Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CEPHEID | ||
Trading Symbol | CPHD | ||
Entity Central Index Key | 1,037,760 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 72,647,648 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 112,568 | $ 96,663 |
Short-term investments | 210,147 | 196,729 |
Accounts receivable, less allowance for doubtful accounts of $383 and $237 as of December 31, 2015 and 2014, respectively | 66,550 | 68,809 |
Inventory, net | 148,690 | 132,635 |
Prepaid expenses and other current assets | 18,515 | 24,274 |
Total current assets | 556,470 | 519,110 |
Property and equipment, net | 127,639 | 115,765 |
Investments | 62,175 | 79,731 |
Other non-current assets | 10,441 | 7,847 |
Intangible assets, net | 25,241 | 31,440 |
Goodwill | 39,681 | 39,681 |
Total assets | 821,647 | 793,574 |
Current liabilities: | ||
Accounts payable | 57,771 | 50,435 |
Accrued compensation | 39,015 | 33,760 |
Accrued royalties | 5,469 | 5,443 |
Accrued and other liabilities | 27,451 | 34,761 |
Current portion of deferred revenue | 12,778 | 13,447 |
Total current liabilities | 142,484 | 137,846 |
Long-term portion of deferred revenue | 5,538 | 4,532 |
Convertible senior notes, net | 287,863 | 278,213 |
Other liabilities | 15,779 | 18,768 |
Total liabilities | $ 451,664 | $ 439,359 |
Commitments and contingencies (Note 9) | ||
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, 72,415,317 and 70,904,388 shares issued and outstanding at December 31, 2015 and 2014, respectively | 449,704 | 422,151 |
Additional paid-in capital | 263,429 | 225,529 |
Accumulated other comprehensive income (loss), net | (908) | 247 |
Accumulated deficit | (342,242) | (293,712) |
Total shareholders’ equity | 369,983 | 354,215 |
Total liabilities and shareholders’ equity | $ 821,647 | $ 793,574 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 383 | $ 237 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 72,415,317 | 70,904,388 |
Common stock, shares outstanding (in shares) | 72,415,317 | 70,904,388 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 538,576 | $ 470,141 | $ 401,292 |
Costs and operating expenses: | |||
Cost of sales | 269,864 | 229,327 | 207,933 |
Collaboration profit sharing | 5,826 | 5,154 | 7,512 |
Research and development | 115,756 | 96,851 | 80,197 |
Sales and marketing | 115,368 | 97,848 | 79,941 |
General and administrative | 62,624 | 55,047 | 41,719 |
Legal contingencies | 0 | 20,000 | 0 |
Total costs and operating expenses | 569,438 | 504,227 | 417,302 |
Loss from operations | (30,862) | (34,086) | (16,010) |
Other income (expense): | |||
Interest income | 1,898 | 1,119 | 45 |
Interest expense | (14,659) | (12,609) | (137) |
Foreign currency exchange loss and other, net | (3,644) | (2,016) | (715) |
Other expense, net | (16,405) | (13,506) | (807) |
Loss before income taxes | (47,267) | (47,592) | (16,817) |
Provision for income taxes | (1,263) | (2,557) | (1,148) |
Net income (loss) | $ (48,530) | $ (50,149) | $ (17,965) |
Basic net loss per share (in dollars per share) | $ (0.67) | $ (0.72) | $ (0.27) |
Diluted net loss per share (in dollars per share) | $ (0.67) | $ (0.72) | $ (0.27) |
Shares used in computing basic net loss per share (in shares) | 71,928 | 70,069 | 67,485 |
Shares used in computing diluted net loss per share (in shares) | 71,928 | 70,069 | 67,485 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (48,530) | $ (50,149) | $ (17,965) |
Change in unrealized gains and losses related to cash flow hedges: | |||
Gain (loss) recognized in other comprehensive loss, net | (1,303) | 146 | (118) |
(Gain) loss reclassified from accumulated comprehensive loss to the statement of operations, net | 665 | 735 | (427) |
Change in unrealized gains and losses related to available-for-sale investments, net: | |||
Gain (loss) recognized in other comprehensive loss, net | (391) | (159) | 15 |
Gain reclassified from accumulated comprehensive loss to the statement of operations, net | (26) | (36) | (2) |
Other comprehensive loss, before tax | (49,585) | (49,463) | (18,497) |
Income tax expense related to items of accumulated other comprehensive income (loss), net | (100) | 0 | 0 |
Comprehensive loss | $ (49,685) | $ (49,463) | $ (18,497) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at beginning of period at Dec. 31, 2012 | $ 247,542 | $ 355,867 | $ 117,217 | $ 56 | $ (225,598) |
Balance at beginning of period (in shares) at Dec. 31, 2012 | 66,604,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (17,965) | (17,965) | |||
Unrealized gain (loss) related to cash flow hedging | (545) | (545) | |||
Unrealized gain (loss) related to available-for-sale investments, net | 13 | 13 | |||
Income tax expense related to items of accumulated other comprehensive income (loss), net | 0 | ||||
Issuance of shares of common stock under employee and director option plans | 22,159 | $ 22,159 | |||
Issuance of shares of common stock under employee and director option plans (in shares) | 1,740,000 | ||||
Stock-based compensation related to stock options and awards and employee stock purchase plans | 28,683 | 28,683 | |||
Issuance of shares of common stock under employee stock purchase plans | 5,353 | $ 5,353 | |||
Issuance of shares of common stock under employee stock purchase plans (in shares) | 212,000 | ||||
Balance at end of period at Dec. 31, 2013 | 285,240 | $ 383,379 | 145,900 | (476) | (243,563) |
Balance at end or period (in shares) at Dec. 31, 2013 | 68,556,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (50,149) | (50,149) | |||
Unrealized gain (loss) related to cash flow hedging | 881 | 881 | |||
Unrealized gain (loss) related to available-for-sale investments, net | (158) | (158) | |||
Income tax expense related to items of accumulated other comprehensive income (loss), net | 0 | ||||
Issuance of shares of common stock under employee and director option plans | 32,733 | $ 32,733 | |||
Issuance of shares of common stock under employee and director option plans (in shares) | 2,144,000 | ||||
Stock-based compensation related to stock options and awards and employee stock purchase plans | 31,632 | 31,632 | |||
Equity component of convertible senior notes | 73,013 | 73,013 | |||
Purchase of convertible note capped call hedge | (25,082) | (25,082) | |||
Excess tax benefits from stock-based compensation | 66 | 66 | |||
Issuance of shares of common stock under employee stock purchase plans | 6,039 | $ 6,039 | |||
Issuance of shares of common stock under employee stock purchase plans (in shares) | 204,000 | ||||
Balance at end of period at Dec. 31, 2014 | $ 354,215 | $ 422,151 | 225,529 | 247 | (293,712) |
Balance at end or period (in shares) at Dec. 31, 2014 | 70,904,388 | 70,904,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (48,530) | (48,530) | |||
Unrealized gain (loss) related to cash flow hedging | (638) | (638) | |||
Unrealized gain (loss) related to available-for-sale investments, net | (417) | (417) | |||
Income tax expense related to items of accumulated other comprehensive income (loss), net | (100) | (100) | |||
Issuance of shares of common stock under employee and director option plans | 20,623 | $ 20,623 | |||
Issuance of shares of common stock under employee and director option plans (in shares) | 1,296,000 | ||||
Stock-based compensation related to stock options and awards and employee stock purchase plans | 37,847 | 37,847 | |||
Excess tax benefits from stock-based compensation | 53 | 53 | |||
Issuance of shares of common stock under employee stock purchase plans | 6,930 | $ 6,930 | |||
Issuance of shares of common stock under employee stock purchase plans (in shares) | 215,000 | ||||
Balance at end of period at Dec. 31, 2015 | $ 369,983 | $ 449,704 | $ 263,429 | $ (908) | $ (342,242) |
Balance at end or period (in shares) at Dec. 31, 2015 | 72,415,317 | 72,415,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (48,530) | $ (50,149) | $ (17,965) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 27,251 | 21,604 | 17,769 |
Amortization of intangible assets | 6,273 | 4,739 | 5,418 |
Unrealized foreign exchange differences | 2,742 | 1,836 | 419 |
Amortization of debt discount and transaction costs | 10,252 | 8,600 | 0 |
Impairment of acquired intangible assets, licenses, property and equipment | 224 | 0 | 2,855 |
Stock-based compensation expense | 36,977 | 32,207 | 27,635 |
Excess tax benefits from stock-based compensation | (53) | (66) | 0 |
Gain on the disposal of property, equipment and intangible assets | (28) | 0 | 0 |
Other non-cash items | 579 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,259 | (16,606) | (6,960) |
Inventory | (15,114) | (29,346) | (32,638) |
Prepaid expenses and other current assets | (387) | (5,184) | (5,263) |
Other non-current assets | (1,139) | (2) | 150 |
Accounts payable and other current and non-current liabilities | 4,170 | 3,438 | 17,334 |
Accrued expense for estimated legal contingency | 0 | 20,000 | 0 |
Accrued compensation | 5,256 | 11,751 | 5,421 |
Deferred revenue | 338 | 6,372 | 837 |
Net cash provided by operating activities | 31,070 | 9,194 | 15,012 |
Cash flows from investing activities: | |||
Capital expenditures | (37,671) | (46,979) | (47,526) |
Payments for technology licenses | 0 | 0 | (1,125) |
Cost of acquisitions, net | (3,000) | (18,000) | (3,669) |
Proceeds from sale of equipment and an intangible asset | 999 | 0 | 0 |
Proceeds from sales of marketable securities and investments | 52,192 | 115,881 | 2,503 |
Proceeds from maturities of marketable securities and investments | 231,758 | 102,733 | 1,347 |
Purchases of marketable securities and investments | (281,259) | (477,485) | (22,511) |
Transfer to restricted cash | (2,897) | (1,875) | 0 |
Net cash used in investing activities | (39,878) | (325,725) | (70,981) |
Cash flows from financing activities: | |||
Net proceeds from the issuance of common shares and exercise of stock options | 27,658 | 38,615 | 27,512 |
Excess tax benefits from stock-based compensation | 53 | 66 | 0 |
Proceeds from borrowings of convertible senior notes, net of issuance costs | 0 | 335,789 | 0 |
Purchase of convertible note capped call hedge | 0 | (25,082) | 0 |
Principal payments of notes payable | (162) | (180) | (874) |
Net cash provided by financing activities | 27,549 | 349,208 | 26,638 |
Effect of foreign exchange rate change on cash and cash equivalents | (2,836) | (2,086) | (376) |
Net increase (decrease) in cash and cash equivalents | 15,905 | 30,591 | (29,707) |
Cash and cash equivalents at beginning of period | 96,663 | 66,072 | 95,779 |
Cash and cash equivalents at end of period | $ 112,568 | $ 96,663 | $ 66,072 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization and Business 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 diagnostic testing in the Clinical market, as well as for application in the Company’s legacy Non-Clinical market. The Company’s systems enable fast, sophisticated molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of intercompany transactions and balances. Functional Currency The U.S. dollar is the functional currency of all of the Company’s subsidiaries. The Company remeasures its foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and records the net gains or losses resulting from remeasurement in “Foreign currency exchange loss and other, net” in the consolidated statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Fair Value of Financial Instruments The Company defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s valuation techniques used to measure fair value maximized the use of observable inputs and minimized the use of unobservable inputs. The fair value hierarchy is based on the following three levels of inputs: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; 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 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 2, “Fair Value”, for information and related disclosures regarding the Company’s fair value measurements. Cash, Cash Equivalents, Short-Term Investments and Non-Current Investments Cash and cash equivalents consist of cash on deposit with banks and money market instruments. 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 loss, a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. Interest and other income, net includes interest, dividends, amortization of purchase premiums and discounts and realized gains and losses on sales of securities. 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. Restricted Cash At December 31, 2015 , prepaid expense and other current assets included $2.7 million of restricted cash and other non-current assets included $2.1 million of restricted cash, both held as security for bank guarantees provided to a foreign customer contract. The Company is required to maintain such guarantees until its contractual obligations are satisfied under the contract. At December 31, 2014, restricted cash of $1.9 million was included in prepaid expense and other current assets and consisted of cash contractually restricted for use to develop the Xpert Ebola test in accordance with our agreement with BMGF. Supplemental cash flow information Years Ended December 31, 2015 2014 2013 (In thousands) Supplemental Cash Flow Information Cash paid for interest $ 4,383 $ 2,145 $ 109 Cash paid for taxes $ 2,086 $ 572 $ 632 Property, equipment and intangible assets acquired but not yet paid at end of period $ 7,551 $ 8,506 $ 674 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 66% and 58% of the Company’s cash and cash equivalents as of December 31, 2015 and 2014 , respectively. The Company’s accounts receivable are derived from sales to customers and distributors. 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 11% and 26% of total accounts receivable as of December 31, 2015 and 2014 , respectively. The Company currently sells products through its direct sales force and distributors. There were no direct customers that accounted for 10% or more of total sales for the years ended December 31, 2015 , 2014 and 2013 . No single country outside of the United States represented more than 10% of the Company’s total revenue or total assets in any period presented. 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. The allocation of production overhead to inventory costs is based on normal production capacity. 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): December 31 2015 2014 Raw Materials $ 39,267 $ 36,287 Work in Process 62,153 51,691 Finished Goods 47,270 44,657 Inventory $ 148,690 $ 132,635 In addition, capitalized stock-based compensation expense of $2.5 million and $1.6 million were included in inventory as of December 31, 2015 and 2014 , respectively. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method based on the estimated useful lives of the assets, which range from 3 to 7 years . Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. There were no indications of impairment of property and equipment for the years ended December 31, 2015 and 2014 . Property and equipment consisted of the following (in thousands): December 31 2015 2014 Land $ 21 $ 21 Building 3,737 3,364 Scientific equipment 60,403 52,619 Manufacturing equipment 69,155 56,426 Computers and software 33,291 24,402 Office furniture 11,993 9,929 Leasehold improvements 72,670 66,842 $ 251,270 $ 213,603 Less accumulated depreciation and amortization (123,631 ) (97,838 ) $ 127,639 $ 115,765 Total depreciation and amortization expense on our property and equipment in the years ended December 31, 2015 , 2014 and 2013 totaled $27.3 million , $21.6 million and $17.8 million , respectively. Capitalized Software Costs for Internal Use Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. The Company capitalized costs for a new enterprise resource planning software system and other internal use software of $6.1 million and $10.3 million during the years ended December 31, 2015 and 2014 , respectively. Upon being placed in service, these assets are amortized over an estimated useful life of 3 to 5 years . Intangible Assets and Goodwill 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 on a straight line basis over their estimated useful lives, ranging from three to 15 years . Amortization of intangible assets is primarily included in cost of sales, research and development and sales and marketing in the Consolidated Statements of Operations. The Company reviews its intangible assets for impairment and conducts the impairment review when events or circumstances indicate that the carrying value of a long-lived asset may be impaired by first estimating the future undiscounted cash flows to be derived from the intangible asset to assess whether or not a potential impairment exists. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows, an impairment value is calculated as the excess of the carrying value of the intangible asset over the Company’s estimate of its fair market value. Events or circumstances which could trigger an impairment review include a significant adverse change in the business climate, an adverse action or assessment by a regulator, unanticipated competition, significant changes in the Company’s use of acquired assets, the Company’s overall business strategy, or significant negative industry or economic trends. The Company did not recognize any significant impairment charges in 2015 or 2014 . In 2013 , the Company recorded an impairment charge of $1.3 million to cost of sales primarily related to acquired technology for one of its legacy products. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually during the fourth fiscal quarter, or as circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in one segment, which is also considered to be our sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2015 , there has been no impairment of goodwill. The Company does not have intangible assets with indefinite useful lives other than goodwill. Warranty Reserve The Company generally warrants its systems to be free from defects for a period of 12 to 24 months from the date of sale and for our disposable products to be free from defects, when handled according to product specifications, for the stated life of such products. Accordingly, a provision for the estimated cost of warranty repair or replacement is recorded at the time revenue is recognized. The Company’s warranty provision is established using management’s estimate of future failure rates and the estimated cost of repair or replacement. The activities in the warranty provision consisted of the following (in thousands): 2015 2014 2013 Balance at beginning of year $ 3,784 $ 3,326 $ 1,953 Settlements/Adjustments (2,821 ) (1,310 ) (783 ) Provisions 843 1,768 2,156 Balance at end of year $ 1,806 $ 3,784 $ 3,326 Accrued and other liabilities Accrued and other liabilities consisted of the following (in thousands): December 31 2015 2014 Accrued expense for estimated legal contingency $ 20,000 $ 20,000 Derivative liabilities 1,298 3,812 Accrued warranty reserve 1,806 3,784 Accrued payment related to asset acquisition — 3,000 Income tax payable 391 1,028 Other 3,956 3,137 Accrued and other liabilities $ 27,451 $ 34,761 Other liabilities Other liabilities consisted of the following (in thousands): December 31 2015 2014 Deferred tax liabilities ¹ $ 1,152 $ 6,261 Deferred rent 8,165 7,721 Non-current income tax payable 1,801 2,150 Other 4,661 2,636 Other liabilities $ 15,779 $ 18,768 ¹ The Company early adopted ASU 2015-17 on a prospective basis, which resulted in the reclassification of approximately $5.4 million from current deferred tax assets to non-current deferred tax liabilities as of December 31, 2015. 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 agreement ("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 agreement, a customer may commit to purchasing minimum quantities of reagents at stated prices over a defined contract term, which is typically between three and 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 our 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. Revenue includes fees for research and development services earned under grants and collaboration agreements, which are recognized on a contract-specific basis. Revenue and profit under cost-plus service contracts is recognized as costs are incurred plus negotiated fees. For certain contracts, the Company utilizes the proportional performance method of revenue recognition which requires that the Company estimates the total amount of costs to be expended for a project and recognize revenue equal to the portion of costs incurred to date. The Company exercises judgment when estimating the level of effort required to complete a project. The estimated total costs to complete a project are subject to revision from time-to-time. Research and Development Research and development expenses consist of costs incurred for company-sponsored and collaborative research and development activities. These costs include direct and research-related overhead expenses, amortization of certain intangible assets, and the costs of clinical studies. Research and development costs are expensed as incurred. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes the fair value of the Company’s stock option awards as compensation expense over the requisite service period of each award, which is generally four years . Foreign Currency Hedging Derivative financial instruments are recorded at fair value in the Consolidated Balance Sheets as prepaid expenses and other current assets or accrued and other liabilities. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and is recognized into earnings within the same financial statement line item as the hedged item in the period during which the hedged transaction is realized. Gains and losses on the derivative financial instruments representing either hedge ineffectiveness or discontinued cash flow hedges, if any, are recognized in current earnings. 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 net income 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 common equivalents shares because their inclusion would be antidilutive. Common stock equivalent shares totaled 8,952,000 , 9,392,000 and 5,267,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The following summarizes the computation of basic and diluted loss per share (in thousands, except for per share amounts): Years ended December 31, 2015 2014 2013 Basic: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) Diluted: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — Diluted weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) Income Taxes The Company accounts for income taxes using an asset and liability approach, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements, but have not been reflected as taxable income. A valuation allowance is established to reduce deferred tax assets to their estimated realizable value. Therefore, the Company provides a valuation allowance to the extent that the Company does not believe it is more likely than not that it will generate sufficient taxable income in future periods to realize the benefit of its deferred tax assets. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. Legal Contingencies The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and other contractual matters. The Company regularly assesses the probability and range of possible loss based on the developments in these matters. If the Company determines that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated, it records a liability in the financial statements. If a reasonable estimate of a probable loss cannot be made, but the Company is able to estimate the potential range of probable loss, the Company records a liability based on the low-end of the estimated range of loss. If a loss is not probable but is reasonably possible and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Consequently, in the event that opposing litigants in outstanding litigations or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on our business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. 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. The Company adopted ASU 2015-03 on January 1, 2016, at which time the Company reclassified 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on the balance sheet. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The Company has early-adopted the provisions of this ASU as of December 31, 2015. The provisions have been applied prospectively and had a one-time impact of reducing both current deferred tax assets and non-current deferred tax liabilities by approximately $5.4 million as of December 31, 2015. Prior periods were not retrospectively adjusted, as permitted by the ASU. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following table summarizes the fair value hierarchy for the Company’s financial assets (cash, cash equivalents, short-term investments and non-current investments) and financial liabilities (foreign currency derivatives, convertible senior notes and contingent consideration) measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 (in thousands): Balance at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 84,625 $ 27,943 $ — $ 112,568 Short-term investments: Asset-backed securities — 51,973 — 51,973 Corporate debt securities — 81,600 — 81,600 Commercial Paper — 48,762 — 48,762 Government agency securities — 12,684 — 12,684 Other securities — 15,128 — 15,128 Total short-term investments — 210,147 — 210,147 Foreign currency derivatives — 1,431 — 1,431 Investments: Asset-backed securities — 11,818 — 11,818 Corporate debt securities — 36,414 — 36,414 Government agency securities — 11,944 — 11,944 Other securities — 1,999 — 1,999 Total investments — 62,175 — 62,175 Total $ 84,625 $ 301,696 $ — $ 386,321 Liabilities: Foreign currency derivatives $ — $ 1,298 $ — $ 1,298 Total $ — $ 1,298 $ — $ 1,298 Balance at 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 December 31, 2015 and 2014 , were as follows (in thousands): Balance at December 31, 2015 Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 307,481 $ — $ 307,481 Total $ — $ 307,481 $ — $ 307,481 Balance at 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 in an over-the-counter market on December 31, 2015 . |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Investments | Investments The Company’s marketable securities as of December 31, 2015 , were classified as available-for-sale securities, with changes in fair value recognized in accumulated other comprehensive loss, a component of shareholders’ equity. 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. The following tables summarize available-for-sale marketable securities (in thousands): Balance at December 31, 2015 Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Short-term investments: Asset-backed securities $ 52,102 $ — $ (129 ) $ 51,973 Commercial paper 76,711 3 (9 ) 76,705 Corporate debt securities 81,777 — (177 ) 81,600 Government agency securities 12,701 — (17 ) 12,684 Other securities 15,122 7 (1 ) 15,128 Amounts classified as cash equivalents (27,943 ) — — (27,943 ) Total short-term investments $ 210,470 $ 10 $ (333 ) $ 210,147 Investments: Asset-backed securities $ 11,884 $ — $ (66 ) $ 11,818 Corporate debt securities 36,530 3 (119 ) 36,414 Government agency securities 11,999 — (55 ) 11,944 Other securities 2,001 — (2 ) 1,999 Total investments $ 62,414 $ 3 $ (242 ) $ 62,175 Balance at December 31, 2014 Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value 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 Proceeds from the sale of marketable securities were $52.2 million and $115.9 million for the years ended December 31, 2015 and 2014 , respectively. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of “Other income (expense)” in the Consolidated Statements of Operations, were for the years ended December 31, 2015 and 2014 (in thousands): Years Ended December 31, 2015 2014 Gross realized gains $ 26 $ 36 Gross realized losses — — Realized gains, net $ 26 $ 36 The fair value of the Company’s marketable securities with unrealized losses at December 31, 2015 and December 31, 2014 , and the duration of time that such losses had been unrealized (in thousands) were: Balance at December 31, 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 $ 57,866 $ (192 ) $ 5,923 $ (3 ) $ 63,789 $ (195 ) Corporate debt securities 101,701 (289 ) 8,911 (7 ) 110,612 (296 ) Government agency securities 24,628 (72 ) — — 24,628 (72 ) Commercial paper 11,374 (9 ) — — 11,374 (9 ) Other securities 7,496 (3 ) — — 7,496 (3 ) Total $ 203,065 $ (565 ) $ 14,834 $ (10 ) $ 217,899 $ (575 ) 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 evaluated marketable securities, which consist of investments in asset-backed securities, corporate debt securities, government agency securities, commercial paper, and other securities as of December 31, 2015 and 2014 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 December 31, 2015 and December 31, 2014 , by contractual maturity (in thousands): December 31, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Debt securities: Mature in one year or less $ 186,311 $ 186,118 $ 150,133 $ 150,105 Mature after one year through three years 106,377 106,086 135,675 135,566 Mature in more than three years 8,139 8,061 11,396 11,387 Total 300,827 300,265 297,204 297,058 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivatives to partially offset its exposure to foreign currency exchange risk. The Company may enter into foreign currency forward contracts to offset some of the foreign exchange risk on expected future cash flows on certain forecasted revenue and expenses and on certain existing assets and liabilities. To help protect gross margins from fluctuations in foreign currency exchange rates, a portion of forecasted foreign currency revenue and expenses of certain of the Company’s subsidiaries are hedged. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue, cost of sales, and operating expenses generally up to twelve months. 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 had a net deferred loss of $0.4 million and a net deferred gain of $0.2 million associated with cash flow hedges recorded in AOCI as of December 31, 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 revenue 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 December 31, 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 years ended December 31, 2015 , 2014 and 2013 . Gains or losses on derivatives not designated as hedging instruments are recorded in foreign currency exchange loss and other, net. During the years ended December 31, 2015 , 2014 and 2013 , the Company recognized a gain of $5.2 million , $2.3 million , and $0.1 million respectively, as a component of foreign currency exchange loss and other, net. 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 $117.6 million and $117.2 million as of December 31, 2015 and 2014 , respectively. The notional principle amounts of the Company’s outstanding derivative instruments not designated as cash flow hedges is $25.9 million and $30.4 million as of December 31, 2015 and 2014 , respectively. The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 1,390 $ 41 $ 1,431 Derivative Liabilities (b): Foreign exchange contracts (1,250 ) (48 ) (1,298 ) December 31, 2014 Fair Value of Derivatives Fair Value of Derivatives 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 other current assets in the Consolidated Balance Sheets. b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued other liabilities in the Consolidated Balance Sheets. The following tables show the pre-tax effect of the Company’s derivative instruments designated as cash flow hedges in the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014 (in thousands): Years Ended December 31, Gain (Loss) Recognized in OCI - Effective Portion Gain (Loss) Reclassified from AOCI into Income - Effective Portion Loss Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing 2015 2014 2015 (a) 2014 (b) Location 2015 2014 Cash flow hedges: Foreign exchange contracts $ (1,303 ) $ 146 $ (665 ) $ (735 ) Foreign currency exchange loss and other, net $ (236 ) $ (46 ) Total $ (1,303 ) $ 146 $ (665 ) $ (735 ) $ (236 ) $ (46 ) a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a loss of $8.2 million within costs and operating expenses and a gain of $7.5 million within sales, respectively, were recognized within the Consolidated Statement of Operations for the year ended December 31, 2015 . b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a loss of $1.1 million within costs and operating expenses and a gain of $0.4 million within sales, respectively, were recognized within the Consolidated Statement of Operations for the year ended December 31, 2014 . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The recorded value and accumulated amortization of major classes of intangible assets were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Balance, December 31, 2015 Licenses $ 11,454 $ (7,280 ) $ 4,174 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 35,849 (14,782 ) 21,067 $ 55,916 $ (30,675 ) $ 25,241 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 The Company did not recognize any significant impairment charges in 2015 or 2014 . In 2013, the Company determined an acquired intangible asset related to existing technology of one of the Company’s legacy products, as well as certain acquired technology assets, were impaired, as there was no future use of the assets. As a result, the Company recorded an impairment expense of $1.3 million primarily to cost of sales in the Statement of Operations in the year ended December 31, 2013. The Company capitalizes patent licenses and acquired intangible assets and amortizes them over their estimated useful lives on a straight-line basis. Amortization expense of intangible assets was $6.3 million , $4.7 million and $5.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The expected future annual amortization expense of intangible assets recorded on the Company’s consolidated balance sheet as of December 31, 2015 is as follows (in thousands): For the Years Ending December 31, Amortization Expense 2016 $ 5,816 2017 5,448 2018 5,118 2019 4,168 2020 3,891 Thereafter 800 Total expected future amortization $ 25,241 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company has recorded all acquisitions using the purchase method of accounting and, accordingly, included the results of operations in its consolidated results as of the date of each acquisition. The tangible assets, liabilities and intangible assets (including goodwill) acquired were accounted for based on their estimated fair values. The fair value assigned to assets acquired is based on valuations using the Company’s estimates and assumptions. On October 1, 2014 , in order to directly serve the smaller hospital market, the Company acquired certain intangible assets from a distributor in the United States for an aggregate purchase price of $21.0 million , of which $18.0 million was paid in cash in 2014, and $3.0 million was retained subject to certain final price adjustments. This retained amount was recorded in “Accrued and other liabilities” in the Balance Sheet at December 31, 2014 and was paid in January, 2015. The Company accounted for the transaction as an asset acquisition and recorded two intangible assets: re-acquired exclusive distribution rights, and re-acquired distribution rights and customer relationships of $0.9 million and $19.9 million , respectively. The remaining $0.2 million was recorded as settlement for pre-existing relationships in the statements of operations in 2014. For the asset acquisition completed in 2014, re-acquired exclusive distribution rights were assigned a useful life of 3 months , and re-acquired distribution rights and customer relationships assets were assigned a useful life of 6 years beginning from January 1, 2015. The Company acquired a 100% interest in a distributor in Italy on April 1, 2013 . The Company also acquired certain assets from a distributor in Australia on August 31, 2013 . The Company included the financial results of these companies in the consolidated financial statements from the respective acquisition dates, and the results from each of these companies were not individually or in the aggregate material to the Company’s consolidated financial statements, therefore pro forma results of operations have not been presented. These transactions had a total purchase price of $4.0 million , of which $3.7 million , net of cash received, was paid in cash and the remainder being contingent cash considerations to be paid over time. These transactions were part of the ongoing expansion of the Company’s distribution network for the Company’s products. A summary of the fair value of the assets acquired and the liabilities assumed is as follows: acquired intangible assets of $2.0 million , property and equipment, inventory and other assets, net of liabilities, of $0.2 million , and goodwill of $1.5 million . The contingent cash considerations were paid pursuant to a calculation based on product sales of the acquired entities. The amount of the contingent consideration which was settled in the third quarter of 2014 was immaterial to the Company’s results of operations or financial position. For all acquisitions completed during 2013, customer relationships had a weighted-average useful life of 7 years and other intangibles had a weighted-average useful life of 15 years . Revenue and earnings contributions of the acquired entities were not significant or were not separately identifiable due to the integration of these acquired entities into our existing operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, loss before income taxes includes the following components (in thousands): December 31 2015 2014 2013 United States $ (49,673 ) $ (51,993 ) $ (19,802 ) Foreign 2,406 4,401 2,985 Total $ (47,267 ) $ (47,592 ) $ (16,817 ) The benefit (provision) for income taxes is comprised of (in thousands): Years Ended December 31, 2015 2014 2013 Current Federal $ 100 $ (4 ) $ 56 State (199 ) (92 ) 9 Foreign (1,359 ) (2,595 ) (1,770 ) $ (1,458 ) $ (2,691 ) $ (1,705 ) Deferred Federal $ — $ — $ — State — — — Foreign 195 134 557 $ 195 $ 134 $ 557 Benefit (provision) for income taxes $ (1,263 ) $ (2,557 ) $ (1,148 ) Reconciliation between the Company’s effective tax rate on loss from continuing operations and the statutory tax rate is as follows: Years Ended December 31, 2015 2014 2013 United States Federal statutory income tax rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit (0.4 )% (0.2 )% 0.1 % Foreign income taxed at other than U.S. rates (1.2 )% (0.2 )% 4.4 % Change in liabilities for uncertain positions 0.4 % (1.6 )% (5.6 )% Change in valuation allowance (35.5 )% (37.4 )% (40.0 )% Other — % — % 0.3 % Effective tax rate (2.7 )% (5.4 )% (6.8 )% Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) are as follows (in thousands): December 31, 2015 2014 Net operating loss carryforwards $ 45,248 $ 35,278 Inventory 4,452 5,342 Reserves and Accruals 12,229 12,199 Fixed and Intangible Assets 13,816 11,884 Research and other credit carryforwards 18,081 14,850 Stock-based compensation expense 18,615 14,641 Other 8,243 9,300 Total deferred tax assets 120,684 103,494 Valuation allowance (98,902 ) (78,832 ) Net deferred tax assets 21,782 24,662 Acquired intangible assets (1,051 ) (960 ) Convertible debt discount (21,436 ) (24,584 ) Net deferred tax liability $ (705 ) $ (882 ) A valuation allowance has been placed against the Company’s United States deferred tax assets, as management cannot conclude that it is more likely than not that these assets will be realized. The valuation allowance against United States deferred tax assets increased by $20.1 million , decreased by $11.6 million and increased by $12.8 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. Effective December 31, 2015, the Company early-adopted ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on the balance sheet. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The provisions have been applied prospectively and had a one-time impact of reducing both current deferred tax assets and non-current deferred tax liabilities by approximately $5.4 million as of December 31, 2015. Prior periods were not retrospectively adjusted, as permitted by the ASU. As of December 31, 2015 , the Company had federal and state net operating loss carryforwards of $341.4 million and $366.1 million , respectively, which, if not utilized, will expire in the years 2016 through 2035 . As of December 31, 2015 , the Company had federal research and development tax credits of $13.1 million , which expire in the years 2018 through 2035 , and state research and development tax credits of $15.2 million , which carry forward indefinitely. The Company also had foreign tax credits of $1.6 million which expire between 2020 through 2025 . Utilization of the Company’s net operating losses and research credits may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitation may result in the expiration of net operating loss and research credits before utilization. Undistributed earnings of the Company’s foreign subsidiaries of approximately $4.5 million and $8.8 million at December 31, 2015 and 2014 , respectively, are considered to be indefinitely reinvested, and, accordingly, no provisions for federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both federal income taxes, subject to an adjustment for foreign income tax credits and withholding taxes payable to various foreign countries. The tax impact of the distribution of such foreign earnings to the United States parent would not be significant as the Company’s net operating loss carryforward amount exceeds the amount of undistributed earnings. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other information. The Company is currently under examination in France. 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 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 2015 remain open to examination. In addition, the Company files tax returns in multiple foreign taxing jurisdictions with open tax years ranging from 2010 to 2015 . During 2015, a tax audit concluded in Sweden for the years 2012 through 2014. As a result, tax reserves for the relevant years were released. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands): 2015 2014 2013 Balance at beginning of year $ 10,298 $ 9,241 $ 7,397 Increase related to current year tax positions 907 1,245 1,844 Decrease for tax positions of prior years (189 ) (188 ) — Decrease due to lapse of statute — — — Decrease due to settlements (431 ) — — Balance at end of year $ 10,585 $ 10,298 $ 9,241 At December 31, 2015 and 2014 , the total gross unrecognized tax benefits were $10.6 million and $10.3 million , respectively, which, if recognized, would affect the Company’s effective tax rate, before consideration of certain valuation allowances. The Company anticipates that the total unrecognized tax benefits will not significantly change due to the settlement of audits and the expiration of statutes of limitations in the 12 months following December 31, 2015 . The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued penalties and interest of $0.3 million during 2015 and in total, as of December 31, 2015 , has recognized a liability for penalties and interest of $0.4 million . During 2014 and 2013, the Company did not recognize any significant interest or penalties related to uncertain tax positions. As of December 31, 2014 and 2013, the Company had accrued no significant interest or penalties. |
Convertible Senior Notes and No
Convertible Senior Notes and Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes and Notes Payable | Convertible Senior Notes and Notes Payable 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 preceeding 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 December 31, 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): Year Ended December 31, Liability component: 2015 2014 Principal $ 345,000 $ 345,000 Less: debt discount, net of amortization (57,137 ) (66,787 ) Net carrying amount $ 287,863 $ 278,213 Equity component (a) 73,013 73,013 a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $2.0 million transaction costs in equity. The following table sets forth total interest expense recognized related to the Notes (in thousands): Year Ended December 31, 2015 2014 1.25% coupon $ 4,312 $ 3,844 Amortization of debt transaction costs 602 387 Amortization of debt discount 9,650 8,213 $ 14,564 $ 12,444 As of December 31, 2015 , 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): December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Convertible Senior Notes $ 307,481 $ 287,863 $ 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 $36.53 on December 31, 2015 , the if-converted value of the Notes was less than their respective principal amounts. As of December 31, 2015 and 2014 , the Company had notes payable outstanding of $1.0 million and $1.2 million related to a loan received from the Company’s landlord in Sweden for tenant improvements. The note carries an interest rate of 4% . There are no debt covenants associated with the note. |
Commitments, Debt Obligations,
Commitments, Debt Obligations, Contingencies and Legal Matters | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Debt obligations, Contingencies and Legal Matters | Commitments, Debt obligations, Contingencies and Legal Matters The following table summarizes the Company’s lease, purchase and minimum royalty commitments and debt obligations at December 31, 2015 (in thousands): Payments Due by Period Total Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Operating leases $ 107,504 $ 13,711 $ 30,834 $ 23,045 $ 39,914 Purchase obligations 50,421 50,421 — — — Minimum royalties 11,354 635 975 940 8,804 Debt obligations 368,719 4,313 8,625 8,625 347,156 $ 537,998 $ 69,080 $ 40,434 $ 32,610 $ 395,874 Lease Commitments We lease building space under arrangements expiring through May 2029 . The Company’s manufacturing sites are located in the United States and Sweden. Certain of these lease arrangements contain escalation clauses whereby monthly rent increases over time. Rent expense is recognized on a straight-line basis over the lease period. As of December 31, 2015 and 2014 , the Company accrued $2.0 million and $1.1 million , respectively, of asset retirement obligations for certain buildings currently under lease. The Company recorded approximately $0.4 million in new liability and $0.5 million of accretion expense in 2015 and there were no settlement or revision in the estimated cash flows in the current period. Net rent expense for all operating leases for the years ended December 31, 2015 , 2014 and 2013 was $10.9 million , $11.6 million and $10.2 million , respectively. Purchase Commitments Purchase commitments include non-cancellable purchase orders or contracts for the purchase of raw materials used in the manufacturing of the Company’s reagents and orders for purchase of systems and system modules. In February 2016, the Company finalized an agreement to purchase a building for approximately $6 million , which is not included in the table above as we were not contractually obligated to make the purchase as of December 31, 2015. Minimum Royalty Commitments Some of our licensing arrangements provide for a minimum royalty commitment. Royalty expense is generally based on a fee per unit shipped or a percent of revenue received for the products containing the licensed technology. Debt Obligations Debt obligations include the principal amount of our convertible senior notes due 2021 , as well as interest payments to be made under the notes. Although these notes mature in 2021, they can be converted into cash and shares of our common stock prior to maturity if certain conditions are met. Any conversion prior to maturity can result in repayments of the principal amounts sooner than the scheduled repayments as indicated in the table. Please see Note 8 (“Convertible Senior Notes and Notes Payable”) for further discussion of the terms of the convertible senior notes. Bank Guarantees The Company carries bank guarantees that are subject to the terms of a certain foreign customer contract. The Company is required to maintain such guarantees until its contractual obligations are satisfied under the contract. The amount of bank guarantees held by the Company was $4.8 million as of December 31, 2015. The Company had no bank guarantees as of December 31, 2014. Contingencies The Company responds to claims arising in the ordinary course of business. In certain cases, the Company has accrued estimates of the amounts it expects to pay upon resolution of such matters, and such amounts are included in accrued and other liabilities. Should the Company not be able to secure the resolution it expects, these estimates may change and will be recognized in the period in which they are identified. In the normal course of business, the Company provides indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of its products. Historically, costs related to indemnification provisions have not been significant and the Company is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations. To the extent permitted under California law, the Company has agreements whereby it indemnifies its directors and officers for certain events or occurrences while the director or officer is, or was serving, at the Company’s request in such capacity. The indemnification period covers all pertinent events and occurrences during the director’s or officer’s service. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not specified in the agreements; however, the Company has director and officer insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Matters In May 2005, the Company entered into a license agreement with F. Hoffmann-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 was 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 as of December 31, 2014 , which was included in accrued and other liabilities in the Company’s consolidated balance sheets. This continues to be the Company's best estimate for this potential loss as of December 31, 2015. If the Company were to incur a loss in the arbitration proceeding, depending on the ruling of the arbitrators, 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. Management 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 the 723 Patent in the United States Patent and Trademark Office (the "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, we 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. On September 16, 2015, the USPTO denied the request for reconsideration. On September 17, 2015, the USPTO decided to institute our second petition for IPR. Management believes that the possibility that these legal proceedings will result in a material loss is remote. The Company may be subject to various additional 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock Option Plans 2015 Equity Incentive Plan On April 28, 2015, the Company's shareholders approved the 2015 Equity Incentive Plan ("2015 Plan"), which was approved by the Board in February 2015. The 2015 Plan replaced the 2006 Equity Incentive Plan ("2006 Plan") and, together with our 2012 Employee Stock Purchase Plan, are the only plans currently being used to provide stock-based incentive compensation to our eligible employees and non-employee directors. However, options or restricted stock units granted or shares issued under the 2006 Plan that were outstanding on the date the 2006 Plan was replaced by the 2015 Plan will remain subject to the terms of the 2006 Plan. Shares of common stock reserved for issuance under the 2015 Plan include (i) an initial authorization of 4,600,000 shares of common stock, (ii) any reserved shares not issued or subject to outstanding grants under the 2006 Plan on the effective date of April 28, 2015, (iii) shares that are subject to options or other awards granted under the 2006 Plan that are cancelled, forfeited, repurchased or that expire by their terms without shares being issued after the effective date for any reason, (iv) shares issued under the 2006 Plan before or after the effective date pursuant to the exercise of options or stock appreciation rights that are, after the effective date, forfeited, (v) shares issued under the 2006 Plan that are repurchased by the Company at the original issue price, and (vi) shares that are subject to options or other awards granted under the 2006 Plan that otherwise terminate without shares being issued. The following shares may not be made available for future grant and issuance under the 2015 Plan: (a) shares withheld under the 2015 Plan to pay the exercise or purchase price or to satisfy tax withholding obligations; (b) shares not issued or delivered as a result of the net settlement of an outstanding stock option or stock appreciation right; or (c) shares repurchased with the proceeds of an option exercise price. The Company will reserve and keep available a sufficient number of shares to satisfy the requirements of all outstanding awards granted under the 2015 Plan. Under the 2015 Plan, the Company may grant incentive stock options (“ISOs”) and non-qualified stock options (“NQSOs”), restricted stock awards (“RSAs”), stock bonus awards (“SBAs”), stock appreciation rights (“SARs”), restricted stock units (“RSUs”) and performance awards (“PAs”). ISOs may be granted only to employees and all other awards may be granted to employees, consultants, directors, and non-employee directors of the Company or any parent or subsidiary of the Company provided that they render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction. Any award other than an option or a SAR shall reduce the number of shares available for issuance by 2.17 shares, which differs from the 2006 Plan, which reduced it by only 1.75 shares. Awards issued as an option or SAR shall reduce the number of shares available for issuance by the number of shares underlying the award, regardless of the number of shares actually issued upon exercise of the award. The 2015 Plan is administered by the Compensation Committee of the Board ("Committee") or by the Board acting as the Committee. RSAs, SBAs, RSUs and PAs (collectively, “Full Value Equity Awards”) with vesting or settlement restrictions, as applicable, based upon completion of performance goals, have a minimum one -year vesting or settlement restriction period (the “One-Year Restriction Period”) and all other vesting or settlement restrictions, as applicable, for Full Value Equity Awards shall have a minimum three -year vesting or settlement restriction period (the “Three-Year Restriction Period” and together with the One-Year Restriction Period, the “Minimum Restriction Periods”). The Company may grant Full Value Equity Awards without taking into account the Minimum Restriction Periods, provided, that, the Company does not grant more than 5% of the aggregate shares reserved and available for grant and issuance pursuant to the 2015 Plan without such Minimum Restriction Periods. The following provides a general description of each type of award under the 2015 Plan. As of December 31, 2015 , the Company had 6,260,590 shares of the Company’s common stock reserved for future issuance under the 2015 Plan. Stock options may be granted at no less than the fair market value per share of common stock on the date of the grant (at 110% of fair market value for ISOs granted to 10% shareholders), expire not later than seven years from the date of grant ( five years from the date of grant for ISOs granted to 10% shareholders) and generally vest 25% one year after the vesting commencement date and then on a pro rata basis over the following 36 months . RSAs may be granted at a purchase price that is less than fair market value on the date of grant, and the restrictions are determined by the Committee and may be based on years of service with the Company or completion of performance goals during a period. The Committee will determine the extent that the RSA is earned prior to the payment for the shares awarded. RSUs are awards for past or future services that may be settled in cash or shares of common stock, including restricted stock. The Committee determines the terms of each RSU, including the number of shares of common stock subject to the RSU, the times during which the RSU may be settled, the consideration to be made on settlement, and the effect of the participant’s termination on each RSU. If RSUs are awarded based on performance goals, the Committee will determine the extent that the RSU is earned. The number of shares subject to the RSU may be fixed or may vary depending on performance goals determined by the Committee. While the RSU shall be paid currently, under certain circumstances the Committee may permit the participant to defer settlement of the RSU. PAs are awards denominated in shares of common stock that, at the sole discretion of the Committee, may be settled in cash or issuance of such shares (which may consist of restricted stock) or a combination thereof. Any PA that is comprised of a share bonus will have an initial value equal to the fair market value on the date of grant. The Committee will determine the terms of each PA, including the number of shares of common stock subject to the PA, the performance factors and the period that shall determine the extent to which each PA shall be settled, and the effect of the participant’s termination upon a change of control. Prior to the applicable settlement period, the Committee will determine the extent that the PSA is earned. No participant in the 2015 Plan will be eligible to receive more than $5,000,000 in PAs in any calendar year. 2006 Equity Incentive Plan Following the effective date of the 2015 Plan on April 28, 2015, no further grants will be made under 2006 Plan. Under the 2006 Plan, the Company granted incentive stock options (“ISOs”) and non-qualified stock options (“NQSOs”), restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), in each case, on terms substantially similar as described above for the same type of equity award under the 2015 Plan. As of December 31, 2015, 4,872,498 shares of common stock were outstanding under the 2006 Plan. A summary of stock option activity under the 2015 Plan, the 2006 Plan and non-plan grants is as follows (in thousands, except weighted average exercise price and weighted average remaining contractual term): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Intrinsic Value Outstanding December 31, 2012 6,810 $ 21.81 Granted 1,553 $ 38.55 Exercised (1,579 ) $ 16.19 Forfeited (308 ) $ 32.19 Outstanding December 31, 2013 6,476 $ 26.70 Granted 1,471 $ 46.36 Exercised (1,930 ) $ 19.72 Forfeited (436 ) $ 40.64 Outstanding December 31, 2014 5,581 $ 33.20 Granted 1,332 $ 55.36 Exercised (1,084 ) $ 23.97 Forfeited (387 ) $ 47.32 Outstanding December 31, 2015 5,442 $ 39.46 4.05 $ 20,116 Exercisable, December 31, 2015 3,195 $ 32.51 2.93 $ 19,899 Vested and expected to vest December 31, 2015 5,278 $ 39.11 4.00 $ 20,102 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price of $36.53 on the last trading day of 2015 and the exercise price, times the number of shares for options where the exercise price is below the closing stock price) that would have been received by the option holders had all option holders exercised their options on that date. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised was $34.1 million , $58.2 million , and $37.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. A summary of all RSAs and RSUs activity under the 2015 Plan and the 2006 Plan and non-plan RSA and RSU grants, is as follows (in thousands, except weighted average grant date fair value): Shares Weighted Average Grant Date Fair Value Outstanding December 31, 2012 642 $ 29.74 Granted 412 $ 38.23 Vested (262 ) $ 29.81 Cancelled (50 ) $ 34.17 Outstanding December 31, 2013 742 $ 34.13 Granted 377 $ 46.83 Vested (327 ) $ 34.11 Cancelled (94 ) $ 39.35 Outstanding December 31, 2014 698 $ 40.30 Granted 737 $ 52.23 Vested (317 ) $ 39.65 Cancelled (118 ) $ 47.56 Outstanding December 31, 2015 1,000 $ 48.44 In accordance with the 2015 Plan, RSUs granted after April 28, 2015 reduced the number of shares available for future grant by a factor of 2.17 for each share subject to such award. In accordance with the 2006 Plan, RSUs granted in 2013 , 2014, and through April 28, 2015 reduced the number of shares available for future grant by a factor of 1.75 for each share subject to such award. Based on the closing price per share of the Company’s common stock of $36.53 and $54.14 on the last trading day in 2015 and in 2014 , respectively, the total pre-tax intrinsic value of all outstanding stock awards as of December 31, 2015 and December 31, 2014 was $36.5 million and $37.8 million , respectively. Total fair value of stock awards vested was $16.0 million , $14.8 million , and $10.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Employee Stock Purchase Plan The 2012 Employee Stock Purchase Plan (“2012 ESPP”) was approved by the Company’s Board of Directors in February 2012 and adopted by the Company’s shareholders in April 2012. The 2012 ESPP permits eligible employees of the Company and its participating subsidiaries to purchase common stock at a discount up to a maximum of 15% of compensation through payroll deductions during defined two -year offering periods consisting of four, six-month purchase periods. The price at which stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of the common stock on the first day of the two-year offering period or the last day of the six-month purchase period, whichever is lower. The number of shares available for future issuance increase annually equal to the lesser of (a) 500,000 shares or (b) an amount determined by the Compensation and Organizational Development Committee of the Board. Reserved Shares As of December 31, 2015 , the Company has reserved shares of common stock for future issuance as follows (in thousands): Payments Due by Period Total 2015 Plan: Options, RSUs and awards outstanding for all plans 6,441 Reserved for future grants 6,261 2012 ESPP 2,495 $ 15,197 Stock-Based Compensation Expense Fair Value —The fair value of the Company’s stock options granted to employees and shares purchased by employees under the 2012 ESPP, for the years ended December 31, 2015 , 2014 and 2013 was estimated using the following assumptions: Years Ended December 31, 2015 2014 2013 OPTION SHARES: Expected Term (in years) 4.46 4.40 4.41 Volatility 0.36 0.38 0.44 Expected Dividends — % — % — % Risk Free Interest Rates 1.47 % 1.71 % 0.90 % Estimated Forfeitures 6.14 % 6.75 % 7.61 % Weighted Average Fair Value $ 17.73 $ 15.71 $ 14.17 ESPP SHARES: Expected Term (in years) 1.20 1.24 1.25 Volatility 0.34 0.33 0.42 Expected Dividends — % — % — % Risk Free Interest Rates 0.39 % 0.22 % 0.19 % Weighted Average Fair Value $ 16.43 $ 12.13 $ 12.10 Stock-Based Compensation Expense —The following table is a summary of the major categories of stock compensation expense recognized in accordance with ASC 718, “Compensation—Stock Compensation” (“ASC 718”) for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Cost of sales $ 4,423 $ 4,086 $ 2,930 Research and development 10,776 9,516 8,540 Sales and marketing 7,819 6,048 5,636 General and administrative 14,029 12,557 10,529 Total stock-based compensation expense $ 37,047 $ 32,207 $ 27,635 The above stock-based compensation expense includes costs for 2012 ESPP of $2.8 million , $2.7 million , and $3.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , the total compensation expense related to unvested stock option grants under the Company’s 2006 Plan and 2015 Plan not yet recognized was $28.3 million , which is net of estimated forfeitures of $2.5 million . This expense will be amortized on a straight line basis over a weighted average period of 2.5 years and will be adjusted for subsequent changes in estimated forfeitures. As of December 31, 2015 , the total compensation expense related to RSAs and RSUs under the 2006 Plan and 2015 Plan not yet recognized was $37.6 million , which is net of estimated forfeitures of $4.2 million . This expense will be amortized on a straight line basis over a weighted average period of 2.9 years and will be adjusted for subsequent changes in estimated forfeitures. At December 31, 2015 , the total compensation expense related to options to purchase the Company’s common shares under the 2012 ESPP but not yet recognized was $2.1 million . The expense will be amortized on a straight-line basis over the two-year offering period, as such term is defined in the 2012 ESPP. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company’s 401(k) plan allows eligible employees to contribute a percentage of their qualified compensation subject to IRS limits. The Company has the discretion to make matching contributions each year. Contributions made by the Company for the years ended December 31, 2015 , 2014 and 2013 were $2.4 million , $1.9 million , and $1.5 million , respectively. On December 9, 2013, the Compensation and Organizational Development Committee of the Board of Directors of the Company approved the establishment of the Cepheid Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded deferred compensation plan and participants in the Deferred Compensation Plan will at all times have the status of unsecured general creditors of Cepheid with respect to the payment of any Plan benefits. The Deferred Compensation Plan is designed to provide designated executives of Cepheid, currently set at Vice Presidents and above, with the opportunity to defer the payment of (1) between 5% and 75% of their base salary and (2) between 5% and 100% of any cash-based incentive awards payable to a participant. The Deferred Compensation Plan’s Administrative Committee will select investment options from which the participants may make elections for the deemed investment of their accounts under the Deferred Compensation Plan. Plan participants shall at all times be fully vested in any amounts deferred pursuant to the Deferred Compensation Plan. The Deferred Compensation Plan became effective beginning January 1, 2014 and had a balance of $1.2 million and $0.4 million as of December 31, 2015 and 2014 , respectively. |
Segment and Significant Concent
Segment and Significant Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Significant Concentrations | 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): Years Ended December 31, 2015 2014 2013 Revenue by market: Clinical Systems $ 82,999 $ 84,695 $ 66,980 Clinical Reagents 426,914 356,427 292,941 Total Clinical $ 509,913 $ 441,122 $ 359,921 Non-Clinical 28,663 29,019 41,371 Total revenue $ 538,576 $ 470,141 $ 401,292 The following table summarizes revenue by geographic region (in thousands): Years Ended December 31, 2015 2014 2013 Geographic revenue information: North America Clinical $ 290,374 $ 247,120 $ 212,362 Non-Clinical 27,635 24,905 36,998 Total North America 318,009 272,025 249,360 International Clinical $ 219,539 $ 194,002 $ 147,559 Non-Clinical 1,028 4,114 4,373 Total International 220,567 198,116 151,932 Total revenue $ 538,576 $ 470,141 $ 401,292 The Company had a distribution agreement to distribute products in the United States until October 1, 2014 and has several regional distribution arrangements in place throughout Europe, Japan, China, Latin America, South America, Canada and other parts of the world. The Company recognized revenue of $306.2 million , $264.1 million and $237.8 million for sales to United States customers for the years ended December 31, 2015 , 2014 and 2013 , respectively. No single country outside of the United States represented more than 10% of the Company’s total revenue for the years ended December 31, 2015 , 2014 and 2013 . The following table summarizes long-lived assets, excluding intangible assets and goodwill, by geographic region (in thousands): December 31, 2015 December 31, 2014 United States $ 108,210 96,038 Other regions 19,429 19,727 Total long-lived assets $ 127,639 $ 115,765 The Company does not hold a significant amount of long-lived assets in any single country outside of the United States as of December 31, 2015 and December 31, 2014 . |
Collaboration Profit Sharing
Collaboration Profit Sharing | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Collaboration Profit Sharing | Collaboration Profit Sharing Collaboration profit sharing represents the amount that the Company pays to LIFE under its collaboration agreement to develop reagents for use in the USPS BDS program. Under the agreement, computed gross margin on anthrax cartridge sales are shared equally between the two parties. Collaboration profit sharing expense was $5.8 million , $5.2 million and $7.5 million for the years ended December 31, 2015 , 2014 , 2013 respectively. The total revenue and cost of sales related to these cartridge sales are included in the respective balances in the consolidated statement of operations. |
Collaborative Agreements and Co
Collaborative Agreements and Contracts | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Agreements and Contracts | Collaborative Agreements and Contracts Foundation for Innovative New Diagnostics In May 2006, the Company entered into an agreement with the FIND to develop a simple, fast test that can detect mycobacterium tuberculosis and associated rifampin resistance from human sputum samples. Under the agreement, the Company was responsible for the development of a 6-color GeneXpert instrument to accomplish such test and the development of an enhanced manufacturing line for the manufacture of test cartridges used in the test. FIND reimbursed the Company at agreed upon amounts. The term of the development portion of the agreement was 30 months , which was subsequently extended an additional five months . In July 2009, the agreement was extended for another year for further specified enhancements. The supply term of the agreement is for 12 years , unless terminated by either party in accordance with relevant provisions of the agreement. In January 2011, the agreement was extended for another year and a new agreement was signed for the development of the Company’s Xpert HIV Viral Load test. Under the Xpert HIV agreement, FIND agreed to fund $5.1 million in development costs throughout the two -year contract. In December 2014, the Xpert HIV-1 Viral Load achieved CE-IVD status under the European Directive on In Vitro Diagnostic Medical Devices. In December 2013, the Company entered into an agreement to develop Xpert MTB/RIF Ultra with FIND and Rutgers New Jersey Medical School to develop a next-generation test for mycobacterium tuberculosis ("TB") with increased sensitivity to aid in detection of patients with smear-negative TB, which is often associated with HIV co-infection. Xpert MTB/RIF Ultra will run on existing 6-color GeneXpert Systems. Under the Xpert MTB/RIF Ultra agreement, FIND agreed to fund up to $3.0 million in development costs throughout the two -year contract. The Company recognized revenue from FIND of $1.6 million , $2.1 million and $0.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. MTB/RIF Buy Down Program for the HBDC Market In 2012, the Company entered into agreements with BMGF, USAID and UNITAID to reduce the price of the Company’s Multi-Drug Resistant Tuberculosis test to $9.98 for customers in the HBDC program. The Company received one-time payments of $3.5 million each from BMGF and USAID in 2012 and $3.2 million from UNITAID during 2013. Based on the terms of the agreements, the Company recognized revenue related to the BMGF and USAID agreements on a per-unit basis. Under the UNITAID agreement, the Company will recognize the $3.2 million of revenue on a straight line basis over a period of ten years . For the years ended December 31, 2015 , 2014 and 2013 , the Company recognized revenue of $0.3 million , $0.3 million and $2.7 million , respectively, related to the BMGF, USAID and UNITAID agreements. LIFE and Northrop Grumman Corporation In October 2002, the Company entered into a collaboration agreement with LIFE to develop reagents for use in the USPS BDS program, which was developed by the consortium led by Northrop Grumman Corporation. Under the agreement, reagents will be manufactured by LIFE for packaging by the Company into its GeneXpert test cartridges and sold by the Company for use in the BDS. This agreement calls for the computed gross margin on sales of anthrax cartridges for the USPS BDS program to be equally shared between the Company and LIFE. In August 2007, Northrop Grumman entered into a five -year master purchase agreement with the Company for the purchase of up to $200 million in anthrax test cartridges and associated materials used in BDS. In the fourth quarter of 2011, Northrop Grumman entered into another five -year master purchase agreement with the Company for the purchase of up to $112 million of anthrax test cartridges and associated materials used in BDS. The agreement and subsequent purchase orders cover the period through September 30, 2016. In the fourth quarter of 2012, the Company entered into an agreement directly with the USPS to sell the anthrax test cartridges and associated materials used in BDS directly to USPS through the period ending September 30, 2016. Bill and Melinda Gates and Paul G. Allen Family Foundation In November 2014, the Company announced details of an awarded grant of up to $3.4 million co-financed by the Paul G. Allen Family Foundation and the BMGF to develop Xpert Ebola, a fast test that could be run on the Company’s installed base of GeneXpert Systems in developing countries. In addition to Xpert Ebola, the Company is evaluating deployment of the Company’s cloud-based monitoring software. For the year ended December 31, 2015 , the Company recognized revenue of $2.9 million related to the agreement. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | 15. Related party transactions 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 $2.4 million , $1.7 million , and $1.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. As of December 31, 2015, the Company had accounts receivable of approximately $0.3 million due from Geisinger. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | SUPPLEMENTARY DATA: QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Mar 31 June 30 Sept 30 Dec 31 (Unaudited) (In thousands, except per share data) 2015 Total revenue $ 132,637 $ 132,475 $ 126,465 $ 146,999 Costs and operating expenses: Cost of sales 61,201 69,377 67,681 71,605 Collaboration profit sharing 1,267 1,326 1,286 1,947 Research and development 23,986 28,092 32,909 30,769 Sales and marketing 25,936 28,078 28,664 32,690 General and administrative 15,642 16,352 15,401 15,229 Total cost and operating expenses 128,032 143,225 145,941 152,240 Income (loss) from operations 4,605 (10,750 ) (19,476 ) (5,241 ) Other expense, net (4,175 ) (4,726 ) (3,601 ) (3,903 ) Income (loss) before income tax expense 430 (15,476 ) (23,077 ) (9,144 ) (Provision for) benefit from income taxes 476 (1,254 ) 176 (661 ) Net Income (loss) $ 906 $ (16,730 ) $ (22,901 ) $ (9,805 ) Basic net income (loss) per share 0.01 (0.23 ) (0.32 ) (0.14 ) Diluted net income (loss) per share $ 0.01 $ (0.23 ) $ (0.32 ) $ (0.14 ) Weighted average shares used in computing basic net income (loss) per share 71,262 71,861 72,199 72,374 Weighted average shares used in computing diluted net income (loss) per share 73,189 71,861 72,199 72,374 Gross profit on revenue: Revenue $ 132,637 $ 132,475 $ 126,465 $ 146,999 Cost of sales (61,201 ) (69,377 ) (67,681 ) (71,605 ) $ 71,436 $ 63,098 $ 58,784 $ 75,394 Mar 31 June 30 Sept 30 Dec 31 (Unaudited) (In thousands, except per share data) 2014 Total revenue $ 106,907 $ 116,503 $ 115,209 $ 131,522 Costs and operating expenses: Cost of sales 53,083 59,568 56,791 59,885 Collaboration profit sharing 1,291 649 1,291 1,923 Research and development 21,740 23,998 23,541 27,572 Sales and marketing 23,458 23,502 23,913 26,975 General and administrative 13,667 14,340 13,069 13,971 Legal contingencies — — — 20,000 Total cost and operating expenses 113,239 122,057 118,605 150,326 Loss from operations (6,332 ) (5,554 ) (3,396 ) (18,804 ) Other expense, net (2,291 ) (3,370 ) (3,573 ) (4,272 ) Loss before income tax expense (8,623 ) (8,924 ) (6,969 ) (23,076 ) Provision for income taxes (680 ) (919 ) (266 ) (692 ) Net loss $ (9,303 ) $ (9,843 ) $ (7,235 ) $ (23,768 ) Basic net loss per share (0.13 ) (0.14 ) (0.10 ) (0.34 ) Diluted net loss per share $ (0.13 ) $ (0.14 ) $ (0.10 ) $ (0.34 ) Weighted average shares used in computing basic net loss per share 69,272 69,968 70,326 70,689 Weighted average shares used in computing diluted net loss per share 69,272 69,968 70,326 70,689 Gross profit on revenue: Revenue $ 106,907 $ 116,503 $ 115,209 $ 131,522 Cost of sales (53,083 ) (59,568 ) (56,791 ) (59,885 ) $ 53,824 $ 56,935 $ 58,418 $ 71,637 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Year Costs and Expenses Deductions Balance at End of Year (In thousands) Allowance for doubtful accounts: Year ended December 31, 2013 $ 176 $ 63 $ (41 ) $ 198 Year ended December 31, 2014 198 44 (5 ) 237 Year ended December 31, 2015 237 146 — 383 |
Organization and Summary of S25
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Business | Organization and Business 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 diagnostic testing in the Clinical market, as well as for application in the Company’s legacy Non-Clinical market. The Company’s systems enable fast, sophisticated molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of intercompany transactions and balances. |
Functional Currency | Functional Currency The U.S. dollar is the functional currency of all of the Company’s subsidiaries. The Company remeasures its foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and records the net gains or losses resulting from remeasurement in “Foreign currency exchange loss and other, net” in the consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s valuation techniques used to measure fair value maximized the use of observable inputs and minimized the use of unobservable inputs. The fair value hierarchy is based on the following three levels of inputs: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; 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 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Cash, Cash Equivalents, Short-Term Investments and Non-Current Investments | Cash, Cash Equivalents, Short-Term Investments and Non-Current Investments Cash and cash equivalents consist of cash on deposit with banks and money market instruments. 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 loss, a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. Interest and other income, net includes interest, dividends, amortization of purchase premiums and discounts and realized gains and losses on sales of securities. 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). |
Restricted Cash | Restricted Cash At December 31, 2015 , prepaid expense and other current assets included $2.7 million of restricted cash and other non-current assets included $2.1 million of restricted cash, both held as security for bank guarantees provided to a foreign customer contract. The Company is required to maintain such guarantees until its contractual obligations are satisfied under the contract. At December 31, 2014, restricted cash of $1.9 million was included in prepaid expense and other current assets and consisted of cash contractually restricted for use to develop the Xpert Ebola test in accordance with our agreement with BMGF. |
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 66% and 58% of the Company’s cash and cash equivalents as of December 31, 2015 and 2014 , respectively. The Company’s accounts receivable are derived from sales to customers and distributors. 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 11% and 26% of total accounts receivable as of December 31, 2015 and 2014 , respectively. The Company currently sells products through its direct sales force and distributors. There were no direct customers that accounted for 10% or more of total sales for the years ended December 31, 2015 , 2014 and 2013 . No single country outside of the United States represented more than 10% of the Company’s total revenue or total assets in any period presented. |
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. The allocation of production overhead to inventory costs is based on normal production capacity. 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): December 31 2015 2014 Raw Materials $ 39,267 $ 36,287 Work in Process 62,153 51,691 Finished Goods 47,270 44,657 Inventory $ 148,690 $ 132,635 In addition, capitalized stock-based compensation expense of $2.5 million and $1.6 million were included in inventory as of December 31, 2015 and 2014 , respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method based on the estimated useful lives of the assets, which range from 3 to 7 years . Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. There were no indications of impairment of property and equipment for the years ended December 31, 2015 and 2014 . Property and equipment consisted of the following (in thousands): December 31 2015 2014 Land $ 21 $ 21 Building 3,737 3,364 Scientific equipment 60,403 52,619 Manufacturing equipment 69,155 56,426 Computers and software 33,291 24,402 Office furniture 11,993 9,929 Leasehold improvements 72,670 66,842 $ 251,270 $ 213,603 Less accumulated depreciation and amortization (123,631 ) (97,838 ) $ 127,639 $ 115,765 Total depreciation and amortization expense on our property and equipment in the years ended December 31, 2015 , 2014 and 2013 totaled $27.3 million , $21.6 million and $17.8 million , respectively. |
Capitalized Software Costs for Internal Use | Capitalized Software Costs for Internal Use Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. The Company capitalized costs for a new enterprise resource planning software system and other internal use software of $6.1 million and $10.3 million during the years ended December 31, 2015 and 2014 , respectively. Upon being placed in service, these assets are amortized over an estimated useful life of 3 to 5 years . |
Intangible Assets and Goodwill | Intangible Assets and Goodwill 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 on a straight line basis over their estimated useful lives, ranging from three to 15 years . Amortization of intangible assets is primarily included in cost of sales, research and development and sales and marketing in the Consolidated Statements of Operations. The Company reviews its intangible assets for impairment and conducts the impairment review when events or circumstances indicate that the carrying value of a long-lived asset may be impaired by first estimating the future undiscounted cash flows to be derived from the intangible asset to assess whether or not a potential impairment exists. If the carrying value exceeds the Company’s estimate of future undiscounted cash flows, an impairment value is calculated as the excess of the carrying value of the intangible asset over the Company’s estimate of its fair market value. Events or circumstances which could trigger an impairment review include a significant adverse change in the business climate, an adverse action or assessment by a regulator, unanticipated competition, significant changes in the Company’s use of acquired assets, the Company’s overall business strategy, or significant negative industry or economic trends. The Company did not recognize any significant impairment charges in 2015 or 2014 . In 2013 , the Company recorded an impairment charge of $1.3 million to cost of sales primarily related to acquired technology for one of its legacy products. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually during the fourth fiscal quarter, or as circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in one segment, which is also considered to be our sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2015 , there has been no impairment of goodwill. The Company does not have intangible assets with indefinite useful lives other than goodwill. |
Warranty Reserve | Warranty Reserve The Company generally warrants its systems to be free from defects for a period of 12 to 24 months from the date of sale and for our disposable products to be free from defects, when handled according to product specifications, for the stated life of such products. Accordingly, a provision for the estimated cost of warranty repair or replacement is recorded at the time revenue is recognized. The Company’s warranty provision is established using management’s estimate of future failure rates and the estimated cost of repair or replacement. The activities in the warranty provision consisted of the following (in thousands): 2015 2014 2013 Balance at beginning of year $ 3,784 $ 3,326 $ 1,953 Settlements/Adjustments (2,821 ) (1,310 ) (783 ) Provisions 843 1,768 2,156 Balance at end of year $ 1,806 $ 3,784 $ 3,326 |
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 agreement ("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 agreement, a customer may commit to purchasing minimum quantities of reagents at stated prices over a defined contract term, which is typically between three and 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 our 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. Revenue includes fees for research and development services earned under grants and collaboration agreements, which are recognized on a contract-specific basis. Revenue and profit under cost-plus service contracts is recognized as costs are incurred plus negotiated fees. For certain contracts, the Company utilizes the proportional performance method of revenue recognition which requires that the Company estimates the total amount of costs to be expended for a project and recognize revenue equal to the portion of costs incurred to date. The Company exercises judgment when estimating the level of effort required to complete a project. The estimated total costs to complete a project are subject to revision from time-to-time. |
Research and Development | Research and Development Research and development expenses consist of costs incurred for company-sponsored and collaborative research and development activities. These costs include direct and research-related overhead expenses, amortization of certain intangible assets, and the costs of clinical studies. Research and development costs are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes the fair value of the Company’s stock option awards as compensation expense over the requisite service period of each award, which is generally four years . |
Foreign Currency Hedging | Foreign Currency Hedging Derivative financial instruments are recorded at fair value in the Consolidated Balance Sheets as prepaid expenses and other current assets or accrued and other liabilities. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and is recognized into earnings within the same financial statement line item as the hedged item in the period during which the hedged transaction is realized. Gains and losses on the derivative financial instruments representing either hedge ineffectiveness or discontinued cash flow hedges, if any, are recognized in current earnings. |
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 net income 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 common equivalents shares because their inclusion would be antidilutive. Common stock equivalent shares totaled 8,952,000 , 9,392,000 and 5,267,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The following summarizes the computation of basic and diluted loss per share (in thousands, except for per share amounts): Years ended December 31, 2015 2014 2013 Basic: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) Diluted: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — Diluted weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements, but have not been reflected as taxable income. A valuation allowance is established to reduce deferred tax assets to their estimated realizable value. Therefore, the Company provides a valuation allowance to the extent that the Company does not believe it is more likely than not that it will generate sufficient taxable income in future periods to realize the benefit of its deferred tax assets. |
Segments | Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. |
Legal Contingencies | Legal Contingencies The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and other contractual matters. The Company regularly assesses the probability and range of possible loss based on the developments in these matters. If the Company determines that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated, it records a liability in the financial statements. If a reasonable estimate of a probable loss cannot be made, but the Company is able to estimate the potential range of probable loss, the Company records a liability based on the low-end of the estimated range of loss. If a loss is not probable but is reasonably possible and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Consequently, in the event that opposing litigants in outstanding litigations or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on our business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. |
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. The Company adopted ASU 2015-03 on January 1, 2016, at which time the Company reclassified 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on the balance sheet. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The Company has early-adopted the provisions of this ASU as of December 31, 2015. The provisions have been applied prospectively and had a one-time impact of reducing both current deferred tax assets and non-current deferred tax liabilities by approximately $5.4 million as of December 31, 2015. Prior periods were not retrospectively adjusted, as permitted by the ASU. |
Organization and Summary of S26
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information Years Ended December 31, 2015 2014 2013 (In thousands) Supplemental Cash Flow Information Cash paid for interest $ 4,383 $ 2,145 $ 109 Cash paid for taxes $ 2,086 $ 572 $ 632 Property, equipment and intangible assets acquired but not yet paid at end of period $ 7,551 $ 8,506 $ 674 |
Components of inventories | The components of inventories were as follows (in thousands): December 31 2015 2014 Raw Materials $ 39,267 $ 36,287 Work in Process 62,153 51,691 Finished Goods 47,270 44,657 Inventory $ 148,690 $ 132,635 |
Schedule of property and equipment | Property and equipment consisted of the following (in thousands): December 31 2015 2014 Land $ 21 $ 21 Building 3,737 3,364 Scientific equipment 60,403 52,619 Manufacturing equipment 69,155 56,426 Computers and software 33,291 24,402 Office furniture 11,993 9,929 Leasehold improvements 72,670 66,842 $ 251,270 $ 213,603 Less accumulated depreciation and amortization (123,631 ) (97,838 ) $ 127,639 $ 115,765 |
Activities in warranty provision | The activities in the warranty provision consisted of the following (in thousands): 2015 2014 2013 Balance at beginning of year $ 3,784 $ 3,326 $ 1,953 Settlements/Adjustments (2,821 ) (1,310 ) (783 ) Provisions 843 1,768 2,156 Balance at end of year $ 1,806 $ 3,784 $ 3,326 |
Schedule of accrued and other liabilities | Accrued and other liabilities consisted of the following (in thousands): December 31 2015 2014 Accrued expense for estimated legal contingency $ 20,000 $ 20,000 Derivative liabilities 1,298 3,812 Accrued warranty reserve 1,806 3,784 Accrued payment related to asset acquisition — 3,000 Income tax payable 391 1,028 Other 3,956 3,137 Accrued and other liabilities $ 27,451 $ 34,761 |
Schedule of other liabilities | Other liabilities consisted of the following (in thousands): December 31 2015 2014 Deferred tax liabilities ¹ $ 1,152 $ 6,261 Deferred rent 8,165 7,721 Non-current income tax payable 1,801 2,150 Other 4,661 2,636 Other liabilities $ 15,779 $ 18,768 ¹ The Company early adopted ASU 2015-17 on a prospective basis, which resulted in the reclassification of approximately $5.4 million from current deferred tax assets to non-current deferred tax liabilities as of December 31, 2015. |
Summary of computation of basic and diluted loss per share | The following summarizes the computation of basic and diluted loss per share (in thousands, except for per share amounts): Years ended December 31, 2015 2014 2013 Basic: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) Diluted: Net loss $ (48,530 ) $ (50,149 ) $ (17,965 ) Basic weighted shares outstanding 71,928 70,069 67,485 Effect of dilutive securities: Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes — — — Diluted weighted shares outstanding 71,928 70,069 67,485 Net loss per share $ (0.67 ) $ (0.72 ) $ (0.27 ) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of 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 and non-current investments) and financial liabilities (foreign currency derivatives, convertible senior notes and contingent consideration) measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 (in thousands): Balance at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 84,625 $ 27,943 $ — $ 112,568 Short-term investments: Asset-backed securities — 51,973 — 51,973 Corporate debt securities — 81,600 — 81,600 Commercial Paper — 48,762 — 48,762 Government agency securities — 12,684 — 12,684 Other securities — 15,128 — 15,128 Total short-term investments — 210,147 — 210,147 Foreign currency derivatives — 1,431 — 1,431 Investments: Asset-backed securities — 11,818 — 11,818 Corporate debt securities — 36,414 — 36,414 Government agency securities — 11,944 — 11,944 Other securities — 1,999 — 1,999 Total investments — 62,175 — 62,175 Total $ 84,625 $ 301,696 $ — $ 386,321 Liabilities: Foreign currency derivatives $ — $ 1,298 $ — $ 1,298 Total $ — $ 1,298 $ — $ 1,298 Balance at 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 |
Summary of 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 December 31, 2015 and 2014 , were as follows (in thousands): Balance at December 31, 2015 Level 1 Level 2 Level 3 Total Liabilities: Convertible senior notes $ — $ 307,481 $ — $ 307,481 Total $ — $ 307,481 $ — $ 307,481 Balance at 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) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Schedule of available-for-sale marketable securities | The following tables summarize available-for-sale marketable securities (in thousands): Balance at December 31, 2015 Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Short-term investments: Asset-backed securities $ 52,102 $ — $ (129 ) $ 51,973 Commercial paper 76,711 3 (9 ) 76,705 Corporate debt securities 81,777 — (177 ) 81,600 Government agency securities 12,701 — (17 ) 12,684 Other securities 15,122 7 (1 ) 15,128 Amounts classified as cash equivalents (27,943 ) — — (27,943 ) Total short-term investments $ 210,470 $ 10 $ (333 ) $ 210,147 Investments: Asset-backed securities $ 11,884 $ — $ (66 ) $ 11,818 Corporate debt securities 36,530 3 (119 ) 36,414 Government agency securities 11,999 — (55 ) 11,944 Other securities 2,001 — (2 ) 1,999 Total investments $ 62,414 $ 3 $ (242 ) $ 62,175 Balance at December 31, 2014 Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value 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 “Other income (expense)” in the Consolidated Statements of Operations, were for the years ended December 31, 2015 and 2014 (in thousands): Years Ended December 31, 2015 2014 Gross realized gains $ 26 $ 36 Gross realized losses — — Realized gains, net $ 26 $ 36 |
Schedule of marketable securities with unrealized losses | The fair value of the Company’s marketable securities with unrealized losses at December 31, 2015 and December 31, 2014 , and the duration of time that such losses had been unrealized (in thousands) were: Balance at December 31, 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 $ 57,866 $ (192 ) $ 5,923 $ (3 ) $ 63,789 $ (195 ) Corporate debt securities 101,701 (289 ) 8,911 (7 ) 110,612 (296 ) Government agency securities 24,628 (72 ) — — 24,628 (72 ) Commercial paper 11,374 (9 ) — — 11,374 (9 ) Other securities 7,496 (3 ) — — 7,496 (3 ) Total $ 203,065 $ (565 ) $ 14,834 $ (10 ) $ 217,899 $ (575 ) 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 December 31, 2015 and December 31, 2014 , by contractual maturity (in thousands): December 31, 2015 December 31, 2014 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Debt securities: Mature in one year or less $ 186,311 $ 186,118 $ 150,133 $ 150,105 Mature after one year through three years 106,377 106,086 135,675 135,566 Mature in more than three years 8,139 8,061 11,396 11,387 Total 300,827 300,265 297,204 297,058 |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments at gross fair value reflected in Consolidated Balance Sheets | The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative Assets (a): Foreign exchange contracts $ 1,390 $ 41 $ 1,431 Derivative Liabilities (b): Foreign exchange contracts (1,250 ) (48 ) (1,298 ) December 31, 2014 Fair Value of Derivatives Fair Value of Derivatives 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 other current assets in the Consolidated Balance Sheets. b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued other liabilities in the Consolidated Balance Sheets. |
Schedule of pre-tax effect of derivative instruments designated as cash flow hedges in 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 Consolidated Statements of Operations for the years ended December 31, 2015 and 2014 (in thousands): Years Ended December 31, Gain (Loss) Recognized in OCI - Effective Portion Gain (Loss) Reclassified from AOCI into Income - Effective Portion Loss Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing 2015 2014 2015 (a) 2014 (b) Location 2015 2014 Cash flow hedges: Foreign exchange contracts $ (1,303 ) $ 146 $ (665 ) $ (735 ) Foreign currency exchange loss and other, net $ (236 ) $ (46 ) Total $ (1,303 ) $ 146 $ (665 ) $ (735 ) $ (236 ) $ (46 ) a) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a loss of $8.2 million within costs and operating expenses and a gain of $7.5 million within sales, respectively, were recognized within the Consolidated Statement of Operations for the year ended December 31, 2015 . b) Includes gains and losses reclassified from AOCI into net income for the effective portion of cash flow hedges, of which a loss of $1.1 million within costs and operating expenses and a gain of $0.4 million within sales, respectively, were recognized within the Consolidated Statement of Operations for the year ended December 31, 2014 . |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of 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 Amount Accumulated Amortization Net Carrying Amount Balance, December 31, 2015 Licenses $ 11,454 $ (7,280 ) $ 4,174 Technology acquired in acquisitions 8,613 (8,613 ) — Customer relationships and other intangible assets acquired in acquisitions 35,849 (14,782 ) 21,067 $ 55,916 $ (30,675 ) $ 25,241 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 |
Schedule of expected future annual amortization expense of intangible assets | The expected future annual amortization expense of intangible assets recorded on the Company’s consolidated balance sheet as of December 31, 2015 is as follows (in thousands): For the Years Ending December 31, Amortization Expense 2016 $ 5,816 2017 5,448 2018 5,118 2019 4,168 2020 3,891 Thereafter 800 Total expected future amortization $ 25,241 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of loss before income taxes | For financial reporting purposes, loss before income taxes includes the following components (in thousands): December 31 2015 2014 2013 United States $ (49,673 ) $ (51,993 ) $ (19,802 ) Foreign 2,406 4,401 2,985 Total $ (47,267 ) $ (47,592 ) $ (16,817 ) |
Schedule of benefit (provision) for income taxes | The benefit (provision) for income taxes is comprised of (in thousands): Years Ended December 31, 2015 2014 2013 Current Federal $ 100 $ (4 ) $ 56 State (199 ) (92 ) 9 Foreign (1,359 ) (2,595 ) (1,770 ) $ (1,458 ) $ (2,691 ) $ (1,705 ) Deferred Federal $ — $ — $ — State — — — Foreign 195 134 557 $ 195 $ 134 $ 557 Benefit (provision) for income taxes $ (1,263 ) $ (2,557 ) $ (1,148 ) |
Reconciliation of effective tax rate on loss from continuing operations and statutory tax rate | Reconciliation between the Company’s effective tax rate on loss from continuing operations and the statutory tax rate is as follows: Years Ended December 31, 2015 2014 2013 United States Federal statutory income tax rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit (0.4 )% (0.2 )% 0.1 % Foreign income taxed at other than U.S. rates (1.2 )% (0.2 )% 4.4 % Change in liabilities for uncertain positions 0.4 % (1.6 )% (5.6 )% Change in valuation allowance (35.5 )% (37.4 )% (40.0 )% Other — % — % 0.3 % Effective tax rate (2.7 )% (5.4 )% (6.8 )% |
Schedule of deferred tax assets (liabilities) | Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) are as follows (in thousands): December 31, 2015 2014 Net operating loss carryforwards $ 45,248 $ 35,278 Inventory 4,452 5,342 Reserves and Accruals 12,229 12,199 Fixed and Intangible Assets 13,816 11,884 Research and other credit carryforwards 18,081 14,850 Stock-based compensation expense 18,615 14,641 Other 8,243 9,300 Total deferred tax assets 120,684 103,494 Valuation allowance (98,902 ) (78,832 ) Net deferred tax assets 21,782 24,662 Acquired intangible assets (1,051 ) (960 ) Convertible debt discount (21,436 ) (24,584 ) Net deferred tax liability $ (705 ) $ (882 ) |
Summary of activity related to unrecognized tax benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands): 2015 2014 2013 Balance at beginning of year $ 10,298 $ 9,241 $ 7,397 Increase related to current year tax positions 907 1,245 1,844 Decrease for tax positions of prior years (189 ) (188 ) — Decrease due to lapse of statute — — — Decrease due to settlements (431 ) — — Balance at end of year $ 10,585 $ 10,298 $ 9,241 |
Convertible Senior Notes and 32
Convertible Senior Notes and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes | The Notes consist of the following (in thousands): Year Ended December 31, Liability component: 2015 2014 Principal $ 345,000 $ 345,000 Less: debt discount, net of amortization (57,137 ) (66,787 ) Net carrying amount $ 287,863 $ 278,213 Equity component (a) 73,013 73,013 a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $2.0 million transaction 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): Year Ended December 31, 2015 2014 1.25% coupon $ 4,312 $ 3,844 Amortization of debt transaction costs 602 387 Amortization of debt discount 9,650 8,213 $ 14,564 $ 12,444 |
Schedule of carrying value of debt instrument | As of December 31, 2015 , 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): December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Convertible Senior Notes $ 307,481 $ 287,863 $ 382,232 $ 278,213 |
Commitments, Debt Obligations33
Commitments, Debt Obligations, Contingencies and Legal Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of lease, purchase and minimum royalty commitments and debt obligations | The following table summarizes the Company’s lease, purchase and minimum royalty commitments and debt obligations at December 31, 2015 (in thousands): Payments Due by Period Total Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Operating leases $ 107,504 $ 13,711 $ 30,834 $ 23,045 $ 39,914 Purchase obligations 50,421 50,421 — — — Minimum royalties 11,354 635 975 940 8,804 Debt obligations 368,719 4,313 8,625 8,625 347,156 $ 537,998 $ 69,080 $ 40,434 $ 32,610 $ 395,874 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | A summary of stock option activity under the 2015 Plan, the 2006 Plan and non-plan grants is as follows (in thousands, except weighted average exercise price and weighted average remaining contractual term): Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Intrinsic Value Outstanding December 31, 2012 6,810 $ 21.81 Granted 1,553 $ 38.55 Exercised (1,579 ) $ 16.19 Forfeited (308 ) $ 32.19 Outstanding December 31, 2013 6,476 $ 26.70 Granted 1,471 $ 46.36 Exercised (1,930 ) $ 19.72 Forfeited (436 ) $ 40.64 Outstanding December 31, 2014 5,581 $ 33.20 Granted 1,332 $ 55.36 Exercised (1,084 ) $ 23.97 Forfeited (387 ) $ 47.32 Outstanding December 31, 2015 5,442 $ 39.46 4.05 $ 20,116 Exercisable, December 31, 2015 3,195 $ 32.51 2.93 $ 19,899 Vested and expected to vest December 31, 2015 5,278 $ 39.11 4.00 $ 20,102 |
Summary of all award activity, which consist of RSAs and RSUs | A summary of all RSAs and RSUs activity under the 2015 Plan and the 2006 Plan and non-plan RSA and RSU grants, is as follows (in thousands, except weighted average grant date fair value): Shares Weighted Average Grant Date Fair Value Outstanding December 31, 2012 642 $ 29.74 Granted 412 $ 38.23 Vested (262 ) $ 29.81 Cancelled (50 ) $ 34.17 Outstanding December 31, 2013 742 $ 34.13 Granted 377 $ 46.83 Vested (327 ) $ 34.11 Cancelled (94 ) $ 39.35 Outstanding December 31, 2014 698 $ 40.30 Granted 737 $ 52.23 Vested (317 ) $ 39.65 Cancelled (118 ) $ 47.56 Outstanding December 31, 2015 1,000 $ 48.44 |
Common stock reserved for future issuance | As of December 31, 2015 , the Company has reserved shares of common stock for future issuance as follows (in thousands): Payments Due by Period Total 2015 Plan: Options, RSUs and awards outstanding for all plans 6,441 Reserved for future grants 6,261 2012 ESPP 2,495 $ 15,197 |
Summary of assumptions to estimate fair value | The fair value of the Company’s stock options granted to employees and shares purchased by employees under the 2012 ESPP, for the years ended December 31, 2015 , 2014 and 2013 was estimated using the following assumptions: Years Ended December 31, 2015 2014 2013 OPTION SHARES: Expected Term (in years) 4.46 4.40 4.41 Volatility 0.36 0.38 0.44 Expected Dividends — % — % — % Risk Free Interest Rates 1.47 % 1.71 % 0.90 % Estimated Forfeitures 6.14 % 6.75 % 7.61 % Weighted Average Fair Value $ 17.73 $ 15.71 $ 14.17 ESPP SHARES: Expected Term (in years) 1.20 1.24 1.25 Volatility 0.34 0.33 0.42 Expected Dividends — % — % — % Risk Free Interest Rates 0.39 % 0.22 % 0.19 % Weighted Average Fair Value $ 16.43 $ 12.13 $ 12.10 |
Summary of stock-based compensation expense | The following table is a summary of the major categories of stock compensation expense recognized in accordance with ASC 718, “Compensation—Stock Compensation” (“ASC 718”) for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Cost of sales $ 4,423 $ 4,086 $ 2,930 Research and development 10,776 9,516 8,540 Sales and marketing 7,819 6,048 5,636 General and administrative 14,029 12,557 10,529 Total stock-based compensation expense $ 37,047 $ 32,207 $ 27,635 |
Segment and Significant Conce35
Segment and Significant Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of revenue information by segments | The following table summarizes revenue in the Clinical and Non-Clinical markets (in thousands): Years Ended December 31, 2015 2014 2013 Revenue by market: Clinical Systems $ 82,999 $ 84,695 $ 66,980 Clinical Reagents 426,914 356,427 292,941 Total Clinical $ 509,913 $ 441,122 $ 359,921 Non-Clinical 28,663 29,019 41,371 Total revenue $ 538,576 $ 470,141 $ 401,292 |
Schedule of segment revenue by geographic region | The following table summarizes revenue by geographic region (in thousands): Years Ended December 31, 2015 2014 2013 Geographic revenue information: North America Clinical $ 290,374 $ 247,120 $ 212,362 Non-Clinical 27,635 24,905 36,998 Total North America 318,009 272,025 249,360 International Clinical $ 219,539 $ 194,002 $ 147,559 Non-Clinical 1,028 4,114 4,373 Total International 220,567 198,116 151,932 Total revenue $ 538,576 $ 470,141 $ 401,292 |
Summary of long-lived assets by geographic region | The following table summarizes long-lived assets, excluding intangible assets and goodwill, by geographic region (in thousands): December 31, 2015 December 31, 2014 United States $ 108,210 96,038 Other regions 19,429 19,727 Total long-lived assets $ 127,639 $ 115,765 |
Quarterly Financial Informati36
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial information | Mar 31 June 30 Sept 30 Dec 31 (Unaudited) (In thousands, except per share data) 2015 Total revenue $ 132,637 $ 132,475 $ 126,465 $ 146,999 Costs and operating expenses: Cost of sales 61,201 69,377 67,681 71,605 Collaboration profit sharing 1,267 1,326 1,286 1,947 Research and development 23,986 28,092 32,909 30,769 Sales and marketing 25,936 28,078 28,664 32,690 General and administrative 15,642 16,352 15,401 15,229 Total cost and operating expenses 128,032 143,225 145,941 152,240 Income (loss) from operations 4,605 (10,750 ) (19,476 ) (5,241 ) Other expense, net (4,175 ) (4,726 ) (3,601 ) (3,903 ) Income (loss) before income tax expense 430 (15,476 ) (23,077 ) (9,144 ) (Provision for) benefit from income taxes 476 (1,254 ) 176 (661 ) Net Income (loss) $ 906 $ (16,730 ) $ (22,901 ) $ (9,805 ) Basic net income (loss) per share 0.01 (0.23 ) (0.32 ) (0.14 ) Diluted net income (loss) per share $ 0.01 $ (0.23 ) $ (0.32 ) $ (0.14 ) Weighted average shares used in computing basic net income (loss) per share 71,262 71,861 72,199 72,374 Weighted average shares used in computing diluted net income (loss) per share 73,189 71,861 72,199 72,374 Gross profit on revenue: Revenue $ 132,637 $ 132,475 $ 126,465 $ 146,999 Cost of sales (61,201 ) (69,377 ) (67,681 ) (71,605 ) $ 71,436 $ 63,098 $ 58,784 $ 75,394 Mar 31 June 30 Sept 30 Dec 31 (Unaudited) (In thousands, except per share data) 2014 Total revenue $ 106,907 $ 116,503 $ 115,209 $ 131,522 Costs and operating expenses: Cost of sales 53,083 59,568 56,791 59,885 Collaboration profit sharing 1,291 649 1,291 1,923 Research and development 21,740 23,998 23,541 27,572 Sales and marketing 23,458 23,502 23,913 26,975 General and administrative 13,667 14,340 13,069 13,971 Legal contingencies — — — 20,000 Total cost and operating expenses 113,239 122,057 118,605 150,326 Loss from operations (6,332 ) (5,554 ) (3,396 ) (18,804 ) Other expense, net (2,291 ) (3,370 ) (3,573 ) (4,272 ) Loss before income tax expense (8,623 ) (8,924 ) (6,969 ) (23,076 ) Provision for income taxes (680 ) (919 ) (266 ) (692 ) Net loss $ (9,303 ) $ (9,843 ) $ (7,235 ) $ (23,768 ) Basic net loss per share (0.13 ) (0.14 ) (0.10 ) (0.34 ) Diluted net loss per share $ (0.13 ) $ (0.14 ) $ (0.10 ) $ (0.34 ) Weighted average shares used in computing basic net loss per share 69,272 69,968 70,326 70,689 Weighted average shares used in computing diluted net loss per share 69,272 69,968 70,326 70,689 Gross profit on revenue: Revenue $ 106,907 $ 116,503 $ 115,209 $ 131,522 Cost of sales (53,083 ) (59,568 ) (56,791 ) (59,885 ) $ 53,824 $ 56,935 $ 58,418 $ 71,637 |
Organization and Summary of S37
Organization and Summary of Significant Accounting Policies - Additional Information (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segmentcustomershares | Dec. 31, 2014USD ($)customershares | Dec. 31, 2013USD ($)shares | |
Concentration Risk [Line Items] | |||
Percentage of cash and cash equivalents held by the Company's | 66.00% | 58.00% | |
Capitalized stock-based compensation expense included in inventory | $ 2,500,000 | $ 1,600,000 | |
Impairment of property and equipment | 0 | 0 | |
Depreciation and amortization expense on property and equipment | 27,251,000 | 21,604,000 | $ 17,769,000 |
Capitalized software costs | $ 6,100,000 | $ 10,300,000 | |
Number of operating segment | segment | 1 | ||
Impairment of goodwill | $ 0 | ||
Requisite service period | 4 years | ||
Total antidilutive common stock equivalent shares | shares | 8,952 | 9,392 | 5,267 |
Debt issuance costs | $ 6,000,000 | ||
Deferred tax reclassified | 5,400,000 | ||
Cost of sales | |||
Concentration Risk [Line Items] | |||
Impairment charge | $ 0 | $ 0 | $ 1,300,000 |
Minimum | |||
Concentration Risk [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Estimated useful lives of intangible assets | 3 years | ||
Product warranty, defects free period | 12 months | ||
Minimum | Software development | |||
Concentration Risk [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Estimated useful lives of assets | 7 years | ||
Estimated useful lives of intangible assets | 15 years | ||
Product warranty, defects free period | 24 months | ||
Maximum | Software development | |||
Concentration Risk [Line Items] | |||
Estimated useful lives of assets | 5 years | ||
Accounts receivable | Credit concentration risk | |||
Concentration Risk [Line Items] | |||
Number of customers | customer | 1 | 1 | |
Concentration risk, percentage | 11.00% | 26.00% | |
Prepaid expenses and other current assets | Foreign Contract | |||
Concentration Risk [Line Items] | |||
Restricted cash | $ 2,700,000 | ||
Prepaid expenses and other current assets | The Bill and Melinda Gates Foundation | |||
Concentration Risk [Line Items] | |||
Restricted cash | $ 1,900,000 | ||
Other non-current assets | Foreign Contract | |||
Concentration Risk [Line Items] | |||
Restricted cash | $ 2,100,000 |
Organization and Summary of S38
Organization and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information | |||
Cash paid for interest | $ 4,383 | $ 2,145 | $ 109 |
Cash paid for taxes | 2,086 | 572 | 632 |
Property, equipment and intangible assets acquired but not yet paid at end of period | $ 7,551 | $ 8,506 | $ 674 |
Organization and Summary of S39
Organization and Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 39,267 | $ 36,287 |
Work in Process | 62,153 | 51,691 |
Finished Goods | 47,270 | 44,657 |
Inventory | $ 148,690 | $ 132,635 |
Organization and Summary of S40
Organization and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Land | $ 21 | $ 21 |
Building | 3,737 | 3,364 |
Scientific equipment | 60,403 | 52,619 |
Manufacturing equipment | 69,155 | 56,426 |
Computers and software | 33,291 | 24,402 |
Office furniture | 11,993 | 9,929 |
Leasehold improvements | 72,670 | 66,842 |
Property and equipment, gross | 251,270 | 213,603 |
Less accumulated depreciation and amortization | (123,631) | (97,838) |
Property and equipment, net | $ 127,639 | $ 115,765 |
Organization and Summary of S41
Organization and Summary of Significant Accounting Policies - Activities in Warranty Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of year | $ 3,784 | $ 3,326 | $ 1,953 |
Settlements/Adjustments | (2,821) | (1,310) | (783) |
Provisions | 843 | 1,768 | 2,156 |
Balance at end of year | $ 1,806 | $ 3,784 | $ 3,326 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies - Schedule of Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued expense for estimated legal contingency | $ 20,000 | $ 20,000 |
Derivative liabilities | 1,298 | 3,812 |
Accrued warranty reserve | 1,806 | 3,784 |
Accrued payment related to asset acquisition | 0 | 3,000 |
Income tax payable | 391 | 1,028 |
Other | 3,956 | 3,137 |
Accrued and other liabilities | $ 27,451 | $ 34,761 |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Deferred tax liabilities ¹ | $ 1,152 | $ 6,261 |
Deferred rent | 8,165 | 7,721 |
Non-current income tax payable | 1,801 | 2,150 |
Other | 4,661 | 2,636 |
Other liabilities | 15,779 | $ 18,768 |
Deferred tax reclassified | $ 5,400 |
Organization and Summary of S44
Organization and Summary of Significant Accounting Policies - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic: | |||||||||||
Net loss | $ (9,805) | $ (22,901) | $ (16,730) | $ 906 | $ (23,768) | $ (7,235) | $ (9,843) | $ (9,303) | $ (48,530) | $ (50,149) | $ (17,965) |
Basic weighted shares outstanding (in shares) | 72,374 | 72,199 | 71,861 | 71,262 | 70,689 | 70,326 | 69,968 | 69,272 | 71,928 | 70,069 | 67,485 |
Net loss per share (in dollars per share) | $ (0.14) | $ (0.32) | $ (0.23) | $ 0.01 | $ (0.34) | $ (0.10) | $ (0.14) | $ (0.13) | $ (0.67) | $ (0.72) | $ (0.27) |
Diluted: | |||||||||||
Net loss | $ (9,805) | $ (22,901) | $ (16,730) | $ 906 | $ (23,768) | $ (7,235) | $ (9,843) | $ (9,303) | $ (48,530) | $ (50,149) | $ (17,965) |
Basic weighted shares outstanding (in shares) | 72,374 | 72,199 | 71,861 | 71,262 | 70,689 | 70,326 | 69,968 | 69,272 | 71,928 | 70,069 | 67,485 |
Effect of dilutive securities: | |||||||||||
Stock options, ESPP, restricted stock units, restricted stock awards and convertible senior notes (in shares) | 0 | 0 | 0 | ||||||||
Diluted weighted shares outstanding (in shares) | 72,374 | 72,199 | 71,861 | 73,189 | 70,689 | 70,326 | 69,968 | 69,272 | 71,928 | 70,069 | 67,485 |
Net loss per share (in dollars per share) | $ (0.14) | $ (0.32) | $ (0.23) | $ 0.01 | $ (0.34) | $ (0.10) | $ (0.14) | $ (0.13) | $ (0.67) | $ (0.72) | $ (0.27) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 112,568 | $ 96,663 |
Total short-term investments | 210,147 | 196,729 |
Foreign currency derivatives | 1,431 | 3,887 |
Total investments | 62,175 | 79,731 |
Total | 386,321 | 377,010 |
Foreign currency derivatives | 1,298 | 3,812 |
Total | 1,298 | 3,812 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 51,973 | 52,220 |
Total investments | 11,818 | 12,713 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 81,600 | 64,202 |
Total investments | 36,414 | 22,679 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 48,762 | 56,096 |
Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 12,684 | 15,003 |
Total investments | 11,944 | 39,532 |
Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 15,128 | 9,208 |
Total investments | 1,999 | 4,807 |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 84,625 | 76,065 |
Total short-term investments | 0 | 0 |
Foreign currency derivatives | 0 | 0 |
Total investments | 0 | 0 |
Total | 84,625 | 76,065 |
Foreign currency derivatives | 0 | 0 |
Total | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Asset-backed securities | ||
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 | Level 1 | Corporate debt securities | ||
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 | Level 1 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Government agency securities | ||
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 | Level 1 | Other securities | ||
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 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,943 | 20,598 |
Total short-term investments | 210,147 | 196,729 |
Foreign currency derivatives | 1,431 | 3,887 |
Total investments | 62,175 | 79,731 |
Total | 301,696 | 300,945 |
Foreign currency derivatives | 1,298 | 3,812 |
Total | 1,298 | 3,812 |
Fair value, measurements, recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 51,973 | 52,220 |
Total investments | 11,818 | 12,713 |
Fair value, measurements, recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 81,600 | 64,202 |
Total investments | 36,414 | 22,679 |
Fair value, measurements, recurring | Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 48,762 | 56,096 |
Fair value, measurements, recurring | Level 2 | Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 12,684 | 15,003 |
Total investments | 11,944 | 39,532 |
Fair value, measurements, recurring | Level 2 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 15,128 | 9,208 |
Total investments | 1,999 | 4,807 |
Fair value, measurements, recurring | Level 3 | ||
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 |
Total | 0 | 0 |
Foreign currency derivatives | 0 | 0 |
Total | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Asset-backed securities | ||
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 | Level 3 | Corporate debt securities | ||
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 | Level 3 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Government agency securities | ||
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 | Level 3 | Other securities | ||
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 (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Convertible senior notes | $ 307,481 | $ 382,232 |
Total | 307,481 | 382,232 |
Fair value, measurements, nonrecurring | Level 1 | ||
Liabilities: | ||
Convertible senior notes | 0 | 0 |
Total | 0 | 0 |
Fair value, measurements, nonrecurring | Level 2 | ||
Liabilities: | ||
Convertible senior notes | 307,481 | 382,232 |
Total | 307,481 | 382,232 |
Fair value, measurements, nonrecurring | Level 3 | ||
Liabilities: | ||
Convertible senior notes | 0 | 0 |
Total | $ 0 | $ 0 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 210,470 | $ 196,775 |
Gross Unrealized Gain | 10 | 22 |
Gross Unrealized Loss | (333) | (68) |
Estimated Fair Value | 210,147 | 196,729 |
Short-term Investments | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 52,102 | 52,240 |
Gross Unrealized Gain | 0 | 3 |
Gross Unrealized Loss | (129) | (23) |
Estimated Fair Value | 51,973 | 52,220 |
Short-term Investments | Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 76,711 | 76,683 |
Gross Unrealized Gain | 3 | 12 |
Gross Unrealized Loss | (9) | 0 |
Estimated Fair Value | 76,705 | 76,695 |
Short-term Investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 81,777 | 64,244 |
Gross Unrealized Gain | 0 | 2 |
Gross Unrealized Loss | (177) | (45) |
Estimated Fair Value | 81,600 | 64,201 |
Short-term Investments | Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 12,701 | 15,000 |
Gross Unrealized Gain | 0 | 3 |
Gross Unrealized Loss | (17) | 0 |
Estimated Fair Value | 12,684 | 15,003 |
Short-term Investments | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 15,122 | 9,206 |
Gross Unrealized Gain | 7 | 2 |
Gross Unrealized Loss | (1) | 0 |
Estimated Fair Value | 15,128 | 9,208 |
Short-term Investments | Amounts classified as cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 27,943 | 20,598 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 27,943 | 20,598 |
Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 62,414 | 79,831 |
Gross Unrealized Gain | 3 | 0 |
Gross Unrealized Loss | (242) | (100) |
Estimated Fair Value | 62,175 | 79,731 |
Investments | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 11,884 | 12,724 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (66) | (12) |
Estimated Fair Value | 11,818 | 12,712 |
Investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 36,530 | 22,709 |
Gross Unrealized Gain | 3 | 0 |
Gross Unrealized Loss | (119) | (29) |
Estimated Fair Value | 36,414 | 22,680 |
Investments | Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 11,999 | 39,583 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (55) | (51) |
Estimated Fair Value | 11,944 | 39,532 |
Investments | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 2,001 | 4,815 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (2) | (8) |
Estimated Fair Value | $ 1,999 | $ 4,807 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sale of Marketable Securities | $ 52.2 | $ 115.9 |
Investments - Schedule of Gross
Investments - Schedule of Gross Realized Gains and Losses of Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains | $ 26 | $ 36 |
Gross realized losses | 0 | 0 |
Realized gains, net | $ 26 | $ 36 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less Than 12 months | $ 203,065 | $ 178,279 |
More than 12 months | 14,834 | 0 |
Total | 217,899 | 178,279 |
Unrealized Loss | ||
Less Than 12 months | (565) | (168) |
More than 12 months | (10) | 0 |
Total | (575) | (168) |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 months | 57,866 | 54,580 |
More than 12 months | 5,923 | 0 |
Total | 63,789 | 54,580 |
Unrealized Loss | ||
Less Than 12 months | (192) | (35) |
More than 12 months | (3) | 0 |
Total | (195) | (35) |
Corporate debt securities | ||
Fair Value | ||
Less Than 12 months | 101,701 | 79,360 |
More than 12 months | 8,911 | 0 |
Total | 110,612 | 79,360 |
Unrealized Loss | ||
Less Than 12 months | (289) | (74) |
More than 12 months | (7) | 0 |
Total | (296) | (74) |
Government agency securities | ||
Fair Value | ||
Less Than 12 months | 24,628 | 39,532 |
More than 12 months | 0 | 0 |
Total | 24,628 | 39,532 |
Unrealized Loss | ||
Less Than 12 months | (72) | (51) |
More than 12 months | 0 | 0 |
Total | (72) | (51) |
Commercial paper | ||
Fair Value | ||
Less Than 12 months | 11,374 | |
More than 12 months | 0 | |
Total | 11,374 | |
Unrealized Loss | ||
Less Than 12 months | (9) | |
More than 12 months | 0 | |
Total | (9) | |
Other securities | ||
Fair Value | ||
Less Than 12 months | 7,496 | 4,807 |
More than 12 months | 0 | 0 |
Total | 7,496 | 4,807 |
Unrealized Loss | ||
Less Than 12 months | (3) | (8) |
More than 12 months | 0 | 0 |
Total | $ (3) | $ (8) |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Mature in one year or less | $ 186,311 | $ 150,133 |
Mature after one year through three years | 106,377 | 135,675 |
Mature in more than three years | 8,139 | 11,396 |
Total | 300,827 | 297,204 |
Estimated Fair Value | ||
Mature in one year or less | 186,118 | 150,105 |
Mature after one year through three years | 106,086 | 135,566 |
Mature in more than three years | 8,061 | 11,387 |
Total | $ 300,265 | $ 297,058 |
Derivative Financial Instrume52
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||
Net deferred (loss) gain associated with cash flow hedges | $ 0.4 | $ 0.2 | |
Gain recognized for foreign currency forward contracts | 5.2 | 2.3 | $ 0.1 |
Fair Value of Derivatives Not Designated as Hedge Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional principle amounts of Company's derivative instruments | 25.9 | 30.4 | |
Cash flow hedges | Fair Value of Derivatives Designated as Hedge Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional principle amounts of Company's derivative instruments | $ 117.6 | $ 117.2 |
Derivative Financial Instrume53
Derivative Financial Instruments - Derivative Instruments at Gross Fair Value Reflected in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets | ||
Foreign exchange contracts | $ 1,431 | $ 3,887 |
Derivative Liabilities | ||
Foreign exchange contracts | (1,298) | (3,812) |
Fair Value of Derivatives Designated as Hedge Instruments | ||
Derivative Assets | ||
Foreign exchange contracts | 1,390 | 3,887 |
Derivative Liabilities | ||
Foreign exchange contracts | (1,250) | (3,685) |
Fair Value of Derivatives Not Designated as Hedge Instruments | ||
Derivative Assets | ||
Foreign exchange contracts | 41 | 0 |
Derivative Liabilities | ||
Foreign exchange contracts | $ (48) | $ (127) |
Derivative Financial Instrume54
Derivative Financial Instruments - Pre-tax Effect of Derivative Instruments Designated as Cash Flow Hedges in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI - Effective Portion | $ (1,303) | $ 146 | $ (118) |
Sales | Accumulated net gain (loss) from designated or qualifying cash flow hedges | Reclassified from AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) gain reclassified from AOCI | 7,500 | 400 | |
Operating expense | Accumulated net gain (loss) from designated or qualifying cash flow hedges | Reclassified from AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) gain reclassified from AOCI | (8,200) | (1,100) | |
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI - Effective Portion | (1,303) | 146 | |
Gain (Loss) Reclassified from AOCI into Income - Effective Portion | (665) | (735) | |
Loss Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | (236) | (46) | |
Cash flow hedges | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI - Effective Portion | (1,303) | 146 | |
Gain (Loss) Reclassified from AOCI into Income - Effective Portion | (665) | (735) | |
Cash flow hedges | Foreign exchange contracts | Foreign currency exchange loss and other, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | $ (236) | $ (46) |
Intangible Assets - Net Carryin
Intangible Assets - Net Carrying Value and Accumulated Amortization of Major Classes of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 55,916 | $ 58,789 |
Accumulated Amortization | (30,675) | (27,349) |
Net Carrying Amount | 25,241 | 31,440 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,454 | 13,594 |
Accumulated Amortization | (7,280) | (8,477) |
Net Carrying Amount | 4,174 | 5,117 |
Technology acquired in acquisitions | ||
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 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,849 | 36,582 |
Accumulated Amortization | (14,782) | (10,259) |
Net Carrying Amount | $ 21,067 | $ 26,323 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of acquired intangible assets | $ 1,300 | ||
Amortization expense of intangible assets | $ 6,273 | $ 4,739 | $ 5,418 |
Intangible Assets - Expected Fu
Intangible Assets - Expected Future Annual Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortization Expense | ||
2,016 | $ 5,816 | |
2,017 | 5,448 | |
2,018 | 5,118 | |
2,019 | 4,168 | |
2,020 | 3,891 | |
Thereafter | 800 | |
Net Carrying Amount | $ 25,241 | $ 31,440 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Oct. 01, 2014 | Apr. 01, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||||||
Legal contingencies | $ 20,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 20,000 | $ 0 | ||
Goodwill | 39,681 | $ 39,681 | 39,681 | ||||||
Distribution rights | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets | 900 | 900 | |||||||
Estimated useful lives of intangible assets | 3 months | ||||||||
Distribution rights and customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets | 19,900 | 19,900 | |||||||
Estimated useful lives of intangible assets | 6 years | ||||||||
Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted-average useful life | 7 years | ||||||||
Other intangibles | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted-average useful life | 15 years | ||||||||
United States distributors | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition date | Oct. 1, 2014 | ||||||||
Total purchase price of transactions | $ 21,000 | ||||||||
Purchase price consideration, cash paid | 18,000 | ||||||||
Purchase price consideration payment | 3,000 | 3,000 | |||||||
Italy and Australia distributors | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price of transactions | $ 4,000 | ||||||||
Purchase price consideration, cash paid | 3,700 | ||||||||
Acquired intangible assets | 2,000 | ||||||||
Property and equipment, inventory and other assets, net of liabilities | 200 | $ 200 | $ 200 | ||||||
Goodwill | $ 1,500 | ||||||||
Italy and Australia distributors | Italy | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition date | Apr. 1, 2013 | ||||||||
Percentage of acquired interest | 100.00% | ||||||||
Italy and Australia distributors | Australia | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition date | Aug. 31, 2013 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (49,673) | $ (51,993) | $ (19,802) | ||||||||
Foreign | 2,406 | 4,401 | 2,985 | ||||||||
Income (loss) before income tax expense | $ (9,144) | $ (23,077) | $ (15,476) | $ 430 | $ (23,076) | $ (6,969) | $ (8,924) | $ (8,623) | $ (47,267) | $ (47,592) | $ (16,817) |
Income Taxes - Schedule of Bene
Income Taxes - Schedule of Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||||||||||
Federal | $ 100 | $ (4) | $ 56 | ||||||||
State | (199) | (92) | 9 | ||||||||
Foreign | (1,359) | (2,595) | (1,770) | ||||||||
Current, Total | (1,458) | (2,691) | (1,705) | ||||||||
Deferred | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 0 | 0 | 0 | ||||||||
Foreign | 195 | 134 | 557 | ||||||||
Deferred, Total | 195 | 134 | 557 | ||||||||
Benefit (provision) for income taxes | $ (661) | $ 176 | $ (1,254) | $ 476 | $ (692) | $ (266) | $ (919) | $ (680) | $ (1,263) | $ (2,557) | $ (1,148) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate on Loss from Continuing Operations and Statutory Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States Federal statutory income tax rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit (as a percent) | (0.40%) | (0.20%) | 0.10% |
Foreign income taxed at other than U.S. rates (as a percent) | (1.20%) | (0.20%) | 4.40% |
Change in liabilities for uncertain positions (as a percent) | 0.40% | (1.60%) | (5.60%) |
Change in valuation allowance (as a percent) | (35.50%) | (37.40%) | (40.00%) |
Other (as a percent) | 0.00% | 0.00% | 0.30% |
Effective tax rate | (2.70%) | (5.40%) | (6.80%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 45,248 | $ 35,278 |
Inventory | 4,452 | 5,342 |
Reserves and Accruals | 12,229 | 12,199 |
Fixed and Intangible Assets | 13,816 | 11,884 |
Research and other credit carryforwards | 18,081 | 14,850 |
Stock-based compensation expense | 18,615 | 14,641 |
Other | 8,243 | 9,300 |
Total deferred tax assets | 120,684 | 103,494 |
Valuation allowance | (98,902) | (78,832) |
Net deferred tax assets | 21,782 | 24,662 |
Acquired intangible assets | (1,051) | (960) |
Convertible debt discount | (21,436) | (24,584) |
Net deferred tax liability | $ (705) | $ (882) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Increase (decrease) in valuation allowance | $ 20,100,000 | $ (11,600,000) | $ 12,800,000 | |
Deferred tax reclassified | 5,400,000 | |||
Income Tax Contingency [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | 4,500,000 | 8,800,000 | ||
Provision for income taxes, state | 0 | |||
Provision for income taxes, federal | 0 | |||
Unrecognized tax benefits | 10,585,000 | 10,298,000 | 9,241,000 | $ 7,397,000 |
Accrued interest or penalties | 300,000 | 0 | 0 | |
Uncertain tax positions, interest and penalties | $ 400,000 | $ 0 | $ 0 | |
Earliest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards expiration date | 2,016 | |||
Latest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards expiration date | 2,035 | |||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | $ 341,400,000 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | 366,100,000 | |||
State research and development tax credits | 15,200,000 | |||
Research and development | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | $ 13,100,000 | |||
Federal research and development | Earliest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit expiration year | 2,018 | |||
Federal research and development | Latest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit expiration year | 2,035 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | $ 1,600,000 | |||
Foreign | Earliest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit expiration year | 2,020 | |||
Income tax examination, open tax year | 2,010 | |||
Foreign | Latest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit expiration year | 2,025 | |||
Income tax examination, open tax year | 2,015 | |||
Domestic | Earliest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, open tax year | 1,996 | |||
Domestic | Latest tax year | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, open tax year | 2,015 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 10,298 | $ 9,241 | $ 7,397 |
Increase related to current year tax positions | 907 | 1,245 | 1,844 |
Decrease for tax positions of prior years | (189) | (188) | 0 |
Decrease due to lapse of statute | 0 | 0 | 0 |
Decrease due to settlements | (431) | 0 | 0 |
Balance at end of year | $ 10,585 | $ 10,298 | $ 9,241 |
Convertible Senior Notes and 65
Convertible Senior Notes and Notes Payable - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Convertible notes issued | $ 287,863 | $ 278,213 | |
Convertible debt discount | 73,013 | ||
Initial strike price of common stock | $ 65.10 | ||
Conversion of notes, cap price | $ 78.61 | ||
Cost of purchased capped calls | $ 25,100 | ||
Closing price of common stock | $ 36.53 | ||
Outstanding notes payable | $ 1,000 | 1,200 | |
Notes payable, interest rate (as a percent) | 4.00% | ||
Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Convertible notes issued | $ 345,000 | ||
Convertible notes fixed rate (as a percent) | 1.25% | ||
Convertible notes, maturity date | Feb. 1, 2021 | ||
Convertible debt, conversion rate | 0.0153616 | ||
Conversion price per share of common stock | $ 65.10 | ||
Debt converted into number of common shares (in shares) | 5,300,000 | ||
Convertible debt maturity date | Aug. 1, 2020 | ||
Convertible debt, interest rate (as a percent) | 5.00% | ||
Convertible debt, fair value of liability | $ 270,000 | ||
Convertible debt discount | 75,000 | ||
Debt instrument transaction costs | 7,200 | ||
Convertible senior notes | Scenario one | |||
Debt Instrument [Line Items] | |||
Debt instrument trading days | 20 days | ||
Consecutive trading days | 30 days | ||
Percentage of conversion price | 130.00% | ||
Convertible senior notes | Scenario two | |||
Debt Instrument [Line Items] | |||
Consecutive trading days | 5 days | ||
Percentage of conversion price | 98.00% | ||
Equity component | |||
Debt Instrument [Line Items] | |||
Debt instrument transaction costs | $ 2,000 | $ 2,000 |
Convertible Senior Notes and 66
Convertible Senior Notes and Notes Payable - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | |
Liability component: | |||
Net carrying amount | $ 287,863 | $ 278,213 | |
Equity component | 73,013 | 73,013 | |
Convertible senior notes | |||
Liability component: | |||
Principal | 345,000 | 345,000 | |
Less: debt discount, net of amortization | (57,137) | (66,787) | |
Net carrying amount | $ 345,000 | ||
Debt instrument transaction costs | 7,200 | ||
Equity component | |||
Liability component: | |||
Debt instrument transaction costs | $ 2,000 | $ 2,000 |
Convertible Senior Notes and 67
Convertible Senior Notes and Notes Payable - Schedule of Total Interest Expense Related to Notes (Details) - Convertible senior notes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Expense [Line Items] | ||
1.25% coupon | $ 4,312 | $ 3,844 |
Amortization of debt transaction costs | 602 | 387 |
Amortization of debt discount | 9,650 | 8,213 |
Total interest expense | $ 14,564 | $ 12,444 |
Coupon interest rate (as a percent) | 1.25% |
Convertible Senior Notes and 68
Convertible Senior Notes and Notes Payable - Schedule of Carrying Value of Debt Instrument (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 |
Debt Instrument [Line Items] | |||
Fair Value | $ 307,481 | $ 382,232 | |
Carrying Value | 287,863 | 278,213 | |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | $ 345,000 | ||
Convertible Senior Notes | Level 2 | |||
Debt Instrument [Line Items] | |||
Fair Value | 307,481 | 278,213 | |
Carrying Value | $ 287,863 | $ 382,232 |
Commitments, Debt Obligations69
Commitments, Debt Obligations, Contingencies and Legal Matters - Summary of Lease, Purchase and Minimum Royalty Commitments and Debt Obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Total | |
Operating leases | $ 107,504 |
Purchase obligations | 50,421 |
Minimum royalties | 11,354 |
Debt obligations | 368,719 |
Lease, purchase and minimum royalty commitments and debt obligations, Total | 537,998 |
Less Than 1 Year | |
Operating leases | 13,711 |
Purchase obligations | 50,421 |
Minimum royalties | 635 |
Debt obligations | 4,313 |
Lease, purchase and minimum royalty commitments and debt obligations, Less Than 1 Year | 69,080 |
1-3 Years | |
Operating leases | 30,834 |
Purchase obligations | 0 |
Minimum royalties | 975 |
Debt obligations | 8,625 |
Lease, purchase and minimum royalty commitments and debt obligations, 1-3 Years | 40,434 |
3-5 Years | |
Operating leases | 23,045 |
Purchase obligations | 0 |
Minimum royalties | 940 |
Debt obligations | 8,625 |
Lease, purchase and minimum royalty commitments and debt obligations, 3-5 Years | 32,610 |
More Than 5 Years | |
Operating leases | 39,914 |
Purchase obligations | 0 |
Minimum royalties | 8,804 |
Debt obligations | 347,156 |
Lease, purchase and minimum royalty commitments and debt obligations, More Than 5 Years | $ 395,874 |
Commitments, Debt Obligations70
Commitments, Debt Obligations, Contingencies and Legal Matters - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expiration date | 2,029 | ||
Asset retirement obligations for buildings under lease | $ 2 | $ 1.1 | |
Asset retirement obligation for new liability | 0.4 | ||
Accretion expense | 0.5 | ||
Net rent expense for operating leases | 10.9 | 11.6 | $ 10.2 |
Amount to purchase a building | $ 6 | ||
Senior notes maturity date | 2,021 | ||
Bank guarantees held | $ 4.8 | ||
Accrued and other liabilities | |||
Loss Contingencies [Line Items] | |||
Estimated arbitration proceeding charge | $ 20 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / shares$ / OptionPlanshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing stock price (in dollars per share) | $ / shares | $ 36.53 | $ 54.14 | |
Aggregate intrinsic value, exercised | $ 34,100,000 | $ 58,200,000 | $ 37,000,000 |
Total pre-tax intrinsic value of all outstanding stock awards | 36,500,000 | 37,800,000 | |
Total fair value of stock awards vested | 16,000,000 | 14,800,000 | 10,000,000 |
Stock-based compensation expense | $ 37,047,000 | 32,207,000 | 27,635,000 |
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized for stock option plans (in shares) | shares | 4,600,000 | ||
Share-based payment award, vesting period, minimum | 3 years | ||
Common stock reserved for future issuance (in shares) | shares | 6,260,590 | ||
Maximum amount of shares to one participant | $ 5,000,000 | ||
2006 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding | shares | 4,872,498 | ||
2012 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum employee subscription rate (as a percent) | 15.00% | ||
Total compensation cost not yet recognized, period for recognition | 2 years | ||
Share-based payment award, discount from market price (as a percent) | 85.00% | ||
Increase in number of common shares reserved for issuance (in shares) | shares | 500,000 | ||
Stock-based compensation expense | $ 2,800,000 | $ 2,700,000 | $ 3,600,000 |
Total compensation expense not yet recognized | $ 2,100,000 | ||
Other than stock option or SAR | 2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available for issuance | $ / OptionPlan | 2.17 | ||
Other than stock option or SAR | 2006 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available for issuance | $ / OptionPlan | 1.75 | ||
Full value equity awards | 2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, vesting period, minimum | 1 year | ||
Percentage of aggregate shares of common stock reserved and available for grant, granted (less than) | 5.00% | ||
Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized, period for recognition | 2 years 180 days | ||
Total compensation expense not yet recognized | $ 28,300,000 | ||
Estimated forfeiture amount of total compensation expense not yet recognized | $ 2,500,000 | ||
Employee stock option | 2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Rate of issuance of common stock to the fair market value on grant date (as a percent) | 110.00% | ||
Percentage of employees entitled for share based awards | 10.00% | ||
Share based awards, expiration period | 7 years | ||
Vesting period | 36 months | ||
Percentage of stock options vested after one year from date of grant | 25.00% | ||
Incentive stock options | 2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of employees entitled for share based awards | 10.00% | ||
Share based awards, expiration period | 5 years | ||
Restricted stock awards and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized, period for recognition | 2 years 320 days | ||
Total compensation expense not yet recognized | $ 37,600,000 | ||
Estimated forfeiture amount of total compensation expense not yet recognized | $ 4,200,000 | ||
Restricted stock awards and restricted stock units | 2006 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available for issuance | $ / OptionPlan | 1.75 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Outstanding at beginning of period (in shares) | 5,581 | 6,476 | 6,810 |
Granted (in shares) | 1,332 | 1,471 | 1,553 |
Exercised (in shares) | (1,084) | (1,930) | (1,579) |
Forfeited (in shares) | (387) | (436) | (308) |
Outstanding at end of period (in shares) | 5,442 | 5,581 | 6,476 |
Exercisable (in shares) | 3,195 | ||
Vested and expected to vest (in shares) | 5,278 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 33.20 | $ 26.70 | $ 21.81 |
Granted (in dollars per share) | 55.36 | 46.36 | 38.55 |
Exercised (in dollars per share) | 23.97 | 19.72 | 16.19 |
Forfeited (in dollars per share) | 47.32 | 40.64 | 32.19 |
Outstanding at end of period (in dollars per share) | 39.46 | $ 33.20 | $ 26.70 |
Exercisable (in dollars per share) | 32.51 | ||
Vested and expected to vest (in dollars per share) | $ 39.11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted Average Remaining Contractual Term, Outstanding | 4 years 20 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 2 years 338 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 4 years | ||
Intrinsic Value, Outstanding | $ 20,116 | ||
Intrinsic Value, Exercisable | 19,899 | ||
Intrinsic Value, Vested and expected to vest | $ 20,102 |
Shareholders' Equity - Summar73
Shareholders' Equity - Summary of Restricted Stock Plan Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Outstanding at beginning of period (in shares) | 698 | 742 | 642 |
Granted (in shares) | 737 | 377 | 412 |
Vested (in shares) | (317) | (327) | (262) |
Cancelled (in shares) | (118) | (94) | (50) |
Outstanding at end of period (in shares) | 1,000 | 698 | 742 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 40.30 | $ 34.13 | $ 29.74 |
Granted (in dollars per share) | 52.23 | 46.83 | 38.23 |
Vested (in dollars per share) | 39.65 | 34.11 | 29.81 |
Cancelled (in dollars per share) | 47.56 | 39.35 | 34.17 |
Outstanding at end of period (in dollars per share) | $ 48.44 | $ 40.30 | $ 34.13 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands | Dec. 31, 2015shares |
Options, RSUs and awards outstanding for all plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 6,441 |
Reserved for future grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 6,261 |
2012 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 2,495 |
Reserved shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 15,197 |
Shareholders' Equity - Summar75
Shareholders' Equity - Summary of Assumptions to Estimate Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 1 year 72 days | 1 year 2 months 27 days | 1 year 3 months |
Volatility (as a percent) | 0.34% | 0.33% | 0.42% |
Expected Dividends (as a percent) | 0.00% | 0.00% | 0.00% |
Risk Free Interest Rates | 0.39% | 0.22% | 0.19% |
Weighted Average Fair Value (in dollars per share) | $ 16.43 | $ 12.13 | $ 12.10 |
Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 4 years 168 days | 4 years 4 months 24 days | 4 years 4 months 28 days |
Volatility (as a percent) | 0.36% | 0.38% | 0.44% |
Expected Dividends (as a percent) | 0.00% | 0.00% | 0.00% |
Risk Free Interest Rates | 1.47% | 1.71% | 0.90% |
Estimated Forfeitures (as a percent) | 6.14% | 6.75% | 7.61% |
Weighted Average Fair Value (in dollars per share) | $ 17.73 | $ 15.71 | $ 14.17 |
Shareholders' Equity - Summar76
Shareholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 37,047 | $ 32,207 | $ 27,635 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 4,423 | 4,086 | 2,930 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 10,776 | 9,516 | 8,540 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 7,819 | 6,048 | 5,636 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 14,029 | $ 12,557 | $ 10,529 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions | $ 2.4 | $ 1.9 | $ 1.5 |
Employee Benefit Plans [Line Items] | |||
Deferred compensation plan amount | $ 1.2 | $ 0.4 | |
Minimum | |||
Employee Benefit Plans [Line Items] | |||
Defer payment percentage, base salary | 5.00% | ||
Defer payment percentage, cash-based incentive awards | 5.00% | ||
Maximum | |||
Employee Benefit Plans [Line Items] | |||
Defer payment percentage, base salary | 75.00% | ||
Defer payment percentage, cash-based incentive awards | 100.00% |
Segment and Significant Conce78
Segment and Significant Concentrations - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product revenues from customers | $ 146,999 | $ 126,465 | $ 132,475 | $ 132,637 | $ 131,522 | $ 115,209 | $ 116,503 | $ 106,907 | $ 538,576 | $ 470,141 | $ 401,292 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Product revenues from customers | $ 306,200 | $ 264,100 | $ 237,800 |
Segment and Significant Conce79
Segment and Significant Concentrations - Revenue Information by Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 146,999 | $ 126,465 | $ 132,475 | $ 132,637 | $ 131,522 | $ 115,209 | $ 116,503 | $ 106,907 | $ 538,576 | $ 470,141 | $ 401,292 |
Clinical | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 509,913 | 441,122 | 359,921 | ||||||||
Non-Clinical | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 28,663 | 29,019 | 41,371 | ||||||||
System and other revenue | Clinical | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 82,999 | 84,695 | 66,980 | ||||||||
Reagent and disposable revenue | Clinical | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 426,914 | $ 356,427 | $ 292,941 |
Segment and Significant Conce80
Segment and Significant Concentrations - Segment Revenue by Geography Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 146,999 | $ 126,465 | $ 132,475 | $ 132,637 | $ 131,522 | $ 115,209 | $ 116,503 | $ 106,907 | $ 538,576 | $ 470,141 | $ 401,292 |
Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 509,913 | 441,122 | 359,921 | ||||||||
Non-Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 28,663 | 29,019 | 41,371 | ||||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 318,009 | 272,025 | 249,360 | ||||||||
North America | Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 290,374 | 247,120 | 212,362 | ||||||||
North America | Non-Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 27,635 | 24,905 | 36,998 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 220,567 | 198,116 | 151,932 | ||||||||
International | Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 219,539 | 194,002 | 147,559 | ||||||||
International | Non-Clinical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 1,028 | $ 4,114 | $ 4,373 |
Segment and Significant Conce81
Segment and Significant Concentrations Segment and Significant Concentrations - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 127,639 | $ 115,765 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 108,210 | 96,038 |
Other regions | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 19,429 | $ 19,727 |
Collaboration Profit Sharing (D
Collaboration Profit Sharing (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||||||||||
Collaboration profit sharing expense | $ 1,947 | $ 1,286 | $ 1,326 | $ 1,267 | $ 1,923 | $ 1,291 | $ 649 | $ 1,291 | $ 5,826 | $ 5,154 | $ 7,512 |
Collaborative Agreements and 83
Collaborative Agreements and Contracts (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2011USD ($) | Aug. 31, 2007USD ($) | May. 31, 2006 | Dec. 31, 2011USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($)$ / Test | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Milestone revenue | $ 3.2 | |||||||||
Milestone revenue related to agreements | 0.3 | $ 0.3 | $ 2.7 | |||||||
FIND | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Term of development portion of agreement | 30 months | |||||||||
Additional development portion of agreement term | 5 months | |||||||||
Supply term of agreement | 12 years | |||||||||
Research development costs | $ 3 | $ 5.1 | ||||||||
Revenue recognized from agreement | $ 1.6 | $ 2.1 | 0.8 | |||||||
FIND Xpert HIV Contract [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development contract term | 2 years | |||||||||
Northrop Grumman Initial Term [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Purchase agreement term | 5 years | |||||||||
Northrop Grumman Second Term [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Purchase agreement term | 5 years | |||||||||
FIND Xpert MTB/RIF Contract [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development contract term | 2 years | |||||||||
MTB/RIF Buy Down Program for the HBDC Market | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Reduced Price of Tuberculosis Test For HBDC Customers | $ / Test | 9.98 | |||||||||
One-time payment received | $ 3.2 | |||||||||
Agreement period on straight line basis | 10 years | |||||||||
MTB/RIF Buy Down Program for the HBDC Market | The Bill and Melinda Gates Foundation | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
One-time payment received | $ 3.5 | |||||||||
MTB/RIF Buy Down Program for the HBDC Market | United States Agency for International Development | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
One-time payment received | $ 3.5 | |||||||||
LIFE and Northrop Grumman Corporation | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Master purchase agreement | $ 200 | $ 112 | ||||||||
Paul G. Allen Family Foundation and Bill and Melinda Gates Foundation | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration agreements awarded grant (up to) | $ 3.4 | |||||||||
Bill and Melinda Gates and Paul G Allen Family Foundation Xpert Ebola | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Milestone revenue related to agreements | $ 2.9 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Revenue from related party | $ 2.4 | $ 1.7 | $ 1.5 |
Accounts receivable from related party | $ 0.3 |
Quarterly Financial Informati85
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 146,999 | $ 126,465 | $ 132,475 | $ 132,637 | $ 131,522 | $ 115,209 | $ 116,503 | $ 106,907 | $ 538,576 | $ 470,141 | $ 401,292 |
Costs and operating expenses: | |||||||||||
Cost of sales | 71,605 | 67,681 | 69,377 | 61,201 | 59,885 | 56,791 | 59,568 | 53,083 | 269,864 | 229,327 | 207,933 |
Collaboration profit sharing | 1,947 | 1,286 | 1,326 | 1,267 | 1,923 | 1,291 | 649 | 1,291 | 5,826 | 5,154 | 7,512 |
Research and development | 30,769 | 32,909 | 28,092 | 23,986 | 27,572 | 23,541 | 23,998 | 21,740 | 115,756 | 96,851 | 80,197 |
Sales and marketing | 32,690 | 28,664 | 28,078 | 25,936 | 26,975 | 23,913 | 23,502 | 23,458 | 115,368 | 97,848 | 79,941 |
General and administrative | 15,229 | 15,401 | 16,352 | 15,642 | 13,971 | 13,069 | 14,340 | 13,667 | 62,624 | 55,047 | 41,719 |
Legal contingencies | 20,000 | 0 | 0 | 0 | 0 | 20,000 | 0 | ||||
Total costs and operating expenses | 152,240 | 145,941 | 143,225 | 128,032 | 150,326 | 118,605 | 122,057 | 113,239 | 569,438 | 504,227 | 417,302 |
Income (loss) from operations | (5,241) | (19,476) | (10,750) | 4,605 | (18,804) | (3,396) | (5,554) | (6,332) | (30,862) | (34,086) | (16,010) |
Other expense, net | (3,903) | (3,601) | (4,726) | (4,175) | (4,272) | (3,573) | (3,370) | (2,291) | (16,405) | (13,506) | (807) |
Income (loss) before income tax expense | (9,144) | (23,077) | (15,476) | 430 | (23,076) | (6,969) | (8,924) | (8,623) | (47,267) | (47,592) | (16,817) |
(Provision for) benefit from income taxes | (661) | 176 | (1,254) | 476 | (692) | (266) | (919) | (680) | (1,263) | (2,557) | (1,148) |
Net income (loss) | $ (9,805) | $ (22,901) | $ (16,730) | $ 906 | $ (23,768) | $ (7,235) | $ (9,843) | $ (9,303) | $ (48,530) | $ (50,149) | $ (17,965) |
Basic net income (loss) per share (in dollars per share) | $ (0.14) | $ (0.32) | $ (0.23) | $ 0.01 | $ (0.34) | $ (0.10) | $ (0.14) | $ (0.13) | $ (0.67) | $ (0.72) | $ (0.27) |
Diluted net income (loss) per share (in dollars per share) | $ (0.14) | $ (0.32) | $ (0.23) | $ 0.01 | $ (0.34) | $ (0.10) | $ (0.14) | $ (0.13) | $ (0.67) | $ (0.72) | $ (0.27) |
Weighted average shares used in computing basic net income (loss) per share (in shares) | 72,374 | 72,199 | 71,861 | 71,262 | 70,689 | 70,326 | 69,968 | 69,272 | 71,928 | 70,069 | 67,485 |
Weighted average shares used in computing diluted net income (loss) per share (in shares) | 72,374 | 72,199 | 71,861 | 73,189 | 70,689 | 70,326 | 69,968 | 69,272 | 71,928 | 70,069 | 67,485 |
Gross profit on revenue: | |||||||||||
Revenue | $ 146,999 | $ 126,465 | $ 132,475 | $ 132,637 | $ 131,522 | $ 115,209 | $ 116,503 | $ 106,907 | |||
Cost of sales | (71,605) | (67,681) | (69,377) | (61,201) | (59,885) | (56,791) | (59,568) | (53,083) | $ (269,864) | $ (229,327) | $ (207,933) |
Gross profit on product sales | $ 75,394 | $ 58,784 | $ 63,098 | $ 71,436 | $ 71,637 | $ 58,418 | $ 56,935 | $ 53,824 |
Schedule II - Valuation and Q86
Schedule II - Valuation and Qualifying Accounts - Summary of Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 237 | $ 198 | $ 176 |
Costs and Expenses | 146 | 44 | 63 |
Deductions | 0 | (5) | (41) |
Balance at End of Year | $ 383 | $ 237 | $ 198 |