Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37557 | |
Entity Registrant Name | Penumbra, Inc | |
Entity Address, Address Description | One Penumbra Place | |
Entity Address, City or Town | Alameda | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 05-0605598 | |
Entity Address, Postal Zip Code | 94502 | |
City Area Code | 510 | |
Local Phone Number | 748-3200 | |
Title of 12(b) Security | Common Stock, Par value $0.001 per share | |
Trading Symbol | PEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,358,765 | |
Entity Central Index Key | 0001321732 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 66,290 | $ 69,670 |
Marketable investments | 200,637 | 195,162 |
Accounts receivable, net of allowance for credit losses of $2,119 and $2,198 at September 30, 2021 and December 31, 2020, respectively | 120,074 | 114,608 |
Inventories | 258,316 | 219,527 |
Prepaid expenses and other current assets | 22,670 | 18,735 |
Total current assets | 667,987 | 617,702 |
Property and equipment, net | 56,632 | 48,169 |
Operating lease right-of-use assets | 133,552 | 41,192 |
Finance lease right-of-use assets | 36,845 | 38,065 |
Intangible assets, net | 9,490 | 10,639 |
Goodwill | 7,911 | 8,372 |
Deferred taxes | 49,454 | 50,139 |
Other non-current assets | 11,370 | 8,705 |
Total assets | 973,241 | 822,983 |
Current liabilities: | ||
Accounts payable | 13,679 | 14,109 |
Accrued liabilities | 93,222 | 85,795 |
Current operating lease liabilities | 7,531 | 4,697 |
Current finance lease liabilities | 1,627 | 1,331 |
Total current liabilities | 116,059 | 105,932 |
Non-current operating lease liabilities | 138,169 | 44,183 |
Non-current finance lease liabilities | 26,775 | 27,066 |
Other non-current liabilities | 7,635 | 8,014 |
Total liabilities | 288,638 | 185,195 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 36 | 36 |
Additional paid-in capital | 621,457 | 598,299 |
Accumulated other comprehensive (loss) income | (1,093) | 2,541 |
Retained earnings | 70,539 | 40,622 |
Total Penumbra, Inc. stockholders’ equity | 690,939 | 641,498 |
Non-controlling interest | (6,336) | (3,710) |
Total stockholders’ equity | 684,603 | 637,788 |
Total liabilities and stockholders’ equity | $ 973,241 | $ 822,983 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 2,119 | $ 2,198 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 190,117 | $ 151,076 | $ 543,579 | $ 393,514 |
Cost of revenue | 70,205 | 60,153 | 193,644 | 149,652 |
Gross profit | 119,912 | 90,923 | 349,935 | 243,862 |
Operating expenses: | ||||
Research and development | 16,734 | 34,923 | 52,548 | 70,594 |
Sales, general and administrative | 94,397 | 76,158 | 264,831 | 210,465 |
Total operating expenses | 111,131 | 111,081 | 317,379 | 281,059 |
Income (loss) from operations | 8,781 | (20,158) | 32,556 | (37,197) |
Interest income, net | 138 | 413 | 917 | 820 |
Other (expense) income, net | (1,137) | 14 | (3,021) | (1,130) |
Income (loss) before income taxes | 7,782 | (19,731) | 30,452 | (37,507) |
(Benefit from) provision for income taxes | (249) | (9,855) | 3,196 | (15,618) |
Consolidated net income (loss) | 8,031 | (9,876) | 27,256 | (21,889) |
Net loss attributable to non-controlling interest | (819) | (1,061) | (2,661) | (2,539) |
Net income (loss) attributable to Penumbra, Inc. | $ 8,850 | $ (8,815) | $ 29,917 | $ (19,350) |
Net income (loss) attributable to Penumbra, Inc. per share: | ||||
Basic (in dollars per share) | $ 0.24 | $ (0.24) | $ 0.82 | $ (0.54) |
Diluted (in dollars per share) | $ 0.24 | $ (0.24) | $ 0.80 | $ (0.54) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 36,617,961 | 36,207,716 | 36,532,822 | 35,568,591 |
Diluted (in shares) | 37,611,355 | 36,207,716 | 37,592,095 | 35,568,591 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income (loss) | $ 8,031 | $ (9,876) | $ 27,256 | $ (21,889) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments, net of tax | (1,356) | 2,257 | (3,188) | 1,970 |
Net change in unrealized losses on available-for-sale securities, net of tax | (66) | (59) | (446) | 455 |
Total other comprehensive (loss) income, net of tax | (1,422) | 2,198 | (3,634) | 2,425 |
Consolidated comprehensive income (loss) | 6,609 | (7,678) | 23,622 | (19,464) |
Net loss attributable to non-controlling interest | (819) | (1,061) | (2,661) | (2,539) |
Comprehensive income (loss) attributable to Penumbra, Inc. | $ 7,428 | $ (6,617) | $ 26,283 | $ (16,925) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Penumbra, Inc. Stockholders’ Equity | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 35,001,581 | ||||||
Beginning balance at Dec. 31, 2019 | $ 485,613 | $ 35 | $ 430,659 | $ (2,324) | $ 57,522 | $ 485,892 | $ (279) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 81,485 | ||||||
Issuance of common stock | 396 | $ 0 | 396 | 396 | |||
Shares held for tax withholdings (in shares) | (12,058) | ||||||
Shares held for tax withholdings | (2,105) | (2,105) | (2,105) | ||||
Stock-based compensation | 6,774 | 6,774 | 0 | 6,774 | 0 | ||
Other comprehensive income (loss) | (2,251) | (2,251) | (2,251) | ||||
Net income (loss) | 1,425 | 1,425 | |||||
Net loss attributable to non-controlling interest | (537) | ||||||
Consolidated net income (loss) | 888 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 35,071,008 | ||||||
Ending balance at Mar. 31, 2020 | 488,117 | $ 35 | 435,724 | (4,575) | 57,749 | 488,933 | (816) |
Beginning balance (in shares) at Dec. 31, 2019 | 35,001,581 | ||||||
Beginning balance at Dec. 31, 2019 | 485,613 | $ 35 | 430,659 | (2,324) | 57,522 | 485,892 | (279) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 2,425 | 2,425 | |||||
Net income (loss) | (19,350) | ||||||
Net loss attributable to non-controlling interest | (2,539) | ||||||
Consolidated net income (loss) | (21,889) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 36,299,118 | ||||||
Ending balance at Sep. 30, 2020 | 619,712 | $ 36 | 585,295 | 101 | 36,974 | 622,406 | (2,694) |
Beginning balance (in shares) at Mar. 31, 2020 | 35,071,008 | ||||||
Beginning balance at Mar. 31, 2020 | 488,117 | $ 35 | 435,724 | (4,575) | 57,749 | 488,933 | (816) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 68,153 | ||||||
Issuance of common stock | 791 | $ 0 | 667 | 667 | 124 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 41,590 | ||||||
Issuance of common stock under employee stock purchase plan | 5,945 | 5,945 | 5,945 | ||||
Issuance of common stock upon underwritten public offering, net of issuance cost (in shares) | 865,963 | ||||||
Issuance of common stock upon underwritten public offering, net of issuance cost | 134,759 | $ 1 | 134,758 | 134,759 | |||
Shares held for tax withholdings (in shares) | 10,304 | ||||||
Shares held for tax withholdings | (1,768) | (1,768) | (1,768) | ||||
Stock-based compensation | 5,740 | 5,740 | 5,740 | ||||
Other comprehensive income (loss) | 2,478 | 2,478 | 2,478 | ||||
Net income (loss) | (11,960) | (11,960) | |||||
Net loss attributable to non-controlling interest | (941) | ||||||
Consolidated net income (loss) | (12,901) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 36,036,410 | ||||||
Ending balance at Jun. 30, 2020 | 623,161 | $ 36 | 581,066 | (2,097) | 45,789 | 624,794 | (1,633) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 284,443 | ||||||
Issuance of common stock | 3,208 | $ 0 | 3,208 | 3,208 | |||
Shares held for tax withholdings (in shares) | 21,735 | ||||||
Shares held for tax withholdings | (4,764) | (4,764) | (4,764) | ||||
Stock-based compensation | 5,785 | 5,785 | 5,785 | ||||
Other comprehensive income (loss) | 2,198 | 2,198 | 2,198 | ||||
Net income (loss) | (8,815) | (8,815) | (8,815) | ||||
Net loss attributable to non-controlling interest | (1,061) | (1,061) | |||||
Consolidated net income (loss) | (9,876) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 36,299,118 | ||||||
Ending balance at Sep. 30, 2020 | 619,712 | $ 36 | 585,295 | 101 | 36,974 | 622,406 | (2,694) |
Beginning balance (in shares) at Dec. 31, 2020 | 36,414,732 | ||||||
Beginning balance at Dec. 31, 2020 | 637,788 | $ 36 | 598,299 | 2,541 | 40,622 | 641,498 | (3,710) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 79,080 | ||||||
Issuance of common stock | 666 | $ 0 | 666 | 666 | |||
Shares held for tax withholdings (in shares) | (11,955) | ||||||
Shares held for tax withholdings | (3,036) | (3,036) | (3,036) | ||||
Stock-based compensation | 7,093 | 7,093 | 7,093 | ||||
Other comprehensive income (loss) | (2,966) | (2,966) | (2,966) | ||||
Net income (loss) | 11,836 | 11,836 | |||||
Net loss attributable to non-controlling interest | (910) | ||||||
Consolidated net income (loss) | 10,926 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 36,481,857 | ||||||
Ending balance at Mar. 31, 2021 | 650,471 | $ 36 | 603,022 | (425) | 52,458 | 655,091 | (4,620) |
Beginning balance (in shares) at Dec. 31, 2020 | 36,414,732 | ||||||
Beginning balance at Dec. 31, 2020 | 637,788 | $ 36 | 598,299 | 2,541 | 40,622 | 641,498 | (3,710) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (3,634) | (3,634) | |||||
Net income (loss) | 29,917 | ||||||
Net loss attributable to non-controlling interest | (2,661) | ||||||
Consolidated net income (loss) | 27,256 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 36,669,903 | ||||||
Ending balance at Sep. 30, 2021 | 684,603 | $ 36 | 621,457 | (1,093) | 70,539 | 690,939 | (6,336) |
Beginning balance (in shares) at Mar. 31, 2021 | 36,481,857 | ||||||
Beginning balance at Mar. 31, 2021 | 650,471 | $ 36 | 603,022 | (425) | 52,458 | 655,091 | (4,620) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 67,547 | ||||||
Issuance of common stock | 312 | $ 0 | 312 | 312 | 0 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 35,221 | ||||||
Issuance of common stock under employee stock purchase plan | 7,354 | 7,354 | 7,354 | ||||
Shares held for tax withholdings (in shares) | 15,023 | ||||||
Shares held for tax withholdings | (3,952) | (3,952) | (3,952) | ||||
Stock-based compensation | 10,138 | 10,138 | 10,138 | ||||
Other comprehensive income (loss) | 754 | 754 | 754 | ||||
Net income (loss) | 9,231 | 9,231 | |||||
Net loss attributable to non-controlling interest | (932) | ||||||
Consolidated net income (loss) | 8,299 | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 36,569,602 | ||||||
Ending balance at Jun. 30, 2021 | 673,376 | $ 36 | 616,874 | 329 | 61,689 | 678,928 | (5,552) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 113,760 | ||||||
Issuance of common stock | 1,213 | $ 0 | 1,178 | 1,178 | |||
Shares held for tax withholdings (in shares) | 13,459 | ||||||
Shares held for tax withholdings | (3,533) | (3,533) | (3,533) | ||||
Stock-based compensation | 6,938 | 6,938 | 6,938 | ||||
Other comprehensive income (loss) | (1,422) | (1,422) | (1,422) | ||||
Net income (loss) | 8,850 | 8,850 | 8,850 | ||||
Net loss attributable to non-controlling interest | (819) | (819) | |||||
Consolidated net income (loss) | 8,031 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 36,669,903 | ||||||
Ending balance at Sep. 30, 2021 | $ 684,603 | $ 36 | $ 621,457 | $ (1,093) | $ 70,539 | $ 690,939 | $ (6,336) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Consolidated net income (loss) | $ 27,256 | $ (21,889) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,655 | 9,433 |
Stock-based compensation | 24,101 | 17,486 |
Inventory write-downs | 2,309 | 2,280 |
Deferred taxes | 809 | (16,637) |
Other | 1,685 | 3,200 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,963) | (7,443) |
Inventories | (45,812) | (39,940) |
Prepaid expenses and other current and non-current assets | (7,096) | (6,006) |
Accounts payable | (1,189) | (229) |
Accrued expenses and other non-current liabilities | 9,803 | 26,086 |
Proceeds from lease incentives | 3,214 | 0 |
Net cash provided by (used in) operating activities | 18,772 | (31,159) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable investments | (107,125) | (120,014) |
Proceeds from sales of marketable investments | 2,000 | 7,188 |
Proceeds from maturities of marketable investments | 97,967 | 42,966 |
Purchases of property and equipment | (13,088) | (21,003) |
Impairment of intangible asset | 0 | 2,500 |
Other | (150) | (3,060) |
Net cash provided by (used in) investing activities | (20,396) | (93,923) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock upon underwritten public offering, net of issuance cost | 0 | 134,759 |
Proceeds from exercises of stock options | 2,191 | 4,395 |
Proceeds from issuance of stock under employee stock purchase plan | 7,354 | 5,945 |
Payment of employee taxes related to vested stock | (10,521) | (8,637) |
Payments of finance lease obligations | (1,056) | (3,071) |
Payment of acquisition-related obligations | 0 | (683) |
Other | (93) | (248) |
Net cash (used in) provided by financing activities | (2,125) | 132,460 |
Effect of foreign exchange rate changes on cash and cash equivalents | 369 | (42) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (3,380) | 7,336 |
CASH AND CASH EQUIVALENTS—Beginning of period | 69,670 | 72,779 |
CASH AND CASH EQUIVALENTS—End of period | 66,290 | 80,115 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Right-of-use assets obtained in exchange for lease obligations | 100,178 | 1,086 |
Right-of-use assets obtained in exchange for finance lease obligations | 1,113 | 1,624 |
Purchase of property and equipment funded through accounts payable and accrued liabilities | 4,839 | 1,517 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,214 | $ 5,649 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Penumbra, Inc. (the “Company”) is a global healthcare company focused on innovative therapies. The Company designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2020 was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of September 30, 2021, the results of its operations for the three and nine months ended September 30, 2021 and 2020, the changes in comprehensive income (loss) and stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and the cash flows for the nine months ended September 30, 2021 and 2020. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2021, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiary. The portion of equity and consolidated net income not attributable to the Company is considered non-controlling interest and is classified separately in the condensed consolidated financial statements. Any subsequent changes in the Company’s ownership interest while the Company retains its controlling interest in its majority-owned subsidiary will be accounted for as equity transactions. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates. Segments The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical devices, and operates as one operating segment. The Company’s chief operating decision-maker, its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance. Recently Adopted Accounting Standards On January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This new standard removes certain exceptions for recognizing deferred taxes of foreign investments, the incremental approach to performing intraperiod allocation, and calculating income taxes for year-to-date interim period losses when such losses exceed anticipated full year losses. The standard also adds guidance to reduce complexity in certain areas, including accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in goodwill tax basis, enacted tax law changes impact during interim periods, and allocation of taxes to members of a consolidated group which are not subject to tax. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements during the nine months ended September 30, 2021. |
Investments and Fair Value of F
Investments and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value of Financial Instruments | 3. Investments and Fair Value of Financial Instruments Marketable Investments The Company’s marketable investments have been classified and accounted for as available-for-sale. The following table presents the Company’s marketable investments as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 20,277 $ 2 $ (1) $ — $ 20,278 U.S. treasury 7,489 1 — — 7,490 U.S. agency and government sponsored securities 8,561 5 (4) — 8,562 U.S. states and municipalities 42,167 93 (8) — 42,252 Corporate bonds 121,883 227 (55) — 122,055 Total $ 200,377 $ 328 $ (68) $ — $ 200,637 December 31, 2020 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 4,242 $ 4 $ — $ — $ 4,246 U.S. agency and government sponsored securities 7,846 11 — — 7,857 U.S. states and municipalities 47,934 162 (1) — 48,095 Corporate bonds 134,298 669 (3) — 134,964 Total $ 194,320 $ 846 $ (4) $ — $ 195,162 As of September 30, 2021, the total amortized cost basis of the Company’s impaired available-for-sale securities exceeded its fair value by a nominal amount. The Company reviewed its impaired available-for-sale securities and concluded that the decline in fair value was not related to credit losses and is recoverable. Accordingly, during the three and nine months ended September 30, 2021 no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive (loss) income. The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than twelve months or for twelve months or more as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 6,993 $ (1) $ — $ — $ 6,993 $ (1) U.S. agency and government sponsored securities 4,008 (4) — — 4,008 (4) U.S. states and municipalities 12,168 (8) — — 12,168 (8) Corporate bonds 26,945 (55) — — 26,945 (55) Total $ 50,114 $ (68) $ — $ — $ 50,114 $ (68) December 31, 2020 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. states and municipalities $ 1,408 $ (1) $ — $ — $ 1,408 $ (1) Corporate bonds 12,552 (3) — — 12,552 (3) Total $ 13,960 $ (4) $ — $ — $ 13,960 $ (4) The following table presents the contractual maturities of the Company’s marketable investments as of September 30, 2021 (in thousands): September 30, 2021 Amortized Cost Fair Value Due in less than one year $ 85,376 $ 85,523 Due in one to five years 115,001 115,114 Total $ 200,377 $ 200,637 Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments. Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The Company did not hold any Level 3 marketable investments as of September 30, 2021 or December 31, 2020. During the nine months ended September 30, 2021 and 2020, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2021 or December 31, 2020. The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020 (in thousands): As of September 30, 2021 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 25,373 $ — $ — $ 25,373 Marketable investments: Commercial paper — 20,278 — 20,278 U.S. treasury 7,490 — — 7,490 U.S. agency and government sponsored securities — 8,562 — 8,562 U.S. states and municipalities — 42,252 — 42,252 Corporate bonds — 122,055 — 122,055 Total $ 32,863 $ 193,147 $ — $ 226,010 As of December 31, 2020 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 33,054 $ — $ — $ 33,054 Marketable investments: Commercial paper — 4,246 — 4,246 U.S. agency and government sponsored securities — 7,857 — 7,857 U.S. states and municipalities — 48,095 — 48,095 Corporate bonds — 134,964 — 134,964 Total $ 33,054 $ 195,162 $ — $ 228,216 Contingent Consideration Obligations As of September 30, 2021 and December 31, 2020, there were no contingent consideration liabilities classified as Level 3. The Company had a contingent consideration liability balance of $1.2 million related to milestone payments due in connection with the 2017 acquisition of Crossmed S.p.a. (“Crossmed”) and was based on actual revenue performance for the year ended December 31, 2019 and not based on unobservable inputs. The Company made this payment during the nine months ended September 30, 2020, of which $0.5 million is presented in operating activities and $0.7 million is presented in financing activities in the condensed consolidated statement of cash flows. The following table summarizes the changes in fair value of the contingent consideration obligation for the nine months ended September 30, 2020 (in thousands): Fair Value of Contingent Consideration Balance at December 31, 2019 $ 1,206 Payments of contingent consideration liabilities (1,186) Changes in fair value — Foreign currency remeasurement (20) Balance at September 30, 2020 $ — |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Inventories The following table shows the components of inventories as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Raw materials $ 64,468 $ 45,341 Work in process 16,007 22,099 Finished goods 177,841 152,087 Inventories $ 258,316 $ 219,527 Accrued Liabilities The following table shows the components of accrued liabilities as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Payroll and employee-related cost $ 58,295 $ 50,083 Accrued expenses 10,293 9,246 Sales return provision 1,720 9,812 Product warranty 3,965 2,896 Other acquisition-related costs (1) 3,000 3,000 Other accrued liabilities 15,949 10,758 Total accrued liabilities $ 93,222 $ 85,795 (1) Amount consists of a contingent liability related to an anti-dilution provision from the asset acquisition of MVI Health Inc. (“MVI”) in 2018. The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Balance at the beginning of the period $ 2,896 $ 2,318 Accruals of warranties issued 2,207 1,589 Settlements of warranty claims (1,138) (1,011) Balance at the end of the period $ 3,965 $ 2,896 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | 5. Intangible Assets Acquired Intangible Assets The following tables present details of the Company’s acquired finite-lived intangible assets, as of September 30, 2021 and December 31, 2020 (in thousands, except weighted-average amortization period): As of September 30, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Customer relationships 15.0 years $ 6,909 $ (1,958) $ 4,951 Trade secrets and processes 20.0 years 5,256 (986) 4,270 Other 5.0 years 1,782 (1,513) 269 Total intangible assets 17.0 years $ 13,947 $ (4,457) $ 9,490 As of December 31, 2020 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Customer relationships 15.0 years $ 7,311 $ (1,706) $ 5,605 Trade secrets and processes 20.0 years 5,256 (788) 4,468 Other 5.0 years 1,885 (1,319) 566 Total intangible assets 16.6 years $ 14,452 $ (3,813) $ 10,639 The customer relationships and other intangible assets subject to amortization relate to the acquisition of Crossmed during the third quarter of 2017. The gross carrying amount and accumulated amortization of these intangible assets are subject to foreign currency translation effects. The Company’s $5.3 million trade secrets and processes intangible asset was recognized in connection with a royalty buyout agreement entered into during the first quarter of 2018. The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 66 $ 66 $ 197 $ 197 Sales, general and administrative 207 206 633 594 Total $ 273 $ 272 $ 830 $ 791 Licensed technology During the third quarter of 2017, the Company entered into an exclusive technology license agreement (the “License Agreement”) that required the Company to pay an upfront payment to the licensor of $2.5 million and future revenue milestone-based payments on sales of products covered by the licensed intellectual property. The Company accounted for the transaction as an asset acquisition and recorded an indefinite-lived intangible asset as it was determined to have alternative future use. The Company recorded an indefinite-lived intangible asset equal to the total payments made and expected to be made under the License Agreement and a corresponding contingent liability for the probable future milestone payments not yet paid. Indefinite-lived intangible assets are tested for impairment annually during the fourth quarter or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. As a result of a triggering event in July 2020 that provided additional information about a condition that existed on the balance sheet date, the Company determined that an impairment existed as of June 30, 2020. As a result, the Company wrote-off the full carrying value of the indefinite-lived intangible asset and its related contingent liabilities, and recognized an impairment loss of $2.5 million in research and development expense in the consolidated statement of operations as of September 30, 2020. At the end of each reporting period the Company had also adjusted the contingent liabilities to reflect the amount of future milestone payments that were probable to be paid. Prior to the commercialization of products utilizing the underlying technology, any changes in the contingent liability were recorded as an adjustment between the liability balances and the gross |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 6. Goodwill The following table presents the changes in goodwill during the nine months ended September 30, 2021 (in thousands): Total Company Balance as of December 31, 2020 $ 8,372 Foreign currency translation (461) Balance as of September 30, 2021 $ 7,911 Goodwill Impairment Review The Company reviews goodwill for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. The Company determined that there was no impairment of goodwill as of September 30, 2021. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | 7. Indebtedness Credit Agreement On April 24, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The Credit Agreement is secured and provides for up to $100 million in available revolving borrowing capacity with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $150 million, and was set to mature on April 23, 2021. The Company entered into an amended one-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders during the three months ended March 31, 2021. The amended Credit Agreement extended the maturity date from April 23, 2021 to February 21, 2022 and has substantially the same terms and conditions as the prior credit agreement with certain changes including the exclusion of certain one-time charges and expenses incurred during the fiscal quarters ended September 30, 2020 and December 31, 2020 from the calculation of the financial covenants, reductions in interest rate floors applicable to revolving loans and other changes to borrowing mechanics under the Credit Agreement. The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio and to not exceed a maximum leverage ratio. As of September 30, 2021, the Company was in compliance with these requirements. As of September 30, 2021 and December 31, 2020, there were no borrowings outstanding under the amended Credit Agreement. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 8. Leases Lease Overview As of December 31, 2020 and September 30, 2021, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases. The Company leases real estate for office, research and development, manufacturing, and warehouse space primarily under noncancelable operating leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and nine months ended September 30, 2021 (in thousands, except years and percentages): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Lease Cost Operating lease cost $ 3,586 $ 1,915 $ 7,465 $ 5,715 Finance lease cost: Amortization of right-of-use assets 776 734 2,283 2,050 Interest on lease liabilities 376 380 1,120 1,135 Variable lease cost (1) 1,601 1,342 4,427 4,058 Total lease costs $ 6,339 $ 4,371 $ 15,295 $ 12,958 Weighted Average Remaining Lease Term Operating leases 13.4 years 9.3 years Finance leases 12.5 years 13.7 years Weighted Average Discount Rate Operating leases 4.94 % 6.16 % Finance leases 5.31 % 5.36 % (1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases. During the third quarter of 2021, the Company signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California (the “620 Roseville Parkway Lease”) which has not yet commenced as of September 30, 2021. Per the terms of the lease, improvements will be constructed and permanently affixed to the property in phases, the first of which phase is anticipated to be completed by the end of 2022. The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2021 (in thousands): Operating Lease Payments Finance Lease Payments 2021 $ 3,385 $ 761 2022 14,689 3,089 2023 14,562 3,138 2024 14,280 3,188 2025 14,269 3,119 Thereafter 141,399 26,274 Total undiscounted lease payments (1) 202,584 39,569 Less imputed interest (56,884) (11,167) Present value of lease liabilities $ 145,700 $ 28,402 (1) The table above excludes the estimated future minimum lease payment for the 620 Roseville Parkway Lease due to uncertainty around when the 620 Roseville Parkway Lease will commence and payments will be due. The total estimated lease payments over the thirteen year lease term is approximately $20.6 million. Supplemental cash flow information related to leases during the nine months ended September 30, 2021 and September 30, 2020 are as follows (in thousands): Nine Months Ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,214 $ 5,649 Financing cash flows from finance leases $ 1,056 $ 3,071 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 100,178 $ 1,086 Finance leases $ 1,113 $ 1,624 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Royalty Obligations In March 2005, the Company entered into a license agreement that requires the Company to make minimum royalty payments to the licensor on a quarterly basis. In July 2019, the Company amended the license agreement to extend its term for an additional ten years and to increase the required minimum annual royalty payments by $0.2 million. As of both September 30, 2021 and December 31, 2020, the amended license agreement required minimum quarterly royalty payments of $0.3 million. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029. In April 2012, the Company entered into an agreement that requires the Company to pay, on a quarterly basis, a 5% royalty on sales of products covered under applicable patents. The first commercial sale of covered products occurred in April 2014. Unless terminated earlier, the royalty term for each applicable product shall continue for fifteen years following the first commercial sale of such patented product, or when the applicable patent covering such product has expired, whichever is sooner. Royalty expense included in cost of revenue for the three months ended September 30, 2021 and 2020, was $0.6 million and $0.7 million, respectively, and for the nine months ended September 30, 2021 and 2020, was $1.7 million and $1.8 million respectively. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. In many such arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The Company also agrees to indemnify many indemnified parties for product defect and similar claims. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with any of these indemnification requirements has been recorded to date. Litigation From time to time, the Company is subject to other claims and assessments in the ordinary course of business. On January 15, 2021, a putative securities class action complaint was filed against the Company and its CEO, Adam Elsesser, and Executive Vice President, Global Marketing and Public Relations, Gita Barry, on behalf of a single shareholder in the U.S. District Court for the Northern District of California, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint sought unspecified damages on behalf of a purported class that would comprise all individuals who purchased or otherwise acquired the Company's common stock between August 3, 2020 and December 15, 2020. The complaint alleged securities law violations based on allegedly misleading statements and/or omissions made in connection with the Company’s JET 7 Xtra Flex product. On March 16, 2021, the plaintiff voluntarily dismissed the complaint without prejudice. The Company is not currently a party to any litigation matter that, individually or in the aggregate, is expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stockholder's Equity | 10. Stockholders’ Equity Common Stock In June 2020, we issued and sold an aggregate of 865,963 shares of our common stock at a public offering price of $166.00 per share, less the underwriters’ discounts and commissions, pursuant to an underwritten public offering. The Company received approximately $134.8 million in net cash proceeds from the offering after deducting underwriting discounts and commissions of $8.6 million and other offering expenses of $0.4 million. Equity Incentive Plans Stock Options Activity of stock options under the 2005 Plan, 2011 Plan and 2014 Plan (collectively, the "Plans") is set forth below: Number of Shares Weighted-Average Balance at December 31, 2020 1,020,978 $ 23.38 Exercised (143,826) 14.99 Canceled/Forfeited (150) 19.07 Balance at September 30, 2021 877,002 24.76 Restricted Stock and Restricted Stock Units Activity of unvested restricted stock awards and restricted stock units under the Plans during the nine months ended September 30, 2021 is set forth below: Number of Shares Weighted -Average Unvested at December 31, 2020 369,629 $ 163.03 Granted 109,649 259.22 Released/Vested - Restricted Stock/RSUs (116,561) 155.53 Canceled/Forfeited (14,466) 190.80 Unvested at September 30, 2021 348,251 194.67 As of September 30, 2021, 331,274 restricted stock awards and restricted stock units are expected to vest. Stock-based Compensation The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 766 $ 589 $ 2,107 $ 1,644 Research and development 1,118 865 3,368 2,630 Sales, general and administrative 6,019 4,784 18,626 13,212 Total $ 7,903 $ 6,238 $ 24,101 $ 17,486 As of September 30, 2021, total unrecognized compensation cost was $55.4 million related to unvested share-based compensation arrangements which is expected to be recognized over a weighted average period of 3.0 years. The total stock-based compensation cost capitalized in inventory was $1.7 million and $1.2 million as of September 30, 2021 and December 31, 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 11. Accumulated Other Comprehensive Income Other comprehensive income (loss) consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net income (loss), these comprehensive income (loss) items accumulate and are included within accumulated other comprehensive income. Unrealized gains and losses on the Company’s marketable investments are reclassified from accumulated other comprehensive income into earnings when realized upon sale, and are determined based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive income. The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) (in thousands): Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ 267 $ 62 $ 329 $ 752 $ (2,849) $ (2,097) Other comprehensive (loss) income before reclassifications: Unrealized (loss) — marketable investments (86) — (86) (77) — (77) Foreign currency translation (losses) gains — (1,356) (1,356) — 2,257 2,257 Income tax effect — expense 20 — 20 18 — 18 Net of tax (66) (1,356) (1,422) (59) 2,257 2,198 Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: Realized gain (loss) — marketable investments — — — — — — Income tax effect — expense (benefit) — — — — — — Net of tax — — — — — — Net current-year other comprehensive (loss) income (66) (1,356) (1,422) (59) 2,257 2,198 Balance, end of the period $ 201 $ (1,294) $ (1,093) $ 693 $ (592) $ 101 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company’s income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgment and estimates are required in determining the consolidated income tax expense. During interim periods, the Company generally utilizes the estimated annual effective tax rate (“AETR”) method which involves the use of forecasted information. Under the AETR method, the provision is calculated by applying the estimated AETR for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Jurisdictions with tax assets for which the Company believes a tax benefit cannot be realized are excluded from the computation of its AETR. In addition, the Company excluded the unusual and infrequent anticipated one-time expenses associated with the acquisition (See Note “15. Subsequent Events” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information) from the full year forecast when computing the AETR for the three and nine months ended September 30, 2021. The Company’s income taxes for the three and nine months ended September 30, 2021 was $0.2 million of tax benefit and $3.2 million of tax expense, respectively, compared to $9.9 million and $15.6 million of tax benefit for the three and nine months ended September 30, 2020, respectively. The Company’s tax benefit or expense for 2021 was primarily due to tax expense attr ibutable to worldwide profit, offset by excess tax benefit from stock-based compensation attributable to U.S. jurisdiction, compared to the tax benefit attributable to worldwide loss as a result of the COVID-19 pandemic impact combined with excess tax benefit from stock-based compensation attributable to the U.S. jurisdiction in 2020. The Company’s effective tax rate was (3.2)% and 10.5% for the three and nine months ended September 30, 2021, respectively, compared to 49.9% and 41.6% for the three and nine months ended September 30, 2020, respectively. The Company’s change in effective tax rate was primarily attributable to small tax benefit or expense over relatively large worldwide profit for the three and nine months ended September 30, 2021, when compared to large tax benefit over relatively small worldwide loss for the three and nine months ended September 30, 2020. Significant domestic deferred tax assets (“DTAs”) were generated in recent years, primarily due to excess tax benefits from stock option exercises and vesting of restricted stock. The Company evaluates all available positive and negative evidence, objective and subjective in nature, in each reporting period to determine if sufficient taxable income will be generated to realize the benefits of its DTAs and, if not, a valuation allowance to reduce the DTAs is recorded. As of September 30, 2021 and 2020, the Company maintains a valuation allowance against its Federal Research and Development Tax Credit and California DTAs as the Company could not conclude at the required more-likely-than-not level of certainty, that the benefit of these tax attributes would be realized prior to expiration. As of September 30, 2021 and 2020, the Company also maintains a valuation allowance against DTAs acquired from MVI which are subject to Separate Return Limitation Year (“SRLY”) rules that limit the utilization of the pre-acquisition tax attributes to offset future taxable income solely generated by MVI. |
Net (Loss) Income Attributable
Net (Loss) Income Attributable to Penumbra, Inc. Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Attributable to Penumbra, Inc. Per Share | 13. Net Income (Loss) Attributable to Penumbra, Inc. Per Share The Company computed basic net income (loss) attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net income (loss) attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period using the treasury stock method. For the purposes of this calculation, stock options, restricted stock, restricted stock units and stock sold through the Company’s employee stock purchase plan are considered common stock equivalents. A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income (loss) attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to Penumbra, Inc. $ 8,850 $ (8,815) $ 29,917 $ (19,350) Denominator: Weighted average shares used to compute net income (loss) attributable to common stockholders: Basic 36,617,961 36,207,716 36,532,822 35,568,591 Potential dilutive stock-based options and awards 993,394 — 1,059,273 — Diluted 37,611,355 36,207,716 37,592,095 35,568,591 Net income (loss) attributable to Penumbra, Inc. per share: Basic $ 0.24 $ (0.24) $ 0.82 $ (0.54) Diluted $ 0.24 $ (0.24) $ 0.80 $ (0.54) For the three months ended September 30, 2021 and 2020, outstanding stock-based awards of 6 thousand and 1.8 million shares, respectively, and for the nine months ended September 30, 2021 and 2020, outstanding stock-based awards of 27 thousand and 1.9 million shares, respectively, were excluded from the computation of diluted net income (loss) attributable to Penumbra, Inc. per share because their effect would have been anti-dilutive. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 14. Revenues Revenue Recognition Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 134,834 $ 109,656 $ 383,306 $ 283,473 International 55,283 41,420 160,273 110,041 Total $ 190,117 $ 151,076 $ 543,579 $ 393,514 The following table presents the Company’s revenues disaggregated by product category, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Vascular $ 105,465 $ 75,159 $ 295,314 $ 180,684 Neuro 84,652 75,917 248,265 212,830 Total $ 190,117 $ 151,076 $ 543,579 $ 393,514 China Distribution and Technology Licensing Agreement In December 2020, the Company entered into a distribution and technology licensing arrangement with its existing distribution partner in China. In addition to modifying the Company’s standard distribution agreement with its Chinese partner, the Company agreed to license the technology for certain products to its Chinese partner to permit the manufacturing and commercialization of such products in China as well as provide certain regulatory support. Apart from the standard distribution agreement, the Company will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support and receive royalty payments on the downstream sales of the licensed products. Performance Obligations Delivery of products - The Company’s contracts with customers typically contain a single performance obligation, delivery of the Company’s products. Satisfaction of that performance obligation occurs when control of the promised goods transfers to the customer, which is generally upon shipment for non-consignment sale agreements and upon utilization for consignment sale agreements. Payment terms - The Company’s payment terms vary by the type and location of our customer. The timing between fulfillment of performance obligations and when payment is due is not significant and does not give rise to financing transactions. The Company did not have any contracts with significant financing components as of September 30, 2021. Product returns - The Company may allow customers to return products purchased at the Company’s discretion. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period in which the related product revenue is recognized. The Company currently estimates product return liabilities using its own historic sales information, trends, industry data, and other relevant data points. Warranties - The Company offers its standard warranty to all customers and it is not available for sale on a standalone basis. The Company’s standard warranty represents its guarantee that its products function as intended, are free from defects, and comply with agreed-upon specifications and quality standards. This assurance does not constitute a service and is not a separate performance obligation. Transaction Price Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. When determining if variable consideration should be constrained, management considers whether there are factors that could result in a significant reversal of revenue and the likelihood of a potential reversal. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are reassessed each |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On October 1, 2021 the Company closed (the “Closing”) the acquisition of Sixense Enterprises Inc. (“Sixense”) pursuant to the Agreement and Plan of Merger, dated September 17, 2021 (the “Merger Agreement”) among the Company, Sixense, Seychelles Merger Corporation, a wholly owned subsidiary of the Company, and a stockholders’ agent (the “Merger”). Sixense, a privately held company, specializes in enterprise use of virtual reality hardware and software and has been an integral partner on the development of the Company’s REAL System portfolio. This acquisition allows the Company to streamline its efforts and collaborate more closely on its immersive therapeutics offerings. At the Closing and as consideration for the Merger, all outstanding shares of Sixense capital stock were cancelled in exchange for the right to receive an aggregate amount of 661,877 shares of the Company’s common stock, representing purchase consideration to be calculated by using the closing price of the Company's common stock on October 1, 2021. Additionally, at the closing, the Company converted all stock options held by Sixense service providers that would continue as service providers after the Merger into fully vested options to purchase an aggregate amount of 447,017 shares of the Company’s common stock. These converted options to purchase the Company’s common stock, which are attributable to precombination vesting, will represent purchase consideration based on the fair value of these replacement awards as of October 1, 2021. The shares of the Company’s common stock issued pursuant to the terms of the Merger Agreement were issued in reliance upon the exemption from registration available under Section 4(a)(2) of the Securities Act of 1933, as amended. Given the short period of time from the close of the acquisition to the filing of this Form 10-Q, the Company is in the process of compiling the required information to complete the initial accounting for the Merger. As a result certain information, including the fair value of the consideration transferred, its allocation to the major classes of assets acquired and liabilities assumed and other required disclosures, will be included in the Company’s Annual Report on Form 10-K for the year ending December 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2020 was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of September 30, 2021, the results of its operations for the three and nine months ended September 30, 2021 and 2020, the changes in comprehensive income (loss) and stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and the cash flows for the nine months ended September 30, 2021 and 2020. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2021, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. |
Consolidation | The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiary. The portion of equity and consolidated net income not attributable to the Company is considered non-controlling interest and is classified separately in the condensed consolidated financial statements. Any subsequent changes in the Company’s ownership interest while the Company retains its controlling interest in its majority-owned subsidiary will be accounted for as equity transactions. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates. |
Segments | Segments The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical devices, and |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards On January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This new standard removes certain exceptions for recognizing deferred taxes of foreign investments, the incremental approach to performing intraperiod allocation, and calculating income taxes for year-to-date interim period losses when such losses exceed anticipated full year losses. The standard also adds guidance to reduce complexity in certain areas, including accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in goodwill tax basis, enacted tax law changes impact during interim periods, and allocation of taxes to members of a consolidated group which are not subject to tax. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements during the nine months ended September 30, 2021. |
Marketable Investments | Marketable InvestmentsThe Company’s marketable investments have been classified and accounted for as available-for-sale. |
Investments and Fair Value of_2
Investments and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Marketable Investments | The following table presents the Company’s marketable investments as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 20,277 $ 2 $ (1) $ — $ 20,278 U.S. treasury 7,489 1 — — 7,490 U.S. agency and government sponsored securities 8,561 5 (4) — 8,562 U.S. states and municipalities 42,167 93 (8) — 42,252 Corporate bonds 121,883 227 (55) — 122,055 Total $ 200,377 $ 328 $ (68) $ — $ 200,637 December 31, 2020 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 4,242 $ 4 $ — $ — $ 4,246 U.S. agency and government sponsored securities 7,846 11 — — 7,857 U.S. states and municipalities 47,934 162 (1) — 48,095 Corporate bonds 134,298 669 (3) — 134,964 Total $ 194,320 $ 846 $ (4) $ — $ 195,162 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than twelve months or for twelve months or more as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 6,993 $ (1) $ — $ — $ 6,993 $ (1) U.S. agency and government sponsored securities 4,008 (4) — — 4,008 (4) U.S. states and municipalities 12,168 (8) — — 12,168 (8) Corporate bonds 26,945 (55) — — 26,945 (55) Total $ 50,114 $ (68) $ — $ — $ 50,114 $ (68) December 31, 2020 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. states and municipalities $ 1,408 $ (1) $ — $ — $ 1,408 $ (1) Corporate bonds 12,552 (3) — — 12,552 (3) Total $ 13,960 $ (4) $ — $ — $ 13,960 $ (4) |
Schedule of Contractual Maturities of Marketable Investments | The following table presents the contractual maturities of the Company’s marketable investments as of September 30, 2021 (in thousands): September 30, 2021 Amortized Cost Fair Value Due in less than one year $ 85,376 $ 85,523 Due in one to five years 115,001 115,114 Total $ 200,377 $ 200,637 |
Schedule of Fair Value of Assets and Liabilities | The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020 (in thousands): As of September 30, 2021 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 25,373 $ — $ — $ 25,373 Marketable investments: Commercial paper — 20,278 — 20,278 U.S. treasury 7,490 — — 7,490 U.S. agency and government sponsored securities — 8,562 — 8,562 U.S. states and municipalities — 42,252 — 42,252 Corporate bonds — 122,055 — 122,055 Total $ 32,863 $ 193,147 $ — $ 226,010 As of December 31, 2020 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 33,054 $ — $ — $ 33,054 Marketable investments: Commercial paper — 4,246 — 4,246 U.S. agency and government sponsored securities — 7,857 — 7,857 U.S. states and municipalities — 48,095 — 48,095 Corporate bonds — 134,964 — 134,964 Total $ 33,054 $ 195,162 $ — $ 228,216 |
Schedule of Fair Value of Contingent Consideration Obligation | The following table summarizes the changes in fair value of the contingent consideration obligation for the nine months ended September 30, 2020 (in thousands): Fair Value of Contingent Consideration Balance at December 31, 2019 $ 1,206 Payments of contingent consideration liabilities (1,186) Changes in fair value — Foreign currency remeasurement (20) Balance at September 30, 2020 $ — |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventories | The following table shows the components of inventories as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Raw materials $ 64,468 $ 45,341 Work in process 16,007 22,099 Finished goods 177,841 152,087 Inventories $ 258,316 $ 219,527 |
Schedule of Accrued Liabilities | The following table shows the components of accrued liabilities as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Payroll and employee-related cost $ 58,295 $ 50,083 Accrued expenses 10,293 9,246 Sales return provision 1,720 9,812 Product warranty 3,965 2,896 Other acquisition-related costs (1) 3,000 3,000 Other accrued liabilities 15,949 10,758 Total accrued liabilities $ 93,222 $ 85,795 |
Schedule of Estimated Product Warranty Accrual | The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Balance at the beginning of the period $ 2,896 $ 2,318 Accruals of warranties issued 2,207 1,589 Settlements of warranty claims (1,138) (1,011) Balance at the end of the period $ 3,965 $ 2,896 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of indefinite-lived intangible assets | The following tables present details of the Company’s acquired finite-lived intangible assets, as of September 30, 2021 and December 31, 2020 (in thousands, except weighted-average amortization period): As of September 30, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Customer relationships 15.0 years $ 6,909 $ (1,958) $ 4,951 Trade secrets and processes 20.0 years 5,256 (986) 4,270 Other 5.0 years 1,782 (1,513) 269 Total intangible assets 17.0 years $ 13,947 $ (4,457) $ 9,490 As of December 31, 2020 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Customer relationships 15.0 years $ 7,311 $ (1,706) $ 5,605 Trade secrets and processes 20.0 years 5,256 (788) 4,468 Other 5.0 years 1,885 (1,319) 566 Total intangible assets 16.6 years $ 14,452 $ (3,813) $ 10,639 |
Finite-lived Intangible Assets Amortization Expense | The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 66 $ 66 $ 197 $ 197 Sales, general and administrative 207 206 633 594 Total $ 273 $ 272 $ 830 $ 791 |
Goodwill Goodwill (Tables)
Goodwill Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents the changes in goodwill during the nine months ended September 30, 2021 (in thousands): Total Company Balance as of December 31, 2020 $ 8,372 Foreign currency translation (461) Balance as of September 30, 2021 $ 7,911 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost | The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and nine months ended September 30, 2021 (in thousands, except years and percentages): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Lease Cost Operating lease cost $ 3,586 $ 1,915 $ 7,465 $ 5,715 Finance lease cost: Amortization of right-of-use assets 776 734 2,283 2,050 Interest on lease liabilities 376 380 1,120 1,135 Variable lease cost (1) 1,601 1,342 4,427 4,058 Total lease costs $ 6,339 $ 4,371 $ 15,295 $ 12,958 Weighted Average Remaining Lease Term Operating leases 13.4 years 9.3 years Finance leases 12.5 years 13.7 years Weighted Average Discount Rate Operating leases 4.94 % 6.16 % Finance leases 5.31 % 5.36 % (1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases. |
Lessee, Operating Lease, Liability, Maturity | The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2021 (in thousands): Operating Lease Payments Finance Lease Payments 2021 $ 3,385 $ 761 2022 14,689 3,089 2023 14,562 3,138 2024 14,280 3,188 2025 14,269 3,119 Thereafter 141,399 26,274 Total undiscounted lease payments (1) 202,584 39,569 Less imputed interest (56,884) (11,167) Present value of lease liabilities $ 145,700 $ 28,402 (1) The table above excludes the estimated future minimum lease payment for the 620 Roseville Parkway Lease due to uncertainty around when the 620 Roseville Parkway Lease will commence and payments will be due. The total estimated lease payments over the thirteen year lease term is approximately $20.6 million. |
Finance Lease, Liability, Maturity | The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2021 (in thousands): Operating Lease Payments Finance Lease Payments 2021 $ 3,385 $ 761 2022 14,689 3,089 2023 14,562 3,138 2024 14,280 3,188 2025 14,269 3,119 Thereafter 141,399 26,274 Total undiscounted lease payments (1) 202,584 39,569 Less imputed interest (56,884) (11,167) Present value of lease liabilities $ 145,700 $ 28,402 (1) The table above excludes the estimated future minimum lease payment for the 620 Roseville Parkway Lease due to uncertainty around when the 620 Roseville Parkway Lease will commence and payments will be due. The total estimated lease payments over the thirteen year lease term is approximately $20.6 million. |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases during the nine months ended September 30, 2021 and September 30, 2020 are as follows (in thousands): Nine Months Ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,214 $ 5,649 Financing cash flows from finance leases $ 1,056 $ 3,071 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 100,178 $ 1,086 Finance leases $ 1,113 $ 1,624 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Activity of stock options under the 2005 Plan, 2011 Plan and 2014 Plan (collectively, the "Plans") is set forth below: Number of Shares Weighted-Average Balance at December 31, 2020 1,020,978 $ 23.38 Exercised (143,826) 14.99 Canceled/Forfeited (150) 19.07 Balance at September 30, 2021 877,002 24.76 |
Summary of Unvested Restricted Stock and Restricted Stock Unit Activity | Activity of unvested restricted stock awards and restricted stock units under the Plans during the nine months ended September 30, 2021 is set forth below: Number of Shares Weighted -Average Unvested at December 31, 2020 369,629 $ 163.03 Granted 109,649 259.22 Released/Vested - Restricted Stock/RSUs (116,561) 155.53 Canceled/Forfeited (14,466) 190.80 Unvested at September 30, 2021 348,251 194.67 |
Schedule of Stock-based Compensation Expense | The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 766 $ 589 $ 2,107 $ 1,644 Research and development 1,118 865 3,368 2,630 Sales, general and administrative 6,019 4,784 18,626 13,212 Total $ 7,903 $ 6,238 $ 24,101 $ 17,486 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) (in thousands): Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ 267 $ 62 $ 329 $ 752 $ (2,849) $ (2,097) Other comprehensive (loss) income before reclassifications: Unrealized (loss) — marketable investments (86) — (86) (77) — (77) Foreign currency translation (losses) gains — (1,356) (1,356) — 2,257 2,257 Income tax effect — expense 20 — 20 18 — 18 Net of tax (66) (1,356) (1,422) (59) 2,257 2,198 Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: Realized gain (loss) — marketable investments — — — — — — Income tax effect — expense (benefit) — — — — — — Net of tax — — — — — — Net current-year other comprehensive (loss) income (66) (1,356) (1,422) (59) 2,257 2,198 Balance, end of the period $ 201 $ (1,294) $ (1,093) $ 693 $ (592) $ 101 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Marketable Currency Translation Total Marketable Currency Translation Total Balance at beginning of the period $ 647 $ 1,894 $ 2,541 $ 238 $ (2,562) $ (2,324) Other comprehensive (loss) income before reclassifications: Unrealized (loss) gain — marketable investments (581) — (581) 594 — 594 Foreign currency translation gains (losses) — (3,188) (3,188) — 1,970 1,970 Income tax effect — expense 135 — 135 (139) — (139) Net of tax (446) (3,188) (3,634) 455 1,970 2,425 Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: Realized gain (loss)— marketable investments — — — — — — Income tax effect — expense — — — — — — Net of tax — — — — — — Net current-year other comprehensive (loss) income (446) (3,188) (3,634) 455 1,970 2,425 Balance at end of the period $ 201 $ (1,294) $ (1,093) $ 693 $ (592) $ 101 |
Net (Loss) Income Attributabl_2
Net (Loss) Income Attributable to Penumbra, Inc. Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator used in the Calculation of the Basic and Diluted Earnings per Share | A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income (loss) attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to Penumbra, Inc. $ 8,850 $ (8,815) $ 29,917 $ (19,350) Denominator: Weighted average shares used to compute net income (loss) attributable to common stockholders: Basic 36,617,961 36,207,716 36,532,822 35,568,591 Potential dilutive stock-based options and awards 993,394 — 1,059,273 — Diluted 37,611,355 36,207,716 37,592,095 35,568,591 Net income (loss) attributable to Penumbra, Inc. per share: Basic $ 0.24 $ (0.24) $ 0.82 $ (0.54) Diluted $ 0.24 $ (0.24) $ 0.80 $ (0.54) |
Revenues Revenues (Tables)
Revenues Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 134,834 $ 109,656 $ 383,306 $ 283,473 International 55,283 41,420 160,273 110,041 Total $ 190,117 $ 151,076 $ 543,579 $ 393,514 The following table presents the Company’s revenues disaggregated by product category, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Vascular $ 105,465 $ 75,159 $ 295,314 $ 180,684 Neuro 84,652 75,917 248,265 212,830 Total $ 190,117 $ 151,076 $ 543,579 $ 393,514 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Disclosures (Details) $ in Thousands | 9 Months Ended | ||||||||
Sep. 30, 2021USD ($)segmentactivity | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of business activities | activity | 1 | ||||||||
Number of operating segments | segment | 1 | ||||||||
Adjustment to retained earnings | $ (684,603) | $ (673,376) | $ (650,471) | $ (637,788) | $ (619,712) | $ (623,161) | $ (488,117) | $ (485,613) | |
Accounts receivable, net | 120,074 | 114,608 | |||||||
Allowance for credit losses | 2,119 | 2,198 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment to retained earnings | $ 1,198 | ||||||||
Retained Earnings (Accumulated Deficit) | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment to retained earnings | $ (70,539) | $ (61,689) | $ (52,458) | $ (40,622) | $ (36,974) | $ (45,789) | $ (57,749) | $ (57,522) | |
Retained Earnings (Accumulated Deficit) | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment to retained earnings | $ 1,198 |
Investments and Fair Value of_3
Investments and Fair Value of Financial Instruments - Gains and Losses of Marketable Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 200,377 | $ 194,320 |
Gross Unrealized Gains | 328 | 846 |
Gross Unrealized Losses | (68) | (4) |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 200,637 | 195,162 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,277 | 4,242 |
Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses | (1) | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 20,278 | 4,246 |
U.S. treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,489 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value | 7,490 | |
U.S. agency and government sponsored securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,561 | 7,846 |
Gross Unrealized Gains | 5 | 11 |
Gross Unrealized Losses | (4) | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 8,562 | 7,857 |
U.S. states and municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,167 | 47,934 |
Gross Unrealized Gains | 93 | 162 |
Gross Unrealized Losses | (8) | (1) |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 42,252 | 48,095 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 121,883 | 134,298 |
Gross Unrealized Gains | 227 | 669 |
Gross Unrealized Losses | (55) | (3) |
Allowance for Credit Loss | 0 | 0 |
Fair Value | $ 122,055 | $ 134,964 |
Investments and Fair Value of_4
Investments and Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Gross Unrealized Losses | $ (68,000) | $ (68,000) | $ (4,000) |
Allowance for credit loss | $ 0 | $ 0 |
Investments and Fair Value of_5
Investments and Fair Value of Financial Instruments - Marketable Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair Value | $ 50,114 | $ 13,960 |
Less than 12 months: Gross Unrealized Losses | (68) | (4) |
12 Months of more: Fair Value | 0 | 0 |
12 months or more: Gross Unrealized Losses | 0 | 0 |
Total: Fair Value | 50,114 | 13,960 |
Total: Gross Unrealized Losses | (68) | (4) |
Commercial Paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair Value | 6,993 | |
Less than 12 months: Gross Unrealized Losses | (1) | |
12 Months of more: Fair Value | 0 | |
12 months or more: Gross Unrealized Losses | 0 | |
Total: Fair Value | 6,993 | |
Total: Gross Unrealized Losses | (1) | |
U.S. agency and government sponsored securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair Value | 4,008 | |
Less than 12 months: Gross Unrealized Losses | (4) | |
12 Months of more: Fair Value | 0 | |
12 months or more: Gross Unrealized Losses | 0 | |
Total: Fair Value | 4,008 | |
Total: Gross Unrealized Losses | (4) | |
U.S. states and municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair Value | 12,168 | 1,408 |
Less than 12 months: Gross Unrealized Losses | (8) | (1) |
12 Months of more: Fair Value | 0 | 0 |
12 months or more: Gross Unrealized Losses | 0 | 0 |
Total: Fair Value | 12,168 | 1,408 |
Total: Gross Unrealized Losses | (8) | (1) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: Fair Value | 26,945 | 12,552 |
Less than 12 months: Gross Unrealized Losses | (55) | (3) |
12 Months of more: Fair Value | 0 | 0 |
12 months or more: Gross Unrealized Losses | 0 | 0 |
Total: Fair Value | 26,945 | 12,552 |
Total: Gross Unrealized Losses | $ (55) | $ (3) |
Investments and Fair Value of_6
Investments and Fair Value of Financial Instruments - Contractual Maturities of Marketable Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in less than one year | $ 85,376 | |
Due in one to five years | 115,001 | |
Total | 200,377 | $ 194,320 |
Fair Value | ||
Due in less than one year | 85,523 | |
Due in one to five years | 115,114 | |
Total | $ 200,637 | $ 195,162 |
Investments and Fair Value of_7
Investments and Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Assets, Fair Value Disclosure | $ 226,010 | $ 228,216 |
Commercial paper | ||
Financial Assets | ||
Marketable investments | 20,278 | 4,246 |
U.S. agency and government sponsored securities | ||
Financial Assets | ||
Marketable investments | 8,562 | 7,857 |
U.S. states and municipalities | ||
Financial Assets | ||
Marketable investments | 42,252 | 48,095 |
Corporate bonds | ||
Financial Assets | ||
Marketable investments | 122,055 | 134,964 |
U.S. treasury | ||
Financial Assets | ||
Marketable investments | 7,490 | |
Money market funds | ||
Financial Assets | ||
Cash equivalents | 25,373 | 33,054 |
Level 1 | ||
Financial Assets | ||
Assets, Fair Value Disclosure | 32,863 | 33,054 |
Level 1 | Commercial paper | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 1 | U.S. agency and government sponsored securities | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 1 | U.S. states and municipalities | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 1 | U.S. treasury | ||
Financial Assets | ||
Marketable investments | 7,490 | |
Level 1 | Money market funds | ||
Financial Assets | ||
Cash equivalents | 25,373 | 33,054 |
Level 2 | ||
Financial Assets | ||
Assets, Fair Value Disclosure | 193,147 | 195,162 |
Level 2 | Commercial paper | ||
Financial Assets | ||
Marketable investments | 20,278 | 4,246 |
Level 2 | U.S. agency and government sponsored securities | ||
Financial Assets | ||
Marketable investments | 8,562 | 7,857 |
Level 2 | U.S. states and municipalities | ||
Financial Assets | ||
Marketable investments | 42,252 | 48,095 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Marketable investments | 122,055 | 134,964 |
Level 2 | U.S. treasury | ||
Financial Assets | ||
Marketable investments | 0 | |
Level 2 | Money market funds | ||
Financial Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Financial Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | Commercial paper | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 3 | U.S. agency and government sponsored securities | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 3 | U.S. states and municipalities | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Financial Assets | ||
Marketable investments | 0 | 0 |
Level 3 | U.S. treasury | ||
Financial Assets | ||
Marketable investments | 0 | |
Level 3 | Money market funds | ||
Financial Assets | ||
Cash equivalents | $ 0 | $ 0 |
Investments and Fair Value of_8
Investments and Fair Value of Financial Instruments - Contingent Consideration (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Payments of contingent consideration liabilities | $ (1,186) | ||
Foreign currency remeasurement | (20) | ||
Ending balance | 0 | ||
Fair Value of Contingent Consideration | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Payment for contingent consideration, operating activities | $ 500 | ||
Payment for contingent consideration, financing activities | 700 | ||
Fair Value of Contingent Consideration | Measurement Input, Actual Revenue Results | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability balance | $ 1,200 | ||
Monte Carlo Simulation | Level 3 | Fair Value of Contingent Consideration | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 1,206 | 1,206 | |
Sales, general and administrative | Fair Value of Contingent Consideration | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in fair value | $ 0 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 64,468 | $ 45,341 |
Work in process | 16,007 | 22,099 |
Finished goods | 177,841 | 152,087 |
Inventories | $ 258,316 | $ 219,527 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payroll and employee-related cost | $ 58,295 | $ 50,083 |
Accrued expenses | 10,293 | 9,246 |
Sales return provision | 1,720 | 9,812 |
Product warranty | 3,965 | 2,896 |
Other acquisition-related costs | 3,000 | 3,000 |
Other accrued liabilities | 15,949 | 10,758 |
Total accrued liabilities | $ 93,222 | $ 85,795 |
Balance Sheet Components - Prod
Balance Sheet Components - Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at the beginning of the period | $ 2,896 | $ 2,318 |
Accruals of warranties issued | 2,207 | 1,589 |
Settlements of warranty claims | (1,138) | (1,011) |
Balance at the end of the period | $ 3,965 | $ 2,896 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-Average Amortization Period | 17 years | 16 years 7 months 6 days | |||||
Finite lived intangible assets: gross carrying amount | $ 13,947 | $ 13,947 | $ 14,452 | ||||
Accumulated amortization | (4,457) | (4,457) | (3,813) | ||||
Finite lived intangible assets: net | 9,490 | 9,490 | $ 10,639 | ||||
Total amortization of finite lived intangible assets | 273 | $ 272 | 830 | $ 791 | |||
Acquisition of intangible assets from a licensing agreement | $ 2,500 | ||||||
Impairment of intangible asset | $ 0 | 2,500 | |||||
Licensing Agreements | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible asset | 2,500 | ||||||
Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-Average Amortization Period | 15 years | 15 years | |||||
Finite lived intangible assets: gross carrying amount | 6,909 | $ 6,909 | $ 7,311 | ||||
Accumulated amortization | (1,958) | (1,958) | (1,706) | ||||
Finite lived intangible assets: net | 4,951 | $ 4,951 | $ 5,605 | ||||
Trade secrets and processes | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-Average Amortization Period | 20 years | 20 years | |||||
Finite lived intangible assets: gross carrying amount | 5,256 | $ 5,256 | $ 5,256 | $ 5,300 | |||
Accumulated amortization | (986) | (986) | (788) | ||||
Finite lived intangible assets: net | 4,270 | $ 4,270 | $ 4,468 | ||||
Other Intangible Assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-Average Amortization Period | 5 years | 5 years | |||||
Finite lived intangible assets: gross carrying amount | 1,782 | $ 1,782 | $ 1,885 | ||||
Accumulated amortization | (1,513) | (1,513) | (1,319) | ||||
Finite lived intangible assets: net | 269 | 269 | $ 566 | ||||
Cost of revenue | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Total amortization of finite lived intangible assets | 66 | 66 | 197 | 197 | |||
Sales, general and administrative | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Total amortization of finite lived intangible assets | $ 207 | $ 206 | $ 633 | $ 594 |
Goodwill (Details)
Goodwill (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 8,372,000 |
Foreign currency translation | (461,000) |
Goodwill | 7,911,000 |
Goodwill impairment | $ 0 |
Debt (Details)
Debt (Details) - Revolving Credit Facility - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Apr. 24, 2020 | |
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 100,000,000 | |
Line of credit, increase limit | $ 150,000,000 | |
Borrowings outstanding | $ 0 | |
Bank Of America And Citibank | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term (in years) | 1 year |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Sep. 30, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease term, lease not yet commenced | 13 years |
Total estimated least payments | $ 20.6 |
5 year renewal term | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term (in years) | 5 years |
15 year renewal term | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term (in years) | 15 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease Cost | ||||
Operating lease cost | $ 3,586 | $ 1,915 | $ 7,465 | $ 5,715 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 776 | 734 | 2,283 | 2,050 |
Interest on lease liabilities | 376 | 380 | 1,120 | 1,135 |
Variable lease cost | 1,601 | 1,342 | 4,427 | 4,058 |
Total lease costs | $ 6,339 | $ 4,371 | $ 15,295 | $ 12,958 |
Weighted Average Remaining Lease Term | ||||
Operating leases | 13 years 4 months 24 days | 9 years 3 months 18 days | 13 years 4 months 24 days | 9 years 3 months 18 days |
Finance leases | 12 years 6 months | 13 years 8 months 12 days | 12 years 6 months | 13 years 8 months 12 days |
Weighted Average Discount Rate | ||||
Operating leases | 4.94% | 6.16% | 4.94% | 6.16% |
Finance leases | 5.31% | 5.36% | 5.31% | 5.36% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Lease Payments | |
2021 | $ 3,385 |
2022 | 14,689 |
2023 | 14,562 |
2024 | 14,280 |
2025 | 14,269 |
Thereafter | 141,399 |
Total undiscounted lease payments(1) | 202,584 |
Less imputed interest | (56,884) |
Present value of lease liabilities | 145,700 |
Finance Lease Payments | |
2021 | 761 |
2022 | 3,089 |
2023 | 3,138 |
2024 | 3,188 |
2025 | 3,119 |
Thereafter | 26,274 |
Total undiscounted lease payments | 39,569 |
Less imputed interest | (11,167) |
Present value of lease liabilities | $ 28,402 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,214 | $ 5,649 |
Financing cash flows from finance leases | 1,056 | 3,071 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Right-of-use assets obtained in exchange for lease obligations | 100,178 | 1,086 |
Right-of-use assets obtained in exchange for finance lease obligations | $ 1,113 | $ 1,624 |
Commitments and Contingencies -
Commitments and Contingencies - Royalty Obligations (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cost of revenue | |||||
Other Commitments [Line Items] | |||||
Royalty expense | $ 0.6 | $ 0.7 | $ 1.7 | $ 1.8 | |
Royalty Agreement, March 2005 | |||||
Other Commitments [Line Items] | |||||
Extended term of agreement | 10 years | ||||
Increase in minimum annual royalty payments | $ 0.2 | ||||
Minimum quarterly royalty payments | $ 0.3 | $ 0.3 | |||
Royalty Agreement, April 2012 | |||||
Other Commitments [Line Items] | |||||
Term of agreement | 15 years | ||||
Royalty as a percent of sales | 5.00% |
Stockholder's Equity - Common S
Stockholder's Equity - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | May 27, 2020 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock upon underwritten public offering, net of issuance cost | $ 134,759 | |
Public Stock Offering | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock upon underwritten public offering, net of issuance cost (in shares) | 865,963 | |
Price per share (in USD per share) | $ 166 | |
Issuance of common stock upon underwritten public offering, net of issuance cost | $ 134,800 | |
Underwriting discounts and commissions | 8,600 | |
Other issuance costs | $ 400 |
Stockholder's Equity - Stock Op
Stockholder's Equity - Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,020,978 |
Options exercised (in shares) | shares | (143,826) |
Options cancelled (in shares) | shares | (150) |
Ending balance (in shares) | shares | 877,002 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 23.38 |
Options exercised (in dollars per share) | $ / shares | 14.99 |
Options cancelled (in dollars per share) | $ / shares | 19.07 |
Ending balance (in dollars per share) | $ / shares | $ 24.76 |
Stockholder's Equity - Restrict
Stockholder's Equity - Restricted Stock and Restricted Stock Units Activity (Details) - Restricted stock and restricted stock units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Unvested beginning balance (in shares) | 369,629 |
Granted (in shares) | 109,649 |
Vested (in shares) | (116,561) |
Canceled/Forfeited (in shares) | (14,466) |
Unvested and expected to vest ending balance (in shares) | 348,251 |
Weighted -Average Grant Date Fair Value | |
Unvested beginning balance (in dollars per share) | $ / shares | $ 163.03 |
Granted (in dollars per share) | $ / shares | 259.22 |
Vested (in dollars per share) | $ / shares | 155.53 |
Canceled/Forfeited (in dollars per share) | $ / shares | 190.80 |
Unvested and expected to vest ending balance (in dollars per share) | $ / shares | $ 194.67 |
Restricted stock and RSUs expected to vest (shares) | 331,274 |
Stockholder's Equity - Stock-ba
Stockholder's Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | $ 7,903 | $ 6,238 | $ 24,101 | $ 17,486 | |
Unrecognized compensation cost related to unvested share-based compensation arrangements | 55,400 | $ 55,400 | |||
Unrecognized compensation cost, expected recognition period (in years) | 3 years | ||||
Share-based compensation expense, capitalized in inventory | $ 1,200 | $ 1,700 | |||
Cost of revenue | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | 766 | 589 | 2,107 | 1,644 | |
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | 1,118 | 865 | 3,368 | 2,630 | |
Sales, general and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | $ 6,019 | $ 4,784 | $ 18,626 | $ 13,212 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 641,498 | $ 641,498 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: | ||||||||
Total other comprehensive (loss) income, net of tax | $ (1,422) | $ 754 | (2,966) | $ 2,198 | $ 2,478 | $ (2,251) | (3,634) | $ 2,425 |
Ending balance | 690,939 | 690,939 | ||||||
Marketable Investments | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 267 | 647 | 752 | 238 | 647 | 238 | ||
Other comprehensive (loss) income before reclassifications: | ||||||||
Other comprehensive income before reclassifications | (86) | (77) | (581) | 594 | ||||
Income tax effect — expense | 20 | 18 | 135 | (139) | ||||
Net of tax | (66) | (59) | (446) | 455 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: | ||||||||
Realized gain (loss) — marketable investments | 0 | 0 | 0 | 0 | ||||
Income tax effect — expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net of tax | 0 | 0 | 0 | 0 | ||||
Total other comprehensive (loss) income, net of tax | (66) | (59) | (446) | 455 | ||||
Ending balance | 201 | 267 | 693 | 752 | 201 | 693 | ||
Currency Translation Adjustments | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 62 | 1,894 | (2,849) | (2,562) | 1,894 | (2,562) | ||
Other comprehensive (loss) income before reclassifications: | ||||||||
Other comprehensive income before reclassifications | (1,356) | 2,257 | (3,188) | 1,970 | ||||
Income tax effect — expense | 0 | 0 | 0 | 0 | ||||
Net of tax | (1,356) | 2,257 | (3,188) | 1,970 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: | ||||||||
Realized gain (loss) — marketable investments | 0 | 0 | 0 | 0 | ||||
Income tax effect — expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net of tax | 0 | 0 | 0 | 0 | ||||
Total other comprehensive (loss) income, net of tax | (1,356) | 2,257 | (3,188) | 1,970 | ||||
Ending balance | (1,294) | 62 | (592) | (2,849) | (1,294) | (592) | ||
Total | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 329 | 2,541 | (2,097) | (2,324) | 2,541 | (2,324) | ||
Other comprehensive (loss) income before reclassifications: | ||||||||
Income tax effect — expense | 20 | 18 | 135 | (139) | ||||
Net of tax | (1,422) | 2,198 | (3,634) | 2,425 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to consolidated net (loss) income: | ||||||||
Realized gain (loss) — marketable investments | 0 | 0 | 0 | 0 | ||||
Income tax effect — expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net of tax | 0 | 0 | 0 | 0 | ||||
Total other comprehensive (loss) income, net of tax | (1,422) | 754 | $ (2,966) | 2,198 | 2,478 | $ (2,251) | (3,634) | 2,425 |
Ending balance | $ (1,093) | $ 329 | $ 101 | $ (2,097) | $ (1,093) | $ 101 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ 249 | $ 9,855 | $ (3,196) | $ 15,618 |
Effective tax rate (benefit) expense | (3.20%) | (49.90%) | (10.50%) | (41.60%) |
Net (Loss) Income Attributabl_3
Net (Loss) Income Attributable to Penumbra, Inc. Per Share - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income (loss) attributable to Penumbra, Inc. | $ 8,850 | $ (8,815) | $ 29,917 | $ (19,350) |
Weighted average shares used to compute net income (loss) attributable to common stockholders: | ||||
Basic (in shares) | 36,617,961 | 36,207,716 | 36,532,822 | 35,568,591 |
Potential dilutive stock-based options and awards (in shares) | 993,394 | 0 | 1,059,273 | 0 |
Diluted (in shares) | 37,611,355 | 36,207,716 | 37,592,095 | 35,568,591 |
Net income (loss) attributable to Penumbra, Inc. per share: | ||||
Basic (in dollars per share) | $ 0.24 | $ (0.24) | $ 0.82 | $ (0.54) |
Diluted (in dollars per share) | $ 0.24 | $ (0.24) | $ 0.80 | $ (0.54) |
Net (Loss) Income Attributabl_4
Net (Loss) Income Attributable to Penumbra, Inc. Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 6 | 1,800 | 27 | 1,900 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 190,117 | $ 151,076 | $ 543,579 | $ 393,514 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 134,834 | 109,656 | 383,306 | 283,473 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 55,283 | 41,420 | 160,273 | 110,041 |
Neuro | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 84,652 | 75,917 | 248,265 | 212,830 |
Vascular | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 105,465 | $ 75,159 | $ 295,314 | $ 180,684 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Sixense Enterprises Inc. | Oct. 01, 2021shares |
Subsequent Event [Line Items] | |
Shares issued for acquisition (in shares) | 661,877 |
Options issued in connection with acquisition (in shares) | 447,017 |
Uncategorized Items - pen-20210
Label | Element | Value |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ (1,198,000) |