Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DXCM | ||
Entity Registrant Name | DEXCOM INC | ||
Entity Central Index Key | 1,093,557 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 90,001,767 | ||
Entity Public Float | $ 8.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 1,137 | $ 441.5 |
Current assets: | ||
Short-term marketable securities | 248.6 | 107.1 |
Accounts receivable, net | 226.7 | 134.3 |
Inventory | 70.7 | 45.2 |
Prepaid and other current assets | 16.5 | 16.6 |
Total current assets | 1,699.5 | 744.7 |
Property and equipment, net | 183.1 | 145.6 |
Goodwill | 18.7 | 12.1 |
Other assets | 14.7 | 1.7 |
Total assets | 1,916 | 904.1 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 147.1 | 87.2 |
Accrued payroll and related expenses | 72.4 | 48.5 |
Deferred revenue | 2.9 | 3.2 |
Total current liabilities | 222.4 | 138.9 |
Other liabilities | 20 | 18.2 |
Long-term senior convertible notes | 1,010.3 | 327.6 |
Total liabilities | 1,252.7 | 484.7 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 0 | 0 |
Common stock, $0.001 par value, 200.0 million shares authorized; 91.1 million and 90.0 million shares issued and outstanding, respectively, at December 31, 2018; 87.3 million and 87.0 million shares issued and outstanding, respectively, at December 31, 2017 | 0.1 | 0.1 |
Additional paid-in capital | 1,560.6 | 1,093.7 |
Accumulated other comprehensive income (loss) | 1.5 | (2.6) |
Accumulated deficit | (798.9) | (671.8) |
Treasury stock at cost; 0.8 million shares at December 31, 2018 | (100) | 0 |
Total stockholders’ equity | 663.3 | 419.4 |
Total liabilities and stockholders’ equity | $ 1,916 | $ 904.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
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, par or stated value per share (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 91,100,000 | 87,300,000 |
Common stock, shares outstanding (in shares) | 90,000,000 | 87,000,000 |
Treasury stock at cost (in shares) | 800,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 1,031.6 | $ 718.5 | $ 573.3 |
Cost of sales | 367.7 | 226.4 | 194.9 |
Gross profit | 663.9 | 492.1 | 378.4 |
Operating expenses | |||
Research and development | 199.7 | 185.4 | 156.1 |
Collaborative research and development fee | 217.7 | 0 | 0 |
Selling, general and administrative | 432.8 | 349.2 | 286.2 |
Total operating expenses | 850.2 | 534.6 | 442.3 |
Operating loss | (186.3) | (42.5) | (63.9) |
Interest expense | (22.7) | (12.8) | (0.7) |
Income from equity investments | 80.1 | 0 | 0 |
Interest and other income (expense), net | 2.4 | 6.7 | (0.3) |
Loss before income taxes | (126.5) | (48.6) | (64.9) |
Income tax expense | 0.6 | 1.6 | 0.7 |
Net loss | $ (127.1) | $ (50.2) | $ (65.6) |
Basic and diluted net loss per share (in USD per share) | $ (1.44) | $ (0.58) | $ (0.78) |
Shares used to compute basic and diluted net loss per share (in shares) | 88.2 | 86.3 | 83.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (127.1) | $ (50.2) | $ (65.6) |
Other comprehensive income (loss), net of income taxes: | |||
Foreign currency translation gain (loss) | 4 | (1.4) | (0.7) |
Unrealized gain (loss) on marketable debt securities | 0.1 | (0.2) | 0 |
Total other comprehensive income (loss), net | 4.1 | (1.6) | (0.7) |
Comprehensive loss | $ (123) | $ (51.8) | $ (66.3) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Treasury Stock | Verily Life SciencesAdditional paid-in capital | Convertible Notes due 2022 | Convertible Notes due 2022Additional paid-in capital | Convertible Notes due 2023 | Convertible Notes due 2023Additional paid-in capital |
Beginning Balance, Shares at Dec. 31, 2015 | 81.7 | ||||||||||
Beginning Balance at Dec. 31, 2015 | $ 221.2 | $ 0.1 | $ 776.8 | $ (0.3) | $ (555.4) | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock under equity incentive plans, Shares | 2.7 | ||||||||||
Issuance of common stock under equity incentive plans | 4.4 | 4.4 | |||||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||||||||
Issuance of common stock for Employee Stock Purchase Plan | 6 | 6 | |||||||||
Issuance of common stock in connection with acquisition, shares | 0.1 | ||||||||||
Issuance of common stock in connection with acquisition | 7.2 | $ 7.2 | |||||||||
Share-based compensation expense | 111.3 | 111.3 | |||||||||
Net loss | (65.6) | (65.6) | |||||||||
Other comprehensive income | (0.7) | (0.7) | |||||||||
Ending Balance, shares at Dec. 31, 2016 | 84.6 | ||||||||||
Ending Balance at Dec. 31, 2016 | 283.8 | $ 0.1 | 905.7 | (1) | (621) | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock under equity incentive plans, Shares | 2.3 | ||||||||||
Issuance of common stock under equity incentive plans | 2.7 | 2.7 | |||||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||||||||
Issuance of common stock for Employee Stock Purchase Plan | 7.4 | 7.4 | |||||||||
Share-based compensation expense | 106.7 | 106.7 | |||||||||
Equity component of convertible note issuance, net of issuance costs | $ 70.6 | $ 70.6 | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-09 | 0.6 | (0.6) | |||||||||
Net loss | (50.2) | (50.2) | |||||||||
Other comprehensive income | (1.6) | (1.6) | |||||||||
Ending Balance, shares at Dec. 31, 2017 | 87 | ||||||||||
Ending Balance at Dec. 31, 2017 | 419.4 | $ 0.1 | 1,093.7 | (2.6) | (671.8) | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock under equity incentive plans, Shares | 1.8 | ||||||||||
Issuance of common stock under equity incentive plans | 1.9 | 1.9 | |||||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.2 | ||||||||||
Issuance of common stock for Employee Stock Purchase Plan | 8.9 | 8.9 | |||||||||
Share-based compensation expense | 101.9 | 101.9 | |||||||||
Equity component of convertible note issuance, net of issuance costs | (218.9) | (218.9) | $ 171.6 | $ 171.6 | |||||||
Issuance of common stock for collaborative research and development fees, shares | 1.8 | ||||||||||
Stock Issued During Period, Value, Purchase of Assets | 217.7 | 217.7 | |||||||||
Sale of warrants | $ 183.8 | 183.8 | |||||||||
Purchases of treasury stock, shares | (0.8) | (0.8) | |||||||||
Purchases of treasury stock | $ (100) | (100) | |||||||||
Net loss | (127.1) | ||||||||||
Other comprehensive income | 4.1 | ||||||||||
Ending Balance, shares at Dec. 31, 2018 | 90 | ||||||||||
Ending Balance at Dec. 31, 2018 | $ 663.3 | $ 0.1 | $ 1,560.6 | $ 1.5 | $ (798.9) | $ (100) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating activities | |||
Net loss | $ (127.1) | $ (50.2) | $ (65.6) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation and amortization | 29.1 | 16.1 | 15 |
Share-based compensation | 101.9 | 106.2 | 110.8 |
Non-cash interest expense | 17.9 | 9.4 | 0.1 |
Non-cash collaborative research and development fee through issuance of common stock | 217.7 | 0 | 0 |
Unrealized income on equity investment | (36) | 0 | 0 |
Less: Net gains recognized during the period on equity securities sold during the period | (44.1) | 0 | 0 |
Other non-cash income and expenses | 4.7 | 7.9 | 2.2 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (93.2) | (31.8) | (27.2) |
Inventory | (25.5) | 0.4 | (9.8) |
Prepaid and other assets | (3) | (6.7) | (3.9) |
Accounts payable and accrued liabilities | 56.2 | 21.1 | 21.1 |
Accrued payroll and related expenses | 23.8 | 14.8 | 8.5 |
Deferred revenue, deferred rent and other liabilities | 0.8 | 4.8 | 5 |
Net cash provided by operating activities | 123.2 | 92 | 56.2 |
Investing activities | |||
Purchase of marketable securities | (452.5) | (171.8) | (39.2) |
Proceeds from sale and maturity of marketable securities | 392.1 | 93.4 | 38.7 |
Purchase of other equity investments | (1) | 0 | 0 |
Purchase of property and equipment | (67.1) | (66) | (55.7) |
Acquisitions, net of cash acquired | (11.3) | 0 | 0.3 |
Net cash used in investing activities | (139.8) | (144.4) | (55.9) |
Financing activities | |||
Net proceeds from issuance of common stock | 10.8 | 10.1 | 10.4 |
Payments for Repurchase of Common Stock | (100) | 0 | 0 |
Proceeds from issuance of convertible debt, net of issuance costs | 836.6 | 389 | 0 |
Proceeds from sale of warrants | 183.8 | 0 | 0 |
Purchase of convertible note hedge | (218.9) | 0 | 0 |
Proceeds from short-term borrowings | 0 | 75 | 0 |
Repayment of short-term borrowings | 0 | (75) | 0 |
Other financing activities | (1.9) | 0 | (2.3) |
Net cash provided by financing activities | 710.4 | 399.1 | 8.1 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1.8 | 0.3 | 0 |
Increase in cash, cash equivalents and restricted cash | 695.6 | 347 | 8.4 |
Cash, cash equivalents and restricted cash, beginning of period | 1,137.1 | 441.5 | 94.5 |
Cash, cash equivalents and restricted cash, end of period | 441.5 | 94.5 | 86.1 |
Reconciliation of cash, cash equivalents and restricted cash, end of period: | |||
Cash and cash equivalents | 1,137 | 441.5 | 94.5 |
Restricted cash | 0.1 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing transactions: | |||
Issuance of common stock in connection with acquisition | 0 | 0 | 7.2 |
Assets acquired and financing obligation under build-to-suit leasing arrangement | 0 | 0 | 6 |
Acquisition of property and equipment included in accounts payable and accrued liabilities | 10.8 | 6.3 | 10.5 |
Supplemental cash flow information: | |||
Cash paid during the year for interest | 3.6 | 2.4 | 0.1 |
Cash paid during the year for income taxes | $ 2.3 | $ 1.4 | $ 0.1 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization and Business DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring, or CGM, systems for ambulatory use by people with diabetes and by healthcare providers. Unless the context requires otherwise, the terms “we,” “us,” “our,” the “company,” or “DexCom” refer to DexCom, Inc. and its subsidiaries. Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The functional currencies of our international subsidiaries are generally the local currencies. We translate the financial statements of our foreign subsidiaries into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. We include translation-related adjustments in comprehensive loss and in accumulated other comprehensive income (loss) in the equity section of our balance sheet. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each entity give rise to foreign exchange gains or losses that we record in interest and other income (expense), net in our statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. Areas requiring significant estimates include pharmacy rebates, transaction price, net accounts receivable, excess or obsolete inventories and the valuation of inventory, and accruals for litigation contingencies. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. Fair Value Measurements The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows: Level 1—Unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly, through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily 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 determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques and significant judgment or estimation. We carry our marketable securities at fair value. We carry our other financial instruments, such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, at cost, which approximates the related fair values due to the short-term maturities of these instruments. For more information see Note 3, “Fair Value Measurements.” Cash and Cash Equivalents We consider highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term marketable securities. We have also classified marketable securities with remaining maturities of greater than one year as short-term marketable securities based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. We calculate realized gains or losses on our marketable securities using the specific identification method. We carry our marketable debt securities at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity in our balance sheets and included in comprehensive loss. Realized gains and losses on marketable debt securities are included in interest and other income (expense), net in our statements of operations. We carry our marketable equity securities at fair value with realized and unrealized gains and losses reported in income on equity investments in our statements of operations. We invest in various types of debt securities, including debt securities in government-sponsored entities, corporate debt securities, U.S. Treasury securities and commercial paper. We do not generally intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. See Note 3, “Fair Value Measurements” and Note 4, “Balance Sheet Details – Short-Term Marketable Securities ” for more information on our marketable debt securities and our marketable equity securities. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally recorded at the invoiced amount for Distributors and at net realizable value for Direct customers, which is determined using estimates of claim denials and historical reimbursement experience without regard to aging category. Accounts receivable are not interest bearing. We evaluate the creditworthiness of significant customers and generally do not require collateral from our customers. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectable accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectable. Generally, receivable balances greater than one year past due are deemed uncollectable. Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash and investments with high credit quality financial institutions. We have also established guidelines regarding diversification of our investments and their maturities that are designed to maintain principal and maximize liquidity. We review these guidelines periodically and modify them to take advantage of trends in yields and interest rates and changes in our operations and financial position. Two of our distributors are significant customers. Each of them accounted for more than 10% of revenue in each of the past three fiscal years and each of them accounted for more than 10% of accounts receivable as of the end of the past two fiscal years. Distributor A accounted for 15% , 16% and 14% of our revenues for the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. Distributor B accounted for 12% , 14% and 17% of our revenues for the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. Distributor A and Distributor B accounted for 19% and 15% , respectively, of accounts receivable as of December 31, 2018 and 18% and 12% , respectively, of accounts receivable as of December 31, 2017 . Inventory Inventory is valued at the lower of cost or net realizable value on a part-by-part basis that approximates first in, first out. We record adjustments to inventory for potentially excess, obsolete or scrapped goods in order to state inventory at net realizable value. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed of. Our products require customized products and components that currently are available from a limited number of sources. We purchase certain components and materials from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three years for computer software and hardware, four to 15 years for machinery and equipment, and five years for furniture and fixtures. Leasehold improvements and assets acquired through a build-to-suit arrangement are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. We include the amortization of assets that are recorded under capital leases in depreciation expense. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the recoverability of the asset by comparing the carrying amount to the future undiscounted cash flows that we expect the asset to generate. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. Goodwill We record goodwill when the fair value of consideration transferred in a business combination exceeds the fair value of the identifiable assets acquired and liabilities assumed. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but we test them annually for impairment in the fourth quarter of our fiscal year and whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business, and an adverse action or assessment by a regulator. We perform our goodwill impairment analysis at the reporting unit level, which aligns with DexCom’s reporting structure and the availability of discrete financial information. We perform the first step of our annual impairment analysis by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and/or use of a market approach by looking at market values of comparable companies. Key assumptions for these projections include revenue growth, future gross margin and operating margin growth, and weighted cost of capital and terminal growth rates. The revenue and margin growth are based on increased sales of new and existing products as we maintain investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including the timing and probability of regulatory approvals for our products to be commercialized. We also consider DexCom’s market capitalization as a part of our analysis. If the estimated fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is not impaired and no further analysis is required. If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of the unit, we perform the second step of the impairment test. In this step we allocate the fair value of the reporting unit calculated in step one to all of the assets and liabilities of that unit, as if we had just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit over the total amount allocated to the assets and liabilities represents the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, we would record an impairment loss equal to the difference. We recorded no goodwill impairment charges for the twelve months ended December 31, 2018 , 2017 or 2016 . There were no accumulated impairment losses for goodwill at December 31, 2016 . The change in goodwill for the twelve months ended December 31, 2017 consisted of translation adjustments on our foreign currency denominated goodwill. The change in goodwill for the twelve months ended December 31, 2018 consisted of goodwill we recorded for acquisitions that were not significant, individually or in the aggregate, and translation adjustments on our foreign currency denominated goodwill. Intangible Assets and Other Long-Lived Assets We amortize intangible assets with a finite life, such as acquired technology, customer relationships, trade names and trademarks, on a straight-line basis over their estimated useful lives, which range from two to five years. We review intangible assets that have finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized, which requires significant judgment. The realization of deferred tax assets is dependent, in part, upon future taxable income. In assessing whether our deferred tax assets will be realized, we consider all available evidence, both positive and negative. Such evidence includes historical earnings, future reversals of existing taxable temporary differences, estimates of future taxable income, and the feasibility of ongoing tax planning strategies. We have recorded a full valuation allowance on our net deferred tax asset balances for all periods presented because of the uncertainty related to utilization of our deferred tax assets. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We file federal and state income tax returns in the United States and income tax returns in various other foreign jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. We recognize interest expense and penalties related to income tax matters, including unrecognized tax benefits, as a component of income tax expense. Warranty Accrual Estimated warranty costs associated with a product are recorded at the time revenue is recognized. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and expectations for future warranty activity based on changes and improvements to the product or process that are in place or will be in place in the future. We evaluate these estimates on at least a quarterly basis to determine the continued appropriateness of our assumptions. Loss Contingencies If the potential loss from a claim or legal proceeding is considered probable and the amount can be reasonably estimated, we record a liability and an expense for the estimated loss and disclose it in our financial statements if it is significant. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. Significant judgment is required in the determination of whether a potential loss is probable, reasonably possible, or remote as well as in the determination of whether a potential exposure is reasonably estimable. Comprehensive Loss Comprehensive loss consists of two elements, net loss and other comprehensive income (loss). We report all components of comprehensive loss, including net loss, in our financial statements in the period in which they are recognized. Total comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report net loss and the components of other comprehensive income (loss), including foreign currency translation adjustments and unrealized gains and losses on marketable securities, net of their related tax effect to arrive at total comprehensive loss. Revenue Recognition We generate our revenue from the sale of our durable CGM systems and disposable sensors (the Components). Our durable systems include a reusable transmitter and receiver. Disposable sensors are sold separately. We also provide free-of-charge software and mobile applications for use with our durable systems and disposable sensors. The initial durable system price is generally not dependent upon the subsequent purchase of any amount of disposable sensors. We sell our durable systems and disposable sensors through two main sales channels: 1) directly to customers who use our products or organizations (the Direct Channel) and 2) to distribution partners who resell our products (the Distributor Channel). In the Direct Channel, we sell our durable systems and disposable sensors to customers who use our products and we receive payment directly from customers who use our products, organizations and third-party payors. Third-party payors primarily include commercial insurance companies and federal and state agencies (under Medicare and Medicaid programs). We adopted ASC Topic 606 effective January 1, 2018 using the modified retrospective method. We applied the practical expedient permitted under ASC Topic 606 to those contracts that were not completed as of the date of initial adoption. Results for reporting periods after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC Topic 605. Our revenue recognition policies under ASC Topic 606 are explained below. Policy elections and practical expedients taken • We report revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities; • We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations; • We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and • If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component. Contracts and performance obligations We consider customer purchase orders, which in most cases are governed by agreements with distributors or third-party payors, to be contracts with a customer. For each contract, we consider the obligation to transfer Components to the customer, each of which are distinct, to be separate performance obligations. Components are individually priced and can be purchased separately or bundled in a contract. We also provide free-of-charge software, mobile applications and updates for our DexCom Share ® remote monitoring system. The standalone selling prices of our free-of-charge software, mobile applications and updates are based on an expected cost plus a margin approach. Transaction price Transaction price for the Components reflects the net consideration to which we expect to be entitled. Transaction price is typically based on contracted rates less any estimates of claim denials and historical reimbursement experience, which would include current and future expectations regarding reimbursement contracts, guidelines and payor mix, and less estimated variable consideration adjustments. Variable consideration Rebates. We estimate reductions to our revenues for rebates paid to payors and healthcare providers in the United States. Rebates are based on contractual arrangements or statutory requirements, which may vary by product, payor and individual payor plans. Our estimates are based on products sold, historical payor mix and, as available, known market events or trends and channel inventory data. We also take into consideration, as available, new information regarding changes in programs’ regulations and guidelines that would impact the amount of the actual rebates and/or our expectations regarding future payor mix for these programs. Product Returns. We generally provide a “ 30 -day money back guarantee” program whereby first-time end-user customers may return the durable system. In accordance with the terms of their distribution agreements, most distributors do not have rights of return outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. Our returns have historically been immaterial. Revenue recognition We recognize revenue when control is transferred to our customers. The timing of revenue recognition is based on the satisfaction of performance obligations. Substantially all of the performance obligations associated with our durable systems and disposable sensors are satisfied at a point in time, which typically occurs at shipment of our products. Terms of direct and distributor orders are generally Freight on Board (FOB) shipping point for U.S. orders or Free Carrier (FCA) shipping point for international orders. For certain of our distributors, control transfers at delivery of the product to the customer. In cases where our free-of-charge software, mobile applications and updates are deemed to be separate performance obligations, revenue is recognized over time on a ratable basis over the estimated life of the related hardware component. Our sales of the receiver and transmitter components of our CGM systems include an assurance-type warranty which is accounted for based on the cost accrual method recognized as expense when the products are sold and is not considered a separate performance obligation. Contract balances The timing of revenue recognition, billing and cash collections results in trade receivables and deferred revenue on our balance sheets. We recognize a receivable in the period in which our right to the consideration is unconditional. We generally do not have any contracts or performance obligations with a term of more than one year. Our contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 90 days. Accounts receivable as of December 31, 2018 included unbilled accounts receivable of $5.1 million . Unbilled accounts receivable consists of revenue recognized for Components we have delivered but not yet invoiced to customers. We expect to invoice and collect all unbilled accounts receivable within twelve months. Substantially all of our deferred revenue as of December 31, 2018 is associated with certain of our free-of-charge software and mobile applications and will be recognized during 2019 . During the twelve months ended December 31, 2018 , we recognized revenue of $1.9 million that was recorded as deferred revenue as of December 31, 2017 . Deferred cost of sales Deferred cost of sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. These costs are recognized in cost of sales when the associated revenue is recognized. Deferred cost of sales are included in prepaid and other current assets in our balance sheets. Incentive compensation costs We generally expense incentive compensation associated with our internal sales force when incurred because the amortization period for such costs, if capitalized, would have been one year or less. We record these costs in selling, general and administrative expense in our statement of operations. Product Shipment Costs We record the amounts we charge our customers for the shipping and handling of our products in revenue and we record the related costs as cost of sales in our statements of operations. Research and Development We expense all costs of research and development as we incur them. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses primarily consist of employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials that include clinical site reimbursement, clinical trial product, and associated travel expenses. Our research and development expenses also include fees for design services, contractors, and development materials. Our CGM systems include certain software that we develop. We expense software development costs as we incur them until technological feasibility has been established, at which time we capitalize development costs until the product is available for general release to customers. To date, our software has been available for general release concurrent with the establishment of technological feasibility and, accordingly, we have not capitalized any development costs. Advertising Costs We expense all advertising costs as we incur them to selling, general and administrative expenses. Advertising expense was $25.4 million , $21.9 million and $11.9 million for the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. Leases We review all leases for capital or operating classification at their inception. We use our incremental borrowing rate in the assessment of lease classification and define the initial lease term to include the construction build-out period but to exclude lease extension periods when we are not reasonably certain to exercise our extension option. We conduct our operations primarily under operating leases. For leases that contain rent escalations, we record the total rent payable during the lease term, as defined above, to rent expense on a straight-line basis over the term of the lease. We record the difference between amounts paid under the lease agreements and the straight-line rent expense as deferred rent in our balance sheets. Share-Based Compensation Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized straight-line over the requisite service period of the individual grants, which typically equals the vesting period. Shared-based compensation arrangements include time-based and performance/market-based Restricted Stock Units, or RSUs, and purchases of common stock at a discount under our Employee Stock Purchase Plan, or ESPP. We estimate the fair value of time-based RSUs using the closing market price of our common stock on the date of grant. We estimate the fair value of performance/market-based RSUs using a Monte Carlo simulation model and adjust share-based compensation expense based on the expected achievement of the related performance conditions at the end of each reporting period. We estimate the fair value of ESPP purchase rights using the Black-Scholes option pricing model. The model uses assumptions that include expected volatility, expected term, dividends, and the risk-free interest rate. The expected volatility is based on the historical volatility of our common stock over the expected term of the awards. The expected term is based on the terms and conditions of the ESPP stock awards. The expected dividend yield is zero because we have never declared or paid cash dividends on our common stock and do not anticipate paying dividends in the foreseeable future. The risk-free interest rate is based on U.S. Treasury securities with remaining terms similar to the expected term of the stock awards. We account for forfeitures as they occur by reversing any share-based compensation expense related to awards that will not vest. Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding during the period and, when dilutive, potential common share equivalents. Common share equivalents that we calculate using the treasury stock method include outstanding stock options and unvested RSUs that are settleable in shares of common stock and potential common shares from convertible securities that we intend to settle using a combination of shares of our common stock and cash. Common share equivalents that we calculate using the if-converted method include potential common shares from convertible securities that we intend to settle using only shares of our common stock. Because we reported net losses for the twelve months ended December 31, 2018 , 2017 and 2016 , all potentially dilutive common shares have been excluded from the computation of the diluted net loss per share for those periods as the effect would have been anti-dilutive. Outstanding anti-dilutive securities not included in the diluted net loss per share attributable to common stockholders calculations were |
Development and Other Agreement
Development and Other Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Development Agreements Additional Information [Abstract] | |
Development and Other Agreements | Development and Other Agreements Collaboration with Verily Life Sciences On November 20, 2018, we entered into an Amended and Restated Collaboration and License Agreement with Verily Life Sciences LLC (an Alphabet Company) and Verily Ireland Limited (collectively, Verily), which we refer to as the Restated Collaboration Agreement. This replaced our original Collaboration and License Agreement with Verily dated August 10, 2015, as amended in October 2016, including the royalty obligations provisions under that original agreement. Pursuant to the Restated Collaboration Agreement, we and Verily have agreed to continue to jointly develop a certain next-generation CGM product, and potentially one or more additional CGM products, for which we will have exclusive commercialization rights. The Restated Collaboration Agreement also provides us with an exclusive license to use intellectual property of Verily resulting from the collaboration, and certain Verily patents, in the development, manufacture and commercialization of blood-based or interstitial glucose monitoring products more generally (subject to certain exclusions, which are outside of the CGM field as it is commonly understood). It also provides us with non-exclusive license rights under Verily’s other intellectual property rights to develop, manufacture and commercialize those kinds of glucose monitoring products and certain CGM-product companion software functionalities. The Restated Collaboration Agreement requires us to use commercially reasonable efforts to develop, launch and commercialize the CGM product(s) that are the subject of the collaboration according to certain timing and other objectives, and provides for one executive sponsor from each of DexCom and Verily to meet periodically and make decisions related to the collaboration (within a limited scope of authority) by consensus. In consideration of Verily’s performance of its obligations under the joint development plan of the Restated Collaboration Agreement, the licenses granted to us and the amendment of the original agreement, we made an upfront payment and we will make potential future milestone and incentive payments upon the achievement of certain goals. In the fourth quarter of 2018, we made an initial payment of $250.0 million through the issuance of 1,840,943 shares of our common stock. We recorded a $217.7 million charge in our statement of operations during 2018 relating to the issuance of this common stock because this milestone payment did not meet the capitalization criteria. The amount of the charge was based on our closing stock price of $118.28 per share on December 28, 2018, the date on which we obtained the necessary regulatory approvals and the transaction closed. Additional milestone and incentive payments of up to a total of $280.0 million may become due and payable by us upon the achievement of future development, product regulatory approval and revenue milestones. $275.0 million of these payments may be paid in cash or shares of our common stock, at our election. If we elect to make all $275.0 million of these payments in shares, we will issue a total of 2,025,036 shares of our common stock, based on the volume weighted average trading price during the 15 consecutive days ending on the date of the Restated Collaboration Agreement. The Restated Collaboration Agreement will continue until December 31, 2028, unless terminated by either party upon uncured material breach of the Restated Collaboration Agreement by the other party. Upon achievement of the first revenue milestone event and payment of the corresponding milestone fee by us, the term of the Restated Collaboration Agreement will be extended until December 31, 2033. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis We estimate the fair value of our Level 1 financial instruments, which are in active markets, using unadjusted quoted market prices for identical instruments. We obtain the fair values for our Level 2 financial instruments, which are not in active markets, from a primary professional pricing source that uses quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Fair values obtained from this professional pricing source can also be based on pricing models whereby all significant observable inputs, including maturity dates, issue dates, settlement date, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers or other market related data, are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. We validate the quoted market prices provided by our primary pricing service by comparing the fair values of our Level 2 marketable securities portfolio balance provided by our primary pricing service against the fair values of our Level 2 marketable securities portfolio balance provided by our investment managers. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2018 , classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 199.3 $ 66.7 $ — $ 266.0 Equity investment in Tandem Diabetes Care, Inc. 38.0 — — 38.0 Debt securities, available for sale: U.S. government agencies — 173.1 — 173.1 Commercial paper — 36.2 — 36.2 Corporate debt — 1.3 — 1.3 Total debt securities, available for sale — 210.6 — 210.6 Total assets measured at fair value on a recurring basis $ 237.3 $ 277.3 $ — $ 514.6 The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2017 , classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 306.6 $ 38.0 $ — $ 344.6 Debt securities, available for sale: U.S. government agencies — 87.3 — 87.3 Commercial paper — 14.7 — 14.7 Corporate debt — 5.1 — 5.1 Total debt securities, available for sale — 107.1 — 107.1 Total assets measured at fair value on a recurring basis $ 306.6 $ 145.1 $ — $ 451.7 There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2018 and December 31, 2017 . There were no transfers into or out of Level 3 securities during the years ended December 31, 2018 and 2017 . We hold certain other investments that we do not measure at fair value on a recurring basis. The carrying values of these investments are not significant and we include them in other assets in our balance sheets. It is impracticable for us to estimate the fair value of these investments on a recurring basis due to the fact that these entities are often privately held and limited information is available. We monitor the information that becomes available from time to time and adjust the carrying values of these investments if there are identified events or changes in circumstances that have a significant adverse effect on the fair values. Financial liabilities whose fair values we measure on a recurring basis using Level 1 inputs consist of our outstanding 2022 Notes and 2023 Notes. We measure the fair value of the 2022 Notes and 2023 Notes based on their trading prices. The fair value of the 2022 Notes was $540.2 million at December 31, 2018 and $381.3 million at December 31, 2017 . The fair value of the 2023 Notes was $859.6 million at December 31, 2018 . For more information on the carrying values of our 2022 Notes and 2023 Notes see Note 5, “Debt.” Foreign Currency and Derivative Financial Instruments We currently engage in limited hedging transactions to reduce foreign currency risks on certain intercompany balances. The fair values of these derivatives are based on quoted market prices, which are Level 1 inputs. As of December 31, 2018 , a notional amount of $60.0 million was outstanding to hedge currency risk relating to certain intercompany balances. Derivative instrument gains on forward exchange contracts were $0.4 million for the twelve months ended December 31, 2018 and are included in interest and other income (expense), net in our statement of operations. The fair value of the forward contract exchange derivative instrument liability was $0.2 million as of December 31, 2018. We record derivative instruments in other current assets or other current liabilities in our balance sheets consistent with the nature of the instrument at period end. We entered into no foreign currency forward contracts during 2017 or 2016. Our foreign currency exposures vary but are primarily concentrated in the British Pound, the Euro, and the Canadian Dollar. We monitor the costs and the impact of foreign currency risks upon our financial results as part of our risk management program. We do not use derivative financial instruments for speculation or trading purposes or for activities other than risk management. We do not require and are not required to pledge collateral for these financial instruments and we do not carry any master netting arrangements to mitigate the credit risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis In accordance with authoritative guidance, we measure certain non-financial assets and liabilities at fair value on a non-recurring basis. These measurements are usually performed using the discounted cash flow method and Level 3 inputs. These include items such as non-financial assets and liabilities initially measured at fair value in a business combination and non-financial long-lived assets measured at fair value for an impairment assessment. In general, non-financial assets, including goodwill, intangible assets, and property and equipment, are measured at fair value when there are indicators of impairment and are recorded at fair value only when any impairment is recognized. See “Property and Equipment” in Note 4 for information about property and equipment impairment losses that we recorded during the twelve months ended December 31, 2018 and 2017 . There were no indicators of impairment and we recorded no significant impairment losses on goodwill or intangible assets during the twelve months ended December 31, 2018 , 2017 and 2016 . |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheet Details | Balance Sheet Details Short-Term Marketable Securities Short-term marketable securities, consisting of equity securities and debt securities, were as follows as of the dates indicated: December 31, 2018 (In millions) Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value Equity investment in Tandem Diabetes Care, Inc $ 2.0 $ 36.0 $ — $ 38.0 Debt securities, available for sale: U.S. government agencies 173.2 — (0.1 ) 173.1 Commercial paper 36.2 — — 36.2 Corporate debt 1.3 — — 1.3 Total debt securities, available for sale 210.7 — (0.1 ) 210.6 Total marketable securities $ 212.7 $ 36.0 $ (0.1 ) $ 248.6 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value Debt securities, available for sale: U.S. government agencies $ 87.5 $ — $ (0.2 ) $ 87.3 Commercial paper 14.7 — — 14.7 Corporate debt 5.1 — — 5.1 Total debt securities, available for sale $ 107.3 $ — $ (0.2 ) $ 107.1 As of December 31, 2018 , all of our debt securities had contractual maturities of less than 12 months. As of December 31, 2017 , the estimated market value of debt securities with contractual maturities of less than 12 months was $92.7 million ; the remaining debt securities that we held at that date had an estimated market value of $14.4 million and contractual maturities of up to 16 months. Gross realized gains and losses on our debt securities for the twelve months ended December 31, 2018 , 2017 and 2016 were not significant. We periodically review our portfolio of debt securities to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at December 31, 2018 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at that date were not significant and were due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. The following table reconciles the net gain recognized on equity securities during the twelve months ended December 31, 2018 , 2017 and 2016 to the unrealized gain recognized during those periods on equity securities still held at the reporting dates. Twelve Months Ended (In millions) 2018 2017 2016 Net gains recognized during the period on equity securities $ 80.1 $ — $ — Less: Net gains recognized during the period on equity securities sold during the period (44.1 ) — — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 36.0 $ — $ — Accounts Receivable December 31, (In millions) 2018 2017 Accounts receivable $ 233.9 $ 145.8 Less allowance for doubtful accounts (7.2 ) (11.5 ) Total accounts receivable, net $ 226.7 $ 134.3 Inventory December 31, (In millions) 2018 2017 Raw materials $ 30.8 $ 20.0 Work-in-process 11.2 8.2 Finished goods 28.7 17.0 Total inventory $ 70.7 $ 45.2 During the twelve months ended December 31, 2018 , we recorded excess and obsolete inventory charges of $7.3 million in cost of goods sold that were primarily related to the approval and launch of our G6 System and the continuous improvement and innovation of our products. During the twelve months ended December 31, 2016 , we recorded excess and obsolete inventory charges of $3.5 million in cost of goods sold that were related to the February 2016 customer notification regarding the audible alarms and alerts associated with our receivers. This notification was classified as a voluntary Class 1 recall by the Food and Drug Administration, or FDA, and was closed by the FDA in August 2017. Property and Equipment December 31, (In millions) 2018 2017 Building (1) $ 6.0 $ 6.0 Furniture and fixtures 9.0 5.7 Computer software and hardware 29.2 25.6 Machinery and equipment 80.7 33.8 Leasehold improvements 80.7 41.7 Construction in progress (2) 57.3 87.6 Total cost 262.9 200.4 Less accumulated depreciation and amortization (79.8 ) (54.8 ) Total property and equipment, net $ 183.1 $ 145.6 (1) As described in Note 6, “Commitments,” although we do not legally own these premises, we were deemed the owner of the construction project during the construction period of our manufacturing facility in Mesa, Arizona under a build-to suit lease arrangement. We placed the facility into service in 2018 and as of December 31, 2018 had recorded accumulated amortization of $0.7 million . (2) Construction in progress as of December 31, 2018 and December 31, 2017 included approximately $6.2 million and $33.6 million , respectively, related to our manufacturing facility in Mesa, Arizona with the remaining balances as of those dates primarily related to machinery and equipment. Depreciation expense related to property and equipment for the twelve months ended December 31, 2018 , 2017 and 2016 was $28.6 million , $16.1 million , and $14.4 million , respectively. During the twelve months ended December 31, 2018 , we recorded a $5.4 million loss on disposal of property and equipment. The loss on disposal was primarily associated with changes in our product portfolio and was recorded in operating expenses, primarily in research and development expense in our statement of operations. During the twelve months ended December 31, 2017 , we recorded a $11.0 million loss on disposal of property and equipment, the majority of which was previously contained within the construction in progress balance. The loss on disposal was primarily associated with changes in our product portfolio and was recorded in operating expenses, primarily in research and development expense in our statement of operations. Accounts Payable and Accrued Liabilities December 31, (In millions) 2018 2017 Accounts payable trade $ 75.5 $ 46.7 Accrued tax, audit, and legal fees 11.7 7.1 Accrued rebates 36.1 13.9 Accrued warranty 6.8 8.8 Accrued other 17.0 10.7 Total accounts payable and accrued liabilities $ 147.1 $ 87.2 Accrued Warranty Warranty costs are reflected in our statements of operations as cost of product sales. Reconciliations of our accrued warranty costs for the twelve months ended December 31, 2018 and 2017 were as follows: Twelve Months Ended December 31, (In millions) 2018 2017 Beginning balance $ 8.8 $ 9.8 Charges to costs and expenses 17.4 18.4 Costs incurred (19.4 ) (19.4 ) Ending balance $ 6.8 $ 8.8 Other Liabilities December 31, (In millions) 2018 2017 Financing lease obligations $ 7.3 $ 6.7 Deferred rent 9.4 8.7 Other 3.3 2.8 Total other liabilities $ 20.0 $ 18.2 |
Debt Debt
Debt Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Convertible Notes The carrying amounts of our senior convertible notes were as follows as of the dates indicated: December 31, (In millions) 2018 2017 0.75% Senior Convertible Notes due 2022: Principal amount $ 400.0 $ 400.0 Unamortized debt discount (51.1 ) (64.4 ) Unamortized debt issuance costs (6.3 ) (8.0 ) Net carrying amount of Senior Convertible Notes due 2022 342.6 327.6 0.75% Senior Convertible Notes due 2023: Principal amount 850.0 — Unamortized debt discount (171.8 ) — Unamortized debt issuance costs (10.5 ) — Net carrying amount of Senior Convertible Notes due 2023 667.7 — Total net carrying amount of senior convertible notes $ 1,010.3 $ 327.6 Fair value of outstanding notes: Senior Convertible Notes due 2022 $ 540.2 $ 381.3 Senior Convertible Notes due 2023 859.6 — Total fair value of outstanding senior convertible notes $ 1,399.8 $ 381.3 Amount by which the notes’ if-converted value exceeds their principal amount: Senior Convertible Notes due 2022 $ 125.4 $ — Senior Convertible Notes due 2023 — — Total by which the notes’ if-converted value exceeds their principal amount $ 125.4 $ — 0.75% Senior Convertible Notes due 2022 In May 2017, we completed an offering of $350.0 million aggregate principal amount of unsecured senior convertible notes with a stated interest rate of 0.75% and a maturity date of May 15, 2022 (the 2022 Notes). In June 2017, the initial purchasers exercised their option to purchase an additional $50.0 million aggregate principal amount of 2022 Notes. The net proceeds from the offering, after deducting initial purchasers’ discounts and costs directly related to the offering, were approximately $389.0 million . The 2022 Notes may be settled in cash, stock, or a combination thereof, solely at our discretion. It is our current intent and policy to settle all 2022 Notes conversions in shares of our common stock. The initial conversion rate of the 2022 Notes is 10.0918 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $99.09 per share, subject to adjustments. We use the if-converted method for assumed conversion of the 2022 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. Since upon conversion by the holders we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity. As a result, we recognized $72.6 million in additional paid-in capital during 2017. The interest expense recognized on the 2022 Notes during the twelve months ended December 31, 2018 includes $3.0 million , $13.4 million and $1.6 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The interest expense recognized on the 2022 Notes during the twelve months ended December 31, 2017 includes $1.9 million , $8.2 million and $1.0 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the 2022 Notes is 5.1% , which includes the interest on the notes, amortization of the debt discount and debt issuance costs. The discount on the 2022 Notes is being amortized through May 15, 2022. Interest on the 2022 Notes began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. In the event of a fundamental change (as defined in the indenture relating to the notes), holders of the 2022 Notes have the right to require us to repurchase for cash all or a portion of their notes at a price equal to 100% of the principal amount of the 2022 Notes, plus any accrued and unpaid interest. Holders of the 2022 Notes who convert their notes in connection with a make-whole fundamental change (as defined in the indenture) or following the delivery by DexCom of a notice of redemption are, under certain circumstances, entitled to an increase in the conversion rate. Prior to 5:00 p.m., New York City time, on the business day immediately preceding February 15, 2022, holders of the 2022 Notes may convert all or a portion of their notes, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2017 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during the 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 applicable conversion price of the 2022 Notes on each such trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2022 Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate of the 2022 Notes on such trading day; (3) if we call any or all of the 2022 Notes for redemption, at any time prior to the close on business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after February 15, 2022, until 5:00 p.m., New York City time, on the business day immediately preceding the maturity date, holders of the 2022 Notes may convert all or a portion of their notes regardless of the foregoing circumstances. DexCom may not redeem the 2022 Notes prior to May 15, 2020. On or after May 15, 2020, DexCom may redeem for cash all or part of the notes, at its option, if the last reported sale price of our common stock has been at least 140% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which DexCom provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2022 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. No principal payments are due on the 2022 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2022 Notes includes customary terms and covenants, including certain events of default after which the 2022 Notes may be due and payable immediately. Circumstance (1) listed above occurred during the last 30 trading days of the quarter ended September 30, 2018. As a result, the 2022 Notes became convertible at the option of the holders from October 1, 2018 and remained convertible until December 31, 2018. Holders of 2022 Notes with an insignificant principal amount exercised their option to convert their 2022 Notes which we settled with shares of our common stock during the fourth quarter of 2018. 0.75% Senior Convertible Notes due 2023 In November 2018, we completed an offering of $750.0 million aggregate principal amount of unsecured senior convertible notes with a stated interest rate of 0.75% and a maturity date of December 1, 2023 (the 2023 Notes). In November 2018, the initial purchasers exercised their option to purchase an additional $100.0 million aggregate principal amount of 2023 Notes. The net proceeds from the offering, after deducting initial purchasers’ discounts and costs directly related to the offering, were approximately $836.6 million . The 2023 Notes may be settled in cash, stock, or a combination thereof, solely at our discretion. It is our current intent and policy to settle all 2023 Notes conversions through combination settlement, satisfying the principal amount outstanding with cash and any note conversion value in excess of the principal amount in shares of our common stock. The initial conversion rate of the 2023 Notes is 6.0869 shares of common stock per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $164.29 per share, subject to adjustments. We use the treasury stock method for assumed conversion of the 2023 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. We entered into transactions for a convertible note hedge (the 2023 Note Hedge) and warrants (the 2023 Warrants) concurrently with the issuance of the 2023 Notes. Since upon conversion by the holders we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity. As a result, we recognized $174.4 million in additional paid-in capital during 2018. The interest expense recognized on the 2023 Notes during the twelve months ended December 31, 2018 includes $0.5 million , $2.6 million and $0.2 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the 2023 Notes is 5.6% , which includes the interest on the notes, amortization of the debt discount and debt issuance costs. The discount on the 2023 Notes is being amortized through December 1, 2023. Interest on the 2023 Notes began accruing upon issuance and is payable semi-annually on June 1 and December 1 of each year. Holders of the 2023 Notes have the right to require us to repurchase for cash all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change (as defined in the indenture relating to the notes). We will also be required to increase the conversion rate for holders who convert their 2023 Notes in connection with certain fundamental changes occurring prior to the maturity date or following the delivery by DexCom of a notice of redemption. Holders of the 2023 Notes may convert all or a portion of their notes at their option prior to 5:00 p.m., New York City time, on the business day immediately preceding September 1, 2023, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after March 31, 2019 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during the 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 applicable conversion price of the 2023 Notes on each such trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that five -day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate of the 2023 Notes on such trading day; (3) if we call any or all of the 2023 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after September 1, 2023, until 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date, holders of the 2023 Notes may convert all or a portion of their notes regardless of the foregoing circumstances. DexCom may not redeem the 2023 Notes prior to December 1, 2021. On or after December 1, 2021 and prior to September 1, 2023, DexCom may redeem for cash all or part of the 2023 Notes, at its option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which DexCom provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2023 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. No principal payments are due on the 2023 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2023 Notes includes customary terms and covenants, including certain events of default after which the 2023 Notes may be due and payable immediately. As of the date of these financial statements, we are unaware of any current events or market conditions that would allow holders to convert the 2023 Notes. 2023 Note Hedge In connection with the offering of the 2023 Notes, in November 2018 we entered into convertible note hedge transactions with two of the initial purchasers of the 2023 Notes (the 2023 Counterparties) entitling us to purchase up to 5.2 million shares of our common stock at an initial price of $164.29 per share, each of which is subject to adjustment. The cost of the 2023 Note Hedge was $218.9 million and we accounted for it as an equity instrument by recognizing $218.9 million in additional paid-in capital during 2018. The 2023 Note Hedge will expire on December 1, 2023. The 2023 Note Hedge is expected to reduce the potential equity dilution upon any conversion of the 2023 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2023 Notes if the daily volume-weighted average price per share of our common stock exceeds the strike price of the 2023 Note Hedge. The strike price of the 2023 Note Hedge initially corresponds to the conversion price of the 2023 Notes and is subject to certain adjustments under the terms of the 2023 Note Hedge. An assumed exercise of the 2023 Note Hedge by us is considered anti-dilutive since the effect of the inclusion would always be anti-dilutive with respect to the calculation of diluted earnings per share. 2023 Warrants In November 2018, we also sold warrants to the 2023 Counterparties to acquire up to 5.2 million shares of our common stock. The 2023 Warrants require net share settlement and a pro rated number of warrants will expire on each of the 60 scheduled trading days starting on March 1, 2024. We received $183.8 million in cash proceeds from the sale of the 2023 Warrants, which we recorded in additional paid-in capital during 2018. The 2023 Warrants could have a dilutive effect on our earnings per share to the extent that the price of our common stock during a given measurement period exceeds the strike price of the 2023 Warrants. The strike price of the 2023 Warrants is initially $198.38 per share and is subject to certain adjustments under the terms of the warrant agreements. We use the treasury share method for assumed conversion of the 2023 Warrants when computing the weighted average common shares outstanding for diluted earnings per share. Revolving Credit Agreement Terms of the Revolving Credit Agreement On December 19, 2018, we entered into an amended and restated $200.0 million revolving credit agreement (the Credit Agreement) with JPMorgan Chase Bank, NA, as administrative agent, Bank of America, Silicon Valley Bank, Union Bank and Bank of the West, amending and restating our June 2016 agreement with those counterparties. In addition to allowing borrowings in U.S. dollars, the Credit Agreement provides a $50.0 million sublimit for borrowings in Canadian Dollars, Euros, British Pounds, Swedish Kroner, Japanese Yen and any other currency that is subsequently approved by JPMorgan Chase and each lender. The Credit Agreement also provides a sub-facility of up to $10.0 million for letters of credit. Subject to customary conditions and the approval of any lender whose commitment would be increased, we have the option to increase the maximum principal amount available under the Credit Agreement by up to an additional $300.0 million , resulting in a maximum available principal amount of $500.0 million . However, at this time none of the lenders have committed to provide any such increase in their commitments. Borrowings under the Credit Agreement will be available for general corporate purposes, including working capital and capital expenditures. Revolving loans under the Credit Agreement bear interest at our choice of one of two base rates plus a range of applicable margin rates that are based on our leverage ratio. The first base rate is the highest of (a) the publicly announced JPMorgan Chase prime rate, (b) the federal funds rate, or (c) the overnight bank funding rate, and the applicable margin rate ranges from 0.375% to 1.000% . The second base rate is a LIBOR-based rate, and the applicable margin rate ranges from 1.375% to 2.000% . We will also pay a commitment fee of between 0.2% and 0.3% , payable quarterly in arrears, on the average daily unused amount of the revolving facility based on our leverage ratio. The aggregate debt issuance costs and fees incurred with respect to entering into the Credit Agreement were $1.5 million , which have been capitalized in other assets in our balance sheets and will be amortized through the maturity date of December 2023 on a straight line basis. The Credit Agreement will mature on the earlier to occur of (i) December 19, 2023 or (ii) 91 days prior to the maturity date of the 2022 Notes or (iii) 91 days prior to the maturity date of the 2023 Notes if both (a) the aggregate outstanding principal amount of the 2022 Notes or the 2023 Notes, as applicable, is greater than EBITDA for the period of four consecutive fiscal quarters ending prior to such date and (b) unrestricted domestic cash on hand is less than the aggregate outstanding principal amount of the 2022 Notes or the 2023 Notes, as applicable, plus $100.0 million . The full balance of the revolving loans and all other obligations under the Credit Agreement must be paid on the maturity date. Our obligations under the Credit Agreement are guaranteed by our existing and future wholly-owned domestic subsidiaries, and are secured by a first-priority security interest in substantially all of the assets of DexCom and the guarantors, including all or a portion of the equity interests of our domestic subsidiaries and first-tier foreign subsidiaries but excluding real property and intellectual property (which is subject to a negative pledge). The Credit Agreement contains covenants that limit certain indebtedness, liens, investments, transactions with affiliates, dividends and other restricted payments, subordinated indebtedness and amendments to subordinated indebtedness documents, and sale and leaseback transactions of DexCom or any of its domestic subsidiaries. The Credit Agreement also requires us to maintain a maximum leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with these covenants as of December 31, 2018. Short-Term Borrowings In March 2017, we drew $75.0 million on the Credit Agreement under a six month term. We repaid the entire principal balance in May 2017. As of December 31, 2018 , we had no outstanding borrowings, letters of credit totaling $4.4 million, and a total available balance of $195.6 million under the Credit Agreement. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Leases Our corporate headquarters and primary manufacturing facilities are located in San Diego, California. We lease approximately 219,000 square feet of space in San Diego under leases that expire in February and March 2022. We have the option to renew each of these leases for two additional five -year terms. We lease approximately 87,000 square feet of space in San Diego under a lease that expires in February 2022 with no renewal options. We also lease approximately 132,600 square feet of space in San Diego under a sublease that expires in January 2022. We lease approximately 148,800 square feet of space in Mesa, Arizona under a lease that expires in March 2028. We have the option to renew this lease for four additional five -year terms. The Mesa lease is a build-to-suit arrangement for a manufacturing facility where we were involved in the design and construction of the leased space, including non-standard tenant improvements that we paid for. For accounting purposes, we were considered the owner of the construction project during the construction period; as a result, during 2016 we capitalized the $6.0 million fair value of the Mesa building in property and equipment and recorded a corresponding financing lease obligation liability of $6.0 million in other liabilities in our balance sheet. We concluded that the Mesa lease does not qualify for “sale-leaseback” treatment due to prohibited continuing involvement, so we have treated the Mesa lease as a financing arrangement. We have also entered into other operating lease agreements, primarily for office and warehouse space, that expire at various times through July 2026. Future minimum rental obligations under all lease agreements as of December 31, 2018 were as shown in the table below. These obligations exclude real estate taxes, operating costs and tenant improvement allowances and include the financing lease obligation for our Mesa facility. Fiscal Year Ending (In millions) 2019 $ 14.4 2020 16.9 2021 17.3 2022 6.6 2023 4.7 Thereafter 8.9 Total $ 68.8 Total rent expense for the twelve months ended December 31, 2018 , 2017 and 2016 was $12.5 million , $11.1 million and $9.0 million , respectively. Purchase Commitments We are party to various purchase arrangements related to our manufacturing and research and development activities, including for materials used in our CGM systems. As of December 31, 2018 , we had firm purchase commitments with vendors totaling $204.0 million , most of which are due within one year. |
Contingencies Contingencies
Contingencies Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Litigation On March 28, 2016, AgaMatrix, Inc., or AgaMatrix, filed a patent infringement lawsuit against us in the United States District Court for the District of Oregon, asserting that certain of our products infringe certain patents held by AgaMatrix. On June 6, 2016, AgaMatrix filed a First Amended Complaint asserting the same three patents. On February 24, 2017, the Court granted AgaMatrix’s motion to substitute WaveForm Technologies, Inc., or WaveForm, as the new plaintiff following AgaMatrix’s transfer of the three patents to its newly formed entity. On August 25, 2016, we filed petitions for inter partes review with the Patent Trial and Appeal Board, or PTAB, of the U.S. Patent and Trademark Office seeking a determination that two of the three asserted patents are invalid under U.S. patent law and those petitions were granted on March 6, 2017. On March 8, 2017, we filed a petition for inter partes review with the PTAB seeking a determination that the third of the three asserted patents is invalid under U.S. patent law. This petition was granted on September 15, 2017. The PTAB issued a Final Written Decision for each of the first two patents on February 28, 2018, where the PTAB found the majority of asserted claims from the first patent unpatentable and the remaining claims under review not unpatentable. The PTAB found all claims under review from the second patent not unpatentable. We believe the PTAB erred in finding any claims of the first two patents not unpatentable, and appealed the PTAB’s decision to the United States Court of Appeals for the Federal Circuit, or Federal Circuit, on March 30, 2018. Briefing of the appeal is complete and we are currently awaiting the dates for oral argument from the Court of Appeals. The PTAB issued a Final Written Decision for the third patent on September 12, 2018, where the PTAB found all claims of the third patent asserted against us in the District of Oregon litigation unpatentable. WaveForm did not appeal this decision. On January 4, 2019, the parties stipulated to the dismissal of all claims and counterclaims regarding the third asserted patent. Most activity in the patent infringement lawsuit against us in the District of Oregon was stayed until the PTAB completed the inter partes review proceedings. That stay was lifted on October 10, 2018. The remaining claims and counterclaims will continue with an estimated date of trial in February 2020. It is our position that Waveform’s assertions of infringement have no merit. We have also filed several lawsuits against AgaMatrix. We filed a patent infringement lawsuit against AgaMatrix in the United States District Court for the Central District of California, or C.D. Cal., which is currently on appeal to the Federal Circuit based on a Final Judgment of non-infringement entered by the C.D. Cal. judge on February 23, 2018. AgaMatrix sought attorneys’ fees for this lawsuit and as of December 31, 2018 we have accrued an immaterial amount for those fees. On September 15, 2017, we filed a patent infringement lawsuit against AgaMatrix in the United States District Court for the District of Delaware, asserting certain single-point blood glucose monitoring products of AgaMatrix infringe two patents held by us. In addition, on September 18, 2017, we filed a Complaint against AgaMatrix in the International Trade Commission, referred to as the ITC, requesting that the ITC institute an investigation and issue an order excluding certain products of AgaMatrix from importation into or sale in the United States based on AgaMatrix’s infringement of the same two patents asserted in the Delaware litigation. On September 14, 2018, AgaMatrix filed two petitions for inter partes review for each of the same two patents we asserted in the District of Delaware and the ITC. We filed a response to all four petitions on December 17, 2018. AgaMatrix had requested additional briefing on the matter and the PTAB has authorized both sides to do so. Briefing was completed in January 2019. Neither the outcome of these lawsuits nor the amount and range of potential loss associated with the lawsuits can be assessed at this time. Other than the attorneys’ fees described above, as of December 31, 2018 we have accrued no amounts for contingent losses associated with these suits. We are subject to various claims, complaints and legal actions that arise from time to time in the normal course of business, including commercial insurance, product liability and employment related matters. In addition, from time to time we may bring claims or initiate lawsuits against various third parties with respect to matters arising out of the ordinary course of our business, including commercial and employment related matters. We do not expect that the resolution of these matters would, or will, have a material adverse effect or material impact on our financial position or results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes subject to taxes in the following jurisdictions is as follows: Twelve Months Ended (In millions) 2018 2017 2016 United States $ (28.3 ) $ 12.4 $ (44.4 ) Outside of the United States (98.2 ) (61.0 ) (20.5 ) Total $ (126.5 ) $ (48.6 ) $ (64.9 ) Significant components of the provision for income taxes are as follows: Twelve Months Ended (In millions) 2018 2017 2016 Current: Federal $ — $ — $ — State 2.7 0.1 0.1 Foreign 0.1 1.5 0.8 Total current income taxes 2.8 1.6 0.9 Deferred: Federal (1.7 ) — (0.1 ) State (0.5 ) — — Foreign — — (0.1 ) Total deferred income taxes (2.2 ) — (0.2 ) Total $ 0.6 $ 1.6 $ 0.7 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the Act) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. We made provisional estimates of the impact of the Act in our 2017 year end income tax provision in accordance with our understanding of the Act and guidance available as of the date of our 2017 financial statements. As a result, we reduced our net U.S. deferred tax assets by a provisional amount of $105.7 million offset by a decrease in the valuation allowance, resulting in no tax expense. The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was nil based on cumulative foreign deficits in earnings of $41.2 million . On December 22, 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that $105.7 million of deferred tax expense offset by an increase in valuation allowance in connection with the remeasurement of our U.S. deferred tax assets and liabilities, and the analysis of our foreign deficits in earnings in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, were provisional amounts and reasonable estimates at December 31, 2017. During 2018 we finalized the impact of remeasuring our net U.S. deferred tax assets resulting from the decrease in the federal tax rate. Our provisional estimate of the reduction in our U.S. deferred tax assets of $105.7 million decreased to $105.3 million , resulting in a $0.4 million increase to our opening balance of net U.S. deferred tax assets that was offset by an increase in the valuation allowance. The final amount related to the one-time mandatory deemed repatriation of foreign earnings is nil based on final cumulative foreign deficits of $24.6 million . The Act repealed U.S. taxation on the subsequent repatriation of foreign earnings. We intend to reinvest all of our foreign earnings and capital to support and expand existing operations outside the U.S. in those jurisdictions in which we would incur significant withholding taxes and other taxes upon repatriation of such amounts. At December 31, 2018 , we had federal, state and foreign tax net operating loss carryforwards of approximately $578.7 million , $417.2 million , and $129.3 million , respectively. The federal and state tax loss carryforwards will begin to expire in 2027 and 2025 , respectively, unless previously utilized. The foreign net operating losses carry forward indefinitely. At December 31, 2018 , we also had federal and state research and development tax credit carryforwards of approximately $41.1 million and $41.4 million , respectively. $0.03 million of the federal research and development tax credit will begin to expire in 2020 , unless previously utilized. The state research and development tax credit will carryforward indefinitely until utilized. Utilization of net operating losses and credit carryforwards is subject to an annual limitation due to ownership change limitations provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state provisions. An ownership change limitation occurred as a result of the stock offering completed in February 2009. The limitation will likely result in approximately $2.1 million of U.S. income tax credits that will expire unused. The related deferred tax assets have been removed from the components of our deferred tax assets as summarized in the table below. We performed a Section 382 study on the remaining federal and state net operating losses and tax credit carryforwards and have determined that there is no annual limitation on them as of December 31, 2018 . Significant components of our deferred tax assets as of December 31, 2018 and 2017 are shown below. A valuation allowance of approximately $330.1 million has been established as of December 31, 2018 to offset the deferred tax assets, as realization of such assets is uncertain. We maintain a deferred tax liability related to indefinite-lived intangible assets that is not netted against the deferred tax assets. Reversal of the taxable temporary difference for these intangible assets cannot serve as a source of income for realization of the deferred tax assets because the deferred tax liability will not reverse until the intangible assets are sold or written down due to impairment. December 31, (In millions) 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 162.0 $ 188.7 Capitalized research and development expenses 62.1 8.4 Tax credits 59.0 47.8 Share-based compensation 12.5 13.8 Fixed and intangible assets 16.0 0.4 Accrued liabilities and reserves 22.5 20.5 Total gross deferred tax assets 334.1 279.6 Less: valuation allowance (330.1 ) (263.5 ) Total net deferred tax assets 4.0 16.1 Deferred tax liabilities: Fixed assets and acquired intangibles assets (3.8 ) (0.1 ) Convertible debt discount (0.1 ) (15.9 ) Total deferred tax liabilities (3.9 ) (16.0 ) Net deferred tax assets (liabilities) $ 0.1 $ 0.1 Of the $66.6 million increase in valuation allowance during the twelve months ended December 31, 2018, $56.9 million relates to income from continuing operations and $11.9 million relates to temporary differences established through additional paid-in capital, partially offset by $2.2 million that relates to temporary differences established through goodwill. As of December 31, 2018 , deferred tax assets for which any subsequently recognized tax benefits will be credited to additional paid-in capital rather than to income tax benefit totaled $56.2 million. In 2017 we adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718) (ASU 2016-09), which was intended to simplify several areas of accounting for share-based payment arrangements, including the recognition for excess tax benefits and deficiencies. As a result of our adoption of ASU 2016-09, we recorded $161.8 million of excess tax benefits as an increase in deferred tax assets, with an offsetting increase in valuation allowance through retained earnings. The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: Twelve Months Ended (In millions) 2018 2017 2016 Income taxes at statutory rates $ (26.6 ) $ (17.0 ) $ (22.7 ) State income tax, net of federal benefit (5.5 ) (0.7 ) 1.2 Permanent items 1.3 0.7 0.8 Research and development credits (11.7 ) (13.3 ) (11.7 ) Foreign rate differential 3.7 5.4 4.5 Stock and officers compensation (5.1 ) (10.4 ) 4.0 Rate change — (0.1 ) (0.1 ) Unrecognized tax benefits — (15.4 ) 27.7 Impact of adoption of ASU 2016-16 (13.3 ) — — Impact of Tax Cuts and Jobs Act of 2017 (0.4 ) 105.7 — Other 1.3 (2.2 ) — Change in valuation allowance 56.9 (51.1 ) (3.0 ) Income taxes at effective rates $ 0.6 $ 1.6 $ 0.7 The following table summarizes the activity related to our gross unrecognized tax benefits: (In millions) Balance at January 1, 2016 $ 15.6 Decreases related to prior year tax positions (8.4 ) Increases related to current year tax positions 32.6 Balance at December 31, 2016 39.8 Decreases related to prior year tax positions (14.9 ) Increases related to current year tax positions 3.3 Decrease related to Tax Cuts and Jobs Act of 2017 (5.4 ) Balance at December 31, 2017 22.8 Decreases related to prior year tax positions (0.3 ) Increases related to current year tax positions 3.4 Balance at December 31, 2018 $ 25.9 Due to the valuation allowance recorded against our deferred tax assets, none of the total unrecognized tax benefits as of December 31, 2018 would reduce our annual effective tax rate if recognized. Interest and penalties are classified as a component of income tax expense and were not material for any period presented. Due to net operating losses incurred, tax years from 1999 and forward for federal and state purposes and from 2016 and forward for foreign jurisdictions remain open to examination by the major taxing jurisdictions to which we are subject. The IRS commenced an audit of our 2015 and 2016 federal income tax returns in February 2018. We expect that the audit will be completed in 2019. We do not expect any significant changes to our unrecognized tax benefits over the next twelve months. |
Employee Benefit Plans and Stoc
Employee Benefit Plans and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans and Stockholders' Equity | Employee Benefit Plans and Stockholders’ Equity 401(k) Plan We have a defined contribution 401(k) retirement plan (the 401(k) Plan) covering substantially all employees in the United States that meet certain age requirements. Employees who participate in the 401(k) Plan may contribute up to 75% of their compensation each year, subject to Internal Revenue Service limitations and the terms and conditions of the plan. Under the terms of the 401(k) Plan, we may elect to match a discretionary percentage of contributions. In April 2018, we began matching 50% of contributions up to 4% of annual compensation. Total matching contributions were $2.6 million for the twelve months ended December 31, 2018 . Employee Stock Purchase Plan, or ESPP On May 28, 2015, our stockholders approved the 2015 Employee Stock Purchase Plan (the 2015 ESPP), which replaced our 2005 Employee Stock Purchase Plan. The 2015 ESPP permits our eligible employees to purchase discounted shares of our common stock at semi-annual intervals through periodic payroll deductions. A total of up to 1.5 million shares may be issued under the 2015 ESPP and it expires upon the earliest to occur of (a) termination of the 2015 ESPP by our board of directors, (b) issuance of all of the shares of common stock reserved for issuance under the plan, or (c) May 28, 2025. Payroll deductions may not exceed 10% of the participant’s cash compensation subject to certain limitations, and the purchase price will not be less than 85% of the lower of the fair market value of the common stock at either the beginning of the applicable Offering Period or the Purchase Date. Under our 2015 ESPP, each Offering Period is twelve months, with new Offering Periods commencing every six months on March 1 and September 1 of each year. Each Offering Period consists of two six -month purchase periods (each a Purchase Period) during which payroll deductions of the participants are accumulated under the ESPP . The last business day of each Purchase Period is referred to as the Purchase Date. Purchase Dates are every six months on February 28 or February 29 and August 31. We issued 189,904 and 122,857 and 99,192 shares of common stock under the 2015 ESPP during the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. We issued 8,539 shares of common stock under the 2005 ESPP during the twelve months ended December 31, 2016 . As of December 31, 2018 , there were 1.1 million shares available for issuance under the 2015 ESPP. Treasury Stock We repurchased 0.8 million shares of our common stock for $100.0 million during 2018 . We repurchased all of these shares at the market prices on the trade dates; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock in our balance sheet as of December 31, 2018 . Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount. We issue new shares of common stock to satisfy option exercises and RSU vesting under our employee equity incentive plans. We have not yet determined the ultimate disposition of the shares that we repurchased in 2018, and consequently we continue to hold them as treasury shares rather than retiring them. Description of Equity Incentive Plans In May 2015, we adopted the Amended and Restated 2015 Equity Incentive Plan (the 2015 Plan) , which replaced our 2005 Equity Incentive Plan and provides for the grant of incentive and nonstatutory stock options, restricted stock, stock bonuses, stock appreciation rights, and restricted stock units to employees, directors or consultants of the Company. As of the date of adoption, a total of 4.0 million shares were reserved for issuance pursuant to the 2015 Plan . Shares forfeited under the 2005 Equity Incentive Plan subsequent to May 28, 2015 are returned to the share reserve under the 2015 Plan and will be available for future awards. Stockholder approval is required to increase the maximum number of shares that may be issued under the 2015 Plan . Stock Options We have not granted any stock options since 2010. A summary of our stock option activity and related information for the twelve months ended December 31, 2018 is as follows: Number of Shares (in millions) Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2017 0.4 $ 6.71 Exercised (0.3 ) 6.34 Forfeited — — Outstanding at December 31, 2018 0.1 8.02 0.95 $ 9.6 Exercisable at December 31, 2018 0.1 $ 8.02 0.95 $ 9.6 The total intrinsic value of stock options exercised as of the date of exercise was as follows: Years Ended December 31, (In millions) 2018 2017 2016 Intrinsic value of options exercised $ 30.0 $ 21.6 $ 39.9 We define in-the-money options at December 31, 2018 as options that had exercise prices that were lower than the $119.80 closing market price of our common stock at that date. There were 0.1 million in-the-money options exercisable at December 31, 2018 . The aggregate intrinsic value of options outstanding at December 31, 2018 is calculated as the difference between the exercise price of the underlying options and the market price of our common stock for the 0.1 million options that were in-the-money at that date. Expense and Valuation Information The following table summarizes share-based compensation expense related to restricted stock units, stock options, and employee stock purchases under the ESPP for the twelve months ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (In millions) 2018 2017 2016 Cost of sales $ 9.2 $ 9.6 $ 12.0 Research and development 33.0 37.5 39.8 Selling, general and administrative 59.7 59.1 59.0 Total share-based compensation expense included in net loss $ 101.9 $ 106.2 $ 110.8 At December 31, 2018 , unrecognized estimated compensation costs related to unvested restricted stock units totaled $126.5 million and are expected to be recognized through 2021 . We estimate the fair value of stock options granted and ESPP purchase rights on the date of grant using the Black-Scholes option pricing model and the assumptions below. We did not have any stock option grants during the twelve months ended December 31, 2018 , 2017 and 2016 . Years Ended December 31, ESPP 2018 2017 2016 Risk free interest rate 1.55 – 2.25 0.75 – 1.12 0.46 – 0.57 Dividend yield — % — % — % Expected volatility of DexCom common stock 0.50 – 0.67 0.33 – 0.56 0.33 – 0.57 Expected life (in years) 1 1 1 Restricted Stock Units (RSUs) RSU awards typically vest annually over three or four years and vesting is subject to continued services. A summary of our RSU activity for the twelve months ended December 31, 2018 , 2017 and 2016 is as follows: (In millions except weighted average grant date fair value) Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested at December 31, 2015 4.1 $ 50.60 Granted 1.9 68.16 Vested (2.1 ) 44.95 Forfeited (0.2 ) 56.37 Nonvested at December 31, 2016 3.7 62.51 $ 218.6 Granted 1.3 75.78 Vested (1.9 ) 58.92 Forfeited (0.4 ) 67.97 Nonvested at December 31, 2017 2.7 70.68 154.5 Granted 1.7 66.07 Vested (1.4 ) 68.44 Forfeited (0.3 ) 68.56 Nonvested at December 31, 2018 2.7 $ 69.19 $ 319.0 The total vest-date fair value of RSUs vested was $120.9 million , $144.5 million and $150.0 million for the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. Reserved Shares Shares of common stock reserved for future issuance were as follows as of the dated indicated: December 31, (In millions) 2018 2017 Stock options and awards under our plans: Stock options granted and outstanding 0.1 0.4 Unvested restricted stock units 2.7 2.7 Reserved for future grant 3.2 4.7 Employee Stock Purchase Plan 1.1 1.3 Total 7.1 9.1 |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information Reportable Segments An operating segment is identified as a component of a business that has discrete financial information available and for which the chief operating decision maker must decide the level of resource allocation. In addition, the guidance for segment reporting indicates certain quantitative materiality thresholds. None of the components of our business meet the definition of an operating segment. We currently consider our operations to be, and manage our business globally within, one reportable segment, which is consistent with how our President and Chief Executive Officer, who is our chief operating decision maker, reviews our business, makes investment and resource allocation decisions, and assesses operating performance. Disaggregation of Revenue DexCom is domiciled in the United States. We sell our durable systems and disposable sensors through a direct sales force in the United States, Canada and some countries in Europe, and through distribution arrangements in the United States, Canada, Australia, New Zealand, and some countries in Europe, Asia, Latin America, the Middle East and Africa. We disaggregate our revenue from contracts by geography and by major sales channel as we believe they best depict how the nature, amount and timing of revenues and cash flows are affected by economic factors. Revenues by geographic region During the twelve months ended December 31, 2018 , 2017 and 2016 , no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The following table sets forth revenues by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the product: Twelve Months Ended December 31, 2018 2017 2016 (Dollars in millions) Amount % Amount % Amount % Revenues: United States $ 818.4 79 % $ 596.2 83 % $ 497.5 87 % Outside of the United States 213.2 21 % 122.3 17 % 75.8 13 % Total $ 1,031.6 100 % $ 718.5 100 % $ 573.3 100 % Substantially all of our long-lived assets are located in the United States. Revenues by customer sales channel The following table sets forth revenues by major sales channel for the twelve months ended December 31, 2018 , 2017 and 2016 : Twelve Months Ended December 31, 2018 2017 2016 (Dollars in millions) Amount % Amount % Amount % Revenues: Distributor $ 652.9 63 % $ 538.0 75 % $ 411.8 72 % Direct 378.7 37 % 180.5 25 % 161.5 28 % Total $ 1,031.6 100 % $ 718.5 100 % $ 573.3 100 % |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following is a summary of our quarterly results of operations for the years ended December 31, 2018 and 2017 : For the Three Months Ended (In millions except per share data) December 31 September 30 June 30 March 31 Year ended December 31, 2018 Revenues $ 338.0 $ 266.7 $ 242.5 $ 184.4 Gross profit 222.8 168.6 153.6 118.9 Total operating expenses 387.4 154.7 158.5 149.6 Net income (loss) (179.7 ) 46.6 30.2 (24.2 ) Basic net income (loss) per share (a) $ (2.03 ) $ 0.53 $ 0.34 $ (0.28 ) Diluted net income (loss) per share (a) $ (2.03 ) $ 0.52 $ 0.34 $ (0.28 ) Year ended December 31, 2017 Revenues $ 221.0 $ 184.6 $ 170.6 $ 142.3 Gross profit 153.5 127.0 117.5 94.1 Total operating expenses 141.5 127.5 131.1 134.5 Net income (loss) (9.4 ) (2.0 ) 2.9 (41.7 ) Basic net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) Diluted net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) (a) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2018 , 2017 and 2016 (in millions) Allowance for doubtful accounts Balance December 31, 2015 $ 7.8 Provision for doubtful accounts 9.5 Write-offs and adjustments (5.6 ) Recoveries 0.7 Balance December 31, 2016 $ 12.4 Allowance for doubtful accounts Balance December 31, 2016 $ 12.4 Provision for doubtful accounts 5.3 Write-offs and adjustments (7.0 ) Recoveries 0.7 Balance December 31, 2017 $ 11.4 Allowance for doubtful accounts Balance December 31, 2017 $ 11.4 Provision for doubtful accounts 3.6 Write-offs and adjustments (8.3 ) Recoveries 0.5 Balance December 31, 2018 $ 7.2 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring, or CGM, systems for ambulatory use by people with diabetes and by healthcare providers. Unless the context requires otherwise, the terms “we,” “us,” “our,” the “company,” or “DexCom” refer to DexCom, Inc. and its subsidiaries. |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The functional currencies of our international subsidiaries are generally the local currencies. We translate the financial statements of our foreign subsidiaries into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. We include translation-related adjustments in comprehensive loss and in accumulated other comprehensive income (loss) in the equity section of our balance sheet. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each entity give rise to foreign exchange gains or losses that we record in interest and other income (expense), net in our statements of operations |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The functional currencies of our international subsidiaries are generally the local currencies. We translate the financial statements of our foreign subsidiaries into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. We include translation-related adjustments in comprehensive loss and in accumulated other comprehensive income (loss) in the equity section of our balance sheet. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each entity give rise to foreign exchange gains or losses that we record in interest and other income (expense), net in our statements of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. Areas requiring significant estimates include pharmacy rebates, transaction price, net accounts receivable, excess or obsolete inventories and the valuation of inventory, and accruals for litigation contingencies. |
Fair Value Measurements | Fair Value Measurements The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows: Level 1—Unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly, through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily 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 determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques and significant judgment or estimation. We carry our marketable securities at fair value. We carry our other financial instruments, such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, at cost, which approximates the related fair values due to the short-term maturities of these instruments. For more information see Note 3, “Fair Value Measurements.” |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. |
Marketable Securities | Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term marketable securities. We have also classified marketable securities with remaining maturities of greater than one year as short-term marketable securities based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. We calculate realized gains or losses on our marketable securities using the specific identification method. We carry our marketable debt securities at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity in our balance sheets and included in comprehensive loss. Realized gains and losses on marketable debt securities are included in interest and other income (expense), net in our statements of operations. We carry our marketable equity securities at fair value with realized and unrealized gains and losses reported in income on equity investments in our statements of operations. We invest in various types of debt securities, including debt securities in government-sponsored entities, corporate debt securities, U.S. Treasury securities and commercial paper. We do not generally intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. |
Accounts Receivables and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally recorded at the invoiced amount for Distributors and at net realizable value for Direct customers, which is determined using estimates of claim denials and historical reimbursement experience without regard to aging category. Accounts receivable are not interest bearing. We evaluate the creditworthiness of significant customers and generally do not require collateral from our customers. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectable accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectable. Generally, receivable balances greater than one year past due are deemed uncollectable. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash and investments with high credit quality financial institutions. We have also established guidelines regarding diversification of our investments and their maturities that are designed to maintain principal and maximize liquidity. We review these guidelines periodically and modify them to take advantage of trends in yields and interest rates and changes in our operations and financial position. |
Inventory | Inventory Inventory is valued at the lower of cost or net realizable value on a part-by-part basis that approximates first in, first out. We record adjustments to inventory for potentially excess, obsolete or scrapped goods in order to state inventory at net realizable value. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed of. Our products require customized products and components that currently are available from a limited number of sources. We purchase certain components and materials from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three years for computer software and hardware, four to 15 years for machinery and equipment, and five years for furniture and fixtures. Leasehold improvements and assets acquired through a build-to-suit arrangement are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. We include the amortization of assets that are recorded under capital leases in depreciation expense. |
Impairment of Long-Lived Assets | We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the recoverability of the asset by comparing the carrying amount to the future undiscounted cash flows that we expect the asset to generate. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. |
Goodwill and Intangible Assets | Goodwill We record goodwill when the fair value of consideration transferred in a business combination exceeds the fair value of the identifiable assets acquired and liabilities assumed. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but we test them annually for impairment in the fourth quarter of our fiscal year and whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business, and an adverse action or assessment by a regulator. We perform our goodwill impairment analysis at the reporting unit level, which aligns with DexCom’s reporting structure and the availability of discrete financial information. We perform the first step of our annual impairment analysis by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and/or use of a market approach by looking at market values of comparable companies. Key assumptions for these projections include revenue growth, future gross margin and operating margin growth, and weighted cost of capital and terminal growth rates. The revenue and margin growth are based on increased sales of new and existing products as we maintain investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including the timing and probability of regulatory approvals for our products to be commercialized. We also consider DexCom’s market capitalization as a part of our analysis. If the estimated fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is not impaired and no further analysis is required. If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of the unit, we perform the second step of the impairment test. In this step we allocate the fair value of the reporting unit calculated in step one to all of the assets and liabilities of that unit, as if we had just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit over the total amount allocated to the assets and liabilities represents the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, we would record an impairment loss equal to the difference. We recorded no goodwill impairment charges for the twelve months ended December 31, 2018 , 2017 or 2016 . There were no accumulated impairment losses for goodwill at December 31, 2016 . The change in goodwill for the twelve months ended December 31, 2017 consisted of translation adjustments on our foreign currency denominated goodwill. The change in goodwill for the twelve months ended December 31, 2018 consisted of goodwill we recorded for acquisitions that were not significant, individually or in the aggregate, and translation adjustments on our foreign currency denominated goodwill. Intangible Assets and Other Long-Lived Assets We amortize intangible assets with a finite life, such as acquired technology, customer relationships, trade names and trademarks, on a straight-line basis over their estimated useful lives, which range from two to five years. We review intangible assets that have finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized, which requires significant judgment. The realization of deferred tax assets is dependent, in part, upon future taxable income. In assessing whether our deferred tax assets will be realized, we consider all available evidence, both positive and negative. Such evidence includes historical earnings, future reversals of existing taxable temporary differences, estimates of future taxable income, and the feasibility of ongoing tax planning strategies. We have recorded a full valuation allowance on our net deferred tax asset balances for all periods presented because of the uncertainty related to utilization of our deferred tax assets. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We file federal and state income tax returns in the United States and income tax returns in various other foreign jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. We recognize interest expense and penalties related to income tax matters, including unrecognized tax benefits, as a component of income tax expense. |
Warranty Accrual | Warranty Accrual Estimated warranty costs associated with a product are recorded at the time revenue is recognized. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and expectations for future warranty activity based on changes and improvements to the product or process that are in place or will be in place in the future. We evaluate these estimates on at least a quarterly basis to determine the continued appropriateness of our assumptions. |
Loss Contingencies | Loss Contingencies If the potential loss from a claim or legal proceeding is considered probable and the amount can be reasonably estimated, we record a liability and an expense for the estimated loss and disclose it in our financial statements if it is significant. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. Significant judgment is required in the determination of whether a potential loss is probable, reasonably possible, or remote as well as in the determination of whether a potential exposure is reasonably estimable. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of two elements, net loss and other comprehensive income (loss). We report all components of comprehensive loss, including net loss, in our financial statements in the period in which they are recognized. Total comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report net loss and the components of other comprehensive income (loss), including foreign currency translation adjustments and unrealized gains and losses on marketable securities, net of their related tax effect to arrive at total comprehensive loss. |
Revenue Recognition | Revenue Recognition We generate our revenue from the sale of our durable CGM systems and disposable sensors (the Components). Our durable systems include a reusable transmitter and receiver. Disposable sensors are sold separately. We also provide free-of-charge software and mobile applications for use with our durable systems and disposable sensors. The initial durable system price is generally not dependent upon the subsequent purchase of any amount of disposable sensors. We sell our durable systems and disposable sensors through two main sales channels: 1) directly to customers who use our products or organizations (the Direct Channel) and 2) to distribution partners who resell our products (the Distributor Channel). In the Direct Channel, we sell our durable systems and disposable sensors to customers who use our products and we receive payment directly from customers who use our products, organizations and third-party payors. Third-party payors primarily include commercial insurance companies and federal and state agencies (under Medicare and Medicaid programs). We adopted ASC Topic 606 effective January 1, 2018 using the modified retrospective method. We applied the practical expedient permitted under ASC Topic 606 to those contracts that were not completed as of the date of initial adoption. Results for reporting periods after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC Topic 605. Our revenue recognition policies under ASC Topic 606 are explained below. Policy elections and practical expedients taken • We report revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities; • We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations; • We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and • If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component. Contracts and performance obligations We consider customer purchase orders, which in most cases are governed by agreements with distributors or third-party payors, to be contracts with a customer. For each contract, we consider the obligation to transfer Components to the customer, each of which are distinct, to be separate performance obligations. Components are individually priced and can be purchased separately or bundled in a contract. We also provide free-of-charge software, mobile applications and updates for our DexCom Share ® remote monitoring system. The standalone selling prices of our free-of-charge software, mobile applications and updates are based on an expected cost plus a margin approach. Transaction price Transaction price for the Components reflects the net consideration to which we expect to be entitled. Transaction price is typically based on contracted rates less any estimates of claim denials and historical reimbursement experience, which would include current and future expectations regarding reimbursement contracts, guidelines and payor mix, and less estimated variable consideration adjustments. Variable consideration Rebates. We estimate reductions to our revenues for rebates paid to payors and healthcare providers in the United States. Rebates are based on contractual arrangements or statutory requirements, which may vary by product, payor and individual payor plans. Our estimates are based on products sold, historical payor mix and, as available, known market events or trends and channel inventory data. We also take into consideration, as available, new information regarding changes in programs’ regulations and guidelines that would impact the amount of the actual rebates and/or our expectations regarding future payor mix for these programs. Product Returns. We generally provide a “ 30 -day money back guarantee” program whereby first-time end-user customers may return the durable system. In accordance with the terms of their distribution agreements, most distributors do not have rights of return outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. Our returns have historically been immaterial. Revenue recognition We recognize revenue when control is transferred to our customers. The timing of revenue recognition is based on the satisfaction of performance obligations. Substantially all of the performance obligations associated with our durable systems and disposable sensors are satisfied at a point in time, which typically occurs at shipment of our products. Terms of direct and distributor orders are generally Freight on Board (FOB) shipping point for U.S. orders or Free Carrier (FCA) shipping point for international orders. For certain of our distributors, control transfers at delivery of the product to the customer. In cases where our free-of-charge software, mobile applications and updates are deemed to be separate performance obligations, revenue is recognized over time on a ratable basis over the estimated life of the related hardware component. Our sales of the receiver and transmitter components of our CGM systems include an assurance-type warranty which is accounted for based on the cost accrual method recognized as expense when the products are sold and is not considered a separate performance obligation. Contract balances The timing of revenue recognition, billing and cash collections results in trade receivables and deferred revenue on our balance sheets. We recognize a receivable in the period in which our right to the consideration is unconditional. We generally do not have any contracts or performance obligations with a term of more than one year. Our contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 90 days. Accounts receivable as of December 31, 2018 included unbilled accounts receivable of $5.1 million . Unbilled accounts receivable consists of revenue recognized for Components we have delivered but not yet invoiced to customers. We expect to invoice and collect all unbilled accounts receivable within twelve months. Substantially all of our deferred revenue as of December 31, 2018 is associated with certain of our free-of-charge software and mobile applications and will be recognized during 2019 . During the twelve months ended December 31, 2018 , we recognized revenue of $1.9 million that was recorded as deferred revenue as of December 31, 2017 . Deferred cost of sales Deferred cost of sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. These costs are recognized in cost of sales when the associated revenue is recognized. Deferred cost of sales are included in prepaid and other current assets in our balance sheets. Incentive compensation costs We generally expense incentive compensation associated with our internal sales force when incurred because the amortization period for such costs, if capitalized, would have been one year or less. We record these costs in selling, general and administrative expense in our statement of operations. Product Shipment Costs We record the amounts we charge our customers for the shipping and handling of our products in revenue and we record the related costs as cost of sales in our statements of operations. |
Research and Development | Research and Development We expense all costs of research and development as we incur them. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses primarily consist of employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials that include clinical site reimbursement, clinical trial product, and associated travel expenses. Our research and development expenses also include fees for design services, contractors, and development materials. Our CGM systems include certain software that we develop. We expense software development costs as we incur them until technological feasibility has been established, at which time we capitalize development costs until the product is available for general release to customers. To date, our software has been available for general release concurrent with the establishment of technological feasibility and, accordingly, we have not capitalized any development costs. |
Advertising Costs | Advertising Costs We expense all advertising costs as we incur them to selling, general and administrative expenses. |
Leases | Leases We review all leases for capital or operating classification at their inception. We use our incremental borrowing rate in the assessment of lease classification and define the initial lease term to include the construction build-out period but to exclude lease extension periods when we are not reasonably certain to exercise our extension option. We conduct our operations primarily under operating leases. For leases that contain rent escalations, we record the total rent payable during the lease term, as defined above, to rent expense on a straight-line basis over the term of the lease. We record the difference between amounts paid under the lease agreements and the straight-line rent expense as deferred rent in our balance sheets. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized straight-line over the requisite service period of the individual grants, which typically equals the vesting period. Shared-based compensation arrangements include time-based and performance/market-based Restricted Stock Units, or RSUs, and purchases of common stock at a discount under our Employee Stock Purchase Plan, or ESPP. We estimate the fair value of time-based RSUs using the closing market price of our common stock on the date of grant. We estimate the fair value of performance/market-based RSUs using a Monte Carlo simulation model and adjust share-based compensation expense based on the expected achievement of the related performance conditions at the end of each reporting period. We estimate the fair value of ESPP purchase rights using the Black-Scholes option pricing model. The model uses assumptions that include expected volatility, expected term, dividends, and the risk-free interest rate. The expected volatility is based on the historical volatility of our common stock over the expected term of the awards. The expected term is based on the terms and conditions of the ESPP stock awards. The expected dividend yield is zero because we have never declared or paid cash dividends on our common stock and do not anticipate paying dividends in the foreseeable future. The risk-free interest rate is based on U.S. Treasury securities with remaining terms similar to the expected term of the stock awards. We account for forfeitures as they occur by reversing any share-based compensation expense related to awards that will not vest. |
Net Loss Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding during the period and, when dilutive, potential common share equivalents. Common share equivalents that we calculate using the treasury stock method include outstanding stock options and unvested RSUs that are settleable in shares of common stock and potential common shares from convertible securities that we intend to settle using a combination of shares of our common stock and cash. Common share equivalents that we calculate using the if-converted method include potential common shares from convertible securities that we intend to settle using only shares of our common stock. Because we reported net losses for the twelve months ended December 31, 2018 , 2017 and 2016 , all potentially dilutive common shares have been excluded from the computation of the diluted net loss per share for those periods as the effect would have been anti-dilutive. Outstanding anti-dilutive securities not included in the diluted net loss per share attributable to common stockholders calculations were as follows: Years Ended December 31, (In millions) 2018 2017 2016 Options outstanding to purchase common stock 0.1 0.4 0.7 Unvested restricted stock units 2.7 2.7 3.7 Senior convertible notes due 2022 4.0 4.0 — Senior convertible notes due 2023 5.2 — — Warrants 5.2 — — Total 17.2 7.1 4.4 |
Recent Accounting Guidance | Recent Accounting Guidance Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance for Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The guidance defines a five step process to achieve this core principle and it is possible when the five step process is applied, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. We have applied this standard electing the modified retrospective method. We have also applied the practical expedient permitted under Accounting Standards Codification (“ASC”) Topic 606 to those contracts that were not completed as of January 1, 2018. Our analysis of open contracts as of January 1, 2018 resulted in no material cumulative effect from applying ASU 2014-09. In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01 to amend the guidance on the classification and measurement of financial instruments. This ASU was further amended in February 2018 by ASU No. 2018-03. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The new guidance also amends certain disclosure requirements associated with the fair value of financial instruments. Our adoption of this guidance in the first quarter of 2018 did not have a significant impact on our financial statements. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes – Intra-Entity Asset Transfer other than Inventory (Topic 740) (ASU 2016-16), which requires the recognition of the tax expense from the sale of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party or otherwise recovered through use. Due to the full valuation allowance on our U.S. deferred tax assets, our adoption of the provisions of ASU 2016-16 in 2018 did not have a significant impact on our financial statements. In December 2016, the FASB issued ASU No. 2016-18, Restricted Cash (ASU 2016-18). This update requires additional disclosure and that the statement of cash flows explains the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Our adoption of this ASU in 2018 impacted the presentation of cash flows with the inclusion of restricted cash flows for each of the presented periods. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07 ) , which simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under ASU 2018-07, share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting. This eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We elected to early adopt ASU 2018-07 in the third quarter of 2018 and our adoption of this guidance did not have a significant impact on our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which requires a lessee to recognize a lease payment liability and a corresponding right of use asset on their balance sheet for all lease terms longer than 12 months. ASU 2016-02 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We will adopt ASU 2016-02 utilizing the modified retrospective transition method through an immaterial cumulative-effect adjustment to retained earnings at the beginning of the first quarter of 2019. We will continue to report financial information for fiscal years prior to 2019 under the current lease accounting standards. Based on our lease portfolio as of December 31, 2018, we expect to record additional lease assets and liabilities of less than five percent of total assets on our balance sheet, with no material impact to our statement of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASU 2016-13), which changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact that this guidance will have on our financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-14). This new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-14 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact that this guidance will have on our financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (ASU 2017-12), which is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency regarding the scope and results of hedging programs. The guidance in this update will be applied using a cumulative-effect adjustment to retained earnings at the beginning of the fiscal year of adoption. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact that this guidance will have on our financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public business entities will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. ASU 2018-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact that this guidance will have on our financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-05). This new guidance requires a customer in a cloud computing arrangement to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-05 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. Application of this guidance can be applied either prospectively or retrospectively. We are currently evaluating the impact that this guidance will have on our financial statements. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Outstanding anti-dilutive securities not included in diluted net loss per share | Outstanding anti-dilutive securities not included in the diluted net loss per share attributable to common stockholders calculations were as follows: Years Ended December 31, (In millions) 2018 2017 2016 Options outstanding to purchase common stock 0.1 0.4 0.7 Unvested restricted stock units 2.7 2.7 3.7 Senior convertible notes due 2022 4.0 4.0 — Senior convertible notes due 2023 5.2 — — Warrants 5.2 — — Total 17.2 7.1 4.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Financial Assets | The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2018 , classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 199.3 $ 66.7 $ — $ 266.0 Equity investment in Tandem Diabetes Care, Inc. 38.0 — — 38.0 Debt securities, available for sale: U.S. government agencies — 173.1 — 173.1 Commercial paper — 36.2 — 36.2 Corporate debt — 1.3 — 1.3 Total debt securities, available for sale — 210.6 — 210.6 Total assets measured at fair value on a recurring basis $ 237.3 $ 277.3 $ — $ 514.6 The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2017 , classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 306.6 $ 38.0 $ — $ 344.6 Debt securities, available for sale: U.S. government agencies — 87.3 — 87.3 Commercial paper — 14.7 — 14.7 Corporate debt — 5.1 — 5.1 Total debt securities, available for sale — 107.1 — 107.1 Total assets measured at fair value on a recurring basis $ 306.6 $ 145.1 $ — $ 451.7 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Short Term Marketable Securities | Short-Term Marketable Securities Short-term marketable securities, consisting of equity securities and debt securities, were as follows as of the dates indicated: December 31, 2018 (In millions) Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value Equity investment in Tandem Diabetes Care, Inc $ 2.0 $ 36.0 $ — $ 38.0 Debt securities, available for sale: U.S. government agencies 173.2 — (0.1 ) 173.1 Commercial paper 36.2 — — 36.2 Corporate debt 1.3 — — 1.3 Total debt securities, available for sale 210.7 — (0.1 ) 210.6 Total marketable securities $ 212.7 $ 36.0 $ (0.1 ) $ 248.6 December 31, 2017 (In millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value Debt securities, available for sale: U.S. government agencies $ 87.5 $ — $ (0.2 ) $ 87.3 Commercial paper 14.7 — — 14.7 Corporate debt 5.1 — — 5.1 Total debt securities, available for sale $ 107.3 $ — $ (0.2 ) $ 107.1 |
Reconciliation of net gain realized and unrealized gain recognized on equity securities | The following table reconciles the net gain recognized on equity securities during the twelve months ended December 31, 2018 , 2017 and 2016 to the unrealized gain recognized during those periods on equity securities still held at the reporting dates. Twelve Months Ended (In millions) 2018 2017 2016 Net gains recognized during the period on equity securities $ 80.1 $ — $ — Less: Net gains recognized during the period on equity securities sold during the period (44.1 ) — — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 36.0 $ — $ — |
Accounts Receivable | Accounts Receivable December 31, (In millions) 2018 2017 Accounts receivable $ 233.9 $ 145.8 Less allowance for doubtful accounts (7.2 ) (11.5 ) Total accounts receivable, net $ 226.7 $ 134.3 |
Inventory | Inventory December 31, (In millions) 2018 2017 Raw materials $ 30.8 $ 20.0 Work-in-process 11.2 8.2 Finished goods 28.7 17.0 Total inventory $ 70.7 $ 45.2 |
Property and Equipment | Property and Equipment December 31, (In millions) 2018 2017 Building (1) $ 6.0 $ 6.0 Furniture and fixtures 9.0 5.7 Computer software and hardware 29.2 25.6 Machinery and equipment 80.7 33.8 Leasehold improvements 80.7 41.7 Construction in progress (2) 57.3 87.6 Total cost 262.9 200.4 Less accumulated depreciation and amortization (79.8 ) (54.8 ) Total property and equipment, net $ 183.1 $ 145.6 (1) As described in Note 6, “Commitments,” although we do not legally own these premises, we were deemed the owner of the construction project during the construction period of our manufacturing facility in Mesa, Arizona under a build-to suit lease arrangement. We placed the facility into service in 2018 and as of December 31, 2018 had recorded accumulated amortization of $0.7 million . (2) Construction in progress as of December 31, 2018 and December 31, 2017 included approximately $6.2 million and $33.6 million , respectively, related to our manufacturing facility in Mesa, Arizona with the remaining balances as of those dates primarily related to machinery and equipment. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities December 31, (In millions) 2018 2017 Accounts payable trade $ 75.5 $ 46.7 Accrued tax, audit, and legal fees 11.7 7.1 Accrued rebates 36.1 13.9 Accrued warranty 6.8 8.8 Accrued other 17.0 10.7 Total accounts payable and accrued liabilities $ 147.1 $ 87.2 |
Accrued Warranty | Accrued Warranty Warranty costs are reflected in our statements of operations as cost of product sales. Reconciliations of our accrued warranty costs for the twelve months ended December 31, 2018 and 2017 were as follows: Twelve Months Ended December 31, (In millions) 2018 2017 Beginning balance $ 8.8 $ 9.8 Charges to costs and expenses 17.4 18.4 Costs incurred (19.4 ) (19.4 ) Ending balance $ 6.8 $ 8.8 |
Schedule of Other Assets and Other Liabilities | Other Liabilities December 31, (In millions) 2018 2017 Financing lease obligations $ 7.3 $ 6.7 Deferred rent 9.4 8.7 Other 3.3 2.8 Total other liabilities $ 20.0 $ 18.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Senior Convertible Notes The carrying amounts of our senior convertible notes were as follows as of the dates indicated: December 31, (In millions) 2018 2017 0.75% Senior Convertible Notes due 2022: Principal amount $ 400.0 $ 400.0 Unamortized debt discount (51.1 ) (64.4 ) Unamortized debt issuance costs (6.3 ) (8.0 ) Net carrying amount of Senior Convertible Notes due 2022 342.6 327.6 0.75% Senior Convertible Notes due 2023: Principal amount 850.0 — Unamortized debt discount (171.8 ) — Unamortized debt issuance costs (10.5 ) — Net carrying amount of Senior Convertible Notes due 2023 667.7 — Total net carrying amount of senior convertible notes $ 1,010.3 $ 327.6 Fair value of outstanding notes: Senior Convertible Notes due 2022 $ 540.2 $ 381.3 Senior Convertible Notes due 2023 859.6 — Total fair value of outstanding senior convertible notes $ 1,399.8 $ 381.3 Amount by which the notes’ if-converted value exceeds their principal amount: Senior Convertible Notes due 2022 $ 125.4 $ — Senior Convertible Notes due 2023 — — Total by which the notes’ if-converted value exceeds their principal amount $ 125.4 $ — |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rental Obligations | Future minimum rental obligations under all lease agreements as of December 31, 2018 were as shown in the table below. These obligations exclude real estate taxes, operating costs and tenant improvement allowances and include the financing lease obligation for our Mesa facility. Fiscal Year Ending (In millions) 2019 $ 14.4 2020 16.9 2021 17.3 2022 6.6 2023 4.7 Thereafter 8.9 Total $ 68.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income taxes subject to taxes in the following jurisdictions is as follows: Twelve Months Ended (In millions) 2018 2017 2016 United States $ (28.3 ) $ 12.4 $ (44.4 ) Outside of the United States (98.2 ) (61.0 ) (20.5 ) Total $ (126.5 ) $ (48.6 ) $ (64.9 ) |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes are as follows: Twelve Months Ended (In millions) 2018 2017 2016 Current: Federal $ — $ — $ — State 2.7 0.1 0.1 Foreign 0.1 1.5 0.8 Total current income taxes 2.8 1.6 0.9 Deferred: Federal (1.7 ) — (0.1 ) State (0.5 ) — — Foreign — — (0.1 ) Total deferred income taxes (2.2 ) — (0.2 ) Total $ 0.6 $ 1.6 $ 0.7 |
Deferred Tax Assets and Liabilities | December 31, (In millions) 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 162.0 $ 188.7 Capitalized research and development expenses 62.1 8.4 Tax credits 59.0 47.8 Share-based compensation 12.5 13.8 Fixed and intangible assets 16.0 0.4 Accrued liabilities and reserves 22.5 20.5 Total gross deferred tax assets 334.1 279.6 Less: valuation allowance (330.1 ) (263.5 ) Total net deferred tax assets 4.0 16.1 Deferred tax liabilities: Fixed assets and acquired intangibles assets (3.8 ) (0.1 ) Convertible debt discount (0.1 ) (15.9 ) Total deferred tax liabilities (3.9 ) (16.0 ) Net deferred tax assets (liabilities) $ 0.1 $ 0.1 |
Reconciliation Between Effective Tax Rate and Statutory Rate | The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: Twelve Months Ended (In millions) 2018 2017 2016 Income taxes at statutory rates $ (26.6 ) $ (17.0 ) $ (22.7 ) State income tax, net of federal benefit (5.5 ) (0.7 ) 1.2 Permanent items 1.3 0.7 0.8 Research and development credits (11.7 ) (13.3 ) (11.7 ) Foreign rate differential 3.7 5.4 4.5 Stock and officers compensation (5.1 ) (10.4 ) 4.0 Rate change — (0.1 ) (0.1 ) Unrecognized tax benefits — (15.4 ) 27.7 Impact of adoption of ASU 2016-16 (13.3 ) — — Impact of Tax Cuts and Jobs Act of 2017 (0.4 ) 105.7 — Other 1.3 (2.2 ) — Change in valuation allowance 56.9 (51.1 ) (3.0 ) Income taxes at effective rates $ 0.6 $ 1.6 $ 0.7 |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits: (In millions) Balance at January 1, 2016 $ 15.6 Decreases related to prior year tax positions (8.4 ) Increases related to current year tax positions 32.6 Balance at December 31, 2016 39.8 Decreases related to prior year tax positions (14.9 ) Increases related to current year tax positions 3.3 Decrease related to Tax Cuts and Jobs Act of 2017 (5.4 ) Balance at December 31, 2017 22.8 Decreases related to prior year tax positions (0.3 ) Increases related to current year tax positions 3.4 Balance at December 31, 2018 $ 25.9 |
Employee Benefit Plans and St_2
Employee Benefit Plans and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of our stock option activity and related information for the twelve months ended December 31, 2018 is as follows: Number of Shares (in millions) Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2017 0.4 $ 6.71 Exercised (0.3 ) 6.34 Forfeited — — Outstanding at December 31, 2018 0.1 8.02 0.95 $ 9.6 Exercisable at December 31, 2018 0.1 $ 8.02 0.95 $ 9.6 |
Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested | The total intrinsic value of stock options exercised as of the date of exercise was as follows: Years Ended December 31, (In millions) 2018 2017 2016 Intrinsic value of options exercised $ 30.0 $ 21.6 $ 39.9 |
Schedule of Share-Based Compensation Expenses | The following table summarizes share-based compensation expense related to restricted stock units, stock options, and employee stock purchases under the ESPP for the twelve months ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (In millions) 2018 2017 2016 Cost of sales $ 9.2 $ 9.6 $ 12.0 Research and development 33.0 37.5 39.8 Selling, general and administrative 59.7 59.1 59.0 Total share-based compensation expense included in net loss $ 101.9 $ 106.2 $ 110.8 |
Schedule of Valuation Assumptions for Employee Stock Purchase Plan | We estimate the fair value of stock options granted and ESPP purchase rights on the date of grant using the Black-Scholes option pricing model and the assumptions below. We did not have any stock option grants during the twelve months ended December 31, 2018 , 2017 and 2016 . Years Ended December 31, ESPP 2018 2017 2016 Risk free interest rate 1.55 – 2.25 0.75 – 1.12 0.46 – 0.57 Dividend yield — % — % — % Expected volatility of DexCom common stock 0.50 – 0.67 0.33 – 0.56 0.33 – 0.57 Expected life (in years) 1 1 1 |
Schedule of Restricted Stock Units Activity | A summary of our RSU activity for the twelve months ended December 31, 2018 , 2017 and 2016 is as follows: (In millions except weighted average grant date fair value) Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested at December 31, 2015 4.1 $ 50.60 Granted 1.9 68.16 Vested (2.1 ) 44.95 Forfeited (0.2 ) 56.37 Nonvested at December 31, 2016 3.7 62.51 $ 218.6 Granted 1.3 75.78 Vested (1.9 ) 58.92 Forfeited (0.4 ) 67.97 Nonvested at December 31, 2017 2.7 70.68 154.5 Granted 1.7 66.07 Vested (1.4 ) 68.44 Forfeited (0.3 ) 68.56 Nonvested at December 31, 2018 2.7 $ 69.19 $ 319.0 |
Schedule of Stock Options Reserved for Future Issuance | Reserved Shares Shares of common stock reserved for future issuance were as follows as of the dated indicated: December 31, (In millions) 2018 2017 Stock options and awards under our plans: Stock options granted and outstanding 0.1 0.4 Unvested restricted stock units 2.7 2.7 Reserved for future grant 3.2 4.7 Employee Stock Purchase Plan 1.1 1.3 Total 7.1 9.1 |
Business Segment and Geograph_2
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table sets forth revenues by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the product: Twelve Months Ended December 31, 2018 2017 2016 (Dollars in millions) Amount % Amount % Amount % Revenues: United States $ 818.4 79 % $ 596.2 83 % $ 497.5 87 % Outside of the United States 213.2 21 % 122.3 17 % 75.8 13 % Total $ 1,031.6 100 % $ 718.5 100 % $ 573.3 100 % |
Disaggregation of Revenue | The following table sets forth revenues by major sales channel for the twelve months ended December 31, 2018 , 2017 and 2016 : Twelve Months Ended December 31, 2018 2017 2016 (Dollars in millions) Amount % Amount % Amount % Revenues: Distributor $ 652.9 63 % $ 538.0 75 % $ 411.8 72 % Direct 378.7 37 % 180.5 25 % 161.5 28 % Total $ 1,031.6 100 % $ 718.5 100 % $ 573.3 100 % |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of our quarterly results of operations for the years ended December 31, 2018 and 2017 : For the Three Months Ended (In millions except per share data) December 31 September 30 June 30 March 31 Year ended December 31, 2018 Revenues $ 338.0 $ 266.7 $ 242.5 $ 184.4 Gross profit 222.8 168.6 153.6 118.9 Total operating expenses 387.4 154.7 158.5 149.6 Net income (loss) (179.7 ) 46.6 30.2 (24.2 ) Basic net income (loss) per share (a) $ (2.03 ) $ 0.53 $ 0.34 $ (0.28 ) Diluted net income (loss) per share (a) $ (2.03 ) $ 0.52 $ 0.34 $ (0.28 ) Year ended December 31, 2017 Revenues $ 221.0 $ 184.6 $ 170.6 $ 142.3 Gross profit 153.5 127.0 117.5 94.1 Total operating expenses 141.5 127.5 131.1 134.5 Net income (loss) (9.4 ) (2.0 ) 2.9 (41.7 ) Basic net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) Diluted net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) (a) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)customerSalesChannel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of sales channels | SalesChannel | 2 | |||
Number of customers | customer | 2 | |||
Maturity threshold of investments classified to cash equivalents | 90 days | |||
Percentage of net revenues | 10.00% | |||
Percentage of accounts receivable attributable to major customer | 10.00% | |||
Sales return period | 30 days | |||
Unbilled Contracts Receivable | $ 5,100,000 | |||
Goodwill and intangible asset impairment | 0 | $ 0 | $ 0 | |
Goodwill accumulated impairment losses | 0 | |||
Amount of recognized deferred revenue | 1,900,000 | |||
Advertising expense | $ 21,900,000 | $ 25,400,000 | $ 11,900,000 | |
Amortization period for incentive compensation costs | 1 year | |||
Computer software and hardware | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Furniture and fixtures | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 5 years | |||
Byram | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of net revenues | 12.00% | 14.00% | 17.00% | |
Percentage of accounts receivable attributable to major customer | 12.00% | 15.00% | 12.00% | |
Edgepark | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of net revenues | 15.00% | 16.00% | 14.00% | |
Percentage of accounts receivable attributable to major customer | 18.00% | 19.00% | 18.00% | |
Minimum | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Customer contract payment terms | 30 days | |||
Useful life of finite-lived intangible assets | 2 years | |||
Minimum | Machinery and Equipment | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 4 years | |||
Maximum | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Customer contract payment terms | 90 days | |||
Useful life of finite-lived intangible assets | 5 years | |||
Maximum | Machinery and Equipment | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Anti-dilutive securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 17.2 | 7.1 | 4.4 |
Options outstanding to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0.1 | 0.4 | 0.7 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 2.7 | 2.7 | 3.7 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 5.2 | 0 | 0 |
Senior convertible notes due 2022 | Senior convertible notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 4 | 4 | 0 |
Senior convertible notes due 2023 | Senior convertible notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 5.2 | 0 | 0 |
Development and Other Agreeme_2
Development and Other Agreements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Nov. 20, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 28, 2018 |
Development Agreements [Line Items] | |||||
Collaborative research and development fee | $ 217.7 | $ 0 | $ 0 | ||
Collaborative Arrangement | Verily Life Sciences | Collaborative Arrangement, Initial Payment | |||||
Development Agreements [Line Items] | |||||
Initial payment on collaborative agreement | $ 250 | ||||
Issuance of common stock in connection with acquisition, shares | 1,840,943 | ||||
Collaborative research and development fee | $ 217.7 | ||||
Closing stock price per share | $ 118.28 | ||||
Collaborative Arrangement | Verily Life Sciences | Collaborative Arrangement, Milestone Payments | |||||
Development Agreements [Line Items] | |||||
Issuance of common stock in connection with acquisition, shares | 2,025,036 | ||||
Additional milestones and incentive payments | $ 280 | ||||
Milestone payments due upon achievement of future development | $ 275 | ||||
Consecutive days used to calculate volume weighted average trading price | 15 days |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 266,000,000 | $ 344,600,000 | |
Debt securities, available for sale: | 210,600,000 | 107,100,000 | |
Transfers between Level 1 and Level 2 securities | 0 | 0 | |
Transfers in or out of Level 3 securities | 0 | 0 | |
Goodwill and intangible asset impairment | 0 | 0 | $ 0 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a recurring basis | 514,600,000 | 451,700,000 | |
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of outstanding notes: | 1,399,800,000 | 381,300,000 | |
Senior Notes | Senior convertible notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of outstanding notes: | 859,600,000 | 0 | |
Senior Notes | Senior convertible notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of outstanding notes: | 540,200,000 | 381,300,000 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 199,300,000 | 306,600,000 | |
Debt securities, available for sale: | 0 | 0 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a recurring basis | 237,300,000 | 306,600,000 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 66,700,000 | 38,000,000 | |
Debt securities, available for sale: | 210,600,000 | 107,100,000 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a recurring basis | 277,300,000 | 145,100,000 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Debt securities, available for sale: | 0 | 0 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a recurring basis | 0 | 0 | |
U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 173,100,000 | 87,300,000 | |
U.S. government agencies | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | 0 | |
U.S. government agencies | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 173,100,000 | 87,300,000 | |
U.S. government agencies | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | 0 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 36,200,000 | 14,700,000 | |
Commercial paper | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | 0 | |
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 36,200,000 | 14,700,000 | |
Commercial paper | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | 0 | |
Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 1,300,000 | 5,100,000 | |
Corporate debt | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | 0 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 1,300,000 | 5,100,000 | |
Corporate debt | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available for sale: | 0 | $ 0 | |
Equity investment in Tandem Diabetes Care, Inc | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investment in Tandem Diabetes Care, Inc. | 38,000,000 | ||
Equity investment in Tandem Diabetes Care, Inc | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investment in Tandem Diabetes Care, Inc. | 38,000,000 | ||
Equity investment in Tandem Diabetes Care, Inc | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investment in Tandem Diabetes Care, Inc. | 0 | ||
Equity investment in Tandem Diabetes Care, Inc | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investment in Tandem Diabetes Care, Inc. | 0 | ||
Designated as Hedging Instrument | Foreign Exchange Forward | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of outstanding hedge to currency risk | 60,000,000 | ||
Other Current Liabilities | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Recorded net exchange derivative instrument liability | 200,000 | ||
Other Nonoperating Income (Expense) | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains on forward exchange contract | $ 400,000 |
Balance Sheet Details - Short T
Balance Sheet Details - Short Term Marketable Securities, Available for Sale (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt securities, available for sale: | |||
Debt securities, available-for-sale, amortized cost | $ 210.7 | $ 107.3 | |
Debt Securities, gross unrealized gains | 0 | 0 | |
Debt securities, gross unrealized losses | (0.1) | (0.2) | |
Short-term marketable securities | 210.6 | 107.1 | |
Debt Securities, Available-for-sale and Equity Securities, Amortized Cost | 212.7 | ||
Total marketable securities, cost or amortized cost | 248.6 | 107.1 | |
Total marketable securities, gross unrealized gains | 36 | ||
Total marketable securities, gross unrealized losses | (0.1) | ||
Debt securities with maturities of less than 12 months | 92.7 | ||
Debt securities with maturities of more than 12 months | $ 14.4 | ||
Debt securities held maximum contractual maturities | 16 months | ||
Net gain recognized on equity securities | |||
Net gains recognized during the period on equity securities | $ 80.1 | 0 | $ 0 |
Less: Net gains recognized during the period on equity securities sold during the period | (44.1) | 0 | 0 |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | 36 | 0 | $ 0 |
U.S. government agencies | |||
Debt securities, available for sale: | |||
Debt securities, available-for-sale, amortized cost | 173.2 | 87.5 | |
Debt Securities, gross unrealized gains | 0 | 0 | |
Debt securities, gross unrealized losses | (0.1) | (0.2) | |
Short-term marketable securities | 173.1 | 87.3 | |
Commercial paper | |||
Debt securities, available for sale: | |||
Debt securities, available-for-sale, amortized cost | 36.2 | 14.7 | |
Debt Securities, gross unrealized gains | 0 | 0 | |
Debt securities, gross unrealized losses | 0 | 0 | |
Short-term marketable securities | 36.2 | 14.7 | |
Corporate debt | |||
Debt securities, available for sale: | |||
Debt securities, available-for-sale, amortized cost | 1.3 | 5.1 | |
Debt Securities, gross unrealized gains | 0 | 0 | |
Debt securities, gross unrealized losses | 0 | 0 | |
Short-term marketable securities | 1.3 | $ 5.1 | |
Equity investment in Tandem Diabetes Care, Inc | |||
Short-Term Marketable Securities | |||
Equity investment in Tandem Diabetes Care, Inc., cost or amortized cost | 2 | ||
Equity investment in Tendem Diabetes Care, Inc., gross unrealized gains | 36 | ||
Equity investment in Tandem Diabetes Care, inc., gross unrealized losses | 0 | ||
Equity Invesment in Tandem Diabetes Care, Inc., estimated market value | $ 38 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Information Disclosure [Abstract] | ||
Accounts receivable | $ 233.9 | $ 145.8 |
Less allowance for doubtful accounts | (7.2) | (11.5) |
Total accounts receivable, net | $ 226.7 | $ 134.3 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 30.8 | $ 20 | |
Work-in-process | 11.2 | 8.2 | |
Finished goods | 28.7 | 17 | |
Total inventory | 70.7 | $ 45.2 | |
Receiver Product Component | |||
Inventory [Line Items] | |||
Inventory Write-down | $ 7.3 | $ 3.5 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 200.4 | $ 262.9 | $ 200.4 | |
Less accumulated depreciation and amortization | (54.8) | (79.8) | (54.8) | |
Total property and equipment, net | 145.6 | 183.1 | 145.6 | |
Loss on disposal of machinery and equipment | 5.4 | |||
Depreciation | 16.1 | 28.6 | $ 14.4 | |
Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 6 | 6 | 6 | |
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 5.7 | 9 | 5.7 | |
Computer software and hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 25.6 | 29.2 | 25.6 | |
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 33.8 | 80.7 | 33.8 | |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 41.7 | 80.7 | 41.7 | |
Less accumulated depreciation and amortization | (0.7) | |||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 87.6 | 57.3 | 87.6 | |
Disposal of property plant and equipment | 11 | |||
Leased Buildings -232 South Dobson Road | ||||
Property, Plant and Equipment [Line Items] | ||||
Construction in progress | $ 33.6 | $ 6.2 | $ 33.6 |
Balance Sheet Details - Accou_2
Balance Sheet Details - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Information Disclosure [Abstract] | |||
Accounts payable trade | $ 75.5 | $ 46.7 | |
Accrued tax, audit, and legal fees | 11.7 | 7.1 | |
Accrued rebates | 36.1 | 13.9 | |
Accrued warranty | 6.8 | 8.8 | $ 9.8 |
Accrued other | 17 | 10.7 | |
Total accounts payable and accrued liabilities | $ 147.1 | $ 87.2 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Warranty (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 8.8 | $ 9.8 |
Charges to costs and expenses | 17.4 | 18.4 |
Costs incurred | (19.4) | (19.4) |
Ending balance | $ 6.8 | $ 8.8 |
Balance Sheet Details - Other L
Balance Sheet Details - Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Information Disclosure [Abstract] | ||
Financing lease obligations | $ 7.3 | $ 6.7 |
Deferred rent | 9.4 | 8.7 |
Other | 3.3 | 2.8 |
Total other liabilities | $ 20 | $ 18.2 |
Debt 0.75% Senior convertible n
Debt 0.75% Senior convertible notes (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | Jun. 30, 2017 | May 12, 2017 | |
Senior Convertible Notes | |||||
Net carrying amount of Senior Convertible Notes due 2022 | $ 1,010,300,000 | $ 327,600,000 | |||
Senior Notes | |||||
Senior Convertible Notes | |||||
Fair value of outstanding notes: | 1,399,800,000 | 381,300,000 | |||
Amount by which the notes’ if-converted value exceeds their principal amount: | 125,400,000 | 0 | |||
Senior Notes | Convertible Notes due 2023 | |||||
Senior Convertible Notes | |||||
Principal amount | 850,000,000 | 0 | $ 750,000,000 | ||
Unamortized debt discount | (171,800,000) | 0 | |||
Unamortized debt issuance costs | (10,500,000) | 0 | |||
Net carrying amount of Senior Convertible Notes due 2022 | 667,700,000 | 0 | |||
Fair value of outstanding notes: | 859,600,000 | 0 | |||
Amount by which the notes’ if-converted value exceeds their principal amount: | 0 | 0 | |||
Senior Notes | Zero Point Seven Five Percent Senior Convertible Notes | |||||
Senior Convertible Notes | |||||
Total net carrying amount of senior convertible notes | 1,010,300,000 | 327,600,000 | |||
Senior Notes | Convertible Notes due 2022 | |||||
Senior Convertible Notes | |||||
Principal amount | 400,000,000 | 400,000,000 | $ 50,000,000 | $ 350,000,000 | |
Unamortized debt discount | (51,100,000) | (64,400,000) | |||
Unamortized debt issuance costs | (6,300,000) | (8,000,000) | |||
Net carrying amount of Senior Convertible Notes due 2022 | 342,600,000 | 327,600,000 | |||
Fair value of outstanding notes: | 540,200,000 | 381,300,000 | |||
Amount by which the notes’ if-converted value exceeds their principal amount: | $ 125,400,000 | $ 0 |
Debt 0.75 Senior convertible no
Debt 0.75 Senior convertible notes Narrative (Details) | May 13, 2017 | Nov. 30, 2018USD ($)d$ / shares | May 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)d | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($) | May 12, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of convertible debt, net of issuance costs | $ 836,600,000 | $ 389,000,000 | $ 0 | |||||
Accretion of debt discount | 17,900,000 | 9,400,000 | 100,000 | |||||
Senior Notes | Convertible Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on convertible notes | 0.75% | |||||||
Principal amount | $ 750,000,000 | 850,000,000 | 0 | |||||
Proceeds from issuance of convertible debt, net of issuance costs | $ 836,600,000 | |||||||
Conversion Ratio | 0.0100918 | 0.0060869 | ||||||
Conversion price of convertible notes | $ / shares | $ 164.29 | |||||||
Contractual coupon interest | 500,000 | |||||||
Accretion of debt discount | $ 2,600,000 | |||||||
Amortization of debt discount | 200,000 | |||||||
Effective interest rate on notes | 5.63% | |||||||
Holder's repurchase price percentage in event of fundamental change | 100.00% | |||||||
Debt Instrument, Convertible, Exercised Option To Purchase Additional Aggregate Principal | $ 100,000,000 | |||||||
Conversion amount | $ 1,000 | |||||||
Number of trading days | d | 60 | |||||||
Redemption price percentage | 100.00% | |||||||
Senior Notes | Convertible Notes due 2023 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | d | 20 | |||||||
Redemption price percentage | 130.00% | |||||||
Senior Notes | Convertible Notes due 2023 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | d | 30 | |||||||
Senior Notes | Convertible Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on convertible notes | 0.75% | 0.75% | ||||||
Principal amount | $ 400,000,000 | 400,000,000 | $ 50,000,000 | $ 350,000,000 | ||||
Proceeds from issuance of convertible debt, net of issuance costs | $ 389,000,000 | |||||||
Conversion price of convertible notes | $ / shares | $ 99.09 | |||||||
Debt Instrument, Percent of Conversion Price, Last Reported Sale Price of Common Stock | 140.00% | |||||||
Contractual coupon interest | $ 3,000,000 | 1,900,000 | ||||||
Accretion of debt discount | $ 13,400,000 | 8,200,000 | ||||||
Amortization of debt discount | 1,000,000 | $ 1,600,000 | ||||||
Effective interest rate on notes | 5.10% | |||||||
Holder's repurchase price percentage in event of fundamental change | 100.00% | |||||||
Conversion amount | $ 1,000 | |||||||
Redemption price percentage | 100.00% | |||||||
Additional paid-in capital | Senior Notes | Convertible Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Recognized additional paid-in capital from cash conversion option | $ 174,400,000 | |||||||
Additional paid-in capital | Senior Notes | Convertible Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Recognized additional paid-in capital from cash conversion option | $ 72,600,000 | |||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2023 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of applicable conversion price | 130.00% | |||||||
Number of trading days | d | 20 | |||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2023 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | d | 30 | |||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2022 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of applicable conversion price | 130.00% | |||||||
Number of trading days | d | 20 | |||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2022 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | d | 30 | |||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion amount | $ 1,000 | |||||||
Number of trading days | d | 5 | |||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2023 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of applicable conversion price | 98.00% | |||||||
Number of trading days | d | 5 | |||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trading days | d | 5 | |||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2022 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of applicable conversion price | 98.00% | |||||||
Number of trading days | d | 5 |
Debt 2023 Hedge (Details)
Debt 2023 Hedge (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | ||
Additional paid in capital recognized for convertible note hedge | $ (218.9) | |
Convertible Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Additional paid in capital recognized for convertible note hedge | 171.6 | |
Senior Notes | Convertible Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Convertible note hedge, price per share (in USD per share) | $ 164.29 | |
Designated as Hedging Instrument | Senior Notes | Convertible Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Convertible note hedge, number of shares (in shares) | 5,200,000 | |
Convertible note hedge, price per share (in USD per share) | $ 164.29 | |
Additional paid in capital recognized for convertible note hedge | $ 218.9 |
Debt 2023 Warrants (Details)
Debt 2023 Warrants (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018USD ($)d$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from sale of warrants | $ 183.8 | $ 0 | $ 0 | |
Senior Notes | Convertible Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale of warrants | $ 183.8 | |||
Number of shares counterparties to acquire with warrants purchased | shares | 5.2 | |||
Number of trading days | d | 60 | |||
Exercise price of warrants or rights | $ / shares | $ 198.38 |
Debt Revolving Credit Agreement
Debt Revolving Credit Agreement (Details) - USD ($) | Dec. 19, 2018 | Mar. 31, 2017 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Revolving credit agreement | $ 0 | ||
Line of Credit Facility, Maturity, Conditional Restrictions, Value of Unrestricted Cash on Hand Threshold | $ 100,000,000 | ||
Proceeds from lines of credit | $ 75,000,000 | ||
Term of credit agreement | 6 months | ||
Available balance on line of credit agreement | 195,600,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement | 4,400,000 | ||
Foreign Currency Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving line of credit sub-facility | 50,000,000 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement | 200,000,000 | ||
Revolving line of credit sub-facility | 500,000,000 | ||
Aggregate debt issuance costs | $ 1,500,000 | ||
Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving line of credit sub-facility | 10,000,000 | ||
Option to increase revolving line of credit, increase amount | $ 300,000,000 | ||
Maximum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Margin rate on revolving credit line | 1.00% | ||
Unused capacity fee | 0.30% | ||
Minimum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Margin rate on revolving credit line | 0.375% | ||
Unused capacity fee | 0.20% | ||
London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Margin rate on LIBOR-based rate | 2.00% | ||
London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Margin rate on LIBOR-based rate | 1.375% |
Commitments - Leases Narrative
Commitments - Leases Narrative (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)ft²renewal_term | Dec. 31, 2016USD ($) | |
Operating Leased Assets [Line Items] | |||
Property and equipment | $ | $ 200.4 | $ 262.9 | |
Rent expense | $ | 11.1 | $ 12.5 | $ 9 |
Leased Buildings - 6350 Sequence | |||
Operating Leased Assets [Line Items] | |||
Leased square footage | ft² | 132,600 | ||
Leased Buildings -6340 Sequence Drive, 6310 Sequence Drive, 6290 Sequence drive | |||
Operating Leased Assets [Line Items] | |||
Leased square footage | ft² | 219,000 | ||
Leased Building | |||
Operating Leased Assets [Line Items] | |||
Leased square footage | ft² | 87,000 | ||
Number of renewal terms | renewal_term | 0 | ||
Leased Buildings -232 South Dobson Road | |||
Operating Leased Assets [Line Items] | |||
Leased square footage | ft² | 148,800 | ||
Leased Buildings -6340 Sequence Drive, 6310 Sequence Drive, 6290 Sequence drive | |||
Operating Leased Assets [Line Items] | |||
Number of renewal terms | renewal_term | 2 | ||
Length of renewal term | 5 years | ||
Leased Buildings -232 South Dobson Road | |||
Operating Leased Assets [Line Items] | |||
Number of renewal terms | renewal_term | 4 | ||
Length of renewal term | 5 years | ||
Leased Building | |||
Operating Leased Assets [Line Items] | |||
Property and equipment | $ | $ 6 | $ 6 | |
Property, Plant and Equipment | Leased Building | |||
Operating Leased Assets [Line Items] | |||
Property and equipment | $ | $ 6 |
Commitments - Rental Obligation
Commitments - Rental Obligations (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Rental Obligations | |
2,019 | $ 14.4 |
2,020 | 16.9 |
2,021 | 17.3 |
2,022 | 6.6 |
2,023 | 4.7 |
Thereafter | 8.9 |
Total | $ 68.8 |
Commitments Commitments - Purch
Commitments Commitments - Purchase Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 204 |
Term of purchase obligations | 1 year |
Contingencies (Details)
Contingencies (Details) | Mar. 30, 2018number_patents | Sep. 15, 2017number_patents | Mar. 08, 2017number_patents | Feb. 24, 2017number_patents | Aug. 25, 2016number_patents | Jun. 06, 2016number_patents | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | $ | $ 0 | ||||||
AgaMatrix | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents allegedly infringed | 3 | ||||||
WaveForm Technologies, Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patent infringement claims transferred to new plaintiff | 3 | ||||||
Number of petitions for inter partes review seeking determination that asserted patents are invalid | 2 | 3 | 2 | ||||
AgaMatrix | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents in filed patent infringement lawsuit | 2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
TCJA, Provisional tax expense (benefit) offset by valuation allowance | $ 105,700,000 | $ 105,700,000 |
Change in tax rate reducing deferred tax asset | 105,300,000 | |
TCJA, Provisional income tax expense (benefit) | 0 | |
Foreign earnings repatriated | 0 | 0 |
Cumulative foreign deficits | 24,600,000 | 41,200,000 |
Increase in opening balance of deferred tax assets | 400,000 | |
Increase in valuation allowance | 66,600,000 | |
Deferred Tax Assets, Tax Benefits Credited to Additional Paid In Capital | $ 56,200,000 | |
Tax credit carryforward, expiration date | Jan. 1, 2020 | |
Tax credit carryforwards subject to expiration | $ 2,100,000 | |
Valuation allowance amount | (330,100,000) | (263,500,000) |
Unrecognized tax benefits | 0 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 578,700,000 | |
Operating loss carryforwards, expiration dates | Jan. 1, 2027 | |
Federal and state research and development tax credit carryforwards | $ 41,100,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research, Subject to Expiration | 30,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 417,200,000 | |
Operating loss carryforwards, expiration dates | Jan. 1, 2025 | |
Federal and state research and development tax credit carryforwards | $ 41,400,000 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 129,300,000 | |
Accounting Standards Update 2016-09 | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred income tax assets | $ 161,800,000 | |
Measurement period adjustment | ||
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | 400,000 | |
Continuing Operations | ||
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | 56,900,000 | |
Additional paid-in capital | ||
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | 11,900,000 | |
Goodwill | ||
Operating Loss Carryforwards [Line Items] | ||
Increase in valuation allowance | $ 2,200,000 |
Income Taxes - Jurisdictions, N
Income Taxes - Jurisdictions, Net Income (Loss) Subject to Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 12.4 | $ (28.3) | $ (44.4) |
Outside of the United States | (61) | (98.2) | (20.5) |
Total | $ (48.6) | $ (126.5) | $ (64.9) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||||
Federal | $ 0 | $ 0 | $ 0 | |
State | 0.1 | 2.7 | 0.1 | |
Foreign | 1.5 | 0.1 | 0.8 | |
Total current income taxes | 1.6 | 2.8 | 0.9 | |
Deferred: | ||||
Federal | 0 | (1.7) | (0.1) | |
State | 0 | (0.5) | 0 | |
Foreign | 0 | 0 | (0.1) | |
Total deferred income taxes | 0 | (2.2) | (0.2) | |
Income taxes at effective rates | $ 1.6 | $ 0.6 | $ 1.6 | $ 0.7 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 162 | $ 188.7 |
Capitalized research and development expenses | 62.1 | 8.4 |
Tax credits | 59 | 47.8 |
Share-based compensation | 12.5 | 13.8 |
Fixed and intangible assets | 16 | 0.4 |
Accrued liabilities and reserves | 22.5 | 20.5 |
Total gross deferred tax assets | 334.1 | 279.6 |
Less: valuation allowance | (330.1) | (263.5) |
Total net deferred tax assets | 4 | 16.1 |
Deferred tax liabilities: | ||
Fixed assets and acquired intangibles assets | (3.8) | (0.1) |
Convertible debt discount | (0.1) | (15.9) |
Total deferred tax liabilities | (3.9) | (16) |
Net deferred tax assets (liabilities) | $ 0.1 | $ 0.1 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Tax Rate and Statutory Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income taxes at statutory rates | $ (26.6) | $ (17) | $ (22.7) | |
State income tax, net of federal benefit | (5.5) | (0.7) | 1.2 | |
Permanent items | 1.3 | 0.7 | 0.8 | |
Research and development credits | (11.7) | (13.3) | (11.7) | |
Foreign rate differential | 3.7 | 5.4 | 4.5 | |
Stock and officers compensation | (5.1) | (10.4) | 4 | |
Rate change | 0 | (0.1) | (0.1) | |
Unrecognized tax benefits | 0 | (15.4) | 27.7 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | (13.3) | 0 | 0 | |
Impact of Tax Cuts and Jobs Act of 2017 | (0.4) | 105.7 | 0 | |
Other | 1.3 | (2.2) | 0 | |
Change in valuation allowance | 56.9 | (51.1) | (3) | |
Income taxes at effective rates | $ 1.6 | $ 0.6 | $ 1.6 | $ 0.7 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 22.8 | $ 39.8 | $ 15.6 |
Decreases related to prior year tax positions | (8.4) | ||
Increases related to current year tax positions | 3.4 | 3.3 | 32.6 |
Decreases related to prior year tax positions | (0.3) | (14.9) | |
Decrease related to Tax Cuts and Jobs Act of 2017 | (5.4) | ||
Ending Balance | $ 25.9 | $ 22.8 | $ 39.8 |
Employee Benefit Plans and St_3
Employee Benefit Plans and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 28, 2015 | |
Maximum employee contribution percentage | 75.00% | ||||
Employer matching contribution percentage | 50.00% | ||||
Employee contribution percentage | 4.00% | ||||
Total matching contributions | $ 2.6 | ||||
Number of shares authorized in ESPP | 1,500,000 | ||||
Maximum payroll deductions, percentage | 10.00% | ||||
Employee purchase price floor, percentage | 85.00% | ||||
Offering period (months) | 12 months | ||||
Offering periods, frequency (months) | 6 months | ||||
Number of purchase periods within an offering period | 2 | ||||
Purchase Period Months | 6 months | ||||
Purchase date, frequency (months) | 6 months | ||||
Purchases of treasury stock, shares (in shares) | 800,000 | ||||
Purchases of treasury stock | $ 0 | $ 100 | $ 0 | ||
Shares reserved for issuance | 4,000,000 | ||||
In-the-money options, maximum exercise price | $ 119.80 | ||||
Options in-the-money, number | 100,000 | ||||
Unrecognized compensation cost | $ 126.5 | ||||
Restricted Stock | |||||
Total fair value of RSUs vested | $ 144.5 | $ 120.9 | $ 150 | ||
Restricted Stock | Minimum | |||||
Vesting period, years | 3 years | ||||
2015 Employee Stock Purchase Plan | |||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 189,904 | 122,857 | 99,192 | ||
Shares reserved for issuance | 1,100,000 | ||||
2005 Employee Stock Purchase Plan | |||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 8,539 |
Employee Benefit Plans and St_4
Employee Benefit Plans and Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | May 28, 2015 | |
Schedule Of Stock Options [Line Items] | ||
Shares reserved for issuance | 4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock options outstanding at beginning of period, number of shares | 0.4 | |
Stock options outstanding at beginning of period | $ 6.71 | |
Exercised, number of shares | (0.3) | |
Exercised | $ 6.34 | |
Forfeited, number of shares | 0 | |
Forfeited | $ 0 | |
Stock options outstanding at end of period, number of shares | 0.1 | |
Stock options outstanding at end of period | $ 8.02 | |
Stock options exercisable at end of period, number of shares | 0.1 | |
Stock options exercisable at end of period | $ 8.02 | |
Stock options outstanding, weighted-average remaining contractual term (years) | 11 months 12 days | |
Stock options exercisable, weighted-average remaining contractual term (years) | 11 months 12 days | |
Stock options outstanding, aggregate intrinsic value | $ 9.6 | |
Stock options exercisable, aggregate intrinsic value | $ 9.6 | |
2015 Employee Stock Purchase Plan | ||
Schedule Of Stock Options [Line Items] | ||
Shares reserved for issuance | 1.1 |
Employee Benefit Plans and St_5
Employee Benefit Plans and Stockholders' Equity - Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised | $ 21.6 | $ 30 | $ 39.9 |
Employee Benefit Plans and St_6
Employee Benefit Plans and Stockholders' Equity - Schedule of Share Based Compensation Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 106.2 | $ 101.9 | $ 110.8 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 9.6 | 9.2 | 12 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 37.5 | 33 | 39.8 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 59.1 | $ 59.7 | $ 59 |
Employee Benefit Plans and St_7
Employee Benefit Plans and Stockholders' Equity - Schedule of Valuation Assumptions for Each Option Grant and Employee Stock Purchase Plan Purchase Rights (Detail) - Employee Stock Purchase Plan | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 1 year | 1 year | 1 year |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.75% | 1.55% | 0.46% |
Expected volatility of the Company’s stock | 0.33% | 0.50% | 0.33% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.12% | 2.25% | 0.57% |
Expected volatility of the Company’s stock | 0.56% | 0.67% | 0.57% |
Employee Benefit Plans and St_8
Employee Benefit Plans and Stockholders' Equity - Schedule of Restricted Stock Units Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning nonvested balance, shares | 2.7 | ||
Ending nonvested balance, shares | 2.7 | 2.7 | |
Unvested restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic Value, Nonvested | $ 319 | $ 154.5 | $ 218.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning nonvested balance, shares | 2.7 | 3.7 | 4.1 |
Beginning Nonvested Balance | $ 70.68 | $ 62.51 | $ 50.60 |
Granted, shares | 1.7 | 1.3 | 1.9 |
Granted | $ 66.07 | $ 75.78 | $ 68.16 |
Vested, shares | (1.4) | (1.9) | (2.1) |
Vested | $ 68.44 | $ 58.92 | $ 44.95 |
Forfeited, shares | (0.3) | (0.4) | (0.2) |
Forfeited | $ 68.56 | $ 67.97 | $ 56.37 |
Ending nonvested balance, shares | 2.7 | 2.7 | 3.7 |
Ending Nonvested Balance | $ 69.19 | $ 70.68 | $ 62.51 |
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, years | 4 years |
Employee Benefit Plans and St_9
Employee Benefit Plans and Stockholders' Equity - Schedule of Stock Options Reserved for Future Issuance (Detail) - shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock options granted and outstanding | 0.1 | 0.4 |
Unvested restricted stock units | 2.7 | 2.7 |
Reserved for future grant | 3.2 | 4.7 |
Employee Stock Purchase Plan | 1.1 | 1.3 |
Total | 7.1 | 9.1 |
Business Segment and Geograph_3
Business Segment and Geographic Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Amount | $ 338 | $ 266.7 | $ 242.5 | $ 184.4 | $ 221 | $ 184.6 | $ 170.6 | $ 142.3 | $ 1,031.6 | $ 718.5 | $ 573.3 |
% of Total | 100.00% | 100.00% | 100.00% | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amount | $ 818.4 | $ 596.2 | $ 497.5 | ||||||||
% of Total | 79.00% | 83.00% | 87.00% | ||||||||
Outside of the United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amount | $ 213.2 | $ 122.3 | $ 75.8 | ||||||||
% of Total | 21.00% | 17.00% | 13.00% | ||||||||
Distributor | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amount | $ 652.9 | $ 538 | $ 411.8 | ||||||||
% of Total | 63.00% | 75.00% | 72.00% | ||||||||
Direct | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amount | $ 378.7 | $ 180.5 | $ 161.5 | ||||||||
% of Total | 37.00% | 25.00% | 28.00% |
Quarterly Financial Informati_3
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 338 | $ 266.7 | $ 242.5 | $ 184.4 | $ 221 | $ 184.6 | $ 170.6 | $ 142.3 | $ 1,031.6 | $ 718.5 | $ 573.3 |
Gross profit | 222.8 | 168.6 | 153.6 | 118.9 | 153.5 | 127 | 117.5 | 94.1 | 663.9 | 492.1 | 378.4 |
Total operating expenses | 387.4 | 154.7 | 158.5 | 149.6 | 141.5 | 127.5 | 131.1 | 134.5 | 850.2 | 534.6 | 442.3 |
Net income (loss) | $ (179.7) | $ 46.6 | $ 30.2 | $ (24.2) | $ (9.4) | $ (2) | $ 2.9 | $ (41.7) | $ (127.1) | $ (50.2) | $ (65.6) |
Basic net income (loss) per share | $ (2.03) | $ 0.53 | $ 0.34 | $ (0.28) | $ (0.11) | $ (0.02) | $ 0.03 | $ (0.49) | |||
Diluted net income (loss) per share | $ (2.03) | $ 0.52 | $ 0.34 | $ (0.28) | $ (0.11) | $ (0.02) | $ 0.03 | $ (0.49) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 11.4 | $ 12.4 | $ 7.8 |
Provision for doubtful accounts | 3.6 | 5.3 | 9.5 |
Write-offs and adjustments | (8.3) | (7) | (5.6) |
Recoveries | 0.5 | 0.7 | 0.7 |
Ending Balance | $ 7.2 | $ 11.4 | $ 12.4 |