Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CPHD | |
Entity Registrant Name | CEPHEID | |
Entity Central Index Key | 1,037,760 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,080,557 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 110,569 | $ 96,663 |
Short-term investments | 189,375 | 196,729 |
Accounts receivable, less allowance for doubtful accounts of $300 as of June 30, 2015 and $237 as of December 31, 2014 | 77,758 | 68,809 |
Inventory, net | 142,050 | 132,635 |
Prepaid expenses and other current assets | 28,596 | 24,274 |
Total current assets | 548,348 | 519,110 |
Property and equipment, net | 120,226 | 115,765 |
Investments | 79,665 | 79,731 |
Other non-current assets | 7,776 | 7,847 |
Intangible assets, net | 28,180 | 31,440 |
Goodwill | 39,681 | 39,681 |
Total assets | 823,876 | 793,574 |
Current liabilities: | ||
Accounts payable | 60,700 | 50,435 |
Accrued compensation | 31,245 | 33,760 |
Accrued royalties | 5,309 | 5,443 |
Accrued and other liabilities | 30,815 | 34,761 |
Current portion of deferred revenue | 13,722 | 13,447 |
Total current liabilities | 141,791 | 137,846 |
Long-term portion of deferred revenue | 5,248 | 4,532 |
Convertible senior notes, net | 282,979 | 278,213 |
Other liabilities | 19,376 | 18,768 |
Total liabilities | $ 449,394 | $ 439,359 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Preferred stock, no par value; 5,000,000 shares authorized, none issued or outstanding | $ 0 | $ 0 |
Common stock, no par value; 150,000,000 shares authorized, 72,057,132 and 70,904,388 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 443,209 | 422,151 |
Additional paid-in capital | 241,528 | 225,529 |
Accumulated other comprehensive income (loss), net | (719) | 247 |
Accumulated deficit | (309,536) | (293,712) |
Total shareholders' equity | 374,482 | 354,215 |
Total liabilities and shareholders' equity | $ 823,876 | $ 793,574 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 300 | $ 237 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,057,132 | 70,904,388 |
Common stock, shares outstanding | 72,057,132 | 70,904,388 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 132,475 | $ 116,503 | $ 265,112 | $ 223,410 |
Costs and operating expenses: | ||||
Cost of sales | 69,377 | 59,568 | 130,578 | 112,651 |
Collaboration profit sharing | 1,326 | 649 | 2,593 | 1,940 |
Research and development | 28,092 | 23,998 | 52,078 | 45,738 |
Sales and marketing | 28,078 | 23,502 | 54,014 | 46,960 |
General and administrative | 16,352 | 14,340 | 31,994 | 28,007 |
Total costs and operating expenses | 143,225 | 122,057 | 271,257 | 235,296 |
Loss from operations | (10,750) | (5,554) | (6,145) | (11,886) |
Other income (expense): | ||||
Interest income | 416 | 306 | 789 | 459 |
Interest expense | (3,646) | (3,500) | (7,250) | (5,363) |
Foreign currency exchange loss and other, net | (1,496) | (176) | (2,440) | (757) |
Other expense, net | (4,726) | (3,370) | (8,901) | (5,661) |
Loss before income taxes | (15,476) | (8,924) | (15,046) | (17,547) |
Provision for income taxes | (1,254) | (919) | (778) | (1,599) |
Net loss | $ (16,730) | $ (9,843) | $ (15,824) | $ (19,146) |
Basic net loss per share | $ (0.23) | $ (0.14) | $ (0.22) | $ (0.27) |
Diluted net loss per share | $ (0.23) | $ (0.14) | $ (0.22) | $ (0.27) |
Shares used in computing basic net loss per share | 71,861 | 69,968 | 71,563 | 69,622 |
Shares used in computing diluted net loss per share | 71,861 | 69,968 | 71,563 | 69,622 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (16,730) | $ (9,843) | $ (15,824) | $ (19,146) |
Change in unrealized gains and losses related to cash flow hedges: | ||||
Loss recognized in other comprehensive income | (1,455) | (472) | (1,051) | (291) |
Loss reclassified from accumulated comprehensive income to the statement of operations | 22 | 216 | 45 | 503 |
Change in unrealized gains and losses related to available-for-sale investments: | ||||
Gain recognized in other comprehensive income | 1 | 104 | 143 | 30 |
Gain reclassified from accumulated comprehensive income to the statement of operations | (3) | (25) | (3) | (27) |
Other comprehensive loss, before tax | (18,165) | (10,020) | (16,690) | (18,931) |
Income tax benefit (expense) related to items of accumulated comprehensive income, net | 375 | (100) | ||
Comprehensive loss | $ (18,540) | $ (10,020) | $ (16,590) | $ (18,931) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (15,824) | $ (19,146) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 13,435 | 10,340 |
Amortization of intangible assets | 3,334 | 1,841 |
Unrealized foreign exchange differences | 1,338 | 122 |
Amortization of debt discount and transaction costs | 5,044 | 3,642 |
Impairment of acquired intangible assets, licenses, property and equipment | 224 | |
Stock-based compensation expense | 15,799 | 15,930 |
Excess tax benefits from stock-based compensation expense | (53) | |
Loss on the disposal of property, equipment and intangible assets | 28 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,949) | (3,167) |
Inventory, net | (9,267) | (19,809) |
Prepaid expenses and other current assets | (5,151) | (5,867) |
Other non-current assets | (207) | (42) |
Accounts payable and other current and non-current liabilities | 9,695 | 1,916 |
Accrued compensation | (2,514) | 2,821 |
Deferred revenue | 991 | 2,864 |
Net cash provided by (used in) operating activities | 7,923 | (8,555) |
Cash flows from investing activities: | ||
Capital expenditures | (19,308) | (25,745) |
Cost of acquisitions, net | (3,000) | |
Proceeds from sale of equipment and an intangible asset | 834 | |
Proceeds from sales of marketable securities and investments | 44,873 | 67,739 |
Proceeds from maturities of marketable securities and investments | 118,497 | 21,326 |
Purchases of marketable securities and investments | (156,401) | (334,800) |
Transfer from restricted cash | 1,328 | |
Net cash used in investing activities | (13,177) | (271,480) |
Cash flows from financing activities: | ||
Net proceeds from the issuance of common shares and exercise of stock options | 20,592 | 24,498 |
Excess tax benefits from stock-based compensation expense | 53 | |
Proceeds from borrowings of convertible senior notes, net of issuance costs | 335,789 | |
Purchase of convertible note capped call hedge | (25,082) | |
Principal payment of notes payable | (80) | (95) |
Net cash provided by financing activities | 20,565 | 335,110 |
Effect of foreign exchange rate change on cash and cash equivalents | (1,405) | (166) |
Net increase in cash and cash equivalents | 13,906 | 54,909 |
Cash and cash equivalents at beginning of period | 96,663 | 66,072 |
Cash and cash equivalents at end of period | $ 110,569 | $ 120,981 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization and Basis of Presentation Cepheid (the “Company”) was incorporated in the State of California on March 4, 1996. The Company is a molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for testing in the Clinical market, as well as for application in the Company’s Non-Clinical legacy market. The Company’s systems enable rapid, sophisticated molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Condensed Consolidated Balance Sheet at June 30, 2015, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2015 and 2014 and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 are unaudited. In the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments that management considers necessary for a fair presentation of the Company’s financial position at such dates, and the operating results and cash flows for those periods. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The results of operations for such periods are not necessarily indicative of the results expected for the remainder of 2015 or for any future period. The Condensed Consolidated Balance Sheet as of December 31, 2014 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Use of Estimates The preparation of condensed consolidated financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. Cash, Cash Equivalents, Restricted Cash, Short-Term Investments and Non-Current Investments Cash and cash equivalents consist of cash on deposit with banks and money market instruments. Interest income includes interest, dividends, amortization of purchase premiums and discounts and realized gains and losses on sales of securities. Restricted cash consists of cash contractually restricted for use to develop the Xpert Ebola test in accordance with the Company’s agreements with the Bill and Melinda Gates Foundation (“BMGF”) and the National Philanthropic Trust (“NPT”). At June 30, 2015 and December 31, 2014, prepaid expense and other current assets included $0.5 million and $1.9 million of restricted cash, respectively. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. The Company determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company classifies its marketable debt securities as cash equivalents, short-term investments or non-current investments based on each instrument’s underlying effective maturity date. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Marketable debt securities with effective maturities of 12 months or less are classified as short-term, and marketable debt securities with effective maturities greater than 12 months are classified as non-current. The Company’s marketable debt securities are carried at fair value, with the unrealized gains and losses reported within accumulated other comprehensive income (loss), a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. The Company assesses whether an other-than-temporary impairment loss on its investments has occurred due to declines in fair value or other market conditions. With respect to the Company’s debt securities, this assessment takes into account the severity and duration of the decline in value, the Company’s intent to sell the security, whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and whether or not the Company expects to recover the entire amortized cost basis of the security (that is, a credit loss exists). See Note 3, “Investments,” for information and related disclosures regarding the Company’s investments. Concentration of Credit Risks and Other Uncertainties The carrying amounts for financial instruments consisting of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities approximate fair value due to their short maturities. Derivative instruments and investments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s derivative instruments consist of large financial institutions of high credit standing. The Company’s main financial institution for banking operations held 59% and 58% of the Company’s cash and cash equivalents as of June 30, 2015 and December 31, 2014, respectively. The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition. The Company provides reserves for potential credit losses but has not experienced significant losses to date. There was one direct customer whose accounts receivable balance represented 15% and 26% of total accounts receivable as of June 30, 2015 and December 31, 2014, respectively. See Note 10, “Segment and Significant Concentrations,” for disclosure regarding total sales to direct customers and single countries. Inventory, Net Inventory is stated at the lower of standard cost (which approximates actual cost) or market value, with cost determined on the first-in-first-out method. Allocation of fixed production overheads to conversion costs is based on normal capacity of production. Abnormal amounts of idle facility expense, freight, handling costs, and spoilage are expensed as incurred, and not included in overhead. The Company maintains provisions for excess and obsolete inventory based on management’s estimates of forecasted demand and, where applicable, product expiration. The components of inventories were as follows (in thousands): June 30, 2015 December 31, 2014 Raw Materials $ 31,080 $ 36,287 Work in Process 58,369 51,691 Finished Goods 52,601 44,657 Inventory $ 142,050 $ 132,635 In addition, capitalized stock-based compensation expense of $1.7 million and $1.6 million were included in inventory as of June 30, 2015 and December 31, 2014, respectively. Revenue Recognition The Company recognizes revenue from sales when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. No right of return exists for the Company’s products except in the case of damaged goods. The Company has not experienced any significant returns of its products. Shipping and handling costs are expensed as incurred and included in cost of sales. In those cases where the Company bills shipping and handling costs to customers, the amounts billed are classified as revenue. The Company enters into revenue arrangements that may consist of multiple deliverables of its products and services. In situations with multiple deliverables, revenue is recognized upon the delivery of the separate elements. The Company sells service contracts for which revenue is deferred and recognized ratably over the contract period. The Company may place an instrument at a customer site under a reagent rental. Under a reagent rental, the Company retains title to the instrument and earns revenue for the usage of the instrument and related maintenance services through the amount charged for reagents and other disposables. Under a reagent rental, a customer may commit to purchasing minimum quantities of reagents at stated prices over a defined contract term, which is typically between three to five years. Revenue is recognized over the term of a reagent rental as reagents and other disposables are shipped and all other revenue recognition criteria have been met. For multiple element arrangements, the total consideration for an arrangement is allocated among the separate elements in the arrangement based on a selling price hierarchy. The selling price hierarchy for a deliverable is based on: (1) vendor specific objective evidence (“VSOE”), if available; (2) third party evidence of selling price if VSOE is not available; or (3) an estimated selling price, if neither VSOE nor third party evidence is available. Estimated selling price is the Company’s best estimate of the selling price of an element in a transaction. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services or other future performance obligations. The Company recognizes revenue for delivered elements only when it determines there are no uncertainties regarding customer acceptance. Revenue includes fees for research and development services, including research and development under grants and government sponsored research and collaboration agreements. Revenue and profit under cost-plus service contracts are recognized as costs are incurred plus negotiated fees. Fixed fees on cost-plus service contracts are recognized ratably over the contract performance period as services are performed. Contract costs include labor and related employee benefits, subcontracting costs and other direct costs, as well as allocations of allowable indirect costs. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization, and determining whether realization is probable. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. Advance payments received in excess of amounts earned, such as funds received in advance of products to be delivered or services to be performed, are classified as deferred revenue until earned. Earnings per Share Basic earnings per share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options, employee stock purchases, restricted stock awards, restricted stock units and shares issuable upon a potential conversion of the convertible senior notes using the treasury stock method. In loss periods, the earnings per share calculation excludes all common equivalent shares because their inclusion would be antidilutive. Antidilutive common equivalent shares totaled 8,847,000 and 9,845,000 for the three months ended June 30, 2015 and 2014, respectively, and 8,655,000 and 9,237,000 for the six months ended June 30, 2015 and 2014, respectively. The following summarizes the computation of basic and diluted earnings per share (in thousands, except for per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) Diluted: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — — Diluted weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principal of ASU 2014-09 is to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective transition methods. The Company has not yet selected a transition method nor has it determined the potential effects on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends limited sections within ASC Subtopic 835-30. ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt ASU 2015-03 on January 1, 2016, at which time the Company will reclassify approximately $6 million of debt issuance costs associated with the Company’s long-term debt from other noncurrent assets to long-term debt. A reclassification will also be applied retrospectively to each prior period presented. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 2. Fair Value The following table summarizes the fair value hierarchy for the Company’s financial assets (cash, cash equivalents, short-term investments, non-current investments and foreign currency derivatives) and financial liabilities (foreign currency derivatives) measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands): Balance as of June 30, 2015: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 83,071 $ 27,498 $ — $ 110,569 Short-term investments: Asset-backed securities — 47,547 — 47,547 Corporate debt securities — 65,662 — 65,662 Commercial Paper — 47,033 — 47,033 Government agency securities — 21,007 — 21,007 Other securities — 8,126 — 8,126 Total short-term investments — 189,375 — 189,375 Foreign currency derivatives — 3,444 — 3,444 Investments: Asset-backed securities — 18,383 — 18,383 Corporate debt securities — 44,567 — 44,567 Government agency securities — 8,005 — 8,005 Other securities — 8,710 — 8,710 Total investments — 79,665 — 79,665 Total $ 83,071 $ 299,982 $ — $ 383,053 Liabilities: Foreign currency derivatives $ — $ 3,205 $ — $ 3,205 Total $ — $ 3,205 $ — $ 3,205 Balance as of December 31, 2014: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 76,065 $ 20,598 $ — $ 96,663 Short-term investments: Asset-backed securities 52,220 52,220 Corporate debt securities — 64,202 — 64,202 Commercial paper — 56,096 — 56,096 Government agency securities 15,003 15,003 Other securities — 9,208 — 9,208 Total short-term investments — 196,729 — 196,729 Foreign currency derivatives — 3,887 — 3,887 Investments: Asset-backed securities — 12,713 — 12,713 Corporate debt securities — 22,679 — 22,679 Government agency securities — 39,532 — 39,532 Other securities — 4,807 — 4,807 Total investments — 79,731 — 79,731 Total $ 76,065 $ 300,945 $ — $ 377,010 Liabilities: Foreign currency derivatives $ — $ 3,812 $ — $ 3,812 Total $ — $ 3,812 $ — $ 3,812 The estimated fair values of the Company’s other financial instruments which are not measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 were as follows (in thousands): Balance as of June 30, 2015: Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 399,344 $ — $ 399,344 Total $ — $ 399,344 $ — $ 399,344 Balance as of December 31, 2014: Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 382,232 $ — $ 382,232 Total $ — $ 382,232 $ — $ 382,232 The Company utilized levels 1 and 2 to value its financial assets on a recurring basis. Level 1 instruments use quoted prices in active markets for identical assets or liabilities, which include the Company’s cash accounts, short-term deposits, and money market funds as these specific assets are liquid. Level 2 instruments are valued using the market approach which uses quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 instruments include commercial paper, corporate debt securities, United States government securities, government agency securities, asset-backed securities, and other securities as similar or identical instruments can be found in active markets. The Company recorded derivative assets and liabilities at fair value. The Company’s derivatives consist of foreign exchange forward contracts. The Company has elected to use the income approach to value the derivatives, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount assuming that participants are motivated, but not compelled to transact. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically foreign currency spot rate and forward points) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR rates, credit default spot rates, and company specific LIBOR spread). Mid-market pricing is used as a practical expedient for fair value measurements. The fair value measurement of an asset or liability must reflect the nonperformance risk of the entity and the counterparty. Therefore, the impact of the counterparty’s creditworthiness when in an asset position and the Company’s creditworthiness when in a liability position has also been factored into the fair value measurement of the derivative instruments and did not have a material impact on the fair value of these derivative instruments. Both the counterparty and the Company are expected to continue to perform under the contractual terms of the instruments. The estimated fair value of the convertible senior notes, which we have classified as Level 2 financial instruments, was determined based on the quoted price of the convertible senior notes on June 30, 2015. Level 3 assets and liabilities are valued by applying the income approach and are based on significant unobservable inputs that are supported by little or no market activity. The Company had no level 3 financial assets as of June 30, 2015 and December 31, 2014. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Investments | 3. Investments The Company’s marketable securities as of June 30, 2015, were classified as available-for-sale securities, with changes in fair value recognized in accumulated other comprehensive income (loss), net, a component of shareholders’ equity. Classification of marketable securities as a current asset is based on the intended holding period and realizability of the investment. The following tables summarize available-for-sale marketable securities (in thousands): Balance as of June 30, 2015: Cost Gross Unrealized Gross Unrealized Estimated Fair Short-term investments: Asset-backed securities $ 47,549 $ 4 $ (6 ) $ 47,547 Commercial paper 74,511 20 — 74,531 Corporate debt securities 65,683 4 (25 ) 65,662 Government agency securities 21,000 7 — 21,007 Other securities 8,118 8 — 8,126 Amounts classified as cash equivalents (27,494 ) (4 ) — (27,498 ) Total short-term investments $ 189,367 $ 39 $ (31 ) $ 189,375 Investments: Asset-backed securities $ 18,373 $ 10 $ — $ 18,383 Corporate debt securities 44,596 7 (36 ) 44,567 Government agency securities 8,001 4 — 8,005 Other securities 8,711 3 (4 ) 8,710 Total investments $ 79,681 $ 24 $ (40 ) $ 79,665 Balance as of December 31, 2014: Cost Gross Unrealized Gross Unrealized Estimated Fair Short-term investments: Asset-backed securities $ 52,240 $ 3 $ (23 ) $ 52,220 Commercial paper 76,683 12 — 76,695 Corporate debt securities 64,244 2 (45 ) 64,201 Government agency securities 15,000 3 — 15,003 Other securities 9,206 2 — 9,208 Amounts classified as cash equivalents (20,598 ) — — (20,598 ) Total short-term investments $ 196,775 $ 22 $ (68 ) $ 196,729 Investments: Asset-backed securities $ 12,724 $ — $ (12 ) $ 12,712 Corporate debt securities 22,709 — (29 ) 22,680 Government agency securities 39,583 — (51 ) 39,532 Other securities 4,815 — (8 ) 4,807 Total investments $ 79,831 $ — $ (100 ) $ 79,731 For the six months ended June 30, 2015 and 2014, $44.9 million and $67.7 million, respectively, of proceeds from sales of marketable securities were collected. The Company determines gains and losses from sales of marketable securities based on specific identification of the securities sold. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of “Interest income” in the Condensed Consolidated Statements of Operations, were for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gross realized gains $ 3 $ 25 $ 3 $ 27 Gross realized losses — — — — Realized gains, net $ 3 $ 25 $ 3 $ 27 The fair value of the Company’s marketable securities with unrealized losses at June 30, 2015 and December 31, 2014, and the duration of time that such losses had been unrealized (in thousands) were: Balance at June 30, 2015: Less Than 12 months More than 12 months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Asset-backed securities $ 24,297 $ (5 ) $ 3,592 $ (1 ) $ 27,889 $ (6 ) Corporate debt securities 72,814 (51 ) 4,464 (10 ) 77,278 (61 ) Other securities 6,898 (4 ) — — 6,898 (4 ) Total $ 104,009 $ (60 ) $ 8,056 $ (11 ) $ 112,065 $ (71 ) Balance at December 31, 2014: Less Than 12 months More than 12 months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Asset-backed securities $ 54,580 $ (35 ) $ — $ — $ 54,580 $ (35 ) Corporate debt securities 79,360 (74 ) — — 79,360 (74 ) Government agency securities 39,532 (51 ) — — 39,532 (51 ) Other securities 4,807 (8 ) — — 4,807 (8 ) Total $ 178,279 $ (168 ) $ — $ — $ 178,279 $ (168 ) The Company has evaluated such securities, which consist of investments in asset-backed securities, corporate debt securities, government agency securities, and other securities as of June 30, 2015, and has determined that there was no indication of other-than-temporary impairments. This determination was based on several factors, including the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the debt issuer, and the Company’s intent and ability to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value. The following table summarizes the amortized cost and estimated fair value of available-for-sale debt securities at June 30, 2015 and December 31, 2014, by contractual maturity (in thousands): June 30, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Mature in one year or less $ 157,642 $ 157,654 $ 150,133 $ 150,105 Mature after one year through three years 125,417 125,397 135,675 135,566 Mature in more than three years 13,483 13,487 11,396 11,387 Total $ 296,542 $ 296,538 $ 297,204 $ 297,058 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 4. Derivative Financial Instruments The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk. The Company may enter into foreign currency forward contracts generally up to twelve months to offset some of the foreign exchange risk on expected future cash flows on certain forecasted revenue, cost of sales, operating expenses and on certain existing assets and liabilities. The Company may also enter into foreign currency forward contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. The Company records all derivatives in the Condensed Consolidated Balance Sheet at fair value. The Company’s accounting treatment of these instruments is based on whether the instruments are designated as hedge or non-hedge instruments. For derivative instruments that are designated and qualify as cash flow hedges, the Company initially records the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive income or loss (“AOCI”), a separate component of shareholders’ equity and subsequently reclassifies these amounts into earnings within the same financial statement line item as the hedged item in the period during which the hedged transaction is recognized in earnings. The ineffective portions of cash flow hedges are recorded in foreign currency exchange loss and other, net. The Company had a net deferred loss of $0.8 million and a net deferred gain of $0.2 million associated with cash flow hedges recorded in AOCI as of June 30, 2015 and December 31, 2014, respectively. Deferred gains and losses associated with cash flow hedges of forecasted foreign currency revenue are recognized as a component of revenues in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of forecasted expenses are recognized as a component of cost of sales, research and development expense, sales and marketing expense and general and administrative expense in the same period as the related expenses are recognized. The Company’s hedged transactions as of June 30, 2015 are expected to occur within twelve months. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into foreign currency exchange loss and other, net. Any subsequent changes in fair value of such derivative instruments are reflected in foreign currency exchange loss and other, net unless they are re-designated as hedges of other transactions. The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three and six months ended June 30, 2015 and 2014. Gains or losses on derivatives not designated as hedging instruments are recorded in foreign currency exchange loss and other, net. During the three months ended June 30, 2015 and 2014, the Company recognized a loss of $0.3 million and $0.2 million, respectively, as a component of foreign currency exchange loss and other, net, related to derivative instruments not designated as hedging instruments. During the six months ended June 30, 2015 and 2014, the Company recognized a gain of $1.7 million and a loss of $0.5 million, respectively, as a component of foreign currency exchange loss and other, net, related to derivative instruments not designated as hedging instruments. These amounts represent the net gain or loss on the derivative contracts and do not include changes in the related exposures or ineffective portion or amounts excluded from the effectiveness testing of cash flow hedges. The notional principle amounts of the Company’s outstanding derivative instruments designated as cash flow hedges are $152.8 million and $117.2 million as of June 30, 2015 and December 31, 2014, respectively. The notional principle amounts of the Company’s outstanding derivative instruments not designated as cash flow hedges is $35.1 million and $30.4 million as of June 30, 2015 and December 31, 2014, respectively. The following tables show the Company’s derivative instruments at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, respectively (in thousands): June 30, 2015 Fair Value of Derivatives Designated Fair Value of Derivatives Not Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 3,396 $ 48 $ 3,444 Derivative Liabilities (b): Foreign exchange contracts (3,014 ) (191 ) (3,205 ) December 31, 2014 Fair Value of Derivatives Designated Fair Value of Derivatives Not Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 3,887 $ — $ 3,887 Derivative Liabilities (b): Foreign exchange contracts (3,685 ) (127 ) (3,812 ) (a) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. (b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued and other liabilities in the Condensed Consolidated Balance Sheets. The following tables show the pre-tax effect of the Company’s derivative instruments designated as cash flow hedges in the Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2015 and 2014 (in thousands): Three Months Ended Loss Recognized in OCI - Loss Reclassified from AOCI into Income - Effective Portion Gain (Loss) Recognized - Ineffective Portion and June 30, 2015 June 30, 2014 June 30, 2015 (a) June 30, 2014 (b) Location June 30, 2015 June 30, Cash flow hedges: Foreign exchange contracts $ (1,455 ) $ (472 ) $ (22 ) $ (216 ) Foreign currency exchange loss and other, net $ (38 ) $ 20 Total $ (1,455 ) $ (472 ) $ (22 ) $ (216 ) $ (38 ) $ 20 (a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $2.4 million loss within costs and operating expenses and a $2.4 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the three months ended June 30, 2015. (b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $0.4 million loss within costs and operating expenses and a $0.2 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the three months ended June 30, 2014. Six Months Ended Loss Recognized in OCI - Loss Reclassified from AOCI into Income - Effective Portion Gain (Loss) Recognized - Ineffective Portion and June 30, 2015 June 30, 2014 June 30, 2015 (a) June 30, 2014 (b) Location June 30, 2015 June 30, Cash flow hedges: Foreign exchange contracts $ (1,051 ) $ (291 ) $ (45 ) $ (503 ) Foreign currency exchange loss and other, net $ (124 ) $ 33 Total $ (1,051 ) $ (291 ) $ (45 ) $ (503 ) $ (124 ) $ 33 (a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $4.7 million loss within costs and operating expenses and a $4.7 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the six months ended June 30, 2015. (b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $0.9 million loss within costs and operating expenses and a $0.4 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the six months ended June 30, 2014. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible assets related to licenses are recorded at cost, less accumulated amortization. Intangible assets related to technology and other intangible assets acquired in acquisitions are recorded at fair value at the date of acquisition, less accumulated amortization. Intangible assets are amortized over their estimated useful lives, ranging from 3 to 15 years, on a straight-line basis. Amortization of intangible assets is primarily included in cost of sales, research and development and sales and marketing in the Condensed Consolidated Statements of Operations. The recorded value and accumulated amortization of major classes of intangible assets were as follows (in thousands): Gross Carrying Accumulated Net Carrying Balance, June 30, 2015 Licenses $ 11,454 $ (6,747 ) $ 4,707 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 35,849 (12,376 ) 23,473 $ 55,916 $ (27,736 ) $ 28,180 Balance, December 31, 2014 Licenses $ 13,594 $ (8,477 ) $ 5,117 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 36,582 (10,259 ) 26,323 $ 58,789 $ (27,349 ) $ 31,440 Intangible asset amortization expense was $1.7 million and $0.9 million for the three months ended June 30, 2015 and 2014, respectively, and $3.3 million and $1.8 million for the six months ended June 30, 2015 and 2014, respectively. The following table summarizes the expected future annual amortization expense of intangible assets recorded on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2015, assuming no impairment charges (in thousands): For the Years Ending December 31, Amortization 2015 (remaining six months) $ 3,001 2016 5,822 2017 5,460 2018 5,080 2019 4,181 Thereafter 4,636 Total expected future annual amortization $ 28,180 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes For the three and six months ended June 30, 2015, the Company recorded an income tax provision of $1.3 million and $0.8 million, respectively, comprised primarily of ordinary tax expense of the Company’s foreign subsidiaries, and the tax effect of items in accumulated other comprehensive income (loss), net. For the three and six months ended June 30, 2014, the Company recorded an income tax provision of $0.9 million and $1.6 million, respectively, primarily related to ordinary tax expense of the Company’s foreign subsidiaries. The Company’s effective tax rate for the three and six months ended June 30, 2015 and June 30, 2014 differs from the statutory federal income tax rate of 34%, primarily due to the impact of operations in foreign jurisdictions, as well as income or loss in the United States federal and state jurisdictions for which no tax expense or benefit is recorded. The difference in the effective tax rate for the three and six months ended June 30, 2015, compared to the three and six months ended June 30, 2014 is primarily due to increased United States income, or decreased United States losses, for the three and six months ended June 30, 2015, for which no income tax expense or benefit is recorded in the United States federal and state tax jurisdictions. The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates. The Company’s position is to record a valuation allowance when it is more likely than not that some of the deferred tax assets will not be realized. Based on all available objective evidence, the Company believes that it is more likely than not that the net United States deferred tax assets will not be fully realized. Accordingly, the Company continues to maintain a full valuation allowance on its United States deferred tax assets and will do so until there is sufficient evidence to support the reversal of all or some portion of this valuation allowance. The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. The Company’s United States and state income tax return years 1996 through 2014 remain open to examination. In addition, the Company files tax returns in multiple foreign taxing jurisdictions with open tax years ranging from 2009 to 2014. The Company anticipates that the total unrecognized tax benefits will not significantly change within the next 12 months due to the settlement of audits and the expiration of statutes of limitations. The Company is currently under examination in Sweden. Although the outcome of any tax audit is uncertain, the Company believes that it has adequately provided in its consolidated financial statements for any additional taxes that the Company may be required to pay as a result of such examination. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the three and six months ended June 30, 2015 and 2014, the Company did not recognize any significant interest or penalties related to uncertain tax positions. As of June 30, 2015 and December 31, 2014, the Company had not accrued significant interest or penalties. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | 7. Convertible Senior Notes In February 2014, the Company issued $345 million aggregate principal amount of 1.25% convertible senior notes (the “Notes”) due February 1, 2021, unless earlier repurchased by the Company or converted by the holder pursuant to their terms. Interest is payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 2014. The Notes are governed by an Indenture between the Company, as issuer, and Wells Fargo Bank, National Association, as trustee. The Notes are unsecured and rank: senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to the Company’s existing and future indebtedness that is not so subordinated; effectively subordinated in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all existing and future indebtedness and other liabilities incurred by the Company’s subsidiaries. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election. The Notes have an initial conversion rate of 15.3616 shares of common stock per $1,000 principal amount of Notes. This represents an initial effective conversion price of approximately $65.10 per share of common stock and approximately 5,300,000 shares upon conversion. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest, if any, upon conversion of a Note, except in limited circumstances. Accrued but unpaid interest will be deemed to be paid by the cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock paid or delivered, as the case may be, to the holder upon conversion of a Note. Prior to the close of business on the business day immediately preceding August 1, 2020, the Notes will be convertible at the option of holders during certain periods, only upon satisfaction of certain conditions set forth below. On or after August 1, 2020, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion rate at any time regardless of whether the conditions set forth below have been met. Holders may convert all or a portion of their Notes prior to the close of business on the business day immediately preceding August 1, 2020, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2014 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “Notes Measurement Period”) in which the “trading price” (as the term is defined in the Indenture) per $1,000 principal amount of notes for each trading day of such Notes Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock on such trading day and the conversion rate on each such trading day; or • upon the occurrence of specified corporate events. As of June 30, 2015, the Notes are not yet convertible. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied interest rate of its Notes to be approximately 5.0%, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the Notes, which resulted in a fair value of the liability component of $270 million upon issuance, calculated as the present value of implied future payments based on the $345 million aggregate principal amount. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes. The $75 million difference between the aggregate principal amount of $345 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the Notes were not considered redeemable. In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total amount incurred to the liability and equity components based on their estimated relative fair values. Transaction costs attributable to the liability component, totaling $7.2 million, are being amortized to expense over the term of the Notes, and transaction costs attributable to the equity component, totaling $2.0 million, and were netted with the equity component in shareholders’ equity. The Notes consist of the following (in thousands): June 30, 2015 December 31, 2014 Liability component: Principal 345,000 345,000 Less: debt discount, net of amortization (62,021 ) (66,787 ) Net carrying amount 282,979 278,213 Equity component (a) 73,013 73,013 (a) Recorded in the condensed consolidated balance sheets within additional paid-in capital, net of $2.0 million issuance costs in equity The following table sets forth total interest expense recognized related to the Notes (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 1.25% coupon $ 1,078 $ 1,078 $ 2,156 $ 1,653 Amortization of debt issuance costs 144 100 278 150 Amortization of debt discount 2,398 2,284 4,766 3,491 3,620 3,462 7,200 5,294 As of June 30, 2015 and December 31, 2014, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands): June 30, 2015 December 31, 2014 Fair Value Carrying Fair Value Carrying Convertible Senior Notes $ 399,344 $ 282,979 $ 382,232 $ 278,213 In connection with the issuance of the Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and others. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the Notes. Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the Notes, with an initial strike price of approximately $65.10 per share, which corresponds to the initial conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes, and have a cap price of approximately $78.61. The cost of the purchased capped calls of $25.1 million was recorded to shareholders’ equity and will not be re-measured. Based on the closing price of our common stock of $61.15 on June 30, 2015, the if-converted value of the Notes was less than their respective principal amounts. |
Commitments, Contingencies and
Commitments, Contingencies and Legal Matters | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Legal Matters | 8. Commitments, Contingencies and Legal Matters Purchase Commitments The following table summarizes the Company’s purchase commitments at June 30, 2015 (in thousands): Years Ending December 31, Purchase Commitments 2015 (remaining six months) $ 36,177 2016 — 2017 — 2018 — 2019 — Thereafter — Total minimum payments $ 36,177 Purchase commitments include non-cancellable purchase orders or contracts for the purchase of raw materials used in the manufacturing of the Company’s systems and reagents. Legal Matters In May 2005, the Company entered into a license agreement with F. Hoffman-La Roche Ltd. and Roche Molecular Systems, Inc. (“Roche”) that provided us with rights under a broad range of Roche patents, including patents relating to the PCR process, reverse transcription-based methods, nucleic acid quantification methods, real-time PCR detection process and composition, and patents relating to methods for detection of viral and cancer targets. A number of the licensed patents expired in the United States prior to the end of August of 2010 and in Europe prior to the end of August of 2011. In August 2010, the Company terminated the Company’s license to United States Patent No. 5,804,375 (the “375 Patent”) and ceased paying United States-related royalties. The Company terminated the entire license agreement in the fourth quarter of 2011. In August 2011, Roche initiated an arbitration proceeding against the Company in the International Chamber of Commerce pursuant to the terms of the terminated agreement. The Company filed an answer challenging arbitral jurisdiction over the issues submitted by Roche and denying that the Company violated any provision of the agreement. A three-member panel has been convened to address these issues in confidential proceedings. On July 30, 2013, the panel determined that it had jurisdiction to decide the claims, a determination that the Company appealed to the Swiss Federal Supreme Court. On October 2, 2013, the arbitration panel determined that it would proceed with the arbitration while this appeal was pending. On February 27, 2014 the Swiss Federal Supreme Court upheld the jurisdiction of the arbitration panel to hear the case, and the case is continuing. The Company believes that it has not violated any provision of the agreement and that the asserted claim of the 375 Patent is expired, invalid, unenforceable, and not infringed. Based on its ongoing evaluation of the facts and circumstances of the case, the Company believes that it is probable that this arbitration proceeding could result in a material loss. Accordingly, the Company recorded an estimated charge of $20 million as its best estimate of the potential loss in the fourth quarter of 2014, which was included in accrued and other liabilities in the Company’s condensed consolidated balance sheets and the Company has not changed its estimate of this potential loss. If the Company were to incur a loss in the arbitration proceeding, depending on the ruling of the arbitrator, the Company could also be responsible for certain attorneys’ fees and interest; however, at this time, the Company is unable to estimate these potential amounts. Given the inherent uncertainty of arbitration and the nature of the claims in this matter, it is possible that the Company may incur an additional material charge, but an estimate of such a charge cannot be made at this time. The Company continues to strongly dispute Roche’s claims and intends to vigorously defend against them. On August 21, 2012 the Company filed a lawsuit against Roche in the United States District Court for the Northern District of California (“the Court”), for a declaratory judgment of (a) invalidity, expiration, and non-infringement of the 375 Patent; and (b) invalidity, unenforceability, expiration and non-infringement of United States Patent No. 6,127,155 (the “155 Patent”). On January 17, 2013, the Court issued an order granting a motion by Roche to stay the suit with respect to the 375 Patent pending resolution of the above noted arbitration proceeding. In the same order, the Court dismissed the Company’s suit with respect to the 155 Patent for lack of subject matter jurisdiction, without considering or ruling on the merits of the Company’s case. The Court left open the possibility that the Company could re-file its case against the 155 Patent in the future. The Company believes that the possibility that these legal proceedings will result in a material adverse effect on the Company’s business is remote. On July 16, 2014 Roche filed a lawsuit in the Court, alleging that the Company’s Xpert MTB-RIF product infringes United States Patent No. 5,643,723 (the “723 Patent”), which expired on July 1, 2014. On September 15, 2014, the Company filed its answer and counterclaims denying Roche’s allegations of infringement and asking the Court to find the 723 Patent invalid, unenforceable, and not infringed. On November 10, 2014, the Company filed a petition for inter partes review (“IPR”) of certain claims of the 723 Patent in the United States Patent and Trademark Office (“USPTO”) and filed a motion with the Court to stay this lawsuit pending the outcome of the IPR. On January 7, 2015, the Court issued an order staying the lawsuit pending the outcome of the IPR. On March 16, 2015, the Company filed a second petition for IPR of an additional claim of the 723 Patent. On June 11, 2015, the USPTO issued a decision declining to institute the first requested IPR. On July 13, 2015, the Company filed a request for reconsideration of the first petition for IPR with respect to certain challenged claims. The Company believes that the possibility that these legal proceedings will result in a material loss is remote. The Company may be subject to additional various claims, complaints and legal actions that arise from time to time in the normal course of business. Other than as described above, the Company does not believe it is party to any currently pending legal proceedings that will result in a material adverse effect on its business. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on the Company’s business, consolidated financial position, results of operations or cash flows. |
Employee Equity Incentive Plans
Employee Equity Incentive Plans and Stock-Based Compensation Expense | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity Incentive Plans and Stock-Based Compensation Expense | 9. Employee Equity Incentive Plans and Stock-Based Compensation Expense The following table is a summary of the major categories of stock-based compensation expense recognized in accordance with ASC 718, “Compensation—Stock Compensation” (“ASC 718”) for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Cost of sales $ 1,008 $ 1,473 $ 2,049 $ 1,854 Research and development 2,277 2,481 4,475 4,609 Sales and marketing 1,743 1,926 3,193 3,542 General and administrative 3,241 3,268 6,110 5,925 Total stock-based compensation expense $ 8,269 $ 9,148 $ 15,827 $ 15,930 The following table summarizes option activity under all plans (in thousands, except weighted average exercise price and weighted average remaining contractual term): Shares Weighted Weighted Average Intrinsic Value Outstanding, December 31, 2014 5,581 $ 33.20 Granted 1,141 $ 56.46 Exercised (912 ) $ 22.84 Forfeited (144 ) $ 41.29 Outstanding, June 30, 2015 5,666 $ 39.35 4.57 $ 123,503 Exercisable, June 30, 2015 2,955 $ 31.05 3.34 $ 88,962 Vested and expected to vest, June 30, 2015 5,431 $ 38.87 4.50 $ 120,996 The following table summarizes all award activity, which consists of restricted stock awards and restricted stock units (in thousands, except weighted average grant date fair value): Shares Weighted Average Outstanding, December 31, 2014 698 $ 40.30 Granted 447 56.31 Vested (186 ) 39.07 Cancelled (50 ) 44.37 Outstanding, June 30, 2015 909 $ 48.20 The following table summarizes the assumptions used in determining the fair value of the Company’s stock options granted to employees and shares purchased by employees under the Company’s 2012 Employee Stock Purchase Plan (“ESPP”): Three Months Ended Six Months Ended 2015 2014 2015 2014 OPTION SHARES: Expected Term (in years) 4.46 4.40 4.46 4.40 Volatility 0.36 0.38 0.36 0.38 Expected Dividends — % — % — % — % Risk Free Interest Rates 1.45 % 1.73 % 1.45 % 1.73 % Estimated Forfeitures 6.14 % 6.75 % 6.14 % 6.79 % Weighted Average Fair Value Per Share $ 18.05 $ 15.29 $ 18.07 $ 15.64 ESPP SHARES: Expected Term (in years) 1.22 1.25 1.22 1.25 Volatility 0.32 0.32 0.32 0.32 Expected Dividends — % — % — % — % Risk Free Interest Rates 0.26 % 0.17 % 0.26 % 0.17 % Weighted Average Fair Value Per Share $ 16.43 $ 14.54 $ 16.43 $ 14.54 |
Segment and Significant Concent
Segment and Significant Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Significant Concentrations | 10. Segment and Significant Concentrations The Company and its wholly owned subsidiaries operate in one business segment. The following table summarizes revenue in the Clinical and Non-Clinical markets (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue by market: Clinical Systems $ 21,783 $ 28,334 $ 38,084 $ 45,619 Clinical Reagents 103,227 83,006 212,233 166,166 Total Clinical 125,010 111,340 250,317 211,785 Non-Clinical 7,465 5,163 14,795 11,625 Total revenue $ 132,475 $ 116,503 $ 265,112 $ 223,410 The Company currently sells product through its direct sales force and through third-party distributors. No customers accounted for more than 10% of total revenue for the three and six months ended June 30, 2015, and for the six months ended June 30, 2014. One distributor represented greater than 10% of the Company’s total revenue for the three months ended June 30, 2014. Revenue from this distributor for the three months ended June 30, 2015 and 2014 were 0.1% and 13.1% of total revenue, respectively, and for the six months ended June 30, 2015 and 2014 were 0.1% and 6.8% of total revenue, respectively. The following table summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Geographic revenue information: North America Clinical $ 69,056 $ 57,649 $ 144,529 $ 114,935 Non-Clinical 7,131 3,926 13,963 9,475 Total North America 76,187 61,575 158,492 124,410 International Clinical $ 55,953 $ 53,691 $ 105,787 $ 96,850 Non-Clinical 335 1,237 833 2,150 Total International 56,288 54,928 106,620 99,000 Total revenue $ 132,475 $ 116,503 $ 265,112 $ 223,410 No single country outside of the United States represented more than 10% of the Company’s total revenue for the three and six months ended June 30, 2015 and the six months ended June 30, 2014. For the three months ended June 30, 2014, revenue from China customers represented more than 10% of the Company’s total revenue. The Company recognized revenue of $72.6 million and $60.0 million for sales to United States customers for the three months ended June 30, 2015 and 2014, respectively, and $149.6 million and $121.6 million for the six months ended June 30, 2015 and 2014, respectively. The Company recognized revenue of $1.3 million and $15.4 million to China customers for the three months ended June 30, 2015 and 2014, respectively, and $1.8 million and $15.5 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015 and December 31, 2014, the Company has long lived-assets (excluding intangible assets and goodwill) of $100.5 million and $96.0 million, respectively, which reside in the United States. As of June 30, 2015 and December 31, 2014, the Company has long-lived assets of $19.7 million and $19.8 million, respectively, located outside of the United States, which reside primarily in Sweden and countries in the European Monetary Union. |
Related Party Transaction
Related Party Transaction | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 11. Related party transaction The Company sells its products and provides services to Geisinger Health System (“Geisinger”), a physician-led health care system serving multiple regions of Pennsylvania. A director of the Company was the President and Chief Executive Officer of Geisinger until the second quarter of 2015. Net revenues recorded from sales to Geisinger were approximately $0.5 million and $0.4 million for the three months ended June 30, 2015 and 2014, respectively, and $1.3 million and $0.8 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015 and December 31, 2014, the Company had accounts receivable of approximately $0.2 million and $0.2 million due from Geisinger, respectively. |
Organization and Summary of S18
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Cepheid (the “Company”) was incorporated in the State of California on March 4, 1996. The Company is a molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for testing in the Clinical market, as well as for application in the Company’s Non-Clinical legacy market. The Company’s systems enable rapid, sophisticated molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Condensed Consolidated Balance Sheet at June 30, 2015, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2015 and 2014 and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 are unaudited. In the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments that management considers necessary for a fair presentation of the Company’s financial position at such dates, and the operating results and cash flows for those periods. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The results of operations for such periods are not necessarily indicative of the results expected for the remainder of 2015 or for any future period. The Condensed Consolidated Balance Sheet as of December 31, 2014 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. |
Cash, Cash Equivalents, Restricted Cash, Short-Term Investments and Non-Current Investments | Cash, Cash Equivalents, Restricted Cash, Short-Term Investments and Non-Current Investments Cash and cash equivalents consist of cash on deposit with banks and money market instruments. Interest income includes interest, dividends, amortization of purchase premiums and discounts and realized gains and losses on sales of securities. Restricted cash consists of cash contractually restricted for use to develop the Xpert Ebola test in accordance with the Company’s agreements with the Bill and Melinda Gates Foundation (“BMGF”) and the National Philanthropic Trust (“NPT”). At June 30, 2015 and December 31, 2014, prepaid expense and other current assets included $0.5 million and $1.9 million of restricted cash, respectively. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. The Company determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company classifies its marketable debt securities as cash equivalents, short-term investments or non-current investments based on each instrument’s underlying effective maturity date. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Marketable debt securities with effective maturities of 12 months or less are classified as short-term, and marketable debt securities with effective maturities greater than 12 months are classified as non-current. The Company’s marketable debt securities are carried at fair value, with the unrealized gains and losses reported within accumulated other comprehensive income (loss), a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. The Company assesses whether an other-than-temporary impairment loss on its investments has occurred due to declines in fair value or other market conditions. With respect to the Company’s debt securities, this assessment takes into account the severity and duration of the decline in value, the Company’s intent to sell the security, whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and whether or not the Company expects to recover the entire amortized cost basis of the security (that is, a credit loss exists). See Note 3, “Investments,” for information and related disclosures regarding the Company’s investments. |
Concentration of Credit Risks and Other Uncertainties | Concentration of Credit Risks and Other Uncertainties The carrying amounts for financial instruments consisting of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities approximate fair value due to their short maturities. Derivative instruments and investments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s derivative instruments consist of large financial institutions of high credit standing. The Company’s main financial institution for banking operations held 59% and 58% of the Company’s cash and cash equivalents as of June 30, 2015 and December 31, 2014, respectively. The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition. The Company provides reserves for potential credit losses but has not experienced significant losses to date. There was one direct customer whose accounts receivable balance represented 15% and 26% of total accounts receivable as of June 30, 2015 and December 31, 2014, respectively. See Note 10, “Segment and Significant Concentrations,” for disclosure regarding total sales to direct customers and single countries. |
Inventory,Net | Inventory, Net Inventory is stated at the lower of standard cost (which approximates actual cost) or market value, with cost determined on the first-in-first-out method. Allocation of fixed production overheads to conversion costs is based on normal capacity of production. Abnormal amounts of idle facility expense, freight, handling costs, and spoilage are expensed as incurred, and not included in overhead. The Company maintains provisions for excess and obsolete inventory based on management’s estimates of forecasted demand and, where applicable, product expiration. The components of inventories were as follows (in thousands): June 30, 2015 December 31, 2014 Raw Materials $ 31,080 $ 36,287 Work in Process 58,369 51,691 Finished Goods 52,601 44,657 Inventory $ 142,050 $ 132,635 In addition, capitalized stock-based compensation expense of $1.7 million and $1.6 million were included in inventory as of June 30, 2015 and December 31, 2014, respectively. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from sales when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. No right of return exists for the Company’s products except in the case of damaged goods. The Company has not experienced any significant returns of its products. Shipping and handling costs are expensed as incurred and included in cost of sales. In those cases where the Company bills shipping and handling costs to customers, the amounts billed are classified as revenue. The Company enters into revenue arrangements that may consist of multiple deliverables of its products and services. In situations with multiple deliverables, revenue is recognized upon the delivery of the separate elements. The Company sells service contracts for which revenue is deferred and recognized ratably over the contract period. The Company may place an instrument at a customer site under a reagent rental. Under a reagent rental, the Company retains title to the instrument and earns revenue for the usage of the instrument and related maintenance services through the amount charged for reagents and other disposables. Under a reagent rental, a customer may commit to purchasing minimum quantities of reagents at stated prices over a defined contract term, which is typically between three to five years. Revenue is recognized over the term of a reagent rental as reagents and other disposables are shipped and all other revenue recognition criteria have been met. For multiple element arrangements, the total consideration for an arrangement is allocated among the separate elements in the arrangement based on a selling price hierarchy. The selling price hierarchy for a deliverable is based on: (1) vendor specific objective evidence (“VSOE”), if available; (2) third party evidence of selling price if VSOE is not available; or (3) an estimated selling price, if neither VSOE nor third party evidence is available. Estimated selling price is the Company’s best estimate of the selling price of an element in a transaction. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services or other future performance obligations. The Company recognizes revenue for delivered elements only when it determines there are no uncertainties regarding customer acceptance. Revenue includes fees for research and development services, including research and development under grants and government sponsored research and collaboration agreements. Revenue and profit under cost-plus service contracts are recognized as costs are incurred plus negotiated fees. Fixed fees on cost-plus service contracts are recognized ratably over the contract performance period as services are performed. Contract costs include labor and related employee benefits, subcontracting costs and other direct costs, as well as allocations of allowable indirect costs. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization, and determining whether realization is probable. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. Advance payments received in excess of amounts earned, such as funds received in advance of products to be delivered or services to be performed, are classified as deferred revenue until earned. |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options, employee stock purchases, restricted stock awards, restricted stock units and shares issuable upon a potential conversion of the convertible senior notes using the treasury stock method. In loss periods, the earnings per share calculation excludes all common equivalent shares because their inclusion would be antidilutive. Antidilutive common equivalent shares totaled 8,847,000 and 9,845,000 for the three months ended June 30, 2015 and 2014, respectively, and 8,655,000 and 9,237,000 for the six months ended June 30, 2015 and 2014, respectively. The following summarizes the computation of basic and diluted earnings per share (in thousands, except for per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) Diluted: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — — Diluted weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principal of ASU 2014-09 is to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective transition methods. The Company has not yet selected a transition method nor has it determined the potential effects on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends limited sections within ASC Subtopic 835-30. ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt ASU 2015-03 on January 1, 2016, at which time the Company will reclassify approximately $6 million of debt issuance costs associated with the Company’s long-term debt from other noncurrent assets to long-term debt. A reclassification will also be applied retrospectively to each prior period presented. |
Organization and Summary of S19
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Components of Inventories | The components of inventories were as follows (in thousands): June 30, 2015 December 31, 2014 Raw Materials $ 31,080 $ 36,287 Work in Process 58,369 51,691 Finished Goods 52,601 44,657 Inventory $ 142,050 $ 132,635 |
Computation of Basic and Diluted Earnings Per Share | The following summarizes the computation of basic and diluted earnings per share (in thousands, except for per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) Diluted: Net loss $ (16,730 ) $ (9,843 ) $ (15,824 ) $ (19,146 ) Basic weighted shares outstanding 71,861 69,968 71,563 69,622 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — — Diluted weighted shares outstanding 71,861 69,968 71,563 69,622 Net loss per share $ (0.23 ) $ (0.14 ) $ (0.22 ) $ (0.27 ) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the fair value hierarchy for the Company’s financial assets (cash, cash equivalents, short-term investments, non-current investments and foreign currency derivatives) and financial liabilities (foreign currency derivatives) measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands): Balance as of June 30, 2015: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 83,071 $ 27,498 $ — $ 110,569 Short-term investments: Asset-backed securities — 47,547 — 47,547 Corporate debt securities — 65,662 — 65,662 Commercial Paper — 47,033 — 47,033 Government agency securities — 21,007 — 21,007 Other securities — 8,126 — 8,126 Total short-term investments — 189,375 — 189,375 Foreign currency derivatives — 3,444 — 3,444 Investments: Asset-backed securities — 18,383 — 18,383 Corporate debt securities — 44,567 — 44,567 Government agency securities — 8,005 — 8,005 Other securities — 8,710 — 8,710 Total investments — 79,665 — 79,665 Total $ 83,071 $ 299,982 $ — $ 383,053 Liabilities: Foreign currency derivatives $ — $ 3,205 $ — $ 3,205 Total $ — $ 3,205 $ — $ 3,205 Balance as of December 31, 2014: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 76,065 $ 20,598 $ — $ 96,663 Short-term investments: Asset-backed securities 52,220 52,220 Corporate debt securities — 64,202 — 64,202 Commercial paper — 56,096 — 56,096 Government agency securities 15,003 15,003 Other securities — 9,208 — 9,208 Total short-term investments — 196,729 — 196,729 Foreign currency derivatives — 3,887 — 3,887 Investments: Asset-backed securities — 12,713 — 12,713 Corporate debt securities — 22,679 — 22,679 Government agency securities — 39,532 — 39,532 Other securities — 4,807 — 4,807 Total investments — 79,731 — 79,731 Total $ 76,065 $ 300,945 $ — $ 377,010 Liabilities: Foreign currency derivatives $ — $ 3,812 $ — $ 3,812 Total $ — $ 3,812 $ — $ 3,812 |
Liabilities Measured at Fair Value on Non-Recurring Basis | The estimated fair values of the Company’s other financial instruments which are not measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 were as follows (in thousands): Balance as of June 30, 2015: Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 399,344 $ — $ 399,344 Total $ — $ 399,344 $ — $ 399,344 Balance as of December 31, 2014: Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 382,232 $ — $ 382,232 Total $ — $ 382,232 $ — $ 382,232 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Schedule of Available-for-Sale Marketable Securities | The following tables summarize available-for-sale marketable securities (in thousands): Balance as of June 30, 2015: Cost Gross Unrealized Gross Unrealized Estimated Fair Short-term investments: Asset-backed securities $ 47,549 $ 4 $ (6 ) $ 47,547 Commercial paper 74,511 20 — 74,531 Corporate debt securities 65,683 4 (25 ) 65,662 Government agency securities 21,000 7 — 21,007 Other securities 8,118 8 — 8,126 Amounts classified as cash equivalents (27,494 ) (4 ) — (27,498 ) Total short-term investments $ 189,367 $ 39 $ (31 ) $ 189,375 Investments: Asset-backed securities $ 18,373 $ 10 $ — $ 18,383 Corporate debt securities 44,596 7 (36 ) 44,567 Government agency securities 8,001 4 — 8,005 Other securities 8,711 3 (4 ) 8,710 Total investments $ 79,681 $ 24 $ (40 ) $ 79,665 Balance as of December 31, 2014: Cost Gross Unrealized Gross Unrealized Estimated Fair Short-term investments: Asset-backed securities $ 52,240 $ 3 $ (23 ) $ 52,220 Commercial paper 76,683 12 — 76,695 Corporate debt securities 64,244 2 (45 ) 64,201 Government agency securities 15,000 3 — 15,003 Other securities 9,206 2 — 9,208 Amounts classified as cash equivalents (20,598 ) — — (20,598 ) Total short-term investments $ 196,775 $ 22 $ (68 ) $ 196,729 Investments: Asset-backed securities $ 12,724 $ — $ (12 ) $ 12,712 Corporate debt securities 22,709 — (29 ) 22,680 Government agency securities 39,583 — (51 ) 39,532 Other securities 4,815 — (8 ) 4,807 Total investments $ 79,831 $ — $ (100 ) $ 79,731 |
Schedule of Gross Realized Gains and Losses of Marketable Securities | Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of “Interest income” in the Condensed Consolidated Statements of Operations, were for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gross realized gains $ 3 $ 25 $ 3 $ 27 Gross realized losses — — — — Realized gains, net $ 3 $ 25 $ 3 $ 27 |
Schedule of Marketable Securities with Unrealized Losses | The fair value of the Company’s marketable securities with unrealized losses at June 30, 2015 and December 31, 2014, and the duration of time that such losses had been unrealized (in thousands) were: Balance at June 30, 2015: Less Than 12 months More than 12 months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Asset-backed securities $ 24,297 $ (5 ) $ 3,592 $ (1 ) $ 27,889 $ (6 ) Corporate debt securities 72,814 (51 ) 4,464 (10 ) 77,278 (61 ) Other securities 6,898 (4 ) — — 6,898 (4 ) Total $ 104,009 $ (60 ) $ 8,056 $ (11 ) $ 112,065 $ (71 ) Balance at December 31, 2014: Less Than 12 months More than 12 months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Asset-backed securities $ 54,580 $ (35 ) $ — $ — $ 54,580 $ (35 ) Corporate debt securities 79,360 (74 ) — — 79,360 (74 ) Government agency securities 39,532 (51 ) — — 39,532 (51 ) Other securities 4,807 (8 ) — — 4,807 (8 ) Total $ 178,279 $ (168 ) $ — $ — $ 178,279 $ (168 ) |
Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity | The following table summarizes the amortized cost and estimated fair value of available-for-sale debt securities at June 30, 2015 and December 31, 2014, by contractual maturity (in thousands): June 30, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Mature in one year or less $ 157,642 $ 157,654 $ 150,133 $ 150,105 Mature after one year through three years 125,417 125,397 135,675 135,566 Mature in more than three years 13,483 13,487 11,396 11,387 Total $ 296,542 $ 296,538 $ 297,204 $ 297,058 |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments at Gross Fair Value Reflected in Condensed Consolidated Balance Sheets | The following tables show the Company’s derivative instruments at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, respectively (in thousands): June 30, 2015 Fair Value of Derivatives Designated Fair Value of Derivatives Not Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 3,396 $ 48 $ 3,444 Derivative Liabilities (b): Foreign exchange contracts (3,014 ) (191 ) (3,205 ) December 31, 2014 Fair Value of Derivatives Designated Fair Value of Derivatives Not Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 3,887 $ — $ 3,887 Derivative Liabilities (b): Foreign exchange contracts (3,685 ) (127 ) (3,812 ) (a) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. (b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued and other liabilities in the Condensed Consolidated Balance Sheets. |
Pre-tax Effect of Derivative Instruments Designated as Cash Flow Hedges in Condensed Consolidated Statements of Operations | The following tables show the pre-tax effect of the Company’s derivative instruments designated as cash flow hedges in the Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2015 and 2014 (in thousands): Three Months Ended Loss Recognized in OCI - Loss Reclassified from AOCI into Income - Effective Portion Gain (Loss) Recognized - Ineffective Portion and June 30, 2015 June 30, 2014 June 30, 2015 (a) June 30, 2014 (b) Location June 30, 2015 June 30, Cash flow hedges: Foreign exchange contracts $ (1,455 ) $ (472 ) $ (22 ) $ (216 ) Foreign currency exchange loss and other, net $ (38 ) $ 20 Total $ (1,455 ) $ (472 ) $ (22 ) $ (216 ) $ (38 ) $ 20 (a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $2.4 million loss within costs and operating expenses and a $2.4 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the three months ended June 30, 2015. (b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $0.4 million loss within costs and operating expenses and a $0.2 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the three months ended June 30, 2014. Six Months Ended Loss Recognized in OCI - Loss Reclassified from AOCI into Income - Effective Portion Gain (Loss) Recognized - Ineffective Portion and June 30, 2015 June 30, 2014 June 30, 2015 (a) June 30, 2014 (b) Location June 30, 2015 June 30, Cash flow hedges: Foreign exchange contracts $ (1,051 ) $ (291 ) $ (45 ) $ (503 ) Foreign currency exchange loss and other, net $ (124 ) $ 33 Total $ (1,051 ) $ (291 ) $ (45 ) $ (503 ) $ (124 ) $ 33 (a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $4.7 million loss within costs and operating expenses and a $4.7 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the six months ended June 30, 2015. (b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a $0.9 million loss within costs and operating expenses and a $0.4 million gain within revenue, were recognized within the Condensed Consolidated Statement of Operations for the six months ended June 30, 2014. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net Carrying Value and Accumulated Amortization of Major Classes of Intangible Assets | The recorded value and accumulated amortization of major classes of intangible assets were as follows (in thousands): Gross Carrying Accumulated Net Carrying Balance, June 30, 2015 Licenses $ 11,454 $ (6,747 ) $ 4,707 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 35,849 (12,376 ) 23,473 $ 55,916 $ (27,736 ) $ 28,180 Balance, December 31, 2014 Licenses $ 13,594 $ (8,477 ) $ 5,117 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 36,582 (10,259 ) 26,323 $ 58,789 $ (27,349 ) $ 31,440 |
Expected Future Annual Amortization Expense of Intangible Assets | The following table summarizes the expected future annual amortization expense of intangible assets recorded on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2015, assuming no impairment charges (in thousands): For the Years Ending December 31, Amortization 2015 (remaining six months) $ 3,001 2016 5,822 2017 5,460 2018 5,080 2019 4,181 Thereafter 4,636 Total expected future annual amortization $ 28,180 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The Notes consist of the following (in thousands): June 30, 2015 December 31, 2014 Liability component: Principal 345,000 345,000 Less: debt discount, net of amortization (62,021 ) (66,787 ) Net carrying amount 282,979 278,213 Equity component (a) 73,013 73,013 (a) Recorded in the condensed consolidated balance sheets within additional paid-in capital, net of $2.0 million issuance costs in equity |
Schedule of Total Interest Expense Related to Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 1.25% coupon $ 1,078 $ 1,078 $ 2,156 $ 1,653 Amortization of debt issuance costs 144 100 278 150 Amortization of debt discount 2,398 2,284 4,766 3,491 3,620 3,462 7,200 5,294 |
Schedule of Carrying Value of Debt Instrument | As of June 30, 2015 and December 31, 2014, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands): June 30, 2015 December 31, 2014 Fair Value Carrying Fair Value Carrying Convertible Senior Notes $ 399,344 $ 282,979 $ 382,232 $ 278,213 |
Commitments, Contingencies an25
Commitments, Contingencies and Legal Matters (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Purchase Commitments | The following table summarizes the Company’s purchase commitments at June 30, 2015 (in thousands): Years Ending December 31, Purchase Commitments 2015 (remaining six months) $ 36,177 2016 — 2017 — 2018 — 2019 — Thereafter — Total minimum payments $ 36,177 |
Employee Equity Incentive Pla26
Employee Equity Incentive Plans and Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table is a summary of the major categories of stock-based compensation expense recognized in accordance with ASC 718, “Compensation—Stock Compensation” (“ASC 718”) for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Cost of sales $ 1,008 $ 1,473 $ 2,049 $ 1,854 Research and development 2,277 2,481 4,475 4,609 Sales and marketing 1,743 1,926 3,193 3,542 General and administrative 3,241 3,268 6,110 5,925 Total stock-based compensation expense $ 8,269 $ 9,148 $ 15,827 $ 15,930 |
Summary of Option Activity | The following table summarizes option activity under all plans (in thousands, except weighted average exercise price and weighted average remaining contractual term): Shares Weighted Weighted Average Intrinsic Value Outstanding, December 31, 2014 5,581 $ 33.20 Granted 1,141 $ 56.46 Exercised (912 ) $ 22.84 Forfeited (144 ) $ 41.29 Outstanding, June 30, 2015 5,666 $ 39.35 4.57 $ 123,503 Exercisable, June 30, 2015 2,955 $ 31.05 3.34 $ 88,962 Vested and expected to vest, June 30, 2015 5,431 $ 38.87 4.50 $ 120,996 |
Summary of Restricted Stock Plan Activity | The following table summarizes all award activity, which consists of restricted stock awards and restricted stock units (in thousands, except weighted average grant date fair value): Shares Weighted Average Outstanding, December 31, 2014 698 $ 40.30 Granted 447 56.31 Vested (186 ) 39.07 Cancelled (50 ) 44.37 Outstanding, June 30, 2015 909 $ 48.20 |
Summary of Assumptions to Estimate Fair Value | The following table summarizes the assumptions used in determining the fair value of the Company’s stock options granted to employees and shares purchased by employees under the Company’s 2012 Employee Stock Purchase Plan (“ESPP”): Three Months Ended Six Months Ended 2015 2014 2015 2014 OPTION SHARES: Expected Term (in years) 4.46 4.40 4.46 4.40 Volatility 0.36 0.38 0.36 0.38 Expected Dividends — % — % — % — % Risk Free Interest Rates 1.45 % 1.73 % 1.45 % 1.73 % Estimated Forfeitures 6.14 % 6.75 % 6.14 % 6.79 % Weighted Average Fair Value Per Share $ 18.05 $ 15.29 $ 18.07 $ 15.64 ESPP SHARES: Expected Term (in years) 1.22 1.25 1.22 1.25 Volatility 0.32 0.32 0.32 0.32 Expected Dividends — % — % — % — % Risk Free Interest Rates 0.26 % 0.17 % 0.26 % 0.17 % Weighted Average Fair Value Per Share $ 16.43 $ 14.54 $ 16.43 $ 14.54 |
Segment and Significant Conce27
Segment and Significant Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenue Information by Segments | The following table summarizes revenue in the Clinical and Non-Clinical markets (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenue by market: Clinical Systems $ 21,783 $ 28,334 $ 38,084 $ 45,619 Clinical Reagents 103,227 83,006 212,233 166,166 Total Clinical 125,010 111,340 250,317 211,785 Non-Clinical 7,465 5,163 14,795 11,625 Total revenue $ 132,475 $ 116,503 $ 265,112 $ 223,410 |
Segment Revenue by Geography Region | The following table summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Geographic revenue information: North America Clinical $ 69,056 $ 57,649 $ 144,529 $ 114,935 Non-Clinical 7,131 3,926 13,963 9,475 Total North America 76,187 61,575 158,492 124,410 International Clinical $ 55,953 $ 53,691 $ 105,787 $ 96,850 Non-Clinical 335 1,237 833 2,150 Total International 56,288 54,928 106,620 99,000 Total revenue $ 132,475 $ 116,503 $ 265,112 $ 223,410 |
Organization and Summary of S28
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)shares | Jun. 30, 2014shares | Jun. 30, 2015USD ($)Customershares | Jun. 30, 2014shares | Dec. 31, 2014USD ($)Customer | |
Concentration Risk [Line Items] | |||||
Percentage of cash and cash equivalents held by the Company's | 59.00% | 58.00% | |||
Capitalized stock-based compensation expense included in inventory | $ 1.7 | $ 1.6 | |||
Total anti-dilutive common stock equivalent shares | shares | 8,847,000 | 9,845,000 | 8,655,000 | 9,237,000 | |
Reclassification of debt issuance costs | $ 6 | $ 6 | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 15.00% | 26.00% | |||
Number of customers | Customer | 1 | 1 | |||
Prepaid Expenses and Other Current Assets [Member] | Bill and Melinda Gates Foundation and National Philanthropic Trust [Member] | |||||
Concentration Risk [Line Items] | |||||
Restricted cash | $ 0.5 | $ 0.5 | $ 1.9 | ||
Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
Contract term for purchasing minimum quantities of reagents | P3Y | ||||
Maximum [Member] | |||||
Concentration Risk [Line Items] | |||||
Contract term for purchasing minimum quantities of reagents | P5Y |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 31,080 | $ 36,287 |
Work in Process | 58,369 | 51,691 |
Finished Goods | 52,601 | 44,657 |
Inventory | $ 142,050 | $ 132,635 |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic: | ||||
Net loss | $ (16,730) | $ (9,843) | $ (15,824) | $ (19,146) |
Basic weighted shares outstanding | 71,861 | 69,968 | 71,563 | 69,622 |
Net loss per share | $ (0.23) | $ (0.14) | $ (0.22) | $ (0.27) |
Diluted: | ||||
Net loss | $ (16,730) | $ (9,843) | $ (15,824) | $ (19,146) |
Basic weighted shares outstanding | 71,861 | 69,968 | 71,563 | 69,622 |
Effect of dilutive securities: | ||||
Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes | 0 | 0 | 0 | 0 |
Diluted weighted shares outstanding | 71,861 | 69,968 | 71,563 | 69,622 |
Net loss per share | $ (0.23) | $ (0.14) | $ (0.22) | $ (0.27) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 110,569 | $ 96,663 |
Total short-term investments | 189,375 | 196,729 |
Foreign currency derivatives | 3,444 | 3,887 |
Total investments | 79,665 | 79,731 |
Assets, Total | 383,053 | 377,010 |
Foreign currency derivatives | 3,205 | 3,812 |
Liabilities, Total | 3,205 | 3,812 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 47,547 | 52,220 |
Total investments | 18,383 | 12,713 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 65,662 | 64,202 |
Total investments | 44,567 | 22,679 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 47,033 | 56,096 |
Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 21,007 | 15,003 |
Total investments | 8,005 | 39,532 |
Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 8,126 | 9,208 |
Total investments | 8,710 | 4,807 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 83,071 | 76,065 |
Total short-term investments | 0 | 0 |
Foreign currency derivatives | 0 | 0 |
Total investments | 0 | 0 |
Assets, Total | 83,071 | 76,065 |
Foreign currency derivatives | 0 | 0 |
Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,498 | 20,598 |
Total short-term investments | 189,375 | 196,729 |
Foreign currency derivatives | 3,444 | 3,887 |
Total investments | 79,665 | 79,731 |
Assets, Total | 299,982 | 300,945 |
Foreign currency derivatives | 3,205 | 3,812 |
Liabilities, Total | 3,205 | 3,812 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Foreign currency derivatives | 0 | 0 |
Total investments | 0 | 0 |
Assets, Total | 0 | 0 |
Foreign currency derivatives | 0 | 0 |
Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 47,547 | 52,220 |
Total investments | 18,383 | 12,713 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 65,662 | 64,202 |
Total investments | 44,567 | 22,679 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 47,033 | 56,096 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Agency Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Agency Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 21,007 | 15,003 |
Total investments | 8,005 | 39,532 |
Fair Value, Measurements, Recurring [Member] | Government Agency Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 8,126 | 9,208 |
Total investments | 8,710 | 4,807 |
Fair Value, Measurements, Recurring [Member] | Other Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total investments | $ 0 | $ 0 |
Fair Value - Liabilities Measur
Fair Value - Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Convertible senior notes | $ 399,344 | $ 382,232 |
Liabilities, Total | 399,344 | 382,232 |
Level 2 [Member] | ||
Liabilities: | ||
Convertible senior notes | 399,344 | 382,232 |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||
Liabilities: | ||
Convertible senior notes | 0 | 0 |
Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Liabilities: | ||
Convertible senior notes | 399,344 | 382,232 |
Liabilities, Total | 399,344 | 382,232 |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||
Liabilities: | ||
Convertible senior notes | 0 | 0 |
Liabilities, Total | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial assets | $ 383,053 | $ 377,010 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | $ 189,367 | $ 196,775 |
Available-for-sale marketable securities, Gross Unrealized Gain | 39 | 22 |
Available-for-sale marketable securities, Gross Unrealized Loss | (31) | (68) |
Available-for-sale marketable securities, Estimated Fair Value | 189,375 | 196,729 |
Short-Term Investments [Member] | Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 47,549 | 52,240 |
Available-for-sale marketable securities, Gross Unrealized Gain | 4 | 3 |
Available-for-sale marketable securities, Gross Unrealized Loss | (6) | (23) |
Available-for-sale marketable securities, Estimated Fair Value | 47,547 | 52,220 |
Short-Term Investments [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 74,511 | 76,683 |
Available-for-sale marketable securities, Gross Unrealized Gain | 20 | 12 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | 74,531 | 76,695 |
Short-Term Investments [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 65,683 | 64,244 |
Available-for-sale marketable securities, Gross Unrealized Gain | 4 | 2 |
Available-for-sale marketable securities, Gross Unrealized Loss | (25) | (45) |
Available-for-sale marketable securities, Estimated Fair Value | 65,662 | 64,201 |
Short-Term Investments [Member] | Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 21,000 | 15,000 |
Available-for-sale marketable securities, Gross Unrealized Gain | 7 | 3 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | 21,007 | 15,003 |
Short-Term Investments [Member] | Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 8,118 | 9,206 |
Available-for-sale marketable securities, Gross Unrealized Gain | 8 | 2 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | 8,126 | 9,208 |
Short-Term Investments [Member] | Amounts Classified as Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | (27,494) | (20,598) |
Available-for-sale marketable securities, Gross Unrealized Gain | (4) | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale marketable securities, Estimated Fair Value | (27,498) | (20,598) |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 79,681 | 79,831 |
Available-for-sale marketable securities, Gross Unrealized Gain | 24 | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | (40) | (100) |
Available-for-sale marketable securities, Estimated Fair Value | 79,665 | 79,731 |
Investments [Member] | Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 18,373 | 12,724 |
Available-for-sale marketable securities, Gross Unrealized Gain | 10 | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | (12) |
Available-for-sale marketable securities, Estimated Fair Value | 18,383 | 12,712 |
Investments [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 44,596 | 22,709 |
Available-for-sale marketable securities, Gross Unrealized Gain | 7 | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | (36) | (29) |
Available-for-sale marketable securities, Estimated Fair Value | 44,567 | 22,680 |
Investments [Member] | Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 8,001 | 39,583 |
Available-for-sale marketable securities, Gross Unrealized Gain | 4 | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | 0 | (51) |
Available-for-sale marketable securities, Estimated Fair Value | 8,005 | 39,532 |
Investments [Member] | Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale marketable securities, Cost | 8,711 | 4,815 |
Available-for-sale marketable securities, Gross Unrealized Gain | 3 | 0 |
Available-for-sale marketable securities, Gross Unrealized Loss | (4) | (8) |
Available-for-sale marketable securities, Estimated Fair Value | $ 8,710 | $ 4,807 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of marketable securities | $ 44.9 | $ 67.7 |
Investments - Schedule of Gross
Investments - Schedule of Gross Realized Gains and Losses of Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 3 | $ 25 | $ 3 | $ 27 |
Gross realized losses | 0 | 0 | 0 | 0 |
Realized gains, net | $ 3 | $ 25 | $ 3 | $ 27 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 months, Fair Value | $ 104,009 | $ 178,279 |
Less Than 12 months, Unrealized Loss | (60) | (168) |
More than 12 months, Fair Value | 8,056 | 0 |
More than 12 months, Unrealized Loss | (11) | 0 |
Total, Fair Value | 112,065 | 178,279 |
Total, Unrealized Loss | (71) | (168) |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 months, Fair Value | 24,297 | 54,580 |
Less Than 12 months, Unrealized Loss | (5) | (35) |
More than 12 months, Fair Value | 3,592 | 0 |
More than 12 months, Unrealized Loss | (1) | 0 |
Total, Fair Value | 27,889 | 54,580 |
Total, Unrealized Loss | (6) | (35) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 months, Fair Value | 72,814 | 79,360 |
Less Than 12 months, Unrealized Loss | (51) | (74) |
More than 12 months, Fair Value | 4,464 | 0 |
More than 12 months, Unrealized Loss | (10) | 0 |
Total, Fair Value | 77,278 | 79,360 |
Total, Unrealized Loss | (61) | (74) |
Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 months, Fair Value | 39,532 | |
Less Than 12 months, Unrealized Loss | (51) | |
More than 12 months, Fair Value | 0 | |
More than 12 months, Unrealized Loss | 0 | |
Total, Fair Value | 39,532 | |
Total, Unrealized Loss | (51) | |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 months, Fair Value | 6,898 | 4,807 |
Less Than 12 months, Unrealized Loss | (4) | (8) |
More than 12 months, Fair Value | 0 | 0 |
More than 12 months, Unrealized Loss | 0 | 0 |
Total, Fair Value | 6,898 | 4,807 |
Total, Unrealized Loss | $ (4) | $ (8) |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Mature in one year or less, Amortized Cost | $ 157,642 | $ 150,133 |
Mature after one year through three years, Amortized Cost | 125,417 | 135,675 |
Mature in more than three years, Amortized Cost | 13,483 | 11,396 |
Total, Amortized Cost | 296,542 | 297,204 |
Mature in one year or less, Estimated Fair Value | 157,654 | 150,105 |
Mature after one year through three years, Estimated Fair Value | 125,397 | 135,566 |
Mature in more than three years, Estimated Fair Value | 13,487 | 11,387 |
Total, Estimated Fair Value | $ 296,538 | $ 297,058 |
Derivative Financial Instrume39
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||||
Net deferred gain (loss) associated with cash flow hedges | $ (800,000) | $ (800,000) | $ 200,000 | ||
Gain (loss) recognized for foreign currency forward contracts | (300,000) | $ (200,000) | 1,700,000 | $ (500,000) | |
Cash Flow Hedges [Member] | Fair Value of Derivatives Designated as Hedge Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional principle amounts of Company's derivative instruments | 152,800,000 | 152,800,000 | 117,200,000 | ||
Cash Flow Hedges [Member] | Fair Value of Derivatives Not Designated as Hedge Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional principle amounts of Company's derivative instruments | $ 35,100,000 | $ 35,100,000 | $ 30,400,000 |
Derivative Financial Instrume40
Derivative Financial Instruments - Derivative Instruments at Gross Fair Value Reflected in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts, Assets | $ 3,444 | $ 3,887 |
Foreign exchange contracts, Liabilities | (3,205) | (3,812) |
Fair Value of Derivatives Designated as Hedge Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts, Assets | 3,396 | 3,887 |
Foreign exchange contracts, Liabilities | (3,014) | (3,685) |
Fair Value of Derivatives Not Designated as Hedge Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts, Assets | 48 | 0 |
Foreign exchange contracts, Liabilities | $ (191) | $ (127) |
Derivative Financial Instrume41
Derivative Financial Instruments - Pre-tax Effect of Derivative Instruments Designated as Cash Flow Hedges in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Recognized in OCI - Effective Portion | $ (1,455) | $ (472) | $ (1,051) | $ (291) |
Loss Reclassified from AOCI into Income - Effective Portion | (22) | (216) | (45) | (503) |
Gain (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | (38) | 20 | (124) | 33 |
Foreign Exchange Contracts [Member] | Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Recognized in OCI - Effective Portion | (1,455) | (472) | (1,051) | (291) |
Loss Reclassified from AOCI into Income - Effective Portion | (22) | (216) | (45) | (503) |
Foreign Exchange Contracts [Member] | Cash Flow Hedges [Member] | Foreign Currency Exchange Loss and Other, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | $ (38) | $ 20 | $ (124) | $ 33 |
Derivative Financial Instrume42
Derivative Financial Instruments - Pre-tax Effect of Derivative Instruments Designated as Cash Flow Hedges in Condensed Consolidated Statements of Operations (Parenthetical) (Detail) - Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] - Reclassified from AOCI [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ (2.4) | $ (0.4) | $ (4.7) | $ (0.9) |
Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) | $ 2.4 | $ 0.2 | $ 4.7 | $ 0.4 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization expense | $ 1,700 | $ 900 | $ 3,334 | $ 1,841 |
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful lives of intangible assets | 3 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful lives of intangible assets | 15 years |
Intangible Assets - Net Carryin
Intangible Assets - Net Carrying Value and Accumulated Amortization of Major Classes of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 55,916 | $ 58,789 |
Accumulated Amortization | (27,736) | (27,349) |
Net Carrying Amount | 28,180 | 31,440 |
Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,454 | 13,594 |
Accumulated Amortization | (6,747) | (8,477) |
Net Carrying Amount | 4,707 | 5,117 |
Technology acquired in acquisitions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,613 | 8,613 |
Accumulated Amortization | (8,613) | (8,613) |
Net Carrying Amount | 0 | 0 |
Customer relationships and other intangible assets acquired in acquisitions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,849 | 36,582 |
Accumulated Amortization | (12,376) | (10,259) |
Net Carrying Amount | $ 23,473 | $ 26,323 |
Intangible Assets - Expected Fu
Intangible Assets - Expected Future Annual Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 (remaining six months) | $ 3,001 | |
2,016 | 5,822 | |
2,017 | 5,460 | |
2,018 | 5,080 | |
2,019 | 4,181 | |
Thereafter | 4,636 | |
Net Carrying Amount | $ 28,180 | $ 31,440 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||||
Provision for income taxes | $ 1,254,000 | $ 919,000 | $ 778,000 | $ 1,599,000 | |
Percentage of federal statutory tax rate | 34.00% | 34.00% | 34.00% | 34.00% | |
Income tax expense or benefit recorded in US federal and state tax jurisdictions | $ 0 | $ 0 | |||
Uncertain tax positions, Interest and penalties | 0 | 0 | |||
Accrued interest or penalties | $ 0 | $ 0 | $ 0 | ||
Domestic [Member] | Earliest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination, open tax year | 1,996 | ||||
Domestic [Member] | Latest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination, open tax year | 2,014 | ||||
Foreign [Member] | Earliest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination, open tax year | 2,009 | ||||
Foreign [Member] | Latest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination, open tax year | 2,014 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Convertible notes issued | $ 282,979,000 | $ 278,213,000 | ||
Initial strike price of common stock | $ 65.10 | |||
Conversion of notes, cap price | $ 78.61 | |||
Cost of purchased capped calls | $ 25,100,000 | |||
Closing price of common stock | $ 61.15 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes issued | $ 345,000,000 | |||
Convertible notes, maturity date | Feb. 1, 2021 | |||
Convertible notes fixed rate | 1.25% | 1.25% | 1.25% | |
Convertible senior notes, Maturity date description | 1.25% convertible senior notes (the "Notes") due February 1, 2021, unless earlier repurchased by the Company or converted by the holder pursuant to their terms | |||
Convertible senior notes, interest payment description | Interest is payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 2014. | |||
Convertible debt, conversion rate | 15.3616 | |||
Convertible debt, conversion rate, principal amount | $ 1,000 | |||
Conversion price per share of common stock | $ 65.10 | |||
Debt converted into number of common shares | 5,300,000 | |||
Convertible debt maturity date | Aug. 1, 2020 | |||
Convertible debt, fair value of liability | $ 270,000,000 | |||
Convertible debt, present value of future payments | 345,000,000 | $ 345,000,000 | ||
Convertible debt discount, recorded in additional paid in capital | $ 75,000,000 | |||
Convertible debt, interest rate | 5.00% | |||
Debt instrument transaction costs | $ 7,200,000 | |||
Convertible Senior Notes [Member] | Scenario One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument trading days | 20 days | |||
Consecutive trading days | 30 days | |||
Percentage of conversion price | 130.00% | |||
Convertible Senior Notes [Member] | Scenario Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Consecutive trading days | 5 days | |||
Percentage of conversion price | 98.00% | |||
Equity Component [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument transaction costs | $ 2,000,000 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Convertible Notes (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Feb. 28, 2014 |
Liability component: | |||
Net carrying amount | $ 282,979,000 | $ 278,213,000 | |
Equity component | 73,013,000 | 73,013,000 | |
Convertible Senior Notes [Member] | |||
Liability component: | |||
Principal | 345,000,000 | 345,000,000 | |
Less: debt discount, net of amortization | $ (62,021,000) | $ (66,787,000) | |
Net carrying amount | $ 345,000,000 |
Convertible Senior Notes - Sc49
Convertible Senior Notes - Schedule of Convertible Notes (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Equity Component [Member] | |
Debt Instrument [Line Items] | |
Debt instrument transaction costs | $ 2 |
Convertible Senior Notes - Sc50
Convertible Senior Notes - Schedule of Total Interest Expense Related to Notes (Detail) - Convertible Senior Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Expense [Line Items] | ||||
1.25% coupon | $ 1,078 | $ 1,078 | $ 2,156 | $ 1,653 |
Amortization of debt issuance costs | 144 | 100 | 278 | 150 |
Amortization of debt discount | 2,398 | 2,284 | 4,766 | 3,491 |
Total interest expense | $ 3,620 | $ 3,462 | $ 7,200 | $ 5,294 |
Convertible Senior Notes - Sc51
Convertible Senior Notes - Schedule of Total Interest Expense Related to Notes (Parenthetical) (Detail) | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 28, 2014 |
Convertible Senior Notes [Member] | |||
Interest Expense [Line Items] | |||
Coupon interest rate | 1.25% | 1.25% | 1.25% |
Convertible Senior Notes - Sc52
Convertible Senior Notes - Schedule of Carrying Value of Debt Instrument (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Fair Value | $ 399,344 | $ 382,232 |
Carrying Value | 282,979 | 278,213 |
Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair Value | 399,344 | 382,232 |
Carrying Value | $ 282,979 | $ 278,213 |
Commitments, Contingencies an53
Commitments, Contingencies and Legal Matters - Summary of Purchase Commitments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2015 (remaining six months) | $ 36,177 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 0 |
Total minimum payments | $ 36,177 |
Commitments, Contingencies an54
Commitments, Contingencies and Legal Matters - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Estimated arbitration proceeding charge | $ 20 | |
Accrued and Other Liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated arbitration proceeding charge | $ 20 |
Employee Equity Incentive Pla55
Employee Equity Incentive Plans and Stock-Based Compensation Expense - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 8,269 | $ 9,148 | $ 15,827 | $ 15,930 |
Cost of sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,008 | 1,473 | 2,049 | 1,854 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 2,277 | 2,481 | 4,475 | 4,609 |
Sales and marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,743 | 1,926 | 3,193 | 3,542 |
General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,241 | $ 3,268 | $ 6,110 | $ 5,925 |
Employee Equity Incentive Pla56
Employee Equity Incentive Plans and Stock-Based Compensation Expense - Summary of Option Activity (Detail) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares, Outstanding, Beginning Balance | 5,581 |
Shares, Granted | 1,141 |
Shares, Exercised | (912) |
Shares, Forfeited | (144) |
Shares, Outstanding, Ending Balance | 5,666 |
Shares, Exercisable, June 30, 2015 | 2,955 |
Shares, Vested and expected to vest, June 30, 2015 | 5,431 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 33.20 |
Weighted Average Exercise Price, Granted | 56.46 |
Weighted Average Exercise Price, Exercised | 22.84 |
Weighted Average Exercise Price, Forfeited | 41.29 |
Weighted Average Exercise Price, Outstanding, Ending Balance | 39.35 |
Weighted Average Exercise Price, Exercisable, June 30, 2015 | 31.05 |
Weighted Average Exercise Price, Vested and expected to vest, June 30, 2015 | $ 38.87 |
Weighted Average Remaining Contractual Term (in years), Outstanding, June 30, 2015 | 4 years 6 months 26 days |
Weighted Average Remaining Contractual Term (in years), Exercisable, June 30, 2015 | 3 years 4 months 2 days |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest, June 30, 2015 | 4 years 6 months |
Intrinsic Value, Outstanding, June 30, 2015 | $ 123,503 |
Intrinsic Value, Exercisable, June 30, 2015 | 88,962 |
Intrinsic Value, Vested and expected to vest, June 30, 2015 | $ 120,996 |
Employee Equity Incentive Pla57
Employee Equity Incentive Plans and Stock-Based Compensation Expense - Summary of Restricted Stock Plan Activity (Detail) - 6 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Beginning Balance, Shares | 698 |
Granted, Shares | 447 |
Vested, Shares | (186) |
Cancelled, Shares | (50) |
Outstanding, Ending Balance, Shares | 909 |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance | $ 40.30 |
Weighted Average Grant Date Fair Value, Granted | 56.31 |
Weighted Average Grant Date Fair Value, Vested | 39.07 |
Weighted Average Grant Date Fair Value, Cancelled | 44.37 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance | $ 48.20 |
Employee Equity Incentive Pla58
Employee Equity Incentive Plans and Stock-Based Compensation Expense - Summary of Assumptions to Estimate Fair Value (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Term (in years) | 4 years 5 months 16 days | 4 years 4 months 24 days | 4 years 5 months 16 days | 4 years 4 months 24 days |
Volatility | 0.36% | 0.38% | 0.36% | 0.38% |
Expected Dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Risk Free Interest Rates | 1.45% | 1.73% | 1.45% | 1.73% |
Estimated Forfeitures | 6.14% | 6.75% | 6.14% | 6.79% |
Weighted Average Fair Value Per Share | $ 18.05 | $ 15.29 | $ 18.07 | $ 15.64 |
Employee Stock Purchase Plans One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Term (in years) | 1 year 2 months 19 days | 1 year 3 months | 1 year 2 months 19 days | 1 year 3 months |
Volatility | 0.32% | 0.32% | 0.32% | 0.32% |
Expected Dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Risk Free Interest Rates | 0.26% | 0.17% | 0.26% | 0.17% |
Weighted Average Fair Value Per Share | $ 16.43 | $ 14.54 | $ 16.43 | $ 14.54 |
Segment and Significant Conce59
Segment and Significant Concentrations - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Customer | Jun. 30, 2014USD ($)Customer | Jun. 30, 2015USD ($)CustomerSegment | Jun. 30, 2014USD ($)Customer | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating business segment | Segment | 1 | ||||
Product sales to customers | $ 132,475 | $ 116,503 | $ 265,112 | $ 223,410 | |
China [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product sales to customers | 1,300 | 15,400 | 1,800 | 15,500 | |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product sales to customers | 72,600 | $ 60,000 | 149,600 | $ 121,600 | |
Long lived-assets | 100,500 | 100,500 | $ 96,000 | ||
Non-US Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long lived-assets | $ 19,700 | $ 19,700 | $ 19,800 | ||
Revenue [Member] | Customer Concentration Risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, number of customers above threshold | Customer | 0 | 1 | 0 | 0 | |
Concentration risk, percentage threshold | 10.00% | 10.00% | 10.00% | 10.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | One Distributor [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 0.10% | 13.10% | 0.10% | 6.80% | |
Revenue [Member] | Geographic Concentration Risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage threshold | 10.00% | 10.00% | 10.00% | 10.00% | |
Revenue [Member] | Geographic Concentration Risk [Member] | China [Member] | Greater Than [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 10.00% |
Segment and Significant Conce60
Segment and Significant Concentrations - Revenue Information by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 132,475 | $ 116,503 | $ 265,112 | $ 223,410 |
Clinical [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 125,010 | 111,340 | 250,317 | 211,785 |
Non-Clinical [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 7,465 | 5,163 | 14,795 | 11,625 |
Systems and other revenue [Member] | Clinical [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 21,783 | 28,334 | 38,084 | 45,619 |
Reagent and disposable revenue [Member] | Clinical [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 103,227 | $ 83,006 | $ 212,233 | $ 166,166 |
Segment and Significant Conce61
Segment and Significant Concentrations - Segment Revenue by Geography Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 132,475 | $ 116,503 | $ 265,112 | $ 223,410 |
Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 125,010 | 111,340 | 250,317 | 211,785 |
Non-Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 7,465 | 5,163 | 14,795 | 11,625 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 76,187 | 61,575 | 158,492 | 124,410 |
North America [Member] | Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 69,056 | 57,649 | 144,529 | 114,935 |
North America [Member] | Non-Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 7,131 | 3,926 | 13,963 | 9,475 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 56,288 | 54,928 | 106,620 | 99,000 |
International [Member] | Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 55,953 | 53,691 | 105,787 | 96,850 |
International [Member] | Non-Clinical [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 335 | $ 1,237 | $ 833 | $ 2,150 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - Director [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Net revenues recorded from Geisinger | $ 0.5 | $ 0.4 | $ 1.3 | $ 0.8 | |
Accounts receivable due from Geisinger | $ 0.2 | $ 0.2 | $ 0.2 |