15.0 million, less certain reimbursable expenses on December 30, 2019. We are entitled to receive a further $15.0 million, less certain reimbursable expenses payable on December 31, 2020, or earlier under certain conditions.

The related assets met the assets held for sale criteria and were reclassified to assets held for sale as of June 30, 2018. We adjusted the carrying value of the assets held for sale to fair value less costs to sell, which resulted in an impairment charge of $42.9 million in our consolidated statements of income in 2018, primarily related to the carrying balances of intangible assets. Upon closing, we recognized a loss on disposal of $0.5 million within selling, general and administrative expenses in our consolidated statements of income in 2018.

We determined that the disposal of these assets does not qualify for reporting as a discontinued operation since it does not represent a strategic shift that has or will have a major effect on our operations and financial results.

Cash and Available-for-Sale Securities

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Cash and Available-for-Sale Securities

Cash and cash equivalents and investments consisted of the following (in thousands):



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	333,172	$	—	$	—	$	333,172	$	333,172	$	—
Time deposits	460,000		—		—		460,000		20,000		440,000
Money market funds	284,172		—		—		284,172		284,172		—
Totals	$	1,077,344	$	—	$	—	$	1,077,344	$	637,344	$	440,000



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	215,606	$	—	$	—	$	215,606	$	215,606	$	—
Time deposits	515,000		—		—		515,000		—		515,000
Money market funds	94,016		—		—		94,016		94,016		—
Totals	$	824,622	$	—	$	—	$	824,622	$	309,622	$	515,000

Cash equivalents and investments are considered available-for-sale securities. We use the specific-identification method for calculating realized gains and losses on securities sold and include them in interest expense, net in the consolidated statements of income. Our investment balances represent time deposits with original maturities of greater than three months and less than one year. Interest income from available-for-sale securities was $20.5 million, $16.9 million and $4.1 million in 2019, 2018 and 2017, respectively.

Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurement

The following table summarizes, by major security type, our available-for-sale securities and derivative contracts that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands):



	December 31, 2019						December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value
Assets:
Available-for-sale securities:
Time deposits	$	—	$	460,000	$	460,000	$	—	$	515,000	$	515,000
Money market funds	284,172		—		284,172		94,016		—		94,016
Interest rate contracts	—		—		—		—		4,070		4,070
Foreign exchange forward contracts	—		2,508		2,508		—		1,194		1,194
Totals	$	284,172	$	462,508	$	746,680	$	94,016	$	520,264	$	614,280
Liabilities:
Interest rate contracts	$	—	$	1,515	$	1,515	$	—	$	—	$	—
Foreign exchange forward contracts	—		182		182		—		1,460		1,460
Totals	$	—	$	1,697	$	1,697	$	—	$	1,460	$	1,460

As of December 31, 2019, our available-for-sale securities included time deposits and money market funds and their carrying values were approximately equal to their fair values. Time deposits were measured at fair value using Level 2 inputs and money market funds were measured using quoted prices in active markets, which represent Level 1 inputs. Level 2 inputs, obtained from various third party data providers, represent quoted prices for similar assets in active markets, or these inputs were derived from observable market data, or if not directly observable, were derived from or corroborated by other observable market data.

Our derivative assets and liabilities include interest rate and foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk as well as an evaluation of our counterparties’ credit risks. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the fair value hierarchy.

There were no transfers between the different levels of the fair value hierarchy in 2019 or in 2018.

As of December 31, 2019 and 2018, the carrying amount of investments measured using the measurement alternative for equity investments without a readily determinable fair value was $4.5 million. The carrying amount, which is recorded within other non-current assets, represents the purchase price paid in 2018.

As of December 31, 2019, the estimated fair values of our 1.875% exchangeable senior notes due 2021, or the 2021 Notes, and our 1.50% exchangeable senior notes due 2024, or the 2024 Notes, were approximately $592 million and $579 million, respectively. The fair values of the 2021 Notes and the 2024 Notes, which we refer to together as the Exchangeable Senior Notes, were estimated using quoted market prices obtained from brokers (Level 2). The estimated fair value of our borrowings under our term loan was approximately equal to its book value based on the borrowing rates currently available for variable rate loans (Level 2).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

We are exposed to certain risks arising from operating internationally, including fluctuations in interest rates on our outstanding term loan borrowings and fluctuations in foreign exchange rates primarily related to the translation of euro-denominated net monetary liabilities, including intercompany balances, held by subsidiaries with a U.S. dollar functional currency. We manage these exposures within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes.

To achieve a desired mix of floating and fixed interest rates on our variable rate debt, we entered into interest rate swap agreements in March 2017 which are effective until July 2021. These agreements hedge contractual term loan interest rates. As of December 31, 2019 and 2018, the interest rate swap agreements had a notional amount of $300.0 million. As a result of these agreements, the interest rate on a portion of our term loan borrowings was fixed at 1.895%, plus the borrowing spread, until July 2021.

The effective portion of changes in the fair value of derivatives designated as and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The impact on accumulated other comprehensive loss and earnings from derivative instruments that qualified as cash flow hedges was as follows (in thousands):



	Year Ended December 31,
Interest Rate Contracts:	2019			2018			2017
Gain (loss) recognized in accumulated other comprehensive loss, net of tax	$	(3,903	)	$	2,274		$	(213	)
Loss (gain) reclassified from accumulated other comprehensive loss to interest expense, net of tax	$	(979	)	$	(252	)	$	1,695

Assuming no change in LIBOR-based interest rates from market rates as of December 31, 2019, $0.8 million of losses recognized in accumulated other comprehensive loss will be reclassified to earnings over the next 12 months.

We enter into foreign exchange forward contracts, with durations of up to 12 months, designed to limit the exposure to fluctuations in foreign exchange rates related to the translation of certain non-U.S. dollar denominated liabilities, including intercompany balances. Hedge accounting is not applied to these derivative instruments as gains and losses on these hedge transactions are designed to offset gains and losses on underlying balance sheet exposures. As of December 31, 2019 and 2018, the notional amount of foreign exchange contracts where hedge accounting was not applied was $180.9 million and $271.5 million, respectively.

The foreign exchange loss in our consolidated statements of income included the following gains and losses associated with foreign exchange contracts not designated as hedging instruments (in thousands):



	Year Ended December 31,
Foreign Exchange Forward Contracts:	2019			2018			2017
Gain (loss) recognized in foreign exchange loss	$	(6,192	)	$	(14,648	)	$	17,902

The cash flow effects of our derivative contracts are included within net cash provided by operating activities in the consolidated statements of cash flows.

The following table summarizes the fair value of outstanding derivatives (in thousands):



	December 31, 2019
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	—	Accrued liabilities	$	855
				Other non-current liabilities	660
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	2,508		Accrued liabilities	182
Total fair value of derivative instruments		$	2,508		$	1,697



	December 31, 2018
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	1,929	Accrued liabilities	$	—
	Other non-current assets	2,141
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	1,194		Accrued liabilities	1,460
Total fair value of derivative instruments		$	5,264		$	1,460

Although we do not offset derivative assets and liabilities within our consolidated balance sheets, our International Swap and Derivatives Association agreements provide for net settlement of transactions that are due to or from the same counterparty upon early termination of the agreement due to an event of default or other termination event. The following table summarizes the potential effect on our consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands):



	December 31, 2019
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	2,508		$	—	$	2,508		$	(596	)	$	—	$	1,912
Derivative liabilities	$	(1,697	)	$	—	$	(1,697	)	$	596		$	—	$	(1,101	)



	December 31, 2018
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	5,264		$	—	$	5,264		$	(935	)	$	—	$	4,329
Derivative liabilities	$	(1,460	)	$	—	$	(1,460	)	$	935		$	—	$	(525	)

Inventories

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in thousands):



	December 31,
	2019		2018
Raw materials	$	13,595	$	10,895
Work in process	36,658		20,743
Finished goods	28,355		21,318
Total inventories	$	78,608	$	52,956

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):



	December 31,
	2019			2018
Leasehold improvements	$	52,294		$	33,273
Land and buildings	47,053			46,650
Manufacturing equipment and machinery	28,860			25,837
Computer software	25,680			19,062
Computer equipment	16,577			13,679
Furniture and fixtures	11,152			8,155
Construction-in-progress	5,147			51,243
Build-to-suit facility	—			52,067
Subtotal	186,763			249,966
Less accumulated depreciation and amortization	(55,257		)	(49,608		)
Property, plant and equipment, net	$	131,506		$	200,358

The decrease in the carrying amount of construction-in-progress and build-to-suit facility assets as of December 31, 2019 compared to December 31, 2018 primarily reflects the de-recognition of assets related to build-to-suit facility leases on adoption of ASU No. 2016-02.

Depreciation and amortization expense on property, plant and equipment amounted to $15.3 million, $15.2 million and $13.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The gross carrying amount of goodwill was as follows (in thousands):



Balance at December 31, 2018	$	927,630
Foreign exchange	(7,612		)
Balance at December 31, 2019	$	920,018

The gross carrying amounts and net book values of our intangible assets were as follows (in thousands):



	December 31, 2019								December 31, 2018
	Remaining Weighted- Average Useful Life (In years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired developed technologies	13.3	$	3,166,485	$	(864,834	)	$	2,301,651	$	3,110,641	$	(632,413	)	$	2,478,228
Priority review voucher (PRV)	—	111,101		(111,101		)	—		111,101		—			111,101
Manufacturing contracts	—	12,025		(12,025		)	—		12,256		(12,256		)	—
Trademarks	—	2,890		(2,890		)	—		2,896		(2,896		)	—
Total finite-lived intangible assets		3,292,501		(990,850		)	2,301,651		3,236,894		(647,565		)	2,589,329
Acquired IPR&D assets		139,326		—			139,326		142,005		—			142,005
Total intangible assets		$	3,431,827	$	(990,850	)	$	2,440,977	$	3,378,899	$	(647,565	)	$	2,731,334

The increase in the gross carrying amount of intangible assets as of December 31, 2019 compared to December 31, 2018 reflects the capitalization of milestone payments triggered by FDA approval of Sunosi in March 2019 and subsequent U.S.

Drug Enforcement Agency scheduling in June 2019, partially offset by the negative impact of foreign currency translation adjustments due to the weakening of the euro against the U.S. dollar.

We amortized the cost of the priority review voucher, or PRV, of $111.1 million in full in the fourth quarter of 2019, following the notification to the FDA of our intention to redeem it in the NDA submission for JZP-258.

The assumptions and estimates used to determine future cash flows and remaining useful lives of our intangible and other long-lived assets are complex and subjective. They can be affected by various factors, including external factors, such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. We reduced the estimated remaining useful life of the Erwinaze intangible asset due to the receipt of a contract termination notice from Porton Biopharma Limited in February 2019. The reduction in the estimated remaining useful life increased intangible asset amortization expense by $54.9 million, reduced net income by $37.3 million, reduced basic net income per ordinary share by $0.66, and reduced diluted net income per ordinary share by $0.65 during the year ended December 31, 2019. The carrying value of the Erwinaze intangible asset as of December 31, 2019 was $136.0 million.

Based on finite-lived intangible assets recorded as of December 31, 2019, and assuming the underlying assets will not be impaired and that we will not change the expected lives of any other assets, future amortization expenses were estimated as follows (in thousands):



Year Ending December 31,	Estimated Amortization Expense
2020	$	251,032
2021	204,025
2022	159,038
2023	159,038
2024	159,038
Thereafter	1,369,480
Total	$	2,301,651

Accrued Liabilities

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	December 31,
	2019		2018
Rebates and other sales deductions	$	96,860	$	86,495
Employee compensation and benefits	80,290		58,543
Current portion of operating lease liabilities	12,728		—
Selling and marketing accruals	11,299		6,780
Inventory-related accruals	7,816		8,753
Accrued interest	7,386		7,407
Royalties	6,931		2,679
Professional fees	4,718		2,333
Sales returns reserve	3,462		2,510
Clinical trial accruals	2,551		5,904
Accrued construction-in-progress	1,564		1,065
Derivative instrument liabilities	1,037		1,460
Accrued loss contingency	—		58,154
Other	31,231		22,804
Total accrued liabilities	$	267,873	$	264,887

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

The following table summarizes the carrying amount of our indebtedness (in thousands):



	December 31,
	2019			2018
2021 Notes	$	575,000		$	575,000
Unamortized discount and debt issuance costs on 2021 Notes	(38,865		)	(60,910		)
2021 Notes, net	536,135			514,090

2024 Notes	575,000			575,000
Unamortized discount and debt issuance costs on 2024 Notes	(117,859		)	(138,914		)
2024 Notes, net	457,141			436,086

Term loan	613,981			646,236
Total debt	1,607,257			1,596,412
Less current portion	33,387			33,387
Total long-term debt	$	1,573,870		$	1,563,025

Credit Agreement

On June 18, 2015, Jazz Pharmaceuticals plc, as guarantor, and certain of our wholly owned subsidiaries, as borrowers, entered into a credit agreement, or the 2015 credit agreement, that provided for a $750.0 million principal amount term loan, which was drawn in full at closing, and a $750.0 million revolving credit facility, of which $160.0 million was drawn at closing and subsequently repaid. We used the proceeds from initial borrowings under the 2015 credit agreement to repay in full the $893.1 million principal amount of term loans outstanding under the credit agreement that we entered into in June 2012, as subsequently amended, which we refer to as the previous credit agreement, and to pay related fees and expenses. The previous credit agreement was terminated upon repayment of the term loans outstanding thereunder.

On July 12, 2016, we amended the 2015 credit agreement to provide for a revolving credit facility of $1.25 billion and a $750.0 million term loan facility. We used the proceeds of $1.0 billion of loans under the revolving credit facility, together with cash on hand, to fund the acquisition of Celator Pharmaceuticals, Inc., or the Celator Acquisition.

On June 7, 2018, we entered into the second amendment to the 2015 credit agreement to provide for a revolving credit facility of $1.6 billion, which replaced the existing revolving credit facility of $1.25 billion, and a new $667.7 million term loan facility, which replaced the $750.0 million term loan facility, of which $617.7 million principal amount was outstanding as of December 31, 2019. We refer to the 2015 credit agreement as amended by the first and second amendments as the amended credit agreement. We expect to use the proceeds from future loans under the revolving credit facility, if any, for permitted capital expenditures, permitted acquisitions, to provide for ongoing working capital requirements and for other general corporate purposes.

Under the amended credit agreement, the term loan matures on June 7, 2023 and the revolving credit facility terminates, and any loans outstanding thereunder become due and payable, on June 7, 2023.

Borrowings under the amended credit agreement bear interest, at our option, at a rate equal to either (a) the LIBOR rate, plus an applicable margin ranging from 1.375% to 1.750% per annum, based upon our secured leverage ratio, or (b) the prime lending rate, plus an applicable margin ranging from 0.375% to 0.750% per annum, based upon our secured leverage ratio. The revolving credit facility has a commitment fee payable on the undrawn amount ranging from 0.25% to 0.35% per annum based upon our secured leverage ratio.

As of December 31, 2019, the interest rate on the term loan was 3.17% and the effective interest rate was 3.66%. As of December 31, 2019, we had undrawn revolving credit facilities totaling $1.6 billion.

Jazz Pharmaceuticals plc and certain of our wholly owned subsidiaries are borrowers under the amended credit agreement. The borrowers’ obligations under the amended credit agreement and any hedging or cash management obligations entered into with a lender are guaranteed on a senior secured basis by Jazz Pharmaceuticals plc and certain of our subsidiaries (including the issuer of the Exchangeable Senior Notes as described below) and are secured by substantially all of Jazz Pharmaceuticals plc’s, the borrowers’ and the guarantor subsidiaries’ assets.

We may make voluntary prepayments of principal at any time without payment of a premium. We are required to make mandatory prepayments of the term loan (without payment of a premium) with (1) net cash proceeds from certain non-ordinary course asset sales (subject to other exceptions), (2) net cash proceeds from issuances of debt (other than certain permitted debt), and (3) casualty proceeds and condemnation awards (subject to other exceptions).

Principal repayments of the term loan, which are due quarterly, are equal to 5.0% per annum of the principal amount outstanding on June 7, 2018 of $667.7 million, with any remaining balance payable on the maturity date.

The amended credit agreement contains financial covenants that require Jazz Pharmaceuticals plc and our restricted subsidiaries to not (a) exceed a maximum secured net leverage ratio or (b) fall below a cash interest coverage ratio. As of December 31, 2019, we were in compliance with these financial covenants.

In connection with our entry into the amendments to the 2015 credit agreement, we recorded a loss on extinguishment and modification of debt of $1.4 million in 2018.

Exchangeable Senior Notes Due 2024

In the third quarter of 2017, we completed a private placement of $575.0 million principal amount of 2024 Notes. We used the net proceeds from this offering to repay $500.0 million in outstanding loans under the revolving credit facility and to pay related fees and expenses. We used the remainder of the net proceeds for general corporate purposes. Interest on the 2024 Notes is payable semi-annually in cash in arrears on February 15 and August 15 of each year, beginning on February 15, 2018, at a rate of 1.50% per year. In certain circumstances, we may be required to pay additional amounts as a result of any applicable tax withholding or deductions required in respect of payments on the 2024 Notes. The 2024 Notes mature on August 15, 2024, unless earlier exchanged, repurchased or redeemed.

The holders of the 2024 Notes have the ability to require us to repurchase all or a portion of their 2024 Notes for cash in the event we undergo certain fundamental changes, such as specified change of control transactions, our liquidation or dissolution or the delisting of our ordinary shares from The Nasdaq Global Select Market. Prior to August 15, 2024, we may redeem the 2024 Notes, in whole but not in part, subject to compliance with certain conditions, if we have, or on the next interest payment date would, become obligated to pay to the holder of any 2024 Notes additional amounts as a result of certain tax-related events. We also may redeem the 2024 Notes on or after August 20, 2021, in whole or in part, if the last reported sale price per ordinary share has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the notice of redemption.

The 2024 Notes are exchangeable at an initial exchange rate of 4.5659 ordinary shares per $1,000 principal amount of 2024 Notes, which is equivalent to an initial exchange price of approximately $219.02 per ordinary share. Upon exchange, the 2024 Notes may be settled in cash, ordinary shares or a combination of cash and ordinary shares, at our election. Our intent and policy is to settle the principal amount of the 2024 Notes in cash upon exchange. The exchange rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain make-whole fundamental changes occurring prior to the maturity date of the 2024 Notes or upon our issuance of a notice of redemption, we will in certain circumstances increase the exchange rate for holders of the 2024 Notes who elect to exchange their 2024 Notes in connection with that make-whole fundamental change or during the related redemption period. Prior to May 15, 2024, the 2024 Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

In accounting for the issuance of the 2024 Notes, we separated the 2024 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2024 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount will be amortized to interest expense over the expected life of the 2024 Notes using the effective interest method with an effective interest rate of 6.8% per annum. We have determined the expected life of the 2024 Notes to be equal to the original seven-year term. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. As of December 31, 2019 and 2018, the “if-converted value” did not exceed the principal amount of the 2024 Notes.

We allocated the total issuance costs incurred of $15.6 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component will be amortized to expense over the term of the 2024 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity.

As of December 31, 2019 and 2018, the carrying value of the equity component of the 2024 Notes, net of equity issuance costs, was $149.8 million.

Exchangeable Senior Notes Due 2021

In August 2014, we completed a private placement of the 2021 Notes. Interest on the 2021 Notes is payable semi-annually in cash in arrears on February 15 and August 15 of each year, beginning on February 15, 2015, at a rate of 1.875% per year. In certain circumstances, we may be required to pay additional amounts as a result of any applicable tax withholding or deductions required in respect of payments on the 2021 Notes. The 2021 Notes mature on August 15, 2021, unless earlier exchanged, repurchased or redeemed.

The holders of the 2021 Notes have the ability to require us to repurchase all or a portion of their 2021 Notes for cash in the event Jazz Pharmaceuticals plc undergoes certain fundamental changes. Prior to August 15, 2021, we may redeem the 2021 Notes, in whole but not in part, subject to compliance with certain conditions, if we have, or on the next interest payment date would, become obligated to pay to the holder of any 2021 Note additional amounts as a result of certain tax-related events. We also may redeem the 2021 Notes on or after August 20, 2018, in whole or in part, if the last reported sale price per ordinary share has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the notice of redemption.

The 2021 Notes are exchangeable at an initial exchange rate of 5.0057 ordinary shares per $1,000 principal amount of 2021 Notes, which is equivalent to an initial exchange price of approximately $199.77 per ordinary share. Upon exchange, the 2021 Notes may be settled in cash, ordinary shares or a combination of cash and ordinary shares, at our election. Our intent and policy is to settle the principal amount of the 2021 Notes in cash upon exchange. The exchange rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain make-whole fundamental changes occurring prior to the maturity date of the 2021 Notes or upon our issuance of a notice of redemption, we will in certain circumstances increase the exchange rate for holders of the 2021 Notes who elect to exchange their 2021 Notes in connection with that make-whole fundamental change or during the related redemption period. Prior to February 15, 2021, the 2021 Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

In accounting for the issuance of the 2021 Notes, we separated the 2021 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2021 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount will be amortized to interest expense over the expected life of the 2021 Notes using the effective interest method with an effective interest rate of 6.4% per annum. We have determined the expected life of the 2021 Notes to be equal to the original seven-year term. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. As of December 31, 2019 and 2018, the “if-converted value” did not exceed the principal amount of the 2021 Notes.

We allocated the total issuance costs incurred of $16.1 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component will be amortized to expense over the term of the 2021 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity.

As of December 31, 2019 and 2018, the carrying value of the equity component of the 2021 Notes, net of equity issuance costs, was $126.9 million.

The Exchangeable Senior Notes were issued by Jazz Investments I Limited, or the Issuer, a 100%-owned finance subsidiary of Jazz Pharmaceuticals plc. The Exchangeable Senior Notes are senior unsecured obligations of the Issuer and are fully and unconditionally guaranteed on a senior unsecured basis by Jazz Pharmaceuticals plc. No subsidiary of Jazz Pharmaceuticals plc guaranteed the Exchangeable Senior Notes. Subject to certain local law restrictions on payment of dividends, among other things, and potential negative tax consequences, we are not aware of any significant restrictions on the ability of Jazz Pharmaceuticals plc to obtain funds from the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries by dividend or loan, or any legal or economic restrictions on the ability of the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries to transfer funds to Jazz Pharmaceuticals plc in the form of cash dividends, loans or advances. There is no assurance that in the future such restrictions will not be adopted.

For the years ended December 31, 2019, 2018 and 2017, we recognized $59.1 million, $56.7 million and $37.8 million, respectively, in interest expense, net related to the contractual coupon rate and amortization of the debt discount on the Exchangeable Senior Notes.

Scheduled maturities with respect to our long-term debt are as follows (in thousands):



Year Ending December 31,	Scheduled Long-Term Debt Maturities
2020	$	33,387
2021	608,387
2022	33,387
2023	517,493
2024	575,000
Total	$	1,767,654

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

We have noncancelable operating leases for our office buildings and we are obligated to make payments under noncancelable operating leases for automobiles used by our sales force.

The components of the lease expense for the year ended December 31, 2019 were as follows (in thousands):



Lease Cost	Year Ended December 31, 2019
Operating lease cost	$	23,087
Short-term lease cost	2,465
Variable lease cost	5
Sublease income	(634		)
Net lease cost	$	24,923

Supplemental balance sheet information related to operating leases was as follows (in thousands):



Leases	Classification	December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	139,385

Liabilities
Current
Operating lease liabilities	Accrued liabilities	12,728
Non-current
Operating lease liabilities	Operating lease liabilities, less current portion	151,226
Total operating lease liabilities		$	163,954



Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term - operating leases (years)	9.7
Weighted-average discount rate - operating leases	5.3	%

Supplemental cash flow information related to operating leases was as follows (in thousands):



	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	17,066
Non-cash operating activities:
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	153,448

_____________________________


(1)	Includes the balances recognized on January 1, 2019 on adoption of ASU No. 2016-02.

Maturities of operating lease liabilities were as follows (in thousands):



Year Ending December 31,	Operating leases
2020	$	21,315
2021	21,104
2022	21,139
2023	21,508
2024	23,857
Thereafter	104,655
Total lease payments	$	213,578
Less imputed interest	(49,624		)
Present value of lease liabilities	$	163,954

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Indemnification In the normal course of business, we enter into agreements that contain a variety of representations and warranties and provide for general indemnification, including indemnification associated with product liability or infringement of intellectual property rights. Our exposure under these agreements is unknown because it involves future claims that may be made but have not yet been made against us. To date, we have not paid any claims or been required to defend any action related to these indemnification obligations. We have agreed to indemnify our executive officers, directors and certain other employees for losses and costs incurred in connection with certain events or occurrences, including advancing money to cover certain costs, subject to certain limitations. The maximum potential amount of future payments we could be required to make under the indemnification obligations is unlimited; however, we maintain insurance policies that may limit our exposure and may enable us to recover a portion of any future amounts paid. Assuming the applicability of coverage, the willingness of the insurer to assume coverage, and subject to certain retention, loss limits and other policy provisions, we believe the fair value of these indemnification obligations is not significant. Accordingly, we did not recognize any liabilities relating to these obligations as of December 31, 2019 and December 31, 2018. No assurances can be given that the covering insurers will not attempt to dispute the validity, applicability, or amount of coverage without expensive litigation against these insurers, in which case we may incur substantial liabilities as a result of these indemnification obligations. Other Commitments As of December 31, 2019, we had $74.5 million of noncancelable purchase commitments due within one year, primarily related to agreements with third party manufacturers. Legal Proceedings From time to time we are involved in legal proceedings arising in the ordinary course of business. We believe there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on our results of operations or financial condition.

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Share Repurchase Program

In November 2016, our board of directors authorized a share repurchase program pursuant to which we were authorized to repurchase a number of ordinary shares having an aggregate purchase price of up to $300.0 million, exclusive of any brokerage commissions. In November and December 2018, our board of directors increased the existing share repurchase program authorization by $320.0 million and $400.0 million. In October 2019, our board of directors authorized the additional repurchase of shares having an aggregate purchase price of up to $500.0 million, exclusive of any brokerage commissions. Under this program, which has no expiration date, we may repurchase ordinary shares from time to time on the open market. The timing and amount of repurchases will depend on a variety of factors, including the price of our ordinary shares, alternative investment opportunities, restrictions under the amended credit agreement, corporate and regulatory requirements and market conditions. The share repurchase program may be modified, suspended or discontinued at any time without prior notice. In 2019, we spent a total of $301.5 million to repurchase 2.3 million of our ordinary shares at an average total purchase price, including brokerage commissions, of $133.97 per share. In 2018, we spent a total of $523.7 million to repurchase 3.5 million of our ordinary shares at an average total purchase price, including brokerage commissions, of $148.33 per share. All ordinary shares repurchased were canceled. As of December 31, 2019, the remaining amount authorized under the share repurchase program was $577.7 million.

Authorized But Unissued Ordinary Shares

We had reserved the following shares of authorized but unissued ordinary shares (in thousands):



	December 31,
	2019	2018
2011 Equity Incentive Plan	19,552	17,729
2007 Employee Stock Purchase Plan	1,883	1,126
Amended and Restated 2007 Non-Employee Directors Stock Award Plan	438	453
Amended and Restated Directors Deferred Compensation Plan	178	178
2007 Equity Incentive Plan	13	13
Total	22,064	19,499

Dividends

In 2019 and 2018, we did not declare or pay cash dividends on our common equity. Under Irish law, dividends may only be paid, and share repurchases and redemptions must generally be funded only out of, “distributable reserves.” In addition, the terms of our credit agreement restrict our ability to make certain restricted payments, including dividends and other distributions by us in respect of our ordinary shares, subject to, among other exceptions, (1) a general exception for dividends and restricted payments up to $30 million in the aggregate and (2) an exception that allows for restricted payments, subject to a cap equal to the sum of (i) $100 million plus (ii) so long as our secured leverage ratio (as defined in our credit agreement) does not exceed 3:1 after giving pro forma effect to the restricted payment, a formula-based amount tied to our consolidated net income; provided that such cap applies only if our total leverage ratio (as defined in our credit agreement) exceeds 2:1 after giving pro forma effect to the restricted payment.

Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Comprehensive Income (Loss)

Comprehensive income (loss) includes net income and all changes in shareholders’ equity during a period, except for those changes resulting from investments by shareholders or distributions to shareholders.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of December 31, 2019 and 2018 were as follows (in thousands):



	Net Unrealized Gain (Loss) From Hedging Activities			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2018	$	3,557		$	(201,348	)	$	(197,791	)
Other comprehensive loss before reclassifications	(3,903		)	(20,720		)	(24,623		)
Amounts reclassified from accumulated other comprehensive loss	(979		)	—			(979		)
Other comprehensive loss, net	(4,882		)	(20,720		)	(25,602		)
Balance at December 31, 2019	$	(1,325	)	$	(222,068	)	$	(223,393	)

In 2019, other comprehensive loss reflects foreign currency translation adjustments, primarily due to the weakening of the euro against the U.S. dollar, and the net unrealized loss on derivatives that qualify as cash flow hedges.

Net Income per Ordinary Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income per Ordinary Share

Basic net income per ordinary share attributable to Jazz Pharmaceuticals plc is based on the weighted-average number of ordinary shares outstanding. Diluted net income per ordinary share attributable to Jazz Pharmaceuticals plc is based on the weighted-average number of ordinary shares outstanding and potentially dilutive ordinary shares outstanding.

Basic and diluted net income per ordinary share attributable to Jazz Pharmaceuticals plc were computed as follows (in thousands, except per share amounts):



	Year Ended December 31,
	2019		2018		2017
Numerator:
Net income	$	523,367	$	447,098	$	487,848
Denominator:
Weighted-average ordinary shares used in per share calculations - basic	56,749		59,976		60,018
Dilutive effect of employee equity incentive and purchase plans	801		1,245		1,299
Weighted-average ordinary shares used in per share calculations - diluted	57,550		61,221		61,317

Net income per ordinary share :
Basic	$	9.22	$	7.45	$	8.13
Diluted	$	9.09	$	7.30	$	7.96

Potentially dilutive ordinary shares from our employee equity incentive and purchase plans and the Exchangeable Senior Notes are determined by applying the treasury stock method to the assumed exercise of share options, the assumed vesting of outstanding restricted stock units, or RSUs, the assumed issuance of ordinary shares under our employee stock purchase plan, or ESPP, and the assumed issuance of ordinary shares upon exchange of the Exchangeable Senior Notes. The potential issue of ordinary shares issuable upon exchange of the Exchangeable Senior Notes had no effect on diluted net income per ordinary share because the average price of our ordinary shares in 2019, 2018 and 2017 did not exceed the effective exchange prices per ordinary share of the Exchangeable Senior Notes.

The following table represents the weighted-average ordinary shares that were excluded from the computation of diluted net income attributable to Jazz Pharmaceuticals plc per ordinary share for the years presented because including them would have an anti-dilutive effect (in thousands):



	Year Ended December 31,
	2019	2018	2017
Exchangeable Senior Notes	5,504	5,504	3,805
Options, RSUs and ESPP	5,000	3,113	3,333

Segment and Other Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment and Other Information

Our operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision maker or, CODM. Our CODM has been identified as our chief executive officer. We have determined that we operate in one business segment, which is the identification, development and commercialization of meaningful pharmaceutical products that address unmet medical needs.

The following table presents total long-lived assets by location (in thousands):



	December 31,
	2019		2018
Ireland	$	77,237	$	61,290
United States	171,079		126,941
Italy	12,959		8,760
Other	9,616		3,367
Total long-lived assets (1)	$	270,891	$	200,358

_________________________

(1)

Long-lived assets consist of property, plant and equipment and operating lease assets.

Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

The following table presents a summary of total revenues (in thousands):



	Year Ended December 31,
	2019		2018		2017
Xyrem	$	1,642,525	$	1,404,866	$	1,186,699
Erwinaze/Erwinase	177,465		174,739		197,340
Defitelio/defibrotide	172,938		149,448		133,650
Vyxeos	121,407		100,835		33,790
Sunosi	3,714		—		—
Other	17,552		39,585		49,920
Product sales, net	2,135,601		1,869,473		1,601,399
Royalties and contract revenues	26,160		21,449		17,294
Total revenues	$	2,161,761	$	1,890,922	$	1,618,693

The following table presents a summary of total revenues attributed to geographic sources (in thousands):



	Year Ended December 31,
	2019		2018		2017
United States	$	1,965,318	$	1,727,576	$	1,463,457
Europe	150,201		125,911		125,624
All other	46,242		37,435		29,612
Total revenues	$	2,161,761	$	1,890,922	$	1,618,693

The following table presents a summary of the percentage of total revenues from customers that represented more than 10% of our total revenues:



	Year Ended December 31,
	2019		2018		2017
ESSDS	76	%	74	%	73	%
McKesson	14	%	17	%	16	%

Financing and payment

Our payment terms vary by the type and location of our customer but payment is generally required in a term ranging from 30 to 45 days.

Contract Liabilities - Deferred Revenue

The deferred revenue balance as of December 31, 2019 primarily related to deferred upfront fees received from Nippon Shinyaku Co., Ltd., or Nippon Shinyaku, in connection with two license, development and commercialization agreements granting Nippon Shinyaku exclusive rights to develop and commercialize each of Defitelio and Vyxeos in Japan. We recognized contract revenues of $5.4 million in 2019 relating to these upfront payments. The deferred revenue balances are being recognized over an average of four years representing the period we expect to perform our research and developments obligations under each agreement.

The following table presents a reconciliation of our beginning and ending balances in contract liabilities from contracts with customers for the year ended December 31, 2019 (in thousands):



	Contract Liabilities
Balance as of December 31, 2018	$	14,995
Amount recognized within royalties and contract revenues	(5,414		)
Balance as of December 31, 2019	$	9,581

Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

2011 Equity Incentive Plan

On January 18, 2012, the businesses of Jazz Pharmaceuticals, Inc. and Azur Pharma were combined in a merger transaction, or the Azur Merger. In connection with the Azur Merger, Jazz Pharmaceuticals, Inc.’s board of directors adopted the 2011 Equity Incentive Plan, or the 2011 Plan, in October 2011 and its stockholders approved the 2011 Plan at the special meeting of the stockholders held in December 2011 in connection with the Azur Merger. The 2011 Plan became effective immediately before the consummation of the Azur Merger and was assumed and adopted by us upon the consummation of the Azur Merger. The terms of the 2011 Plan provide for the grant of stock options, stock appreciation rights, RSUs, other stock awards, and performance awards that may be settled in cash, shares, or other property. All outstanding grants under the 2011 Plan were granted to employees and vest ratably over service periods of four years and expire no more than 10 years after the date of grant. As of December 31, 2019, a total of 27,012,330 of our ordinary shares had been authorized for issuance under the 2011 Plan. In addition, the share reserve under the 2011 Plan will automatically increase on January 1 of each year through January 1, 2022, by the least of (a) 4.5% of the total number of ordinary shares outstanding on December 31 of the preceding calendar year, (b) 5,000,000 shares, or (c) such lesser number of ordinary shares as determined by our board of directors. On January 1, 2020, the share reserve under the 2011 Plan automatically increased by 2,526,341 ordinary shares pursuant to this provision.

2007 Equity Incentive Plan

The 2007 Equity Incentive Plan, or the 2007 Plan, which was initially adopted by the Jazz Pharmaceuticals, Inc. board of directors and approved by the Jazz Pharmaceuticals, Inc. stockholders in connection with its initial public offering, was continued and assumed by us upon consummation of the Azur Merger. The 2007 Plan provided for the grant of stock options, RSUs, stock appreciation rights, performance stock awards and other forms of equity compensation to employees, including officers, non-employee directors and consultants. Prior to the consummation of the Azur Merger, all of the grants under the 2007 Plan were granted to employees and vest ratably over service periods of three to five years and expire no more than 10

years after the date of grant. Effective as of the closing of the Azur Merger on January 18, 2012, the number of shares reserved for issuance under the 2007 Plan was set to 1,000,000 ordinary shares. The share reserve under the 2007 Plan will not automatically increase. Since the Azur Merger, all of the new grants under the 2007 Plan were granted to non-employee directors, vest ratably over service periods of one to three years and expire no more than 10 years after the date of grant. The 2007 Plan expired in April 2017, and accordingly, no new grants can be awarded under the 2007 Plan. As of December 31, 2019, the number of shares reserved represents issuable shares from options granted but not yet exercised under the 2007 Plan.

2007 Employee Stock Purchase Plan

In 2007, Jazz Pharmaceuticals, Inc.’s employees became eligible to participate in the ESPP. The ESPP was amended and restated by Jazz Pharmaceuticals, Inc.’s board of directors in October 2011 and approved by its stockholders in December 2011. The amended and restated ESPP became effective immediately prior to the effective time of the Azur Merger and was assumed by us upon the consummation of the Azur Merger. The amended and restated ESPP allows our eligible employee participants (including employees of any of a parent or subsidiary company if our board of directors designates such company as eligible to participate) to purchase our ordinary shares at a discount of 15% through payroll deductions. The ESPP consists of a fixed offering period of 24 months with four purchase periods within each offering period. The number of shares available for issuance under our ESPP during any six-month purchase period is 175,000 shares. As of December 31, 2019, a total of 4,421,024 of our ordinary shares had been authorized for issuance under the ESPP. The share reserve under the ESPP will automatically increase on January 1 of each year through January 1, 2022, by the least of (a) 1.5% of the total number of ordinary shares outstanding on December 31 of the preceding calendar year, (b) 1,000,000 shares, and (c) such lesser number of ordinary shares as determined by our board of directors or a duly-authorized committee thereof. On January 1, 2020, the share reserve under the ESPP automatically increased by 842,113 ordinary shares pursuant to this provision.

Amended and Restated 2007 Non-Employee Directors Stock Award Plan

The Amended and Restated 2007 Non-Employee Directors Stock Award Plan, or the 2007 Directors Award Plan, which was initially adopted by the Jazz Pharmaceuticals, Inc. board of directors and approved by the Jazz Pharmaceuticals, Inc. stockholders in connection with its initial public offering, was continued and assumed by us upon the consummation of the Azur Merger. Until October 2011, the 2007 Directors Award Plan provided for the automatic grant of stock options to purchase shares of Jazz Pharmaceuticals, Inc.’s common stock to its non-employee directors initially at the time any individual first became a non-employee director, which vest over three years, and then annually over their period of service on its board of directors, which vest over one year. On October 24, 2011, Jazz Pharmaceuticals, Inc.’s board of directors amended the 2007 Directors Award Plan to eliminate all future initial and annual automatic grants so that future automatic grants would not be made that would be subject to the excise tax imposed by Section 4985 of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code, in connection with the Azur Merger. Accordingly, all future stock option grants under the 2007 Directors Award Plan will be at the discretion of our board of directors. Since the Azur Merger, all of the new grants under the 2007 Directors Award Plan were granted to non-employee directors and vest ratably over service periods of one to three years and expire no more than 10 years after the date of grant. In addition, the 2007 Directors Award Plan provides the source of shares to fund distributions made prior to August 15, 2010 under the Directors Deferred Compensation Plan described below. In August 2016, our shareholders approved our proposal to expand the types of stock awards that may be granted to our non-employee directors under the 2007 Directors Award Plan and eliminate the final automatic share reserve increase under the 2007 Directors Award Plan that was scheduled to occur on January 1, 2017. As of December 31, 2019, a total of 903,938 of our ordinary shares had been authorized for issuance under the 2007 Directors Award Plan.

Amended and Restated Directors Deferred Compensation Plan

In May 2007, the Jazz Pharmaceuticals, Inc. board of directors adopted the Directors Deferred Compensation Plan, or the Directors Deferred Plan, which was amended in December 2008 and was then amended and restated in August 2010, and which was continued and assumed by us upon consummation of the Azur Merger. The Directors Deferred Plan allows each non-employee director to elect to defer receipt of all or a portion of his or her annual retainer fees to a future date or dates. Amounts deferred under the Directors Deferred Plan are credited as shares of Jazz Pharmaceuticals, Inc.’s common stock (or our ordinary shares following the Azur Merger) to a phantom stock account, the number of which are based on the amount of the retainer fees deferred divided by the market value of Jazz Pharmaceuticals, Inc.’s common stock (or our ordinary shares following the Azur Merger) on the first trading day of the first open window period following the date the retainer fees are deemed earned. On the 10th business day following the day of separation from the board of directors or the occurrence of a change in control, or as soon thereafter as practical once the non-employee director has provided the necessary information for electronic deposit of the deferred shares, each non-employee director will receive (or commence receiving, depending upon whether the director has elected to receive distributions from his or her phantom stock account in a lump sum or in installments over time) a distribution of his or her phantom stock account, in our ordinary shares (i) reserved under the 2007 Directors Option Plan prior to August 15, 2010 and (ii) from a new reserve of 200,000 shares set up under the Directors Deferred Plan on August 15, 2010.

Since the consummation of the Azur Merger we have not permitted non-employee directors to defer any annual retainer fees under the Directors Deferred Plan. On October 31, 2019, our board of directors approved the termination of the Directors Deferred Plan, and all outstanding phantom stock will be distributed to each applicable non-employee director in November 2020. We recorded no expense in 2019, 2018 and 2017 related to retainer fees earned and deferred. As of December 31, 2019, 14,499 of our ordinary shares that were unissued related to retainer fees that were deferred under the Directors Deferred Plan.

Share-Based Compensation

The table below shows, for all share option grants, the weighted-average assumptions used in the Black-Scholes option pricing model and the resulting weighted-average grant date fair value of share options granted in each of the past three years:



	Year Ended December 31,
	2019			2018			2017
Grant date fair value	$	42.09		$	47.17		$	42.72
Volatility	32		%	35		%	35		%
Expected term (years)	4.5			4.5			4.3
Range of risk-free rates	1.3-2.5%			2.2-3.0%			1.6-2.1%
Expected dividend yield	—		%	—		%	—		%

We rely on a blend of the historical and implied volatilities of our own ordinary shares to determine expected volatility for share option grants. In addition, we use a single volatility estimate for each share option grant. The weighted-average volatility is determined by calculating the weighted average of volatilities for all share options granted in a given year.

The expected term of share option grants represents the weighted-average period the awards are expected to remain outstanding and our estimates were based on historical exercise data. The risk-free interest rate assumption was based on zero coupon U.S. Treasury instruments whose term was consistent with the expected term of our share option grants. The expected dividend yield assumption was based on our history and expectation of dividend payouts.

Share-based compensation expense related to share options, RSUs and grants under our ESPP was as follows (in thousands):



	Year Ended December 31,
	2019			2018			2017
Selling, general and administrative	$	78,697		$	76,770		$	83,218
Research and development	25,229			19,037			17,870
Cost of product sales	6,637			6,634			5,812
Total share-based compensation expense, pre-tax	110,563			102,441			106,900
Income tax benefit from share-based compensation expense	(15,712		)	(17,230		)	(21,792		)
Total share-based compensation expense, net of tax	$	94,851		$	85,211		$	85,108

We recognized income tax benefits related to share option exercises of $5.1 million, $7.7 million and $8.9 million in 2019, 2018 and 2017, respectively.

Share Options

The following table summarizes information as of December 31, 2019 and activity during 2019 related to our share option plans:



	Shares Subject to Outstanding Options (In thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2019	5,280		$	127.08
Options granted	1,691		138.14
Options exercised	(515	)	90.27
Options forfeited	(436	)	139.56
Options expired	(186	)	159.59
Outstanding at December 31, 2019	5,834		$	131.57	6.6	$	127,778
Vested and expected to vest at December 31, 2019	5,553		$	131.15	6.5	$	124,884
Exercisable at December 31, 2019	3,402		$	125.81	5.1	$	102,366

Aggregate intrinsic value shown in the table above is equal to the difference between the exercise price of the underlying share options and the fair value of our ordinary shares for share options that were in the money. The aggregate intrinsic value changes based on the fair market value of our ordinary shares. The aggregate intrinsic value of share options exercised was $26.2 million, $43.4 million and $38.9 million during 2019, 2018 and 2017, respectively. We issued new ordinary shares upon exercise of share options.

As of December 31, 2019, total compensation cost not yet recognized related to unvested share options was $80.1 million, which is expected to be recognized over a weighted-average period of 2.6 years.

As of December 31, 2019, total compensation cost not yet recognized related to grants under the ESPP was $4.6 million, which is expected to be recognized over a weighted-average period of 1.0 years.

Restricted Stock Units

In 2019, we granted RSUs covering an equal number of our ordinary shares to employees with a weighted-average grant date fair value of $138.11. The fair value of RSUs is determined on the date of grant based on the market price of our ordinary shares as of that date. The fair value of the RSUs is recognized as an expense ratably over the vesting period of four years. In 2019, 391,000 RSUs were released with 265,000 ordinary shares issued and 126,000 ordinary shares withheld for tax purposes. The total fair value of shares vested was $52.0 million, $55.8 million and $53.2 million during 2019, 2018 and 2017, respectively.

As of December 31, 2019, total compensation cost not yet recognized related to unvested RSUs was $101.0 million, which is expected to be recognized over a weighted-average period of 2.5 years.

The following table summarizes information as of December 31, 2019 and activity during 2019 related to our RSUs:



	Number of RSUs (in thousands)		Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2019	1,102		$	142.13
RSUs granted	682		138.11
RSUs released	(391	)	144.34
RSUs forfeited	(212	)	140.76
Outstanding at December 31, 2019	1,181		$	139.32	1.4	$	176,158

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans We operate a number of defined contribution retirement plans. The costs of these plans are charged to the consolidated statements of income in the period they are incurred. We recorded expense related to our defined contribution plans of $8.2 million, $6.4 million and $5.5 million in 2019, 2018 and 2017, respectively. In Ireland, we operate a defined contribution plan in which we contribute up to 8% of an employee’s eligible earnings. We recorded expense of $1.3 million, $1.2 million and $1.0 million in 2019, 2018 and 2017, respectively, in connection with the contributions we made under the Irish defined contribution plan. In the U.S., we provide a qualified 401(k) savings plan for our U.S.-based employees. All U.S.-based employees are eligible to participate, provided they meet the requirements of the plan. We match certain employee contributions under the 401(k) savings plan. We recorded expense of $5.0 million, $4.2 million and $3.7 million in 2019, 2018 and 2017, respectively. In the United Kingdom, or UK, we operate a defined contribution plan in which we contribute up to 12% of an employee’s eligible earnings. We recorded expense of $1.1 million, $0.8 million and $0.7 million in 2019, 2018 and 2017, respectively, in connection with contributions we made under the UK defined contribution plan. In France, we operate a defined contribution plan in which we contribute up to 14% of an employee’s eligible earnings. We recorded expense of $0.6 million, $0.4 million and $0.3 million in 2019, 2018 and 2017, respectively, in connection with the contributions we made under the French defined contribution plan. In France, we also accrue for a potential liability which is payable if an employee leaves employment. The accrued liability for France was $0.6 million as of December 31, 2019 and $0.4 million as of December 31, 2018. In Italy, we accrue for a potential liability which is payable if an employee leaves employment. The accrued liability for Italy was $0.3 million as of December 31, 2019 and 2018.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The components of income before the income tax provision (benefit) and equity in loss of investees were as follows (in thousands):



	Year Ended December 31,
	2019			2018		2017
Ireland	$	(6,451	)	$	170,666	$	77,476
United States	317,728			294,621		271,440
Other	143,025			64,176		92,201
Total	$	454,302		$	529,463	$	441,117

The following table sets forth the details of the income tax provision (benefit) (in thousands):



	Year Ended December 31,
	2019			2018			2017
Current
Ireland	$	51,696		$	33,431		$	28,045
United States	109,495			95,143			135,608
Other	2,265			40,403			14,198
Total current tax expense	163,456			168,977			177,851
Deferred, exclusive of other components below
Ireland	(163,626		)	(12,408		)	(19,709		)
United States	(41,297		)	(41,337		)	(27,559		)
Other	(37,244		)	(34,545		)	(19,108		)
Total deferred, exclusive of other components	(242,167		)	(88,290		)	(66,376		)
Deferred, change in tax rates
United States	203			(538		)	(155,679		)
Other	5,354			13			(3,536		)
Total deferred, change in tax rates	5,557			(525		)	(159,215		)
Total deferred tax benefit	(236,610		)	(88,815		)	(225,591		)
Total income tax provision (benefit)	$	(73,154	)	$	80,162		$	(47,740	)

On December 22, 2017, the U.S. Tax Cuts and Jobs Act, or U.S. Tax Act, was signed into law. The legislation significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system, imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries and changing the rules which determine whether a U.S. person is a U.S. shareholder of a controlled foreign corporation, for 2017 and onwards. The U.S. Tax Act reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. It also included two new U.S. tax base erosion provisions, the global intangible low-taxed income, or GILTI, provisions and the base-erosion and anti-abuse tax, or BEAT, provisions. The GILTI provisions require us to include in our U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The GILTI tax expenses recognized in our consolidated statements of income in 2019 and 2018 were not significant. The Company elects to account for tax expenses associated with the GILTI provisions in the period they are incurred. The BEAT provisions in the U.S. Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company was not subject to BEAT in 2019 or 2018.

We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. federal income tax rate from 35% to 21% under the U.S. Tax Act, we remeasured our net deferred tax liabilities as of December 22, 2017 and recognized a $155.1 million income tax benefit in our consolidated statement of income in 2017.

Our income tax benefit of $73.2 million and $47.7 million in 2019 and 2017, respectively, and our income tax provision of $80.2 million in 2018 related to tax arising on income in Ireland, the U.S. and certain other foreign jurisdictions, certain unrecognized tax benefits and various expenses not deductible for income tax purposes. The income tax benefit in 2019 includes a discrete tax benefit of $112.3 million resulting from an intra-entity intellectual property asset transfer. The tax benefit, which represents a deferred future benefit, was recorded as a deferred tax asset. The income tax benefit in 2017 included a provisional benefit of $148.8 million relating to the impact of the enactment of the U.S Tax Act.

The effective tax rates for 2019, 2018 and 2017 were (16.1)%, 15.1% and (10.8)%, respectively. The effective tax rate for 2019 was lower than the Irish statutory rate of 12.5% primarily due to the impact of the intra-entity intellectual property asset transfer. The effective tax rates for 2018 was higher than the Irish statutory rate of 12.5%, primarily due to income taxable at a rate higher than the Irish statutory rate and unrecognized tax benefits, partially offset by the release of reserves related to unrecognized tax benefits from the expiration of a statute of limitation, originating tax credits and the release of a valuation

allowance held against certain foreign net operating losses, or NOLs. The effective tax rate for 2017 was lower than the Irish statutory rate of 12.5%, primarily due to the impact of the enactment of the U.S. Tax Act. The decrease in the effective tax rate in 2019 compared to 2018 was primarily due to the impact of the intra-entity intellectual property asset transfer. Excluding this effect, the decrease in the effective tax rate in 2019 compared to 2018 was primarily due to the benefit from the application of the Italian patent box incentive regime for 2015 through 2019. The increase in the effective tax rate in 2018 compared to 2017 was primarily due to the impact of the enactment of the U.S. Tax Act in 2017. Excluding this effect, the effective tax rate in 2018 decreased compared to 2017, primarily due to a decrease in the U.S. corporate income tax rate.

The reconciliation between the statutory income tax rate applied to income before the income tax provision (benefit) and equity in loss of investees and our effective income tax rate was as follows:



	Year Ended December 31,
	2019		2018		2017
Statutory income tax rate	12.5	%	12.5	%	12.5	%
Intra-entity transfer of intellectual property assets	(24.7	)%	—	%	—	%
Foreign income tax rate differential	8.7	%	11.9	%	20.3	%
Research and other tax credits	(8.7	)%	(3.0	)%	(2.6	)%
Patent box incentive benefit	(7.0	)%	—	%	—	%
Deduction on subsidiary equity	(5.2	)%	(0.5	)%	(0.7	)%
Change in valuation allowance	3.3	%	3.2	%	(2.8	)%
Non-deductible acquired IPR&D	2.5	%	—	%	—	%
Non-deductible compensation	1.8	%	1.2	%	2.6	%
Financing costs	(1.7	)%	(4.3	)%	(5.6	)%
Change in tax rate	1.5	%	(0.1	)%	(0.4	)%
Change in estimates	0.3	%	(1.1	)%	(2.1	)%
Change in unrecognized tax benefits	0.1	%	1.1	%	2.8	%
Excess tax benefits from share-based compensation	(0.1	)%	(0.4	)%	(1.5	)%
Non-deductible loss contingency	—	%	0.8	%	—	%
Impact of U.S. Tax Act	—	%	(1.4	)%	(33.7	)%
Investment in subsidiaries	—	%	(4.8	)%	—	%
Other	0.6	%	—	%	0.4	%
Effective income tax rate	(16.1	)%	15.1	%	(10.8	)%

Significant components of our net deferred tax assets/(liabilities) were as follows (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	90,670		$	106,128
Tax credit carryforwards	230,447			156,242
Intangible assets	154,844			23,469
Share-based compensation	26,091			24,592
Accruals	49,063			57,575
Indirect effects of unrecognized tax benefits	39,432			34,349
Investment in subsidiaries	—			25,585
Lease liabilities	33,847			—
Other	48,630			51,175
Total deferred tax assets	673,024			479,115
Valuation allowance	(66,307		)	(61,237		)
Net deferred tax assets	606,717			417,878
Deferred tax liabilities:
Intangible assets	(537,520		)	(595,746		)
Operating lease assets	(28,442		)	—
Other	(43,447		)	(73,350		)
Total deferred tax liabilities	(609,409		)	(669,096		)
Net deferred tax liabilities	$	(2,692	)	$	(251,218	)

The net change in valuation allowance was an increase of $5.1 million and $9.1 million in 2019 and 2018, respectively, and a decrease of $1.0 million in 2017.

The following table summarizes the presentation of deferred tax assets and liabilities (in thousands):



	December 31,
	2019			2018
Deferred tax assets	$	221,403		$	57,879
Deferred tax liabilities	(224,095		)	(309,097		)
Net deferred tax liabilities	$	(2,692	)	$	(251,218	)

As of December 31, 2019, we had NOL carryforwards and tax credit carryforwards for U.S. federal income tax purposes of approximately $273.0 million and $173.1 million, respectively, available to reduce future income subject to income taxes. These NOL carryforwards are inclusive of $204.7 million from the Celator Acquisition in 2016 and $18.7 million from the Cavion acquisition in 2019. The U.S. federal NOL carryforwards will expire, if not utilized, in the tax years 2020 to 2036, and the U.S. federal tax credits will expire, if not utilized, in the tax years 2020 to 2039. In addition, we had approximately $94.0 million of NOL carryforwards and $11.3 million of tax credit carryforwards as of December 31, 2019 available to reduce future taxable income for U.S. state income tax purposes. The U.S. state NOL carryforwards will expire, if not utilized, in the tax years 2020 to 2038. As of December 31, 2019, there were NOL and other carryforwards for income tax purposes of approximately $78.4 million, $46.2 million, $45.2 million and $24.6 million available to reduce future income subject to income taxes in Ireland, United Kingdom, Luxembourg and Malta, respectively. The NOLs and other deductions generated in Ireland, the United Kingdom, Luxembourg and Malta have no expiration date. We also had foreign tax credit carryforwards in Ireland, as of December 31, 2019, of $41.7 million, which may only be utilized against certain sources of income. The foreign tax credit carryforwards have no expiration date.

Utilization of certain of our NOL and tax credit carryforwards in the U.S. is subject to an annual limitation due to the ownership change limitations provided by Sections 382 and 383 of the Internal Revenue Code and similar state provisions. Such an annual limitation may result in the expiration of certain NOLs and tax credits before future utilization. In addition, as a result of the Azur Merger, until 2022 we are subject to certain limitations under the Internal Revenue Code in relation to the utilization of U.S. NOLs to offset U.S. taxable income resulting from certain transactions.

Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. Our valuation allowance was $66.3 million and $61.2 million as of December 31, 2019 and 2018, respectively, for certain Irish, U.S. (federal and state) and foreign deferred tax assets which we maintain until sufficient positive evidence exists to support reversal. During 2019, as part of the overall change in valuation allowance, we recognized a net income tax provision of $6.3 million relating primarily to the creation of a valuation allowance of $15.7 million against certain deferred tax assets primarily associated with foreign tax credits and temporary differences related to foreign subsidiaries, partially offset by the net release of valuation allowances against certain deferred tax assets primarily associated with NOLs. During 2018, as part of the overall change in valuation allowance, we recognized a net income tax provision of $11.2 million relating primarily to the creation of a valuation allowance of $25.7 million against certain deferred tax assets primarily associated with temporary differences related to foreign subsidiaries, partially offset by the net release of valuation allowances against certain deferred tax assets primarily associated with NOLs and foreign tax credits. The $11.2 million net income tax provision included a benefit of $10.9 million relating to a change in judgment leading to the reversal of a valuation allowance against certain deferred tax assets, primarily related to NOLs in the United Kingdom and a benefit of $5.9 million relating to the reversal of a valuation allowance upon completing our analysis of our ability to utilize certain foreign tax credits generated by the one-time transition tax in the U.S. Management determined that valuation allowances were no longer needed on these deferred tax assets based on an assessment of the relative impact of all positive and negative evidence that existed at December 31, 2018, including an evaluation of cumulative income in recent years, future sources of taxable income exclusive of reversing temporary differences, and significant risks and uncertainties related to our business. During 2017, as part of the overall change in valuation allowance, we recognized a net income tax benefit of $6.6 million relating to the net release of a valuation allowance against certain deferred tax assets primarily associated with NOLs, partially offset by the creation of a provisional valuation allowance of $5.9 million against certain deferred tax assets primarily associated with excess foreign tax credits generated during the year as a result of the U.S. Tax Act. The $6.6 million net income tax benefit included a benefit of $9.1 million relating to the utilization of NOL carryforwards against which a valuation allowance was carried. We periodically evaluate the likelihood of the realization of deferred tax assets and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant tax authorities, the progress of tax audits and the regulatory approval of products currently under development. Realization of substantially all the deferred tax assets is dependent on future book income.

Temporary differences related to foreign subsidiaries that are considered indefinitely reinvested totaled approximately $1.6 billion and $1.2 billion as of December 31, 2019 and 2018, respectively. In the event of the distribution of those earnings in the form of dividends, a sale of the subsidiaries, or certain other transactions, we may be liable for income taxes, subject to an adjustment, if any, for foreign tax credits and foreign withholding taxes payable to certain foreign tax authorities. As of December 31, 2019, it was not practicable to determine the amount of the unrecognized deferred tax liability related to these earnings.

We only recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. As a result, we have recorded an unrecognized tax benefit for certain tax benefits which we judge may not be sustained upon examination.

A reconciliation of our gross unrecognized tax benefits follows (in thousands):



	December 31,
	2019			2018			2017
Balance at the beginning of the year	$	118,213		$	106,162		$	90,910
Increases related to current year tax positions	27,552			22,649			27,875
Increases related to prior year tax positions	761			7,584			1,620
Decreases related to prior year tax positions	(91		)	—			(1,075		)
Lapse of the applicable statute of limitations	(22,116		)	(18,182		)	(13,168		)
Balance at the end of the year	$	124,319		$	118,213		$	106,162

The unrecognized tax benefits were included in other non-current liabilities and deferred tax assets, net, in our consolidated balance sheets. Interest related to our unrecognized tax benefits is recorded in the income tax provision in our consolidated statements of income. As of December 31, 2019 and 2018, our accrued interest and penalties related to unrecognized tax benefits was $7.4 million and $6.3 million, respectively. Interest and penalties related to unrecognized tax benefits recognized in the statements of income were not significant. Included in the balance of unrecognized tax benefits were

potential benefits of $78.8 million and $78.5 million at December 31, 2019 and 2018, respectively, that, if recognized, would affect the effective tax rate on income.

We file income tax returns in multiple tax jurisdictions, the most significant of which are Ireland and the U.S. (both at the federal level and in various state jurisdictions). For Ireland we are no longer subject to income tax audits by taxing authorities for the years prior to 2014. The U.S. jurisdictions generally have statute of limitations three to four years from the later of the return due date or the date when the return was filed. However, in the U.S. (at the federal level and in most states), carryforward tax attributes that were generated in 2015 and earlier may still be adjusted upon examination by the tax authorities. Certain of our subsidiaries are currently under examination by the French tax authorities for the years ended December 31, 2012, 2013, 2015, 2016 and 2017. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes. In December 2015, we received proposed tax assessment notices, and, in October 2018 and December 2019, we received revised tax assessment notices from the French tax authorities for 2012 and 2013 and in December 2018 and September 2019, we received a proposed tax assessment notice for 2015, 2016 and 2017, relating to certain transfer pricing adjustments. The notices propose additional French tax of approximately $42 million for 2012 and 2013 and approximately $12 million for 2015, 2016 and 2017 including interest and penalties through the respective dates of the proposed assessments, translated at the foreign exchange rate at December 31, 2019. We disagree with the proposed assessments and are contesting them vigorously. Certain of our Italian subsidiaries are currently under examination by the Italian tax authorities for the year ended December 31, 2017.

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event License Agreement On December 19, 2019, we entered into an exclusive license agreement with Pharma Mar, S.A., or PharmaMar, for development and U.S. commercialization of lurbinectedin, a product candidate under clinical investigation for the treatment of patients with relapsed SCLC. Lurbinectedin was granted orphan drug designation for SCLC by the FDA in August 2018. In December 2019, PharmaMar submitted an NDA to the FDA for accelerated approval of lurbinectedin for relapsed SCLC based on data from a Phase 2 trial, and in February 2020, the FDA accepted the NDA for filing with priority review. Under the terms of this agreement, which become effective in January 2020 upon expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, we paid PharmaMar an upfront payment of $200 million, which will be recorded as acquired IPR&D expense in our consolidated statements of income in the first quarter of 2020. PharmaMar is eligible to receive potential regulatory milestone payments of up to $250 million upon the achievement of accelerated and/or full regulatory approval of lurbinectedin by FDA within certain timelines. PharmaMar is also eligible to receive up to $550 million in potential commercial milestone payments, as well as incremental tiered royalties on future net sales of lurbinectedin ranging from the high teens up to 30 percent. PharmaMar may receive additional payments on approval of other indications, with any such payments creditable against commercial milestone payment obligations. PharmaMar retains production rights for lurbinectedin and will supply the product to Jazz.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

The following interim financial information presents our 2019 and 2018 results of operations on a quarterly basis (in thousands, except per share amounts):



	2019
	March 31		June 30		September 30		December 31
Revenues	$	508,186	$	534,133	$	537,702	$	581,740
Gross margin (1)	469,825		495,747		500,921		541,178
Net income	85,201		261,898		102,276		73,992
Net income per ordinary share, basic	1.49		4.62		1.80		1.31
Net income per ordinary share, diluted	1.47		4.56		1.78		1.29



	2018
	March 31		June 30		September 30		December 31
Revenues	$	444,613	$	500,479	$	469,373	$	476,457
Gross margin (1)	406,928		461,381		438,623		440,997
Net income	45,991		92,321		149,316		159,470
Net income per ordinary share, basic	0.77		1.53		2.47		2.69
Net income per ordinary share, diluted	0.75		1.50		2.41		2.64

__________________________


(1)	Gross margin is computed by subtracting cost of product sales (excluding amortization of acquired developed technologies) from product sales, net.

The interim financial information above includes the following items:


•	Estimated loss contingency of $57.0 million in the first quarter of 2018;


•	Impairment charges and disposal costs of $44.0 million in the second quarter of 2018;


•	Upfront and milestone payments of $56.0 million and $48.3 million in the first and third quarters of 2019, respectively, and $11.0 million in the first quarter of 2018;


•	A one-time tax benefit of $112.3 million resulting from an intra-entity intellectual property asset transfer in the second quarter of 2019; and


•	Amortization costs of $111.1 million in the fourth quarter of 2019 in respect of the PRV.

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

(In thousands)



		Balance at beginning of period		Additions charged to costs and expenses		Other Additions		Deductions			Balance at end of period
For the year ended December 31, 2019
Allowance for doubtful accounts	(1)	$	50	$	9	$	—	$	(9	)	$	50
Allowance for sales discounts	(1)	76		782		—		(745		)	113
Allowance for chargebacks	(1)	408		41,864		—		(41,139		)	1,133
Deferred tax asset valuation allowance	(2)(3)(4)	61,237		20,086		357		(15,373		)	66,307

For the year ended December 31, 2018
Allowance for doubtful accounts	(1)	$	396	$	20	$	—	$	(366	)	$	50
Allowance for sales discounts	(1)	103		811		—		(838		)	76
Allowance for chargebacks	(1)	3,663		41,387		—		(44,642		)	408
Deferred tax asset valuation allowance	(2)(3)	52,144		35,500		—		(26,407		)	61,237

For the year ended December 31, 2017
Allowance for doubtful accounts	(1)	$	287	$	231	$	—	$	(122	)	$	396
Allowance for sales discounts	(1)	118		1,087		—		(1,102		)	103
Allowance for chargebacks	(1)	4,749		41,941		—		(43,027		)	3,663
Deferred tax asset valuation allowance	(2)(3)(4)	53,184		7,509		5,581		(14,130		)	52,144

__________________________


(1)	Shown as a reduction of accounts receivable. Charges related to sales discounts and chargebacks are reflected as a reduction of revenue.


(2)	Additions to the deferred tax asset valuation allowance charged to costs and expenses relate to movements on certain Irish, U.S. (federal and state) and other foreign deferred tax assets where we continue to maintain a valuation allowance until sufficient positive evidence exists to support reversal.


(3)	Deductions to the deferred tax asset valuation allowance include movements relating to utilization of NOLs and tax credit carryforwards, release in valuation allowance and other movements including adjustments following finalization of tax returns.


(4)	Other additions to the deferred tax asset valuation allowance relate to currency translation adjustments recorded directly in other comprehensive income and, in 2019, additions resulting from the Cavion asset acquisition.

Summary of Significant Accounting Policies - (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Recent Accounting Pronouncements

Adoption of New Accounting Standards

Recent Accounting Pronouncements

Significant Risks and Uncertainties

Concentrations of Risk

Business Acquisitions

Cash Equivalents and Investments

We consider all highly liquid investments, readily convertible to cash, that mature within three months or less from date of purchase to be cash equivalents.

Derivative Instruments and Hedging Activities

Inventories

Property, Plant and Equipment



Buildings	40 years
Manufacturing equipment and machinery	5-10 years
Computer software and equipment	3-7 years
Furniture and fixtures	5 years

Leasehold improvements are amortized over the shorter of the noncancelable term of our leases or their economic useful lives. Maintenance and repairs are expensed as incurred.

Leases

Goodwill, Acquired In-Process Research and Development, and Intangible Assets

Goodwill

Acquired In-Process Research and Development

Intangible Assets

Revenue Recognition

Product Sales, Net

Reserves for Variable Consideration

Royalties and Contract Revenues

Cost of Product Sales

Research and Development

Advertising Expenses

We expense the costs of advertising, including promotional expenses, as incurred.

Income Taxes

Foreign Currency

Deferred Financing Costs

Contingencies

Share-Based Compensation

Summary of Significant Accounting Policies - (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2019 for the adoption of the ASU No. 2016-02 was as follows (in thousands):



	Balance at December 31, 2018		Transition Adjustments			Balance at January 1, 2019
Assets:
Property, plant and equipment, net	$	200,358	$	(95,397	)	$	104,961
Operating lease assets	—		149,442			149,442
Liabilities:
Accrued liabilities	264,887		8,165			273,052
Operating lease liabilities, less current portion	—		153,158			153,158
Deferred tax liabilities, net	309,097		1,489			310,586
Other non-current liabilities	218,879		(113,615		)	105,264
Shareholders' Equity:
Retained earnings	841,050		4,848			845,898

Schedule of property and equipment

Estimated useful lives are as follows:



Buildings	40 years
Manufacturing equipment and machinery	5-10 years
Computer software and equipment	3-7 years
Furniture and fixtures	5 years

Property, plant and equipment consisted of the following (in thousands):



	December 31,
	2019			2018
Leasehold improvements	$	52,294		$	33,273
Land and buildings	47,053			46,650
Manufacturing equipment and machinery	28,860			25,837
Computer software	25,680			19,062
Computer equipment	16,577			13,679
Furniture and fixtures	11,152			8,155
Construction-in-progress	5,147			51,243
Build-to-suit facility	—			52,067
Subtotal	186,763			249,966
Less accumulated depreciation and amortization	(55,257		)	(49,608		)
Property, plant and equipment, net	$	131,506		$	200,358

Asset Acquisition, Collaborations and Disposition (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the total consideration for the acquisition and the value of assets acquired and liabilities assumed (in thousands):



Consideration
Upfront payment for acquisition of Cavion's outstanding shares	$	52,500
Cash acquired	397
Working capital adjustment	(255		)
Transaction costs	2,829
Total consideration	$	55,471

Assets Acquired and Liabilities Assumed
Cash	$	397
In-process research and development	48,275
Deferred tax assets	7,995
Other assets and liabilities	(1,196		)
Total net assets acquired	$	55,471

Cash and Available-for-Sale Securities - (Tables)

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents and Investments

Cash and cash equivalents and investments consisted of the following (in thousands):



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	333,172	$	—	$	—	$	333,172	$	333,172	$	—
Time deposits	460,000		—		—		460,000		20,000		440,000
Money market funds	284,172		—		—		284,172		284,172		—
Totals	$	1,077,344	$	—	$	—	$	1,077,344	$	637,344	$	440,000



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	215,606	$	—	$	—	$	215,606	$	215,606	$	—
Time deposits	515,000		—		—		515,000		—		515,000
Money market funds	94,016		—		—		94,016		94,016		—
Totals	$	824,622	$	—	$	—	$	824,622	$	309,622	$	515,000

Fair Value Measurement - (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis



	December 31, 2019						December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value
Assets:
Available-for-sale securities:
Time deposits	$	—	$	460,000	$	460,000	$	—	$	515,000	$	515,000
Money market funds	284,172		—		284,172		94,016		—		94,016
Interest rate contracts	—		—		—		—		4,070		4,070
Foreign exchange forward contracts	—		2,508		2,508		—		1,194		1,194
Totals	$	284,172	$	462,508	$	746,680	$	94,016	$	520,264	$	614,280
Liabilities:
Interest rate contracts	$	—	$	1,515	$	1,515	$	—	$	—	$	—
Foreign exchange forward contracts	—		182		182		—		1,460		1,460
Totals	$	—	$	1,697	$	1,697	$	—	$	1,460	$	1,460

Derivative Instruments and Hedging Activities - (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of gains (losses) on derivative instruments

The impact on accumulated other comprehensive loss and earnings from derivative instruments that qualified as cash flow hedges was as follows (in thousands):



	Year Ended December 31,
Interest Rate Contracts:	2019			2018			2017
Gain (loss) recognized in accumulated other comprehensive loss, net of tax	$	(3,903	)	$	2,274		$	(213	)
Loss (gain) reclassified from accumulated other comprehensive loss to interest expense, net of tax	$	(979	)	$	(252	)	$	1,695

Schedule of foreign exchange gain (loss) of outstanding derivatives



	Year Ended December 31,
Foreign Exchange Forward Contracts:	2019			2018			2017
Gain (loss) recognized in foreign exchange loss	$	(6,192	)	$	(14,648	)	$	17,902

Schedule of the fair value of outstanding derivatives

The following table summarizes the fair value of outstanding derivatives (in thousands):



	December 31, 2019
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	—	Accrued liabilities	$	855
				Other non-current liabilities	660
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	2,508		Accrued liabilities	182
Total fair value of derivative instruments		$	2,508		$	1,697



	December 31, 2018
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	1,929	Accrued liabilities	$	—
	Other non-current assets	2,141
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	1,194		Accrued liabilities	1,460
Total fair value of derivative instruments		$	5,264		$	1,460

Schedule of offsetting assets

The following table summarizes the potential effect on our consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands):



	December 31, 2019
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	2,508		$	—	$	2,508		$	(596	)	$	—	$	1,912
Derivative liabilities	$	(1,697	)	$	—	$	(1,697	)	$	596		$	—	$	(1,101	)



	December 31, 2018
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	5,264		$	—	$	5,264		$	(935	)	$	—	$	4,329
Derivative liabilities	$	(1,460	)	$	—	$	(1,460	)	$	935		$	—	$	(525	)

Schedule of offsetting liabilities



	December 31, 2019
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	2,508		$	—	$	2,508		$	(596	)	$	—	$	1,912
Derivative liabilities	$	(1,697	)	$	—	$	(1,697	)	$	596		$	—	$	(1,101	)



	December 31, 2018
	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/ Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	5,264		$	—	$	5,264		$	(935	)	$	—	$	4,329
Derivative liabilities	$	(1,460	)	$	—	$	(1,460	)	$	935		$	—	$	(525	)

Inventories - (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Components of inventories

Inventories consisted of the following (in thousands):



	December 31,
	2019		2018
Raw materials	$	13,595	$	10,895
Work in process	36,658		20,743
Finished goods	28,355		21,318
Total inventories	$	78,608	$	52,956

Property, Plant and Equipment - (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Estimated useful lives are as follows:



Buildings	40 years
Manufacturing equipment and machinery	5-10 years
Computer software and equipment	3-7 years
Furniture and fixtures	5 years

Property, plant and equipment consisted of the following (in thousands):



	December 31,
	2019			2018
Leasehold improvements	$	52,294		$	33,273
Land and buildings	47,053			46,650
Manufacturing equipment and machinery	28,860			25,837
Computer software	25,680			19,062
Computer equipment	16,577			13,679
Furniture and fixtures	11,152			8,155
Construction-in-progress	5,147			51,243
Build-to-suit facility	—			52,067
Subtotal	186,763			249,966
Less accumulated depreciation and amortization	(55,257		)	(49,608		)
Property, plant and equipment, net	$	131,506		$	200,358

Goodwill and Intangible Assets - (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of gross carrying amount of goodwill

The gross carrying amount of goodwill was as follows (in thousands):



Balance at December 31, 2018	$	927,630
Foreign exchange	(7,612		)
Balance at December 31, 2019	$	920,018

Schedule of gross carrying amounts and net book values of intangible assets

The gross carrying amounts and net book values of our intangible assets were as follows (in thousands):



	December 31, 2019								December 31, 2018
	Remaining Weighted- Average Useful Life (In years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired developed technologies	13.3	$	3,166,485	$	(864,834	)	$	2,301,651	$	3,110,641	$	(632,413	)	$	2,478,228
Priority review voucher (PRV)	—	111,101		(111,101		)	—		111,101		—			111,101
Manufacturing contracts	—	12,025		(12,025		)	—		12,256		(12,256		)	—
Trademarks	—	2,890		(2,890		)	—		2,896		(2,896		)	—
Total finite-lived intangible assets		3,292,501		(990,850		)	2,301,651		3,236,894		(647,565		)	2,589,329
Acquired IPR&D assets		139,326		—			139,326		142,005		—			142,005
Total intangible assets		$	3,431,827	$	(990,850	)	$	2,440,977	$	3,378,899	$	(647,565	)	$	2,731,334

Schedule of estimated future amortization costs



Year Ending December 31,	Estimated Amortization Expense
2020	$	251,032
2021	204,025
2022	159,038
2023	159,038
2024	159,038
Thereafter	1,369,480
Total	$	2,301,651

Accrued Liabilities - (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):



	December 31,
	2019		2018
Rebates and other sales deductions	$	96,860	$	86,495
Employee compensation and benefits	80,290		58,543
Current portion of operating lease liabilities	12,728		—
Selling and marketing accruals	11,299		6,780
Inventory-related accruals	7,816		8,753
Accrued interest	7,386		7,407
Royalties	6,931		2,679
Professional fees	4,718		2,333
Sales returns reserve	3,462		2,510
Clinical trial accruals	2,551		5,904
Accrued construction-in-progress	1,564		1,065
Derivative instrument liabilities	1,037		1,460
Accrued loss contingency	—		58,154
Other	31,231		22,804
Total accrued liabilities	$	267,873	$	264,887

Debt - (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt

The following table summarizes the carrying amount of our indebtedness (in thousands):



	December 31,
	2019			2018
2021 Notes	$	575,000		$	575,000
Unamortized discount and debt issuance costs on 2021 Notes	(38,865		)	(60,910		)
2021 Notes, net	536,135			514,090

2024 Notes	575,000			575,000
Unamortized discount and debt issuance costs on 2024 Notes	(117,859		)	(138,914		)
2024 Notes, net	457,141			436,086

Term loan	613,981			646,236
Total debt	1,607,257			1,596,412
Less current portion	33,387			33,387
Total long-term debt	$	1,573,870		$	1,563,025

Schedule of maturities of long-term debt

Scheduled maturities with respect to our long-term debt are as follows (in thousands):



Year Ending December 31,	Scheduled Long-Term Debt Maturities
2020	$	33,387
2021	608,387
2022	33,387
2023	517,493
2024	575,000
Total	$	1,767,654

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Leases - (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of Lease Cost and Supplemental Cash Flow Information



Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term - operating leases (years)	9.7
Weighted-average discount rate - operating leases	5.3	%

Supplemental cash flow information related to operating leases was as follows (in thousands):



	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	17,066
Non-cash operating activities:
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	153,448

_____________________________

(1)

Includes the balances recognized on January 1, 2019 on adoption of ASU No. 2016-02.

The components of the lease expense for the year ended December 31, 2019 were as follows (in thousands):



Lease Cost	Year Ended December 31, 2019
Operating lease cost	$	23,087
Short-term lease cost	2,465
Variable lease cost	5
Sublease income	(634		)
Net lease cost	$	24,923

Schedule of Lease Supplemental Balance Sheet Information

Supplemental balance sheet information related to operating leases was as follows (in thousands):



Leases	Classification	December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	139,385

Liabilities
Current
Operating lease liabilities	Accrued liabilities	12,728
Non-current
Operating lease liabilities	Operating lease liabilities, less current portion	151,226
Total operating lease liabilities		$	163,954

Schedule of Operating Lease Liability Maturities

Maturities of operating lease liabilities were as follows (in thousands):



Year Ending December 31,	Operating leases
2020	$	21,315
2021	21,104
2022	21,139
2023	21,508
2024	23,857
Thereafter	104,655
Total lease payments	$	213,578
Less imputed interest	(49,624		)
Present value of lease liabilities	$	163,954

Shareholders' Equity - (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of authorized but unissued ordinary shares

We had reserved the following shares of authorized but unissued ordinary shares (in thousands):



	December 31,
	2019	2018
2011 Equity Incentive Plan	19,552	17,729
2007 Employee Stock Purchase Plan	1,883	1,126
Amended and Restated 2007 Non-Employee Directors Stock Award Plan	438	453
Amended and Restated Directors Deferred Compensation Plan	178	178
2007 Equity Incentive Plan	13	13
Total	22,064	19,499

Comprehensive Income (Loss) - (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Components of accumulated other comprehensive loss

The components of accumulated other comprehensive loss as of December 31, 2019 and 2018 were as follows (in thousands):



	Net Unrealized Gain (Loss) From Hedging Activities			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2018	$	3,557		$	(201,348	)	$	(197,791	)
Other comprehensive loss before reclassifications	(3,903		)	(20,720		)	(24,623		)
Amounts reclassified from accumulated other comprehensive loss	(979		)	—			(979		)
Other comprehensive loss, net	(4,882		)	(20,720		)	(25,602		)
Balance at December 31, 2019	$	(1,325	)	$	(222,068	)	$	(223,393	)

Net Income per Ordinary Share - (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Basic and Diluted Net Income per Ordinary Share Computation

Basic and diluted net income per ordinary share attributable to Jazz Pharmaceuticals plc were computed as follows (in thousands, except per share amounts):



	Year Ended December 31,
	2019		2018		2017
Numerator:
Net income	$	523,367	$	447,098	$	487,848
Denominator:
Weighted-average ordinary shares used in per share calculations - basic	56,749		59,976		60,018
Dilutive effect of employee equity incentive and purchase plans	801		1,245		1,299
Weighted-average ordinary shares used in per share calculations - diluted	57,550		61,221		61,317

Net income per ordinary share :
Basic	$	9.22	$	7.45	$	8.13
Diluted	$	9.09	$	7.30	$	7.96

Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income per Share



	Year Ended December 31,
	2019	2018	2017
Exchangeable Senior Notes	5,504	5,504	3,805
Options, RSUs and ESPP	5,000	3,113	3,333

Segment and Other Information - (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Total long-lived assets by location

The following table presents total long-lived assets by location (in thousands):



	December 31,
	2019		2018
Ireland	$	77,237	$	61,290
United States	171,079		126,941
Italy	12,959		8,760
Other	9,616		3,367
Total long-lived assets (1)	$	270,891	$	200,358

_________________________

(1)

Long-lived assets consist of property, plant and equipment and operating lease assets.

Revenues - (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The following table presents a summary of total revenues (in thousands):



	Year Ended December 31,
	2019		2018		2017
Xyrem	$	1,642,525	$	1,404,866	$	1,186,699
Erwinaze/Erwinase	177,465		174,739		197,340
Defitelio/defibrotide	172,938		149,448		133,650
Vyxeos	121,407		100,835		33,790
Sunosi	3,714		—		—
Other	17,552		39,585		49,920
Product sales, net	2,135,601		1,869,473		1,601,399
Royalties and contract revenues	26,160		21,449		17,294
Total revenues	$	2,161,761	$	1,890,922	$	1,618,693

The following table presents a summary of total revenues attributed to geographic sources (in thousands):



	Year Ended December 31,
	2019		2018		2017
United States	$	1,965,318	$	1,727,576	$	1,463,457
Europe	150,201		125,911		125,624
All other	46,242		37,435		29,612
Total revenues	$	2,161,761	$	1,890,922	$	1,618,693

Summary of Revenues from Customers Representing More Than 10% of Total Revenues

The following table presents a summary of the percentage of total revenues from customers that represented more than 10% of our total revenues:



	Year Ended December 31,
	2019		2018		2017
ESSDS	76	%	74	%	73	%
McKesson	14	%	17	%	16	%

Summary of a Reconciliation in Contract Liabilities from Contracts with Customer

The following table presents a reconciliation of our beginning and ending balances in contract liabilities from contracts with customers for the year ended December 31, 2019 (in thousands):



	Contract Liabilities
Balance as of December 31, 2018	$	14,995
Amount recognized within royalties and contract revenues	(5,414		)
Balance as of December 31, 2019	$	9,581

Share-Based Compensation - (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of weighted-average assumptions used in Black-Scholes option pricing model and resulting weighted-average grant date fair value of share options granted



	Year Ended December 31,
	2019			2018			2017
Grant date fair value	$	42.09		$	47.17		$	42.72
Volatility	32		%	35		%	35		%
Expected term (years)	4.5			4.5			4.3
Range of risk-free rates	1.3-2.5%			2.2-3.0%			1.6-2.1%
Expected dividend yield	—		%	—		%	—		%

Schedule of share-based compensation expense related to share options, RSUs, and grants under ESPP

Share-based compensation expense related to share options, RSUs and grants under our ESPP was as follows (in thousands):



	Year Ended December 31,
	2019			2018			2017
Selling, general and administrative	$	78,697		$	76,770		$	83,218
Research and development	25,229			19,037			17,870
Cost of product sales	6,637			6,634			5,812
Total share-based compensation expense, pre-tax	110,563			102,441			106,900
Income tax benefit from share-based compensation expense	(15,712		)	(17,230		)	(21,792		)
Total share-based compensation expense, net of tax	$	94,851		$	85,211		$	85,108

Schedule of information and activity related to share option plans activity

The following table summarizes information as of December 31, 2019 and activity during 2019 related to our share option plans:



	Shares Subject to Outstanding Options (In thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2019	5,280		$	127.08
Options granted	1,691		138.14
Options exercised	(515	)	90.27
Options forfeited	(436	)	139.56
Options expired	(186	)	159.59
Outstanding at December 31, 2019	5,834		$	131.57	6.6	$	127,778
Vested and expected to vest at December 31, 2019	5,553		$	131.15	6.5	$	124,884
Exercisable at December 31, 2019	3,402		$	125.81	5.1	$	102,366

Schedule of information and activity related to RSUs activity

The following table summarizes information as of December 31, 2019 and activity during 2019 related to our RSUs:



	Number of RSUs (in thousands)		Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2019	1,102		$	142.13
RSUs granted	682		138.11
RSUs released	(391	)	144.34
RSUs forfeited	(212	)	140.76
Outstanding at December 31, 2019	1,181		$	139.32	1.4	$	176,158

Income Taxes - (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of income from continuing operations before income tax provision (benefit)

The components of income before the income tax provision (benefit) and equity in loss of investees were as follows (in thousands):



	Year Ended December 31,
	2019			2018		2017
Ireland	$	(6,451	)	$	170,666	$	77,476
United States	317,728			294,621		271,440
Other	143,025			64,176		92,201
Total	$	454,302		$	529,463	$	441,117

Details of income tax provision (benefit)

The following table sets forth the details of the income tax provision (benefit) (in thousands):



	Year Ended December 31,
	2019			2018			2017
Current
Ireland	$	51,696		$	33,431		$	28,045
United States	109,495			95,143			135,608
Other	2,265			40,403			14,198
Total current tax expense	163,456			168,977			177,851
Deferred, exclusive of other components below
Ireland	(163,626		)	(12,408		)	(19,709		)
United States	(41,297		)	(41,337		)	(27,559		)
Other	(37,244		)	(34,545		)	(19,108		)
Total deferred, exclusive of other components	(242,167		)	(88,290		)	(66,376		)
Deferred, change in tax rates
United States	203			(538		)	(155,679		)
Other	5,354			13			(3,536		)
Total deferred, change in tax rates	5,557			(525		)	(159,215		)
Total deferred tax benefit	(236,610		)	(88,815		)	(225,591		)
Total income tax provision (benefit)	$	(73,154	)	$	80,162		$	(47,740	)

Reconciliation of income taxes at the statutory income tax rate to effective income tax rate

The reconciliation between the statutory income tax rate applied to income before the income tax provision (benefit) and equity in loss of investees and our effective income tax rate was as follows:



	Year Ended December 31,
	2019		2018		2017
Statutory income tax rate	12.5	%	12.5	%	12.5	%
Intra-entity transfer of intellectual property assets	(24.7	)%	—	%	—	%
Foreign income tax rate differential	8.7	%	11.9	%	20.3	%
Research and other tax credits	(8.7	)%	(3.0	)%	(2.6	)%
Patent box incentive benefit	(7.0	)%	—	%	—	%
Deduction on subsidiary equity	(5.2	)%	(0.5	)%	(0.7	)%
Change in valuation allowance	3.3	%	3.2	%	(2.8	)%
Non-deductible acquired IPR&D	2.5	%	—	%	—	%
Non-deductible compensation	1.8	%	1.2	%	2.6	%
Financing costs	(1.7	)%	(4.3	)%	(5.6	)%
Change in tax rate	1.5	%	(0.1	)%	(0.4	)%
Change in estimates	0.3	%	(1.1	)%	(2.1	)%
Change in unrecognized tax benefits	0.1	%	1.1	%	2.8	%
Excess tax benefits from share-based compensation	(0.1	)%	(0.4	)%	(1.5	)%
Non-deductible loss contingency	—	%	0.8	%	—	%
Impact of U.S. Tax Act	—	%	(1.4	)%	(33.7	)%
Investment in subsidiaries	—	%	(4.8	)%	—	%
Other	0.6	%	—	%	0.4	%
Effective income tax rate	(16.1	)%	15.1	%	(10.8	)%

Schedule of net deferred tax assets/(liabilities)

The following table summarizes the presentation of deferred tax assets and liabilities (in thousands):



	December 31,
	2019			2018
Deferred tax assets	$	221,403		$	57,879
Deferred tax liabilities	(224,095		)	(309,097		)
Net deferred tax liabilities	$	(2,692	)	$	(251,218	)

Significant components of our net deferred tax assets/(liabilities) were as follows (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	90,670		$	106,128
Tax credit carryforwards	230,447			156,242
Intangible assets	154,844			23,469
Share-based compensation	26,091			24,592
Accruals	49,063			57,575
Indirect effects of unrecognized tax benefits	39,432			34,349
Investment in subsidiaries	—			25,585
Lease liabilities	33,847			—
Other	48,630			51,175
Total deferred tax assets	673,024			479,115
Valuation allowance	(66,307		)	(61,237		)
Net deferred tax assets	606,717			417,878
Deferred tax liabilities:
Intangible assets	(537,520		)	(595,746		)
Operating lease assets	(28,442		)	—
Other	(43,447		)	(73,350		)
Total deferred tax liabilities	(609,409		)	(669,096		)
Net deferred tax liabilities	$	(2,692	)	$	(251,218	)

Reconciliation of unrecognized tax benefits

A reconciliation of our gross unrecognized tax benefits follows (in thousands):



	December 31,
	2019			2018			2017
Balance at the beginning of the year	$	118,213		$	106,162		$	90,910
Increases related to current year tax positions	27,552			22,649			27,875
Increases related to prior year tax positions	761			7,584			1,620
Decreases related to prior year tax positions	(91		)	—			(1,075		)
Lapse of the applicable statute of limitations	(22,116		)	(18,182		)	(13,168		)
Balance at the end of the year	$	124,319		$	118,213		$	106,162

Quarterly Financial Data (Unaudited) - (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of interim financial results of operations on a quarterly basis

The following interim financial information presents our 2019 and 2018 results of operations on a quarterly basis (in thousands, except per share amounts):



	2019
	March 31		June 30		September 30		December 31
Revenues	$	508,186	$	534,133	$	537,702	$	581,740
Gross margin (1)	469,825		495,747		500,921		541,178
Net income	85,201		261,898		102,276		73,992
Net income per ordinary share, basic	1.49		4.62		1.80		1.31
Net income per ordinary share, diluted	1.47		4.56		1.78		1.29



	2018
	March 31		June 30		September 30		December 31
Revenues	$	444,613	$	500,479	$	469,373	$	476,457
Gross margin (1)	406,928		461,381		438,623		440,997
Net income	45,991		92,321		149,316		159,470
Net income per ordinary share, basic	0.77		1.53		2.47		2.69
Net income per ordinary share, diluted	0.75		1.50		2.41		2.64

__________________________


(1)	Gross margin is computed by subtracting cost of product sales (excluding amortization of acquired developed technologies) from product sales, net.

The interim financial information above includes the following items:


•	Estimated loss contingency of $57.0 million in the first quarter of 2018;


•	Impairment charges and disposal costs of $44.0 million in the second quarter of 2018;


•	Upfront and milestone payments of $56.0 million and $48.3 million in the first and third quarters of 2019, respectively, and $11.0 million in the first quarter of 2018;


•	A one-time tax benefit of $112.3 million resulting from an intra-entity intellectual property asset transfer in the second quarter of 2019; and


•	Amortization costs of $111.1 million in the fourth quarter of 2019 in respect of the PRV.

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Summary Of Significant Accounting Policies [Line Items]
Operating lease assets	$ 139,385,000			$ 149,442,000
Present value of lease liabilities	163,954,000
Property, plant and equipment, net	131,506,000	$ 200,358,000		104,961,000
Other non-current liabilities	109,374,000	218,879,000		105,264,000
Intangible asset amortization	354,814,000	201,498,000	$ 152,065,000
Advertising expenses	65,400,000	37,400,000	36,600,000
Acquired Developed Technologies
Summary Of Significant Accounting Policies [Line Items]
Intangible asset amortization	$ 243,700,000	$ 201,300,000	$ 149,100,000
Minimum
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, useful life	2 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, useful life	18 years
Customer concentration risk \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	89.00%	89.00%
Customer concentration risk \| Accounts Receivable \| ESSDS
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	77.00%	74.00%
Customer concentration risk \| Accounts Receivable \| McKesson
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	12.00%	15.00%
Foreign exchange forward contracts \| Derivatives not designated as hedging instruments
Summary Of Significant Accounting Policies [Line Items]
Notional amount	$ 180,900,000	$ 271,500,000
Net asset (liability) fair value	2,300,000	(300,000)
Interest rate contracts \| Derivatives designated as hedging instruments
Summary Of Significant Accounting Policies [Line Items]
Notional amount	300,000,000.0	300,000,000.0
Net asset (liability) fair value	$ (1,500,000)	4,100,000
ASU 2016-02
Summary Of Significant Accounting Policies [Line Items]
Operating lease assets				149,442,000
Present value of lease liabilities				162,900,000
Property, plant and equipment, net				(95,397,000)
Other non-current liabilities		(109,800,000)		$ (113,615,000)
Build-to-suit facility \| ASU 2016-02
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, net		$ (95,400,000)

Summary of Significant Accounting Policies - Cumulative Effect on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Property, plant and equipment, net	$ 131,506	$ 104,961	$ 200,358
Operating lease assets	139,385	149,442
Liabilities
Accrued liabilities	267,873	273,052	264,887
Operating lease liabilities, less current portion	151,226	153,158
Deferred tax liabilities, net	224,095	310,586	309,097
Other non-current liabilities	109,374	105,264	218,879
Shareholders’ equity:
Retained earnings	$ 1,067,815	845,898	841,050
ASU 2016-02
Assets
Property, plant and equipment, net		(95,397)
Operating lease assets		149,442
Liabilities
Accrued liabilities		8,165
Operating lease liabilities, less current portion		153,158
Deferred tax liabilities, net		1,489
Other non-current liabilities		(113,615)	$ (109,800)
Shareholders’ equity:
Retained earnings		$ 4,848

Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2019
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	40 years
Manufacturing equipment and machinery \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	5 years
Manufacturing equipment and machinery \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	10 years
Computer software and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	3 years
Computer software and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment	5 years

Asset Acquisition, Collaborations and Disposition - Asset Acquisition Narrative (Details) - Cavion Inc $ in Thousands	Aug. 12, 2019 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront payment for asset acquisition	$ 52,500
Asset acquisition potential payment upon meeting certain milestones	260,000
Total payment for asset acquisition, including potential payments	$ 312,500

Asset Acquisition, Collaborations and Disposition - Schedule of Asset Acquisition (Details) - Cavion Inc $ in Thousands	Aug. 12, 2019 USD ($)
Consideration
Upfront payment for acquisition of Cavion's outstanding shares	$ 52,500
Cash acquired	397
Working capital adjustment	(255)
Transaction costs	2,829
Total consideration	55,471
Assets Acquired and Liabilities Assumed
In-process research and development	48,275
Deferred tax assets	7,995
Other assets and liabilities	(1,196)
Total net assets acquired	$ 55,471

Asset Acquisition, Collaborations and Disposition - Collaboration and License Agreement Narrative (Details) $ in Thousands		1 Months Ended	12 Months Ended
	Jan. 02, 2019 USD ($) product target	Jan. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront payment paid			$ 109,975	$ 0	$ 85,000
Codiak Biosciences Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of targets/programs \| target	5
Number of projects subject to right to co-commercialize \| product	2
Upfront Payment \| Codiak Biosciences Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront payment paid		$ 56,000
Preclinical Development Milestone Payment \| Codiak Biosciences Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments not yet due or paid	$ 20,000
Milestone Payment \| Codiak Biosciences Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments per target not yet due or paid	$ 200,000

Asset Acquisition, Collaborations and Disposition - Collaboration and Option Agreement Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Non-refundable upfront payment	$ 61,700	$ 0	$ 85,000
ImmunoGen, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Non-refundable upfront payment			$ 75,000
Maximum \| ImmunoGen, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Additional development funding				$ 25,000

Asset Acquisition, Collaborations and Disposition - Disposition Narrative (Details) - USD ($) $ in Thousands				12 Months Ended
	Dec. 31, 2020	Dec. 30, 2019	Sep. 27, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 29, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of assets				$ 14,209	$ 47,898	$ 0
Impairment charges				0	42,896	0
Loss on disposal of assets				$ 21	655	$ 473
Prialt Asset Sale \| Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration							$ 80,000
Proceeds from sale of productive assets before legal and other expenses			$ 50,000
Net proceeds from sale of assets		$ 15,000
Impairment charges					42,900
Loss on disposal of assets					$ 500
Forecast \| Prialt Asset Sale \| Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of assets	$ 15,000

Cash and Available-for-Sale Securities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,077,344	$ 824,622
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	1,077,344	824,622
Cash and Cash Equivalents	637,344	309,622
Investments	440,000	515,000
Interest income	20,500	16,900	$ 4,100
Cash
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	333,172	215,606
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	333,172	215,606
Cash and Cash Equivalents	333,172	215,606
Investments	0	0
Time deposits
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	460,000	515,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	460,000	515,000
Cash and Cash Equivalents	20,000	0
Investments	440,000	515,000
Money market funds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	284,172	94,016
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	284,172	94,016
Cash and Cash Equivalents	284,172	94,016
Investments	$ 0	$ 0

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale securities:
Available-for-sale securities	$ 1,077,344	$ 824,622
Time deposits
Available-for-sale securities:
Available-for-sale securities	460,000	515,000
Money market funds
Available-for-sale securities:
Available-for-sale securities	284,172	94,016
Recurring
Available-for-sale securities:
Totals	746,680	614,280
Liabilities:
Totals	1,697	1,460
Recurring \| Time deposits
Available-for-sale securities:
Available-for-sale securities	460,000	515,000
Recurring \| Money market funds
Available-for-sale securities:
Available-for-sale securities	284,172	94,016
Recurring \| Interest rate contracts
Available-for-sale securities:
Derivative asset	0	4,070
Liabilities:
Derivative Liability	1,515	0
Recurring \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	2,508	1,194
Liabilities:
Derivative Liability	182	1,460
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring
Available-for-sale securities:
Totals	284,172	94,016
Liabilities:
Totals	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Time deposits
Available-for-sale securities:
Available-for-sale securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Money market funds
Available-for-sale securities:
Available-for-sale securities	284,172	94,016
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Interest rate contracts
Available-for-sale securities:
Derivative asset	0	0
Liabilities:
Derivative Liability	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Recurring \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	0	0
Liabilities:
Derivative Liability	0	0
Significant Other Observable Inputs (Level 2) \| Recurring
Available-for-sale securities:
Totals	462,508	520,264
Liabilities:
Totals	1,697	1,460
Significant Other Observable Inputs (Level 2) \| Recurring \| Time deposits
Available-for-sale securities:
Available-for-sale securities	460,000	515,000
Significant Other Observable Inputs (Level 2) \| Recurring \| Money market funds
Available-for-sale securities:
Available-for-sale securities	0	0
Significant Other Observable Inputs (Level 2) \| Recurring \| Interest rate contracts
Available-for-sale securities:
Derivative asset	0	4,070
Liabilities:
Derivative Liability	1,515	0
Significant Other Observable Inputs (Level 2) \| Recurring \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	2,508	1,194
Liabilities:
Derivative Liability	$ 182	$ 1,460

Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Feb. 15, 2018	Feb. 15, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities without readily determinable value, fair value	$ 4.5	$ 4.5
Convertible Debt \| 2021 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate (as a percent)				1.875%
Convertible Debt \| 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate (as a percent)			1.50%
Significant Other Observable Inputs (Level 2) \| Convertible Debt \| 2021 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of exchangeable senior notes	592.0
Significant Other Observable Inputs (Level 2) \| Convertible Debt \| 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of exchangeable senior notes	$ 579.0

Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interest rate contracts
Derivative [Line Items]
Loss recognized in AOCI to be reclassified over the next 12 months	$ (800,000)
Derivatives designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Notional amount	$ 300,000,000.0	$ 300,000,000.0
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Fixed interest rate	1.895%	1.895%
Derivatives not designated as hedging instruments \| Foreign exchange forward contracts
Derivative [Line Items]
Notional amount	$ 180,900,000	$ 271,500,000
Maximum \| Derivatives not designated as hedging instruments \| Foreign exchange forward contracts
Derivative [Line Items]
Contract term	12 months

Derivative Instruments and Hedging Activities - Gains and Losses on Derivative Instruments (Details) - Interest rate contracts - Cash Flow Hedges - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in accumulated other comprehensive loss, net of tax	$ (3,903)	$ 2,274	$ (213)
Loss (gain) reclassified from accumulated other comprehensive loss to interest expense, net of tax	$ (979)	$ (252)	$ 1,695

Derivative Instruments and Hedging Activities - Foreign Exchange Gain (Loss) Derivative Instruments (Details) - Derivatives not designated as hedging instruments - Foreign exchange forward contracts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Gain recognized in other income and expense			$ 17,902
Loss recognized in other income expense	$ (6,192)	$ (14,648)

Derivative Instruments and Hedging Activities - Fair Value of Outstanding Derivatives (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 2,508	$ 5,264
Liability Derivatives	1,697	1,460
Derivatives designated as hedging instruments \| Interest rate contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	0	1,929
Derivatives designated as hedging instruments \| Interest rate contracts \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	855	0
Derivatives designated as hedging instruments \| Interest rate contracts \| Other non-current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives		2,141
Derivatives designated as hedging instruments \| Interest rate contracts \| Other non-current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	660
Derivatives not designated as hedging instruments \| Foreign exchange forward contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	2,508	1,194
Derivatives not designated as hedging instruments \| Foreign exchange forward contracts \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 182	$ 1,460

Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities (Details) - Pro Forma - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivative assets
Gross Amounts of Recognized Assets/ Liabilities	$ 2,508	$ 5,264
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet	2,508	5,264
Gross Amounts Not Offset in the Consolidated Balance Sheet
Derivative Financial Instruments	(596)	(935)
Cash Collateral Received (Pledged)	0	0
Net Amount	1,912	4,329
Derivative liabilities
Gross Amounts of Recognized Assets/ Liabilities	(1,697)	(1,460)
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet	(1,697)	(1,460)
Gross Amounts Not Offset in the Consolidated Balance Sheet
Derivative Financial Instruments	596	935
Cash Collateral Received (Pledged)	0	0
Net Amount	$ (1,101)	$ (525)

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Components of Inventories
Raw materials	$ 13,595	$ 10,895
Work in process	36,658	20,743
Finished goods	28,355	21,318
Total inventories	$ 78,608	$ 52,956

Property, Plant and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 186,763	$ 249,966
Less accumulated depreciation and amortization	(55,257)	(49,608)
Property and equipment, net	131,506	200,358		$ 104,961
Depreciation and amortization expense	15,300	15,200	$ 13,100
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	52,294	33,273
Land and buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	47,053	46,650
Manufacturing equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	28,860	25,837
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	25,680	19,062
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,577	13,679
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,152	8,155
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,147	51,243
Build-to-suit facility
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 0	$ 52,067

Goodwill and Intangible Assets - Schedule of Gross Carrying Amount of Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2018	$ 927,630
Foreign exchange	(7,612)
Balance at December 31, 2019	$ 920,018

Goodwill and Intangible Assets - Schedule of Gross Carrying Amounts and Net Book Values of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,292,501	$ 3,236,894
Accumulated Amortization	(990,850)	(647,565)
Total	2,301,651	2,589,329
Intangible assets, gross	3,431,827	3,378,899
Intangible assets, net	2,440,977	2,731,334
Acquired IPR&D assets
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Acquired IPR&D assets	$ 139,326	142,005
Acquired developed technologies
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Remaining Weighted- Average Useful Life (In years)	13 years 3 months 18 days
Gross Carrying Amount	$ 3,166,485	3,110,641
Accumulated Amortization	(864,834)	(632,413)
Total	$ 2,301,651	2,478,228
Contract-Based Intangible Assets
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Remaining Weighted- Average Useful Life (In years)	0 years
Gross Carrying Amount	$ 111,101	111,101
Accumulated Amortization	(111,101)	0
Total	$ 0	111,101
Manufacturing contracts
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Remaining Weighted- Average Useful Life (In years)	0 years
Gross Carrying Amount	$ 12,025	12,256
Accumulated Amortization	(12,025)	(12,256)
Total	$ 0	0
Trademarks
Finite-Lived and Indefinite Lived Intangible Assets [Line Items]
Remaining Weighted- Average Useful Life (In years)	0 years
Gross Carrying Amount	$ 2,890	2,896
Accumulated Amortization	(2,890)	(2,896)
Total	$ 0	$ 0

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization									$ 354,814	$ 201,498	$ 152,065
Reduction of net income	$ (73,992)	$ (102,276)	$ (261,898)	$ (85,201)	$ (159,470)	$ (149,316)	$ (92,321)	$ (45,991)	$ (523,367)	$ (447,098)	$ (487,848)
Basic (in dollars per share)	$ 1.31	$ 1.80	$ 4.62	$ 1.49	$ 2.69	$ 2.47	$ 1.53	$ 0.77	$ 9.22	$ 7.45	$ 8.13
Diluted (in dollars per share)	$ 1.29	$ 1.78	$ 4.56	$ 1.47	$ 2.64	$ 2.41	$ 1.50	$ 0.75	$ 9.09	$ 7.30	$ 7.96
Intangible asset carrying value	$ 2,301,651				$ 2,589,329				$ 2,301,651	$ 2,589,329
Intangible Assets, Amortization Period
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization									54,900
Reduction of net income									$ 37,300
Basic (in dollars per share)									$ (0.66)
Diluted (in dollars per share)									$ (0.65)
Contract-Based Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	111,100
Intangible asset carrying value	0				$ 111,101				$ 0	$ 111,101
Erwinaze
Finite-Lived Intangible Assets [Line Items]
Intangible asset carrying value	$ 136,000								$ 136,000

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 251,032
2021	204,025
2022	159,038
2023	159,038
2024	159,038
Thereafter	1,369,480
Total	$ 2,301,651	$ 2,589,329

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Rebates and other sales deductions	$ 96,860		$ 86,495
Employee compensation and benefits	80,290		58,543
Current portion of operating lease liabilities	12,728
Selling and marketing accruals	11,299		6,780
Inventory-related accruals	7,816		8,753
Accrued interest	7,386		7,407
Royalties	6,931		2,679
Professional fees	4,718		2,333
Sales returns reserve	3,462		2,510
Clinical trial accruals	2,551		5,904
Accrued construction-in-progress	1,564		1,065
Derivative instrument liabilities	1,037		1,460
Accrued loss contingency	0		58,154
Other	31,231		22,804
Total accrued liabilities	$ 267,873	$ 273,052	$ 264,887

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal amount	$ 1,767,654
Total debt	1,607,257	$ 1,596,412
Less current portion	33,387	33,387
Total long-term debt	1,573,870	1,563,025
Convertible Debt \| 2021 Notes
Debt Instrument [Line Items]
Principal amount	575,000	575,000
Unamortized discount and debt issuance costs	(38,865)	(60,910)
Total debt	536,135	514,090
Convertible Debt \| 2024 Notes
Debt Instrument [Line Items]
Principal amount	575,000	575,000
Unamortized discount and debt issuance costs	(117,859)	(138,914)
Total debt	457,141	436,086
Term loan
Debt Instrument [Line Items]
Total debt	$ 613,981	$ 646,236

Debt - Credit Agreement Narrative (Details) - USD ($)				12 Months Ended
Debt - Credit Agreement Narrative (Details) - USD ($)	Jun. 07, 2018	Jul. 12, 2016	Jun. 18, 2015	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt outstanding				$ 1,767,654,000
Loss on extinguishment and modification of debt				0	$ 1,425,000	$ 0
Borrowings under revolving credit facility \| Credit Agreement June 2015
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 750,000,000.0
Proceeds from revolving credit facility			160,000,000.0
Borrowings under revolving credit facility \| Credit Agreement June 2015 Amendment
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 1,600,000,000	$ 1,250,000,000
Proceeds from revolving credit facility		1,000,000,000.0
Undrawn revolving credit facilities				1,600,000,000
Borrowings under revolving credit facility \| Credit Agreement June 2015 Amendment \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage (as a percent)	0.25%
Borrowings under revolving credit facility \| Credit Agreement June 2015 Amendment \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage (as a percent)	0.35%
Term Loan \| Credit Agreement June 2015
Debt Instrument [Line Items]
Face amount	$ 667,700,000	$ 750,000,000.0	750,000,000.0
Long-term debt outstanding	$ 667,700,000
Loss on extinguishment and modification of debt					$ 1,400,000
Term Loan \| Credit Agreement 2012
Debt Instrument [Line Items]
Extinguishment of debt			$ 893,100,000
Term Loan \| Credit Agreement June 2015 Amendment
Debt Instrument [Line Items]
Long-term debt outstanding				$ 617,700,000
Interest rate during the period				3.17%
Effective interest rate (as a percent)				3.66%
Percentage of principal repayment	5.00%
Term Loan \| Credit Agreement June 2015 Amendment \| London Interbank Offered Rate (LIBOR) \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.375%
Term Loan \| Credit Agreement June 2015 Amendment \| London Interbank Offered Rate (LIBOR) \| Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Term Loan \| Credit Agreement June 2015 Amendment \| Prime Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.375%
Term Loan \| Credit Agreement June 2015 Amendment \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.75%

Debt - Exchangeable Senior Notes (Details)	1 Months Ended	3 Months Ended		12 Months Ended
Debt - Exchangeable Senior Notes (Details)	Aug. 31, 2014 USD ($) d $ / shares	Dec. 31, 2017	Sep. 30, 2017 USD ($) d $ / shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Feb. 15, 2018	Feb. 15, 2015
Debt Instrument [Line Items]
Repayments under revolving credit facility				$ 0	$ 0	$ 850,000,000
Interest expense, net				59,100,000	56,700,000	$ 37,800,000
2024 Notes \| Convertible Debt
Debt Instrument [Line Items]
Face amount			$ 575,000,000.0
Interest rate (as a percent)							1.50%
Percentage of conversion price			130.00%
Number of trading days \| d			20
Number of consecutive days in trading period \| d			30
Conversion rate of shares (in shares per dollar)		0.0045659
Debt conversion price (in dollars per share) \| $ / shares			$ 219.02
Effective interest rate (as a percent)			6.80%
Debt term			7 years
Debt issuance cost			$ 15,600,000
Carrying value of the equity component				149,800,000	149,800,000
2021 Notes \| Convertible Debt
Debt Instrument [Line Items]
Interest rate (as a percent)								1.875%
Percentage of conversion price	130.00%
Number of trading days \| d	20
Number of consecutive days in trading period \| d	30
Conversion rate of shares (in shares per dollar)	0.0050057
Debt conversion price (in dollars per share) \| $ / shares	$ 199.77
Effective interest rate (as a percent)	6.40%
Debt term	7 years
Debt issuance cost	$ 16,100,000
Carrying value of the equity component				$ 126,900,000	$ 126,900,000
Borrowings under revolving credit facility
Debt Instrument [Line Items]
Repayments under revolving credit facility			$ 500,000,000.0
Jazz Investments I Limited \| Convertible Debt
Debt Instrument [Line Items]
Ownership percentage (as a percent)				100.00%

Debt - Schedule of Debt Maturities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2020	$ 33,387
2021	608,387
2022	33,387
2023	517,493
2024	575,000
Long-term debt outstanding	$ 1,767,654

Leases - Lease Cost (Details) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 23,087
Short-term lease cost	2,465
Variable lease cost	5
Sublease income	(634)
Net lease cost	$ 24,923

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Assets
Operating lease assets	$ 139,385	$ 149,442
Liabilities
Current portion of operating lease liabilities	12,728
Operating lease liabilities, less current portion	151,226	$ 153,158
Total operating lease liabilities	$ 163,954

Leases - Weighted Average Terms and Discount Rates (Details)	Dec. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term - operating leases (years)	9 years 8 months 12 days
Weighted-average discount rate - operating leases	5.30%

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 17,066
Non-cash operating activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 153,448

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 21,315
2021	21,104
2022	21,139
2023	21,508
2024	23,857
Thereafter	104,655
Total lease payments	213,578
Less imputed interest	(49,624)
Present value of lease liabilities	$ 163,954

Commitments and Contingencies - Leases and Other Commitments (Details) $ in Millions	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Noncancelable purchase commitments due within one year	$ 74.5

Shareholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Oct. 31, 2019 USD ($)	Nov. 30, 2018 USD ($)	Nov. 30, 2016 USD ($)
Stockholders' Equity Note [Line Items]
Cash dividends declared or paid		$ 0
Maximum allowable dividend and restricted payments	$ 30,000,000
Maximum allowable restricted payments	$ 100,000,000
Maximum secured leverage ratio, for restricted payments to be allowed	3
Minimum total leverage ratio, allowable restricted payments	2
Ordinary Shares \| November 2016 Share Repurchase Program
Stockholders' Equity Note [Line Items]
Total amount authorized for repurchase of shares under share repurchase program					$ 300,000,000.0
Additional amount authorized for repurchase of shares under the share repurchase program		400,000,000.0	$ 500,000,000.0	$ 320,000,000.0
Stock repurchased	$ 301,500,000	$ 523,700,000
Stock repurchased (in shares) \| shares	2.3	3.5
Stock repurchased, average cost per share (in dollars per share) \| $ / shares	$ 133.97	$ 148.33
Remaining amount authorized for repurchase of shares	$ 577,700,000

Shareholders' Equity - Schedule of Authorized But Unissued Ordinary Shares (Details) - shares shares in Thousands	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	22,064	19,499
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	19,552	17,729
2007 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	1,883	1,126
Amended and Restated 2007 Non-Employee Directors Stock Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	438	453
Amended and Restated Directors Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	178	178
2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized but unissued ordinary shares reserved (in shares)	13	13

Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 2,757,422	$ 2,713,097	$ 1,877,339
Other comprehensive loss before reclassifications	(24,623)
Amounts reclassified from accumulated other comprehensive loss	(979)
Other comprehensive loss, net	(25,602)	(56,966)	176,455
Ending balance	3,110,981	2,757,422	2,713,097
Net Unrealized Gain (Loss) From Hedging Activities
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	3,557
Other comprehensive loss before reclassifications	(3,903)
Amounts reclassified from accumulated other comprehensive loss	(979)
Other comprehensive loss, net	(4,882)
Ending balance	(1,325)	3,557
Foreign Currency Translation Adjustments
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(201,348)
Other comprehensive loss before reclassifications	(20,720)
Amounts reclassified from accumulated other comprehensive loss	0
Other comprehensive loss, net	(20,720)
Ending balance	(222,068)	(201,348)
Total Accumulated Other Comprehensive Loss
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(197,791)	(140,878)	(317,333)
Ending balance	$ (223,393)	$ (197,791)	$ (140,878)

Net Income per Ordinary Share - Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income	$ 73,992	$ 102,276	$ 261,898	$ 85,201	$ 159,470	$ 149,316	$ 92,321	$ 45,991	$ 523,367	$ 447,098	$ 487,848
Denominator:
Weighted-average ordinary shares used in per share calculations - basic (in shares)									56,749	59,976	60,018
Dilutive effect of employee equity incentive and purchase plans (in shares)									801	1,245	1,299
Weighted-average ordinary shares used in per share calculations - diluted (in shares)									57,550	61,221	61,317
Net income per ordinary share :
Basic (in dollars per share)	$ 1.31	$ 1.80	$ 4.62	$ 1.49	$ 2.69	$ 2.47	$ 1.53	$ 0.77	$ 9.22	$ 7.45	$ 8.13
Diluted (in dollars per share)	$ 1.29	$ 1.78	$ 4.56	$ 1.47	$ 2.64	$ 2.41	$ 1.50	$ 0.75	$ 9.09	$ 7.30	$ 7.96

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Income per Ordinary Share - Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Exchangeable Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Ordinary shares (in shares)	5,504	5,504	3,805
Options, RSUs and ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Ordinary shares (in shares)	5,000	3,113	3,333

Segment and Other Information - Narrative (Details)	12 Months Ended
Segment and Other Information - Narrative (Details)	Dec. 31, 2019 Segment
Segment Reporting [Abstract]
Number of operating business segments	1

Segment and Other Information - Total Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 270,891
Total long-lived assets	131,506	$ 104,961	$ 200,358
Ireland
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	77,237
Total long-lived assets			61,290
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	171,079
Total long-lived assets			126,941
Italy
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	12,959
Total long-lived assets			8,760
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 9,616
Total long-lived assets			$ 3,367

Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 581,740	$ 537,702	$ 534,133	$ 508,186	$ 476,457	$ 469,373	$ 500,479	$ 444,613	$ 2,161,761	$ 1,890,922	$ 1,618,693
United States
Disaggregation of Revenue [Line Items]
Total revenues									1,965,318	1,727,576	1,463,457
Europe
Disaggregation of Revenue [Line Items]
Total revenues									150,201	125,911	125,624
All other
Disaggregation of Revenue [Line Items]
Total revenues									46,242	37,435	29,612
Product sales, net
Disaggregation of Revenue [Line Items]
Total revenues									2,135,601	1,869,473	1,601,399
Xyrem
Disaggregation of Revenue [Line Items]
Total revenues									1,642,525	1,404,866	1,186,699
Erwinaze/Erwinase
Disaggregation of Revenue [Line Items]
Total revenues									177,465	174,739	197,340
Defitelio/defibrotide
Disaggregation of Revenue [Line Items]
Total revenues									172,938	149,448	133,650
Vyxeos
Disaggregation of Revenue [Line Items]
Total revenues									121,407	100,835	33,790
Sunosi
Disaggregation of Revenue [Line Items]
Total revenues									3,714	0	0
Other
Disaggregation of Revenue [Line Items]
Total revenues									17,552	39,585	49,920
Royalties and contract revenues
Disaggregation of Revenue [Line Items]
Total revenues									$ 26,160	$ 21,449	$ 17,294

Revenues - Summary of the Percentage of Total Revenues from Customers (Details) - Total Revenues - Customer concentration risk	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ESSDS
Concentration Risk [Line Items]
Concentration risk, percentage	76.00%	74.00%	73.00%
McKesson
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	17.00%	16.00%

Revenues - Narrative (Details) $ in Thousands	12 Months Ended
Revenues - Narrative (Details) $ in Thousands	Dec. 31, 2019 USD ($) agreement
Summary Of Deferred Revenue [Line Items]
Contract revenue recognized	$ 5,414
Nippon Shinyaku
Summary Of Deferred Revenue [Line Items]
Number of license, development, and commercialization agreements \| agreement	2
Contract revenue recognized	$ 5,400
Revenue, performance obligation, description of timing	The deferred revenue balances are being recognized over an average of four years representing the period we expect to perform our research and developments obligations under each agreement.
Minimum
Summary Of Deferred Revenue [Line Items]
Payment terms, range	30 days
Maximum
Summary Of Deferred Revenue [Line Items]
Payment terms, range	45 days

Revenues - Summary of Contract Liabilities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Change In Contract With Customer, Liability [Roll Forward]
Balance as of December 31, 2018	$ 14,995
Amount recognized within royalties and contract revenues	(5,414)
Balance as of December 31, 2019	$ 9,581

Share-Based Compensation - Narrative (Details)					1 Months Ended		9 Months Ended	12 Months Ended
Share-Based Compensation - Narrative (Details)	Jan. 01, 2020 shares	Jan. 18, 2012 shares	Jan. 17, 2012	Oct. 24, 2011	Dec. 31, 2011 period shares	Aug. 31, 2010 shares	Sep. 30, 2011	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized tax benefits related to share options exercised \| $								$ 5,100,000	$ 7,700,000	$ 8,900,000
Aggregate intrinsic value of share options exercised \| $								26,200,000	43,400,000	38,900,000
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested stock options \| $								$ 80,100,000
Unrecognized compensation cost, weighted-average period of recognition (in years)								2 years 7 months 6 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)								4 years
Unrecognized compensation cost, weighted-average period of recognition (in years)								2 years 6 months
RSUs weighted-average grant date fair value (in dollars per share) \| $ / shares								$ 138.11
Number of RSUs released (in shares)								391,000
Shares issued (in shares)								265,000
Shares withheld for tax purposes (in shares)								126,000
Total fair value of shares vested \| $								$ 52,000,000.0	55,800,000	53,200,000
Unrecognized compensation cost related to unvested RSUs \| $								$ 101,000,000.0
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods (in years)					4 years
Shares authorized for issuance (in shares)								27,012,330
2011 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants expiration period (in years)					10 years
2011 Equity Incentive Plan, Option One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance, annual automatic increase, maximum percentage of outstanding shares					4.50%
2011 Equity Incentive Plan, Option Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares reserved under plan (in shares)					5,000,000
2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (in shares)		1,000,000
2007 Equity Incentive Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods (in years)		1 year	3 years
2007 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods (in years)		3 years	5 years
Grants expiration period (in years)		10 years	10 years
2007 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (in shares)								4,421,024
ESPP discount rate (as a percent)					15.00%
ESPP offering period (in months)					24 months
Number of purchase periods within each ESPP offering period \| period					4
Number of shares available for issuance (in shares)					175,000
Unrecognized compensation cost, weighted-average period of recognition (in years)								1 year
Unrecognized compensation cost related to grants under the ESPP \| $								$ 4,600,000
2007 Employee Stock Purchase Plan Option One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance, annual automatic increase, maximum percentage of outstanding shares					1.50%
2007 Employee Stock Purchase Plan Option Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares reserved under plan (in shares)					1,000,000
2007 Directors Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under deferred compensation plan (in shares)								903,938
2007 Directors Award Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods (in years)				1 year
2007 Directors Award Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods (in years)				3 years
Grants expiration period (in years)				10 years
Directors Deferred Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares reserved under plan (in shares)						200,000
Recorded expense related to retainer fees earned and deferred \| $								$ 0	$ 0	$ 0
Deferred compensation arrangement with individuals, shares unissued (in shares)								14,499
Subsequent Event \| 2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares reserved under plan (in shares)	2,526,341
Subsequent Event \| 2007 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares reserved under plan (in shares)	842,113
Initial Grant \| 2007 Directors Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)							3 years
Annual Automatic Grant \| 2007 Directors Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)							1 year

Share-Based Compensation - Schedule of Weighted-Average Assumptions Used in Black-Scholes Option Pricing Model and Resulting Weighted-Average Grant Date Fair Value of Share Options Granted (Details) - Share Options - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in dollars per share)	$ 42.09	$ 47.17	$ 42.72
Volatility (as a percent)	32.00%	35.00%	35.00%
Expected term (in years)	4 years 6 months	4 years 6 months	4 years 3 months 18 days
Range of risk-free rates, minimum (as a percent)	1.30%	2.20%	1.60%
Range of risk-free rates, maximum (as a percent)	2.50%	3.00%	2.10%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%

Share-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Stock Options, RSUs, Ordinary Shares Credited to Directors' Phantom Share Accounts and Grants under ESPP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	$ 110,563	$ 102,441	$ 106,900
Income tax benefit from share-based compensation expense	(15,712)	(17,230)	(21,792)
Total share-based compensation expense, net of tax	94,851	85,211	85,108
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	78,697	76,770	83,218
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	25,229	19,037	17,870
Cost of product sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	$ 6,637	$ 6,634	$ 5,812

Share-Based Compensation - Schedule of Share Option Plans Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Shares Subject to Outstanding Options [Roll Forward]
Outstanding, beginning balance (in shares) \| shares	5,280
Options granted (in shares) \| shares	1,691
Options exercised (in shares) \| shares	(515)
Options forfeited (in shares) \| shares	(436)
Options expired (in shares) \| shares	(186)
Outstanding, ending balance (in shares) \| shares	5,834
Vested and expected to vest (in shares) \| shares	5,553
Exercisable, balance (in shares) \| shares	3,402
Weighted Average Exercise Price (in dollars per share) [Roll Forward]
Outstanding, beginning balance (in dollars per share) \| $ / shares	$ 127.08
Options granted (in dollars per share) \| $ / shares	138.14
Options exercised (in dollars per share) \| $ / shares	90.27
Options forfeited (in dollars per share) \| $ / shares	139.56
Options expired (in dollars per share) \| $ / shares	159.59
Outstanding, ending balance (in dollars per share) \| $ / shares	131.57
Vested and expected to vest (in dollars per share) \| $ / shares	131.15
Exercisable (in dollars per share) \| $ / shares	$ 125.81
Weighted- Average Remaining Contractual Term (Years)
Weighted-average remaining contractual term, outstanding (in years)	6 years 7 months 6 days
Weighted-average remaining contractual term, vested and expected to vest, exercisable (in years)	6 years 6 months
Weighted-average remaining contractual term, exercisable (in years)	5 years 1 month 6 days
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding \| $	$ 127,778
Aggregate intrinsic value, vested and expected to vest \| $	124,884
Aggregate intrinsic value, exercisable \| $	$ 102,366

Share-Based Compensation - Schedule of RSUs Activity (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Number of RSUs [Roll Forward]
Number of RSUs, outstanding, beginning balance (in shares) \| shares	1,102
Number of RSUs granted (in shares) \| shares	682
Number of RSUs released (in shares) \| shares	(391)
Number of RSUs forfeited (in shares) \| shares	(212)
Number of RSUs, outstanding, ending balance (in shares) \| shares	1,181
Weighted-Average Grant-Date Fair Value [Roll Forward]
Weighted-average grant-date fair value, outstanding, beginning balance (in dollars per share) \| $ / shares	$ 142.13
Weighted-average grant-date fair value, RSUs granted (in dollars per share) \| $ / shares	138.11
Weighted-average grant-date fair value, RSUs released (in dollars per share) \| $ / shares	144.34
Weighted-average grant-date fair value, RSUs forfeited (in dollars per share) \| $ / shares	140.76
Weighted-average grant-date fair value, outstanding, ending balance (in dollars per share) \| $ / shares	$ 139.32
Weighted-average remaining contractual term, outstanding	1 year 4 months 24 days
Aggregate intrinsic value, outstanding \| $	$ 176,158

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Expenses related to defined contribution plans	$ 8.2	$ 6.4	$ 5.5
Ireland
Defined Contribution Plan Disclosure [Line Items]
Expenses related to defined contribution plans	$ 1.3	1.2	1.0
Defined contribution plans, employer matching percentage of employee's eligible contributions (as a percent)	8.00%
United States
Defined Contribution Plan Disclosure [Line Items]
Expenses related to defined contribution plans	$ 5.0	4.2	3.7
United Kingdom
Defined Contribution Plan Disclosure [Line Items]
Expenses related to defined contribution plans	$ 1.1	0.8	0.7
Defined contribution plans, employer matching percentage of employee's eligible contributions (as a percent)	12.00%
France
Defined Contribution Plan Disclosure [Line Items]
Expenses related to defined contribution plans	$ 0.6	0.4	$ 0.3
Defined contribution plans, employer matching percentage of employee's eligible contributions (as a percent)	14.00%
Accrued retirement liability	$ 0.6	0.4
Italy
Defined Contribution Plan Disclosure [Line Items]
Accrued retirement liability	$ 0.3	$ 0.3

Income Taxes - Components of Income Before Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of Income from Continuing Operations before Income Tax Provision (Benefit)
Ireland	$ (6,451)	$ 170,666	$ 77,476
United States	317,728	294,621	271,440
Other	143,025	64,176	92,201
Income before income tax provision (benefit) and equity in loss of investees	$ 454,302	$ 529,463	$ 441,117

Income Taxes - Details of Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Ireland	$ 51,696	$ 33,431	$ 28,045
United States	109,495	95,143	135,608
Other	2,265	40,403	14,198
Total current tax expense	163,456	168,977	177,851
Deferred, exclusive of other components below
Ireland	(163,626)	(12,408)	(19,709)
United States	(41,297)	(41,337)	(27,559)
Other	(37,244)	(34,545)	(19,108)
Total deferred, exclusive of other components	(242,167)	(88,290)	(66,376)
Deferred, change in tax rates
United States	203	(538)	(155,679)
Other	5,354	13	(3,536)
Total deferred, change in tax rates	5,557	(525)	(159,215)
Total deferred tax benefit	(236,610)	(88,815)	(225,591)
Total income tax provision (benefit)	$ (73,154)	$ 80,162	$ (47,740)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Tax Cuts and Jobs Act of 2017 - change in tax rate, provisional income tax benefit			$ 5,900	$ 155,100
Income tax provision (benefit)		$ (73,154)	$ 80,162	(47,740)
Discrete tax benefit, intra-entity intellectual property asset transfer	$ 112,300	$ 112,300
Tax Cuts and Jobs Act of 2017 - net benefit of the impacts				$ 148,800
Effective income tax rate (as a percent)		(16.10%)	15.10%	(10.80%)
Statutory income tax rate (as a percent)		12.50%	12.50%	12.50%
Increase (decrease) in valuation allowance		$ 5,100	$ 9,100	$ (1,000)
Deferred tax assets, valuation allowance		66,307	61,237
Cumulated unremitted earnings of overseas subsidiaries		1,600,000	1,200,000
Unrecognized tax benefits, accrued interest and penalties		7,400	6,300
Unrecognized tax benefits that would impact the effective tax rate		$ 78,800	$ 78,500
Ireland
Operating Loss Carryforwards [Line Items]
Statutory income tax rate (as a percent)		12.50%	12.50%	12.50%
Ireland \| Ireland
Operating Loss Carryforwards [Line Items]
NOL carryforwards		$ 78,400
U.S. Federal
Operating Loss Carryforwards [Line Items]
NOL carryforwards		273,000
Tax credit carryforwards		173,100
U.S. Federal \| Celator Pharmaceuticals, Inc.
Operating Loss Carryforwards [Line Items]
NOL carryforwards					$ 204,700
U.S. Federal \| Cavion Inc
Operating Loss Carryforwards [Line Items]
NOL carryforwards		18,700
U.S. State
Operating Loss Carryforwards [Line Items]
NOL carryforwards		94,000
Tax credit carryforwards		11,300
Foreign Tax Authorities
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance		15,700		$ 5,900
Tax credit carryforwards		41,700
Foreign Tax Authorities \| Luxembourg
Operating Loss Carryforwards [Line Items]
NOL carryforwards		45,200
Foreign Tax Authorities \| United Kingdom
Operating Loss Carryforwards [Line Items]
NOL carryforwards		46,200
Foreign Tax Authorities \| Malta
Operating Loss Carryforwards [Line Items]
NOL carryforwards		24,600
Valuation Allowance, Operating Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance		6,300	$ 11,200	(6,600)
Tax Cuts And Jobs Act Of 2017, Foreign Tax Credits
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance			25,700
Utilization Of NOL Carryforwards Which Previously Carried Valuation Allowance
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance				$ (9,100)
Tax Year 2012 And 2013 \| French Tax Authorities
Operating Loss Carryforwards [Line Items]
Proposed additional tax including interest and penalties		42,000
Tax Year 2015, 2016 and 2017 \| French Tax Authorities
Operating Loss Carryforwards [Line Items]
Proposed additional tax including interest and penalties		$ 12,000
Her Majesty's Revenue and Customs (HMRC) \| Foreign Tax Authorities
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance			$ (10,900)

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation [Abstract]
Statutory income tax rate	12.50%	12.50%	12.50%
Intra-entity transfer of intellectual property assets	(24.70%)	0.00%	0.00%
Foreign income tax rate differential	8.70%	11.90%	20.30%
Research and other tax credits	(8.70%)	(3.00%)	(2.60%)
Patent box incentive benefit	(7.00%)	0.00%	0.00%
Deduction on subsidiary equity	(5.20%)	(0.50%)	(0.70%)
Change in valuation allowance	3.30%	3.20%	(2.80%)
Non-deductible acquired IPR&D	2.50%	0.00%	0.00%
Non-deductible compensation	1.80%	1.20%	2.60%
Financing costs	(1.70%)	(4.30%)	(5.60%)
Change in tax rate	1.50%	(0.10%)	(0.40%)
Change in estimates	0.30%	(1.10%)	(2.10%)
Change in unrecognized tax benefits	0.10%	1.10%	2.80%
Excess tax benefits from share-based compensation	(0.10%)	(0.40%)	(1.50%)
Non-deductible loss contingency	0.00%	0.80%	0.00%
Impact of U.S. Tax Act	0	(0.014)	(0.337)
Investment in subsidiaries	0.00%	(4.80%)	0.00%
Other	0.60%	0.00%	0.40%
Effective income tax rate	(16.10%)	15.10%	(10.80%)

Income Taxes - Schedule of Net Deferred Tax Assets/(Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 90,670	$ 106,128
Tax credit carryforwards	230,447	156,242
Intangible assets	154,844	23,469
Share-based compensation	26,091	24,592
Accruals	49,063	57,575
Indirect effects of unrecognized tax benefits	39,432	34,349
Investment in subsidiaries	0	25,585
Lease liabilities	33,847
Other	48,630	51,175
Total deferred tax assets	673,024	479,115
Valuation allowance	(66,307)	(61,237)
Net deferred tax assets	606,717	417,878
Deferred tax liabilities:
Intangible assets	(537,520)	(595,746)
Operating lease assets	(28,442)
Other	(43,447)	(73,350)
Total deferred tax liabilities	(609,409)	(669,096)
Net deferred tax liabilities	$ (2,692)	$ (251,218)

Income Taxes - Current and Non-current Deferred Assets/(Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 221,403		$ 57,879
Deferred tax liabilities	(224,095)	$ (310,586)	(309,097)
Net deferred tax liabilities	$ (2,692)		$ (251,218)

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits
Balance at the beginning of the year	$ 118,213	$ 106,162	$ 90,910
Increases related to current year tax positions	27,552	22,649	27,875
Increases related to prior year tax positions	761	7,584	1,620
Decreases related to prior year tax positions	(91)	0	(1,075)
Lapse of the applicable statute of limitations	(22,116)	(18,182)	(13,168)
Balance at the end of the year	$ 124,319	$ 118,213	$ 106,162

Subsequent Event - Narrative (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended	12 Months Ended
	Feb. 25, 2020	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Upfront and milestone payments paid			$ 109,975	$ 0	$ 85,000
Pharma Mar, S.A. \| Forecast
Subsequent Event [Line Items]
Tiered royalty fees percentage, maximum	30.00%
Pharma Mar, S.A. \| Upfront Payment \| Subsequent Event
Subsequent Event [Line Items]
Upfront and milestone payments paid		$ 200,000
Pharma Mar, S.A. \| Accelerated And/Or Full Regulatory Approval Milestone Payments \| Forecast
Subsequent Event [Line Items]
Milestone payments not yet due or paid	$ 250,000
Pharma Mar, S.A. \| Commercial Milestone Payments \| Forecast
Subsequent Event [Line Items]
Milestone payments not yet due or paid	$ 550,000

Quarterly Financial Data (Unaudited) - Schedule Of Interim Financial Information Presents Results Of Operations On Quarterly Basis (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Revenues	$ 581,740	$ 537,702	$ 534,133	$ 508,186	$ 476,457	$ 469,373	$ 500,479	$ 444,613	$ 2,161,761	$ 1,890,922	$ 1,618,693
Gross margin	541,178	500,921	495,747	469,825	440,997	438,623	461,381	406,928
Net income	$ 73,992	$ 102,276	$ 261,898	$ 85,201	$ 159,470	$ 149,316	$ 92,321	$ 45,991	$ 523,367	$ 447,098	$ 487,848
Net income per ordinary share, basic (in dollars per share)	$ 1.31	$ 1.80	$ 4.62	$ 1.49	$ 2.69	$ 2.47	$ 1.53	$ 0.77	$ 9.22	$ 7.45	$ 8.13
Net income per ordinary share, diluted (in dollars per share)	$ 1.29	$ 1.78	$ 4.56	$ 1.47	$ 2.64	$ 2.41	$ 1.50	$ 0.75	$ 9.09	$ 7.30	$ 7.96
Estimated loss contingency								$ 57,000
Impairment charges and disposal costs							$ 44,000
Upfront and milestone payments expense		$ 48,300		$ 56,000				$ 11,000
Discrete tax benefit, intra-entity intellectual property asset transfer			$ 112,300						$ 112,300
Intangible asset amortization									$ 354,814	$ 201,498	$ 152,065
Contract-Based Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 111,100

Schedule II Valuation and Qualifying Accounts - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 50	$ 396	$ 287
Additions charged to costs and expenses	9	20	231
Other Additions	0	0	0
Deductions	(9)	(366)	(122)
Balance at end of period	50	50	396
Allowance for sales discounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	76	103	118
Additions charged to costs and expenses	782	811	1,087
Other Additions	0	0	0
Deductions	(745)	(838)	(1,102)
Balance at end of period	113	76	103
Allowance for chargebacks
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	408	3,663	4,749
Additions charged to costs and expenses	41,864	41,387	41,941
Other Additions	0	0	0
Deductions	(41,139)	(44,642)	(43,027)
Balance at end of period	1,133	408	3,663
Deferred tax asset valuation allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	61,237	52,144	53,184
Additions charged to costs and expenses	20,086	35,500	7,509
Other Additions	357	0	5,581
Deductions	(15,373)	(26,407)	(14,130)
Balance at end of period	$ 66,307	$ 61,237	$ 52,144

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (279,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	4,848,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(332,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	4,848,000
AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	53,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0