Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ABMD | |
Entity Registrant Name | ABIOMED, INC. | |
Entity Central Index Key | 0000815094 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --03-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,460,884 | |
Entity File Number | 001-09585 | |
Entity Tax Identification Number | 04-2743260 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address, Address Line One | 22 CHERRY HILL DRIVE | |
Entity Address, City or Town | Danvers | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01923 | |
City Area Code | 978 | |
Local Phone Number | 646-1400 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 180,492 | $ 132,818 |
Short-term marketable securities | 663,829 | 625,789 |
Accounts receivable, net | 91,102 | 90,608 |
Inventories, net | 95,373 | 93,981 |
Prepaid expenses and other current assets | 29,563 | 33,277 |
Total current assets | 1,060,359 | 976,473 |
Long-term marketable securities | 159,876 | 220,089 |
Property and equipment, net | 198,478 | 202,490 |
Goodwill | 74,855 | 76,786 |
Other intangibles, net | 38,168 | 39,518 |
Deferred tax assets | 17,096 | 10,552 |
Other assets | 154,804 | 147,485 |
Total assets | 1,703,636 | 1,673,393 |
Current liabilities: | ||
Accounts payable | 34,797 | 35,346 |
Accrued expenses | 79,011 | 72,629 |
Deferred revenue | 23,624 | 26,362 |
Other current liabilities | 3,330 | 4,120 |
Total current liabilities | 140,762 | 138,457 |
Other long-term liabilities | 7,792 | 9,319 |
Contingent consideration | 18,151 | 21,510 |
Deferred tax liabilities | 735 | 781 |
Total liabilities | 167,440 | 170,067 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Class B Preferred Stock, $.01 par value Authorized - 1,000,000 shares; Issued and outstanding - none | ||
Common stock, $.01 par value 100,000 shares authorized; 48,229 and 47,929 shares issued as of December 31, 2021 and March 31, 2021, respectively 45,516 and 45,271 shares outstanding as of December 31, 2021 and March 31, 2021, respectively | 456 | 455 |
Additional paid in capital | 884,965 | 870,074 |
Retained earnings | 1,019,066 | 964,512 |
Treasury stock at cost - 2,713 and 2,658 shares as of December 31, 2021 and March 31, 2021, respectively | (330,020) | (304,555) |
Accumulated other comprehensive loss | (38,271) | (27,160) |
Total stockholders' equity | 1,536,196 | 1,503,326 |
Total liabilities and stockholders' equity | $ 1,703,636 | $ 1,673,393 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Class B Preferred Stock, par value | $ 0.01 | $ 0.01 |
Class B Preferred Stock, Authorized | 1,000,000 | 1,000,000 |
Class B Preferred Stock, Issued | 0 | 0 |
Class B Preferred Stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 48,382,000 | 48,258,000 |
Common stock, Outstanding | 45,567,000 | 45,545,000 |
Treasury stock, shares | 2,815,000 | 2,713,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 277,149 | $ 252,585 |
Costs and expenses: | ||
Cost of revenue | 52,626 | 45,188 |
Research and development | 40,477 | 37,708 |
Selling, general and administrative | 117,996 | 103,484 |
Acquired in-process research and development | 0 | 115,490 |
Costs and Expenses, Total | 211,099 | 301,870 |
Other (loss) income: | ||
Income (loss) from operations | 66,050 | (49,285) |
Interest and other income, net | 3,772 | 39,935 |
Income (loss) before income taxes | 69,822 | (9,350) |
Income tax provision | 15,268 | 17,175 |
Net income (loss) | $ 54,554 | $ (26,525) |
Net income (loss) per share - basic | $ 1.20 | $ (0.59) |
Weighted average shares outstanding - basic | 45,575 | 45,311 |
Net income (loss) per share - diluted | $ 1.19 | $ (0.59) |
Weighted average shares outstanding - diluted | 45,922 | 45,311 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 54,554 | $ (26,525) |
Other comprehensive loss | ||
Foreign currency translation (losses) gains | (8,729) | 83 |
Unrealized losses on derivative instrument | (384) | (217) |
Net unrealized losses on marketable securities, net of tax | (1,998) | (632) |
Other comprehensive loss | (11,111) | (766) |
Comprehensive income (loss) | $ 43,443 | $ (27,291) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) |
Beginning Balance at Mar. 31, 2021 | $ 1,329,675 | $ 453 | $ (288,030) | $ 800,690 | $ 828,007 | $ (11,445) |
Beginning Balance (in shares) at Mar. 31, 2021 | 45,270,948 | 2,658,454 | ||||
Restricted stock units issued | $ 1 | (1) | ||||
Restricted stock units issued (in shares) | 85,284 | |||||
Stock options exercised | 2,120 | $ 1 | 2,119 | |||
Stock options exercised (in shares) | 55,757 | |||||
Return of common stock to pay withholding taxes on restricted stock | (9,590) | $ (1) | $ (9,589) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (34,274) | 34,274 | ||||
Stock-based compensation expense | 12,608 | 12,608 | ||||
Stock repurchase program | $ 0 | |||||
Stock repurchase program, (in shares) | 0 | |||||
Other comprehensive loss | $ (766) | (766) | ||||
Net income (loss) | (26,525) | (26,525) | ||||
Ending Balance at Jun. 30, 2021 | 1,307,522 | $ 454 | $ (297,619) | 815,416 | 801,482 | (12,211) |
Ending Balance (in shares) at Jun. 30, 2021 | 45,377,715 | 2,692,728 | ||||
Beginning Balance at Mar. 31, 2022 | $ 1,503,326 | $ 455 | $ (304,555) | 870,074 | 964,512 | (27,160) |
Beginning Balance (in shares) at Mar. 31, 2022 | 45,545,000 | 45,545,438 | 2,713,125 | |||
Restricted stock units issued | $ 1 | $ 2 | (1) | |||
Restricted stock units issued (in shares) | 105,701 | |||||
Stock options exercised | $ 1,531 | $ 1 | 1,530 | |||
Stock options exercised (in shares) | 18,000 | 18,136 | ||||
Return of common stock to pay withholding taxes on restricted stock | $ (10,950) | $ (1) | $ (10,949) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (42,046) | 42,046 | ||||
Stock-based compensation expense | 13,362 | 13,362 | ||||
Stock repurchase program | $ (14,517) | $ (1) | $ (14,516) | |||
Stock repurchase program, (in shares) | (60,282) | 60,282 | (60,282) | |||
Other comprehensive loss | $ (11,111) | (11,111) | ||||
Net income (loss) | 54,554 | 54,554 | ||||
Ending Balance at Jun. 30, 2022 | $ 1,536,196 | $ 456 | $ (330,020) | $ 884,965 | $ 1,019,066 | $ (38,271) |
Ending Balance (in shares) at Jun. 30, 2022 | 45,567,000 | 45,566,947 | 2,815,453 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | ||
Net income (loss) | $ 54,554 | $ (26,525) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 6,620 | 6,907 |
Acquired in-process research & development | 0 | 115,490 |
Bad debt expense (recoveries) | 11 | (59) |
Stock-based compensation | 13,362 | 12,608 |
Write-down of inventory and other | 2,570 | 3,508 |
Accretion on marketable securities | 587 | 918 |
Change in fair value of other investments | (278) | (17,648) |
Gain on previously held interest in preCARDIA | 0 | (20,980) |
Deferred tax provision | (6,373) | 6,299 |
Change in fair value of contingent consideration | (3,359) | 871 |
Other non-cash operating activities | 1,080 | 751 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,881) | 8,763 |
Inventories | (6,510) | (5,770) |
Prepaid expenses and other assets | 3,117 | (8,697) |
Accounts payable | 1,438 | (4,762) |
Accrued expenses and other liabilities | 5,583 | (16,037) |
Deferred revenue | (2,418) | (278) |
Net cash provided by operating activities | 68,103 | 55,359 |
Investing activities: | ||
Purchases of marketable securities | (121,897) | (139,021) |
Proceeds from the sale and maturity of marketable securities and other | 141,385 | 123,823 |
Purchases of other investments | (4,591) | (3,866) |
Purchases of property and equipment | (6,783) | (7,170) |
Net cash provided by (used for) investing activities | 8,114 | (109,055) |
Financing activities: | ||
Proceeds from the exercise of stock options | 1,531 | 2,120 |
Taxes paid related to net share settlement upon vesting of stock awards | (10,950) | (9,590) |
Repurchase of common stock | (14,517) | 0 |
Net cash used for financing activities | (23,936) | (7,470) |
Effect of exchange rate changes on cash and cash equivalents | (4,607) | 3,910 |
Net increase (decrease) in cash and cash equivalents | 47,674 | (57,256) |
Cash and cash equivalents at beginning of period | 132,818 | 232,710 |
Cash and cash equivalents at end of period | 180,492 | 175,454 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds | 3,542 | 14,998 |
Supplemental disclosure of non-cash activities: | ||
Property and equipment in accounts payable and accrued expenses | 564 | 1,014 |
Right-of-use assets obtained in exchange for lease liabilities | 188 | 283 |
Precardia | ||
Investing activities: | ||
Payments for acquisition | $ 0 | $ (82,821) |
Nature of Business
Nature of Business | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1. Nature of Operations ABIOMED, Inc. (the “Company” or “ABIOMED”) is a leading provider of medical technology that provides circulatory support and oxygenation. The Company's products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. The Company’s products are used in the cardiac catheterization lab, or cath lab, by interventional cardiologists and in the heart surgery suite by cardiac surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty or heart surgery procedures. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summ ary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and in accordance with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 that has been filed with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of results for the interim periods presented. The results of operations for any interim period may not be indicative of results for the full fiscal year or any other subsequent period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates. There have been no changes in the Company’s significant accounting policies for the three months ended June 30, 2022 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 that has been filed with the SEC. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates. COVID-19 Pandemic The Company is subject to additional risks and uncertainties as a result of the ongoing novel coronavirus (“COVID-19”) pandemic. Since March 2020, the ongoing COVID-19 pandemic has adversely impacted and is likely to further adversely impact the Company’s business and markets, including the Company’s workforce and the operations of its customers, suppliers, and business partners. While the COVID-19 (including new variants of COVID-19) pandemic remains fluid and continues to evolve differently across various geographies, the Company believes it is likely to continue to experience variable impacts on its business. To ensure the health and safety of its global employees, the Company continues to offer onsite COVID-19 testing and vaccinations in order to maintain a safe working environment. The Company’s proactive testing and vaccination programs have reduced exposure with early detection and enabled its manufacturing facilities to operate at full capacity. The depth and extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations, financial condition and individual markets is dependent upon various factors, including the spread of additional variants; the availability of vaccinations, personal protective equipment, intensive care unit (“ICU”) and operating room capacity, and medical staff; and government interventions to reduce the spread of the virus. When COVID-19 infection rates spike in a particular region, the Company’s patient utilization volumes have generally been negatively impacted as hospitals face capacity limitations, staffing shortages and some in-patient treatments have been deferred. While patient utilization increased in the first quarter of fiscal year 2023, sales were impacted by slower than expected improvements in hospital staffing shortages. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business and geographies, including any impact on the Company’s customers, including the ongoing hospital labor shortages, employees, suppliers, vendors, business partners and distribution channels, as well as on procedures and the demand for its products by keeping apprised of local, regional, and global COVID-19 surges (including new variants of the virus). While the Company cannot reliably estimate the extent to which the COVID-19 pandemic may impact patient utilization and revenues of its products, the Company's focus is to increase patient utilization of its Impella devices. As of the date of issuance of Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” an amendment focused on increasing transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The Company adopted ASU 2021-10 as of April 1, 2022, on a prospective basis, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Effective No new accounting pronouncements issued or effective during the period had, or are expected to have, a material impact on the consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions Acquisition of preCARDIA, Inc. The Company acquired 100 % interest in preCARDIA , Inc. (“preCARDIA”) on May 28, 2021. preCARDIA is a developer of a proprietary catheter and controller that is expected to complement the Company’s product portfolio to expand options for patients with acute decompensated heart failure (“ADHF”). The preCARDIA system is uniquely designed to rapidly treat ADHF-related volume overload by effectively reducing cardiac filling pressures and promoting decongestion to improve overall cardiac and renal function. The Company determined that substantially all of the fair value was concentrated in the acquired in-process research and development asset in accordance with ASC 805 Business Combinations. As such, the acquisition was accounted for as an asset acquisition. The Company acquired preCARDIA for a purchase price of $ 115.2 million. The purchase price included cash consideration of $ 82.8 million for the remaining interest in preCARDIA, paid to the selling shareholders and for transaction costs associated with the acquisition, and $ 32.4 million representing the Company’s previously owned minority interest in preCARDIA. The Company recognized a gain of $ 21.0 million related to its previously owned minority interest in preCARDIA within the condensed consolidated statement of operations for the three months ended June 30, 2021. In connection with the acquisition, the Company acquired net assets of $ 115.2 million, which included $ 115.5 million related to the fair value of the in-process research and development asset and $ 0.3 million for net liabilities assumed. Since the acquired technology platform is pre-commercial and has not reached technical feasibility, the cost of the in-process research and development asset was expensed, resulting in a charge of $ 115.5 million to the condensed consolidated statement of operations for the three months ended June 30, 2021 . In connection with the acquisition, the Company acquired a license agreement, under which there is a potential payout of $ 5 million based on the achievement of a commercial milestone. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. For purposes of the diluted net income (loss) per share calculation, potential dilutive securities are excluded from the calculation if their effect would be anti-dilutive. As such, basic and diluted net loss per share are the same for periods with a net loss. The Company’s basic and diluted net income (loss) per share were as follows: For the Three Months Ended June 30, 2022 2021 Net income (loss) per share – basic (in thousands, except per share data) Net income (loss) $ 54,554 $ ( 26,525 ) Weighted average shares – basic 45,575 45,311 Net income (loss) per share – basic $ 1.20 $ ( 0.59 ) For the Three Months Ended June 30, 2022 2021 Net income (loss) per share – diluted (in thousands, except per share data) Net income (loss) $ 54,554 ( 26,525 ) Weighted average shares – basic 45,575 45,311 Effect of dilutive securities 347 — Weighted average shares – diluted 45,922 45,311 Net income (loss) per share – diluted $ 1.19 $ ( 0.59 ) For the three months ended June 30, 2022 and 2021, approximately 0.2 million and 1.1 million shares of common stock underlying outstanding securities related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive or such shares are contingently issuable upon meeting performance criteria in the periods presented. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 5. Revenue Recognition Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer. Product revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Service revenue is generally recognized over time as the services are rendered to the customer based on the extent of progress towards completion of the performance obligation. The Company recognizes service revenue over the term of the service contract. Services are expected to be transferred to the customer throughout the term of the contract and the Company believes recognizing revenue ratably over the term of the contract best depicts the transfer of value to the customer. Revenue generated from preventative maintenance calls is recognized at a point in time when the services are provided to the customer. Revenue from the sale of products and services are evidenced by either a contract with the customer or a valid purchase order and an invoice which includes all relevant terms of sale and shipment of product or service provided has been incurred. The Company performs a review of each specific customer's credit worthiness and ability to pay prior to acceptance as a customer. Further, the Company performs periodic reviews of its customers' creditworthiness prospectively. Disaggregation of Revenue Revenue is disaggregated from contracts between product revenue and service and other revenue and by geography, which the Company believes best depicts how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. The Company generally sells its products and services through a direct sales force in the U.S. and Germany and through direct sales and distribution agreements in other international markets outside the U.S. (e.g., Japan, Europe, Canada, Latin America, Asia-Pacific, Middle East). The following table disaggregates the Company’s revenue by products and services: For the Three Months Ended June 30, 2022 2021 (in thousands) Product revenue $ 264,472 $ 241,474 Service and other revenue 12,677 11,111 Total revenue $ 277,149 $ 252,585 The following table disaggregates the Company’s revenue by geographic location: For the Three Months Ended June 30, 2022 2021 (in thousands) United States $ 226,520 $ 207,143 Europe 33,836 32,237 Japan 13,235 11,284 Rest of world 3,558 1,921 Outside the U.S. 50,629 45,442 Total revenue $ 277,149 $ 252,585 Variable Consideration Returns Reserve The Company estimates an allowance for future sales returns based on historical return experience, which requires judgment. 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 the related product revenue is recognized. The Company estimates product return liabilities using the expected value method based on its historical sales information and other factors that it believes could significantly impact its expected returns. The Company’s returns reserve was not material as of June 30, 2022 and March 31, 2022. Rebates and Discounts The Company provides certain customers with rebates and discounts that are defined in the Company’s contractual arrangements with customers and are recorded as a reduction of revenue in the period the related revenue is recognized with a corresponding liability recorded and included in accrued expenses in the accompanying condensed consolidated balance sheets. Rebates normally result from performance-based offers that are primarily based on attaining contractually specified sales volumes as well as product usage. Discounts are normally from early payment incentives. The Company estimates the amount of rebates and discounts based on an estimate of the third-party’s sales and the respective rebate or discount defined in the customer contractual arrangement. Contract Balances Contract balances represent amounts presented in the condensed consolidated balance sheets when either the Company has transferred goods or services to the customer, or the customer has paid consideration to the Company under the contract. These contract balances include trade accounts receivable and deferred revenue. Deferred Revenue The Company’s deferred revenue balance was $ 23.6 million and $ 26.4 million as of June 30, 2022 and March 31, 2022, respectively. The deferred revenue balance is comprised of product shipments in which the Company recognizes revenue when the customer obtains control of the product, and preventative maintenance service contracts in which revenue is recognized ratably over the term of the service contract. During the three months ended June 30, 2022, the Company recognized $ 13.7 million of revenue that was included in the deferred revenue balance as of March 31, 2022. During the three months ended June 30, 2021, the Company recognized $ 9.2 million of revenue that was included in the deferred revenue balance as of March 31, 2022. Costs to Obtain or Fulfill a Customer Contract The Company has certain costs to obtain and fulfill a customer contract, such as commissions and shipping costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. These costs are included in selling, general, and administrative expenses. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Note 6. Financial Instruments Cash Equivalents and Marketable Securities The Company’s cash equivalents and marketable securities at June 30, 2022 and March 31, 2022 are invested in the following: Amortized Gross Gross Fair Market Cost Gains Losses Value June 30, 2022 (in thousands) Money market funds $ 59,296 $ — $ — $ 59,296 Commercial paper 5,997 — ( 2 ) 5,995 Total cash equivalents 65,293 — ( 2 ) 65,291 Short-term U.S. Treasury mutual fund securities 359,213 — ( 3,010 ) 356,203 Short-term government-backed securities 160,288 1 ( 1,875 ) 158,414 Short-term corporate debt securities 33,110 — ( 179 ) 32,931 Short-term commercial paper 116,738 — ( 457 ) 116,281 Total short-term marketable securities 669,349 1 ( 5,521 ) 663,829 Long-term U.S. Treasury mutual fund securities 48,631 — ( 1,428 ) 47,203 Long-term government-backed securities 105,838 — ( 3,026 ) 102,812 Long-term corporate debt securities 10,185 — ( 324 ) 9,861 Total long-term marketable securities 164,654 — ( 4,778 ) 159,876 Total cash equivalents and marketable securities $ 899,296 $ 1 $ ( 10,301 ) $ 888,996 Amortized Gross Gross Fair Market Cost Gains Losses Value March 31, 2022: (in thousands) Money market funds $ 32,955 $ — $ — $ 32,955 Commercial paper 28,961 — ( 3 ) 28,958 Total cash equivalents 61,916 — ( 3 ) 61,913 Short-term U.S. Treasury mutual fund securities 287,010 — ( 1,384 ) 285,626 Short-term government-backed securities 131,954 1 ( 554 ) 131,401 Short-term corporate debt securities 61,108 36 ( 113 ) 61,031 Short-term commercial paper 148,128 — ( 397 ) 147,731 Total short-term marketable securities 628,200 37 ( 2,448 ) 625,789 Long-term U.S. Treasury mutual fund securities 89,168 — ( 1,796 ) 87,372 Long-term government-backed securities 126,150 — ( 3,378 ) 122,772 Long-term corporate debt securities 10,226 — ( 281 ) 9,945 Total long-term marketable securities 225,544 — ( 5,455 ) 220,089 Total cash equivalents and marketable securities $ 915,660 $ 37 $ ( 7,906 ) $ 907,791 Gross realized gains and losses on sales of marketable securities were not material for the three months ended June 30, 2022 and 2021. The securities that the Company invests in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Unrealized losses as of June 30, 2022 are primarily due to changes in interest rates and credit spreads. Accordingly, the Company has not recorded an allowance for credit losses. No marketable securities have been in a continuous material unrealized loss position for greater than twelve months as of June 30, 2022. Derivative Instruments In October 2019, the Company entered into an intercompany agreement in which it loaned 85.0 million Euro to Abiomed Europe GMBH, its German subsidiary. In conjunction with this intercompany loan agreement, the Company entered into a cross-currency swap agreement to convert the notional amount of the intercompany loan of 85.0 million Euro to its U.S. dollar equivalent, or $ 93.5 million. The objective of this cross-currency swap is to hedge the variability of cash flows related to the forecasted interest and principal payments on the Euro denominated fixed rate intercompany loan against changes in the exchange rate between the U.S. dollar and the Euro and has been designated as a cash flow hedge. The Company will make interest payments in Euro and receive interest in U.S. dollars from the counterparty. Upon maturity, the Company will pay the principal amount of the intercompany loan in Euro and receive the U.S. dollar equivalent from the counterparty. The cross-currency swap is carried on the consolidated balance sheets at fair value, and changes to the derivative instrument are recorded as unrealized gains or losses in accumulated other comprehensive income (loss). These amounts are reclassified into the consolidated statements of operations in the same period in which the related hedged item (intercompany loan agreement) affects earnings. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The following table summarizes the terms of the cross-currency swap agreement as of June 30, 2022 (amounts in thousands): Effective Date Maturity Fixed Rate Aggregate Notional Amount Pay EUR October 15, 2019 October 15, 2024 2.75 % EUR 85,000 Receive U.S.$ 4.64 % USD 93,457 The following table presents the fair value of the cross-currency swap (amounts in thousands): Derivatives designated as hedging instruments under ASC 815 Balance Sheet classification June 30, 2022 March 31, 2022 Cross-currency swap Other assets (other long-term liabilities) $ 4,508 $ ( 489 ) The Company has structured its cross-currency swap agreement to be 100% effective and, as a result, there was no net impact to earnings resulting from hedge ineffectiveness. The change in fair value of the cross-currency swap during the three months ended June 30, 2022 was mainly due to fluctuations in the Euro to the U.S. dollar exchange rates. For the three months ended June 30, 2022 and 2021, the Company recorded income related to the interest rate differential of the cross-currency swap of $ 0.5 million and $ 0.4 million, respectively in interest and other income, net, within the condensed consolidated statements of operations. Fair Value Hierarchy Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three categories: Level 1 primarily consists of financial instruments whose values are based on quoted market prices such as exchange-traded instruments and listed equities. Level 2 includes financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 is comprised of unobservable inputs that are supported by little or no market activity. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total June 30, 2022: (in thousands) Assets Money market funds $ 59,296 $ — $ — $ 59,296 Commercial paper — 5,995 — 5,995 Short-term U.S. Treasury mutual fund securities — 356,203 — 356,203 Short-term government-backed securities — 158,414 — 158,414 Short-term corporate debt securities — 32,931 — 32,931 Short-term commercial paper — 116,281 — 116,281 Long-term U.S. Treasury mutual fund securities — 47,203 — 47,203 Long-term government-backed securities — 102,812 — 102,812 Long-term corporate debt securities — 9,861 — 9,861 Investment in Shockwave Medical 56,730 — — 56,730 Cross-currency swap agreement — 4,508 — 4,508 Liabilities Contingent consideration — — 18,151 18,151 Level 1 Level 2 Level 3 Total March 31, 2022: (in thousands) Assets Money market funds $ 32,955 $ — $ — $ 32,955 Commercial paper — 28,958 — 28,958 Short-term U.S. Treasury mutual fund securities — 285,626 — 285,626 Short-term government-backed securities — 131,401 — 131,401 Short-term corporate debt securities — 61,031 — 61,031 Short-term commercial paper — 147,731 — 147,731 Long-term U.S. Treasury mutual fund securities — 87,372 — 87,372 Long-term government-backed securities — 122,772 — 122,772 Long-term corporate debt securities — 9,945 — 9,945 Investment in Shockwave Medical 61,535 — — 61,535 Liabilities Cross-currency swap agreement — 489 — 489 Contingent consideration — — 21,510 21,510 The Company has determined that the estimated fair value of its money market funds and its investment in Shockwave Medical, a publicly traded medical device company, are reported as Level 1 financial assets as they are valued at quoted market prices in active markets. The investment in Shockwave Medical is classified within other assets in the condensed consolidated balance sheets. The Company has determined that the estimated fair value of its commercial paper, U.S. Treasury mutual fund securities, government-backed securities, corporate debt securities and cross-currency swap agreement are reported as Level 2 financial assets and liabilities as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability. The Company evaluates transfers between fair value levels at the end of each reporting period. There were no transfers of assets or liabilities between fair value levels during the three months ended June 30, 2022. Level 3 Assets and Liabilities Other Investments The Company periodically makes investments in medical device companies that focus on heart failure and heart pumps and other medical device technologies. The Company measures these equity investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment. The Company monitors any events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes and records adjustments as needed. The Company’s other investments are classified as a Level 3 assets and are not included in the fair value table above. The carrying value of the Company’s portfolio of other investments and the change in the balance for the three months ended June 30, 2022 are as follows: (in thousands) Balance, March 31, 2022 $ 70,314 Additions 4,591 Change in fair value, net 4,731 Balance, June 30, 2022 $ 79,636 Change in fair value, net represents upward and downward adjustments due to observable price changes and related foreign currency fluctuations, which are reflected within interest and other income, net in the Company's condensed consolidated statements of operations. Contingent Consideration Contingent consideration represents potential milestones that the Company may pay as additional consideration related to the acquisition of ECP Entwicklungsgesellschaft mbH (“ECP”) in July 2014 and the acquisition of Breethe in April 2020. Changes in fair value of contingent consideration are reflected within research and development expenses in the Company’s condensed consolidated statements of operations. There is no assurance that any of the conditions for the milestone payments will be met. The components of contingent consideration are as follows: June 30, 2022 March 31, 2022 (in thousands) ECP $ 11,651 $ 12,010 Breethe 6,500 9,500 Total contingent consideration $ 18,151 $ 21,510 ECP In July 2014, the Company acquired ECP and AIS GmbH Aachen Innovative Solutions (“AIS”) for $ 13.0 million in cash, with additional potential payouts totaling $ 15.0 million based on the achievement of CE Mark approval in the European Union and a revenue-based milestone related to the development of the future Impella ECP TM expandable catheter pump technology. These potential milestone payments may be made, at the Company’s option, by a combination of cash or ABIOMED common stock. The Company uses a combination of an income approach, based on various revenue and cost assumptions and the application of a probability to each outcome, and a Monte-Carlo valuation model, both of which consider significant unobservable inputs. As it relates to the CE Mark approval milestone, probabilities were applied to each potential scenario and the resulting values were discounted using a rate that considers weighted average cost of capital as well as a specific risk premium associated with the riskiness of the earn out itself, the related projections, and the overall business. The revenue-based milestone is valued using a Monte-Carlo valuation model, which simulates estimated future revenues during the earn out-period using management’s best estimates. Key unobservable inputs include the discount rate used to present value the projected revenues and cash flows (ranging from 4.7 % to 16.5 %), the probability of achieving the various technical, regulatory and commercial milestones (estimated to range from 10 % to 55 %) and projected revenues based on a Monte-Carlo valuation ( 94 %) which are based on the Company’s most recent internal operational budgets and long-range strategic plans. Breethe In April 2020, the Company acquired Breethe for $ 55.0 million in cash, with additional potential payouts up to a maximum of $ 55.0 million payable based on the achievement of certain technical, regulatory and commercial milestones. The Company uses a combination of an income approach, based on various revenue and cost assumptions and the application of a probability to each outcome, and a Monte-Carlo valuation model, both of which consider significant unobservable inputs. As it relates to the regulatory milestones, probabilities were applied to each potential scenario and the resulting values were discounted using a rate that considers weighted average cost of capital as well as a specific risk premium associated with the riskiness of the earn out itself, the related projections, and the overall business. The commercial milestones are valued using a Monte-Carlo valuation model, which simulates estimated future revenues during the earn out-period using management’s best estimates. Key unobservable inputs include the discount rates used to present value the projected revenues and cash flows (ranging from 4.7 % to 12.6 %), the probability of achieving the various technical, regulatory and commercial milestones (estimated to range from 10 % to 50 %) and projected revenues based on a Monte-Carlo valuation ( 12 %) which are based on the Company’s operational forecasts and long-range strategic plans. Contingent consideration is classified as a Level 3 liability as the estimated fair value of the contingent consideration related to the acquisitions of ECP and Breethe require significant management judgment or estimation. The following table summarizes the change in fair value, as determined by Level 3 inputs of the contingent consideration for the three months ended June 30, 2022: (in thousands) Balance, March 31, 2022 $ 21,510 Change in fair value ( 3,359 ) Balance, June 30, 2022 $ 18,151 The change in fair value of the contingent consideration was primarily due to estimates related to development timelines and the passage of time on the fair value measurement of milestones. The significant unobservable inputs used in the fair value of the Company’s contingent consideration are the discount rate and forecasted financial information, including the probability of achievement. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a significantly higher (lower) fair value measurement. As of June 30, 2022 and March 31, 2022, the present value of expected payments related to the Company’s contingent consideration was $ 18.2 million and $ 21.5 million, respectively. The undiscounted value of the payments, assuming that all contingencies are met, would be $ 67.5 million as of both June 30, 2022 and March 31, 2022 . |
Inventories, net
Inventories, net | 3 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 7. Inventories, net The components of inventories, net are as follows: June 30, 2022 March 31, 2022 (in thousands) Raw materials and supplies $ 30,970 $ 28,326 Work-in-progress 38,707 34,788 Finished goods 25,696 30,867 Inventories, net $ 95,373 $ 93,981 The Company’s inventories relate to its Impella ® and Abiomed Breethe OXY-1 System (“Breethe OXY-1”) product platforms. Finished goods and work-in-process inventories consist of direct material, labor and overhead. |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 8. Property and Equipment, net The components of property and equipment, net are as follows: June 30, 2022 March 31, 2022 (in thousands) Land $ 10,391 $ 10,643 Building and building improvements 153,191 152,374 Leasehold improvements 1,787 1,810 Machinery, equipment and computer software 104,845 104,407 Furniture and fixtures 15,443 15,420 Construction in progress 18,862 19,898 Total cost 304,519 304,552 Less accumulated depreciation ( 106,041 ) ( 102,062 ) Property and equipment, net $ 198,478 $ 202,490 Depreciation expense related to property and equipment was $ 6.1 million and $ 6.4 million for the three months ended June 30, 2022 and 2021 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 3 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets, net | Note 9. Goodwill and Other Intangible Assets, net Goodwill The carrying amount of goodwill as of June 30, 2022 and March 31, 2022 was $ 74.9 million and $ 76.8 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, in May 2005, ECP in July 2014 and Breethe in April 2020. The carrying value of goodwill and the change in the balance for the three months ended June 30, 2022 are as follows: (in thousands) Balance, March 31, 2022 $ 76,786 Foreign currency translation ( 1,931 ) Balance, June 30, 2022 $ 74,855 The Company evaluates goodwill at least annually on October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on goodwill. Other Intangible Assets, net Other intangible assets, net consists of the following: June 30, 2022 Weighted Average Amortization Period Cost Accumulated Amortization Net Carrying Value (in thousands) Finite-lived intangible assets Developed technology 13.4 $ 27,000 $ ( 3,000 ) $ 24,000 Indefinite-lived intangible assets In-process research and development 14,168 — 14,168 Total $ 41,168 $ ( 3,000 ) $ 38,168 March 31, 2022 Weighted Average Amortization Period Cost Accumulated Amortization Net Carrying Value (in thousands) Finite-lived intangible assets Developed technology 13.6 $ 27,000 $ ( 2,550 ) $ 24,450 Indefinite-lived intangible assets In-process research and development 15,068 — 15,068 Total $ 42,068 $ ( 2,550 ) $ 39,518 The Company’s finite-lived intangible asset represents developed technology associated with the estimated fair value of the Breethe OXY-1 System. During the year ended March 31, 2021, the Company reclassified the in-process research and development (“IPR&D”) asset to developed technology upon receiving U.S. Food and Drug Administration or FDA 510(k) clearance of the Breethe OXY-1 System and began amortizing the intangible asset on a straight-line basis over an estimated useful life of 15 years. The Company’s IPR&D asset represents the estimated fair value of the Impella ECP TM related to the acquisition of ECP and AIS, in July 2014. The estimated fair value of the IPR&D asset at the acquisition date was determined using a probability-weighted income approach, which discounts expected future cash flows to present value. The projected cash flow estimates for the future Impella ECP TM expandable catheter pump were based on certain key assumptions, including estimates of future revenue and expenses, taking into account the stage of development of the technology at the acquisition date and the time and resources needed to complete development. The Company evaluates the other intangible assets at least annually on October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on other intangible assets. The change in the IPR&D balance for the three months ended June 30, 2022 , related to the impact of foreign currency translation. |
Other Assets
Other Assets | 3 Months Ended |
Jun. 30, 2022 | |
Other Assets [Abstract] | |
Other Assets | Note 10. Other Assets The components of other assets are as follows: June 30, 2022 March 31, 2022 (in thousands) Investment in Shockwave Medical $ 56,730 $ 61,535 Other investments (Note 6) 79,636 70,314 Operating lease right of use assets 8,365 9,518 Other intangible assets and other assets 10,073 6,118 Total other assets $ 154,804 $ 147,485 Investment in Shockwave Medical The fair value of the Company’s investment in Shockwave Medical, a publicly-traded medical device company, was $ 56.7 million and $ 61.5 million as of June 30, 2022 and March 31, 2022, respectively. During the three months ended June 30, 2022 and 2021, the Company recorded a loss of $ 4.8 million and a gain of $ 17.6 million, respectively in interest and other income, net. Operating Lease Right of Use Assets The Company has lease agreements for real estate including corporate offices and warehouse space, vehicles and certain equipment. The balance of operating lease right-of-use assets included in other assets was $ 8.4 million and $ 9.5 million as of June 30, 2022 and March 31, 2022, respectively Other Long-Term Assets The Company’s other long-term assets is comprised primarily of license manufacturing rights to certain technology from third parties and prepayments related to the Company’s clinical trial activities. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 11. Accrued Expenses Accrued expenses consist of the following: June 30, 2022 March 31, 2022 (in thousands) Employee compensation $ 42,665 $ 50,649 Sales and income taxes 14,555 1,931 Research and development 8,486 7,337 Marketing 2,231 2,289 Warranty 1,912 1,935 Professional, legal and accounting fees 1,656 1,479 Other 7,506 7,009 $ 79,011 $ 72,629 Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits. Other includes returns reserve, allowance for rebates and discounts and other miscellaneous accrued expenses. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 12. Stockholders’ Equity Class B Preferred Stock The Company has authorized 1,000,000 shares of Class B Preferred Stock, $ .01 par value, of which the board of directors can set the designation, rights and privileges. No shares of Class B Preferred Stock have been issued or are outstanding. Stock Repurchase Program In August 2019, the Company’s Board of Directors authorized a stock repurchase program for up to $ 200.0 million of shares of its common stock. Under this stock repurchase program, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The stock repurchase program has no time limit and may be suspended for periods or discontinued at any time. The Company is funding the stock repurchase program with its available cash and marketable securities. The remaining authorization under the stock repurchase program was $ 89.3 million as of June 30, 2022. The following table provides stock repurchase activities during the quarter: For the Three Months Ended June 30, 2022 2021 Shares repurchased 60,282 — Average price per share $ 240.79 — Value of shares repurchased (in millions) $ 14.5 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (in thousands): Three Months Ended June 30, 2022 Foreign Currency Translation Losses Unrealized Gains (Losses) on Derivative Instrument Net Unrealized Losses on Marketable Securities, net of tax Total Balance, March 31, 2022 $ ( 20,562 ) $ 125 $ ( 6,723 ) $ ( 27,160 ) Other comprehensive loss ( 8,729 ) ( 384 ) ( 1,998 ) ( 11,111 ) Balance, June 30, 2022 ( 29,291 ) ( 259 ) ( 8,721 ) ( 38,271 ) Three Months Ended June 30, 2021 Foreign Currency Translation (Losses) Gains Unrealized Gains (Losses) on Derivative Instrument Net Unrealized Gains (Losses) on Marketable Securities, net of tax Total Balance, March 31, 2021 $ ( 14,718 ) $ 1,904 $ 1,369 $ ( 11,445 ) Other comprehensive income (loss) 83 ( 217 ) ( 632 ) ( 766 ) Balance, June 30, 2021 ( 14,635 ) 1,687 737 ( 12,211 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 13. Stock-Based Compensation The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for each of the three months ended June 30, 2022 and 2021: For the Three Months Ended June 30, 2022 2021 (in thousands) Cost of revenue $ 1,396 $ 1,030 Research and development 2,798 2,109 Selling, general and administrative 9,168 9,469 $ 13,362 $ 12,608 Stock Options The following table summarizes the stock option activity for the three months ended June 30, 2022: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 595 $ 178.54 5.55 Granted 2 275.58 Exercised ( 18 ) 84.37 Cancelled and expired ( 1 ) 284.46 Outstanding at end of period 578 $ 181.61 5.37 $ 50,807 Exercisable at end of period 503 $ 168.81 4.89 $ 50,099 Options vested and expected to vest at end of period 578 $ 181.61 5.37 $ 50,807 Stock options generally vest and become exercisable annually over three years . The remaining unrecognized stock-based compensation expense for unvested stock option awards as of June 30, 2022, was approximately $ 6.5 million and the weighted-average period over which this cost is expected to be recognized is 1.8 years. The aggregate intrinsic value of stock options exercised was $ 3.7 million for the three months ended June 30, 2022. The total cash received as a result of employee stock option exercises for the three months ended June 30, 2022, was approximately $ 1.5 million. The Company estimates the fair value of each stock option granted at the grant date using the Black-Scholes option valuation model. The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted were as follows: For the Three Months Ended June 30, 2022 2021 Weighted average grant-date fair value $ 121.69 $ 103.03 Valuation assumptions: Risk-free interest rate 3.01 % 0.79 % Expected option life (years) 5.54 4.20 Expected volatility 43.51 % 44.28 % Restricted Stock Units The following table summarizes activity of restricted stock units for the three months ended June 30, 2022: Weighted Average Number of Grant Date Shares Fair Value (in thousands) (per share) Restricted stock units at beginning of period 307 $ 274.32 Granted (1) 258 266.07 Vested ( 106 ) 282.80 Forfeited ( 3 ) 272.26 Restricted stock units at end of period 456 $ 267.00 (1) Includes 19,000 performance-based awards granted due to greater than 100% target vesting. The weighted average grant-date fair value for restricted stock units granted during the three months ended June 30, 2022 was $ 266.1 . The total fair value of restricted stock units vested during the three months ended June 30, 2022 was $ 29.9 million. Restricted stock units generally vest annually, over three years . The remaining unrecognized compensation expense for outstanding restricted stock units, including performance-based and market-based awards, as of June 30, 2022 was $ 100.1 million and the estimated weighted-average period over which this cost is expected to be recognized is 2.4 years. As of June 30, 2022, the Company recognized compensation expense based on the probable outcomes related to the prescribed performance targets on the outstanding awards. The remaining unrecognized compensation expense for outstanding performance-based and market-based restricted stock units as of June 30, 2022 was $ 33.7 million and the weighted-average period over which this cost is expected to be recognized is 2.2 years. Performance-Based Awards The Company grants performance-based restricted stock units to certain executive officers and employees, which vest upon achievement of prescribed service-based milestones by the award recipients and the achievement of prescribed performance milestones by the Company, as defined in the respective agreements. Market-Based Awards The Company grants market-based restricted stock units to certain executive officers and employees. These restricted stock units vest upon achievement of prescribed service-based milestones, relative total shareholder return (“TSR”) goals by the Company and the achievement of prescribed performance milestones by the Company, as defined in the respective agreements. The Company used a Monte-Carlo simulation model to estimate the grant-date fair value of the TSR restricted stock units. The fair value related to these awards is recorded as compensation expense over the ves ting term , regardless of the actual TSR outcome reached. The table below sets forth the assumptions used to value the outstanding market-based restricted stock units and the estimated grant-date fair value: May 2021 May 2020 Risk-free interest rate 0.3 % 0.2 % Expected volatility 44.8 % 35.5 % Dividend yield — — Remaining performance period (years) 2.8 2.9 Estimated fair value per share $ 292.40 $ 349.28 Target performance (number of shares) 25,172 15,425 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes The Company’s income tax provision was $ 15.3 million and $ 17.2 million for the three months ended June 30, 2022 and 2021, respectively. The Company’s effective tax rate was 21.9 % and 183.7 % for the three months ended June 30, 2022 and 2021, respectively. The effective tax rate differs from the statutory federal income tax rate of 21.0 % primarily due to state and foreign income taxes and permanent differences offset by credits and excess tax benefits for the three months ended June 30, 2022 and a non-deductible charge for in-process research and development related to the preCARDIA acquisition offset by excess tax benefits related to share-based compensation for the three months ended June 30, 2021. The Company recognized excess tax benefits associated with stock-based awards of $ 1.0 million and $ 3.6 million for the three months ended June 30, 2022 and 2021, respectively. The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. The outcome of these audits cannot be predicted with certainty. The Company’s most recent completed income tax audits were in the U.S., relating to fiscal year 2016 and in Germany, which covered fiscal years 2016 through 2019. These tax audits did not materially impact the Company’s financial statements. All other tax years remain subject to examination by the IRS, state and foreign tax authorities . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitment s and Contingencies From time to time, the Company is involved in legal and administrative proceedings and claims of various types. In some actions, the claimants seek damages, as well as other relief, which, if granted, would require significant expenditures. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in liability to the Company and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. Maquet Matters The Company has been litigating certain patents owned by Maquet Cardiovascular LLC (“Maquet”) in two separate cases pending in the U.S. District Court for the District of Massachusetts (“D. Mass” or “the Court”) since 2016. In May 2016, the Company filed a declaratory judgment action (the “2016 Action”) alleging that it does not infringe Maquet’s patent. Following the claim construction (“Markman”) order issued in November 2018, and prior to the close of discovery, both parties filed series of motions. On September 30, 2021, the Court granted the Company’s Motion for Summary Judgement (“MSJ”) for non-infringement of the two claims remaining in this case. Maquet moved for reconsideration of the MSJ order, which the Court denied on November 30, 2021. The Court has not entered a final judgement; therefore, the case is not yet appealable to the Federal Circuit. In November 2017, Maquet filed a new action in D. Mass alleging that the Company’s Impella 2.5 ® , Impella CP ® , and Impella 5.0 ® heart pumps infringe certain claims of another patent in the same family (the seventh patent overall between both cases). The Parties submitted Markman briefs and argued their respective positions in November 2019. A Markman order has not yet issued, and discovery remains ongoing. The asserted patents in both cases expired on September 1, 2020. The Company is unable to estimate the potential liability with respect to the legal matters noted above. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of the legal proceedings, including the significant number of legal and factual issues still to be resolved in the Maquet patent disputes. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Note 16. Segment and Geographic Information Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision-maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM (determined to be the Chief Executive Officer) reviews the business, makes investment and resource allocation decisions, and assesses operating performance based on the Company’s consolidated operating results. The Company operates as one reportable segment. Geographic Information Sales outside the U.S. accounted for 18 % of total revenue for each of the three months ended June 30, 2022 and 2021. Geographic information about long-lived assets, net excluding goodwill and other intangible assets is as follows: June 30, 2022 March 31, 2022 (in thousands) United States $ 146,573 $ 147,403 Europe 55,832 59,368 Japan 4,438 5,237 Total $ 206,843 $ 212,008 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Note 17. Employee Benefit Plans The Company sponsors voluntary 401(k) retirement savings plans for eligible employees in the U.S. and Japan. The Company matches the contributions of participating employees on the basis of percentages specified in each plan. Total expense related to the Company's matching contributions to the plans was $ 1.4 million and $ 1.2 million for the three months ended June 30, 2022 and 2021 , respectively. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
COVID-19 Pandemic | COVID-19 Pandemic The Company is subject to additional risks and uncertainties as a result of the ongoing novel coronavirus (“COVID-19”) pandemic. Since March 2020, the ongoing COVID-19 pandemic has adversely impacted and is likely to further adversely impact the Company’s business and markets, including the Company’s workforce and the operations of its customers, suppliers, and business partners. While the COVID-19 (including new variants of COVID-19) pandemic remains fluid and continues to evolve differently across various geographies, the Company believes it is likely to continue to experience variable impacts on its business. To ensure the health and safety of its global employees, the Company continues to offer onsite COVID-19 testing and vaccinations in order to maintain a safe working environment. The Company’s proactive testing and vaccination programs have reduced exposure with early detection and enabled its manufacturing facilities to operate at full capacity. The depth and extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations, financial condition and individual markets is dependent upon various factors, including the spread of additional variants; the availability of vaccinations, personal protective equipment, intensive care unit (“ICU”) and operating room capacity, and medical staff; and government interventions to reduce the spread of the virus. When COVID-19 infection rates spike in a particular region, the Company’s patient utilization volumes have generally been negatively impacted as hospitals face capacity limitations, staffing shortages and some in-patient treatments have been deferred. While patient utilization increased in the first quarter of fiscal year 2023, sales were impacted by slower than expected improvements in hospital staffing shortages. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business and geographies, including any impact on the Company’s customers, including the ongoing hospital labor shortages, employees, suppliers, vendors, business partners and distribution channels, as well as on procedures and the demand for its products by keeping apprised of local, regional, and global COVID-19 surges (including new variants of the virus). While the Company cannot reliably estimate the extent to which the COVID-19 pandemic may impact patient utilization and revenues of its products, the Company's focus is to increase patient utilization of its Impella devices. As of the date of issuance of |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” an amendment focused on increasing transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The Company adopted ASU 2021-10 as of April 1, 2022, on a prospective basis, and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective No new accounting pronouncements issued or effective during the period had, or are expected to have, a material impact on the consolidated financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The Company’s basic and diluted net income (loss) per share were as follows: For the Three Months Ended June 30, 2022 2021 Net income (loss) per share – basic (in thousands, except per share data) Net income (loss) $ 54,554 $ ( 26,525 ) Weighted average shares – basic 45,575 45,311 Net income (loss) per share – basic $ 1.20 $ ( 0.59 ) For the Three Months Ended June 30, 2022 2021 Net income (loss) per share – diluted (in thousands, except per share data) Net income (loss) $ 54,554 ( 26,525 ) Weighted average shares – basic 45,575 45,311 Effect of dilutive securities 347 — Weighted average shares – diluted 45,922 45,311 Net income (loss) per share – diluted $ 1.19 $ ( 0.59 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue by Major Business Line and Geographic Location | The following table disaggregates the Company’s revenue by products and services: For the Three Months Ended June 30, 2022 2021 (in thousands) Product revenue $ 264,472 $ 241,474 Service and other revenue 12,677 11,111 Total revenue $ 277,149 $ 252,585 The following table disaggregates the Company’s revenue by geographic location: For the Three Months Ended June 30, 2022 2021 (in thousands) United States $ 226,520 $ 207,143 Europe 33,836 32,237 Japan 13,235 11,284 Rest of world 3,558 1,921 Outside the U.S. 50,629 45,442 Total revenue $ 277,149 $ 252,585 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents and Marketable Securities | The Company’s cash equivalents and marketable securities at June 30, 2022 and March 31, 2022 are invested in the following: Amortized Gross Gross Fair Market Cost Gains Losses Value June 30, 2022 (in thousands) Money market funds $ 59,296 $ — $ — $ 59,296 Commercial paper 5,997 — ( 2 ) 5,995 Total cash equivalents 65,293 — ( 2 ) 65,291 Short-term U.S. Treasury mutual fund securities 359,213 — ( 3,010 ) 356,203 Short-term government-backed securities 160,288 1 ( 1,875 ) 158,414 Short-term corporate debt securities 33,110 — ( 179 ) 32,931 Short-term commercial paper 116,738 — ( 457 ) 116,281 Total short-term marketable securities 669,349 1 ( 5,521 ) 663,829 Long-term U.S. Treasury mutual fund securities 48,631 — ( 1,428 ) 47,203 Long-term government-backed securities 105,838 — ( 3,026 ) 102,812 Long-term corporate debt securities 10,185 — ( 324 ) 9,861 Total long-term marketable securities 164,654 — ( 4,778 ) 159,876 Total cash equivalents and marketable securities $ 899,296 $ 1 $ ( 10,301 ) $ 888,996 Amortized Gross Gross Fair Market Cost Gains Losses Value March 31, 2022: (in thousands) Money market funds $ 32,955 $ — $ — $ 32,955 Commercial paper 28,961 — ( 3 ) 28,958 Total cash equivalents 61,916 — ( 3 ) 61,913 Short-term U.S. Treasury mutual fund securities 287,010 — ( 1,384 ) 285,626 Short-term government-backed securities 131,954 1 ( 554 ) 131,401 Short-term corporate debt securities 61,108 36 ( 113 ) 61,031 Short-term commercial paper 148,128 — ( 397 ) 147,731 Total short-term marketable securities 628,200 37 ( 2,448 ) 625,789 Long-term U.S. Treasury mutual fund securities 89,168 — ( 1,796 ) 87,372 Long-term government-backed securities 126,150 — ( 3,378 ) 122,772 Long-term corporate debt securities 10,226 — ( 281 ) 9,945 Total long-term marketable securities 225,544 — ( 5,455 ) 220,089 Total cash equivalents and marketable securities $ 915,660 $ 37 $ ( 7,906 ) $ 907,791 |
Schedule of Cross-Currency Rate Swap Derivatives Agreement | The following table summarizes the terms of the cross-currency swap agreement as of June 30, 2022 (amounts in thousands): Effective Date Maturity Fixed Rate Aggregate Notional Amount Pay EUR October 15, 2019 October 15, 2024 2.75 % EUR 85,000 Receive U.S.$ 4.64 % USD 93,457 |
Schedule of Fair Value of Company's Derivative Instrument | The following table presents the fair value of the cross-currency swap (amounts in thousands): Derivatives designated as hedging instruments under ASC 815 Balance Sheet classification June 30, 2022 March 31, 2022 Cross-currency swap Other assets (other long-term liabilities) $ 4,508 $ ( 489 ) |
Financial Instruments Measured at Fair Value | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total June 30, 2022: (in thousands) Assets Money market funds $ 59,296 $ — $ — $ 59,296 Commercial paper — 5,995 — 5,995 Short-term U.S. Treasury mutual fund securities — 356,203 — 356,203 Short-term government-backed securities — 158,414 — 158,414 Short-term corporate debt securities — 32,931 — 32,931 Short-term commercial paper — 116,281 — 116,281 Long-term U.S. Treasury mutual fund securities — 47,203 — 47,203 Long-term government-backed securities — 102,812 — 102,812 Long-term corporate debt securities — 9,861 — 9,861 Investment in Shockwave Medical 56,730 — — 56,730 Cross-currency swap agreement — 4,508 — 4,508 Liabilities Contingent consideration — — 18,151 18,151 Level 1 Level 2 Level 3 Total March 31, 2022: (in thousands) Assets Money market funds $ 32,955 $ — $ — $ 32,955 Commercial paper — 28,958 — 28,958 Short-term U.S. Treasury mutual fund securities — 285,626 — 285,626 Short-term government-backed securities — 131,401 — 131,401 Short-term corporate debt securities — 61,031 — 61,031 Short-term commercial paper — 147,731 — 147,731 Long-term U.S. Treasury mutual fund securities — 87,372 — 87,372 Long-term government-backed securities — 122,772 — 122,772 Long-term corporate debt securities — 9,945 — 9,945 Investment in Shockwave Medical 61,535 — — 61,535 Liabilities Cross-currency swap agreement — 489 — 489 Contingent consideration — — 21,510 21,510 |
Schedule Of Portfolio Of Equity Method and Other Investments and Change in Balance | The carrying value of the Company’s portfolio of other investments and the change in the balance for the three months ended June 30, 2022 are as follows: (in thousands) Balance, March 31, 2022 $ 70,314 Additions 4,591 Change in fair value, net 4,731 Balance, June 30, 2022 $ 79,636 |
Components of Contingent Consideration Liabilities | The components of contingent consideration are as follows: June 30, 2022 March 31, 2022 (in thousands) ECP $ 11,651 $ 12,010 Breethe 6,500 9,500 Total contingent consideration $ 18,151 $ 21,510 |
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs | The following table summarizes the change in fair value, as determined by Level 3 inputs of the contingent consideration for the three months ended June 30, 2022: (in thousands) Balance, March 31, 2022 $ 21,510 Change in fair value ( 3,359 ) Balance, June 30, 2022 $ 18,151 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, net | The components of inventories, net are as follows: June 30, 2022 March 31, 2022 (in thousands) Raw materials and supplies $ 30,970 $ 28,326 Work-in-progress 38,707 34,788 Finished goods 25,696 30,867 Inventories, net $ 95,373 $ 93,981 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment, net | The components of property and equipment, net are as follows: June 30, 2022 March 31, 2022 (in thousands) Land $ 10,391 $ 10,643 Building and building improvements 153,191 152,374 Leasehold improvements 1,787 1,810 Machinery, equipment and computer software 104,845 104,407 Furniture and fixtures 15,443 15,420 Construction in progress 18,862 19,898 Total cost 304,519 304,552 Less accumulated depreciation ( 106,041 ) ( 102,062 ) Property and equipment, net $ 198,478 $ 202,490 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Value of Goodwill and Change in Balance | The carrying value of goodwill and the change in the balance for the three months ended June 30, 2022 are as follows: (in thousands) Balance, March 31, 2022 $ 76,786 Foreign currency translation ( 1,931 ) Balance, June 30, 2022 $ 74,855 |
Other Intangible Assets | Other intangible assets, net consists of the following: June 30, 2022 Weighted Average Amortization Period Cost Accumulated Amortization Net Carrying Value (in thousands) Finite-lived intangible assets Developed technology 13.4 $ 27,000 $ ( 3,000 ) $ 24,000 Indefinite-lived intangible assets In-process research and development 14,168 — 14,168 Total $ 41,168 $ ( 3,000 ) $ 38,168 March 31, 2022 Weighted Average Amortization Period Cost Accumulated Amortization Net Carrying Value (in thousands) Finite-lived intangible assets Developed technology 13.6 $ 27,000 $ ( 2,550 ) $ 24,450 Indefinite-lived intangible assets In-process research and development 15,068 — 15,068 Total $ 42,068 $ ( 2,550 ) $ 39,518 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Other Assets [Abstract] | |
Summary of Components of Other Assets | The components of other assets are as follows: June 30, 2022 March 31, 2022 (in thousands) Investment in Shockwave Medical $ 56,730 $ 61,535 Other investments (Note 6) 79,636 70,314 Operating lease right of use assets 8,365 9,518 Other intangible assets and other assets 10,073 6,118 Total other assets $ 154,804 $ 147,485 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: June 30, 2022 March 31, 2022 (in thousands) Employee compensation $ 42,665 $ 50,649 Sales and income taxes 14,555 1,931 Research and development 8,486 7,337 Marketing 2,231 2,289 Warranty 1,912 1,935 Professional, legal and accounting fees 1,656 1,479 Other 7,506 7,009 $ 79,011 $ 72,629 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Activity | The following table provides stock repurchase activities during the quarter: For the Three Months Ended June 30, 2022 2021 Shares repurchased 60,282 — Average price per share $ 240.79 — Value of shares repurchased (in millions) $ 14.5 — |
Schedule of Accumulated Other Comprehensive Income Loss | The components of accumulated other comprehensive loss are as follows (in thousands): Three Months Ended June 30, 2022 Foreign Currency Translation Losses Unrealized Gains (Losses) on Derivative Instrument Net Unrealized Losses on Marketable Securities, net of tax Total Balance, March 31, 2022 $ ( 20,562 ) $ 125 $ ( 6,723 ) $ ( 27,160 ) Other comprehensive loss ( 8,729 ) ( 384 ) ( 1,998 ) ( 11,111 ) Balance, June 30, 2022 ( 29,291 ) ( 259 ) ( 8,721 ) ( 38,271 ) Three Months Ended June 30, 2021 Foreign Currency Translation (Losses) Gains Unrealized Gains (Losses) on Derivative Instrument Net Unrealized Gains (Losses) on Marketable Securities, net of tax Total Balance, March 31, 2021 $ ( 14,718 ) $ 1,904 $ 1,369 $ ( 11,445 ) Other comprehensive income (loss) 83 ( 217 ) ( 632 ) ( 766 ) Balance, June 30, 2021 ( 14,635 ) 1,687 737 ( 12,211 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for each of the three months ended June 30, 2022 and 2021: For the Three Months Ended June 30, 2022 2021 (in thousands) Cost of revenue $ 1,396 $ 1,030 Research and development 2,798 2,109 Selling, general and administrative 9,168 9,469 $ 13,362 $ 12,608 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the three months ended June 30, 2022: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 595 $ 178.54 5.55 Granted 2 275.58 Exercised ( 18 ) 84.37 Cancelled and expired ( 1 ) 284.46 Outstanding at end of period 578 $ 181.61 5.37 $ 50,807 Exercisable at end of period 503 $ 168.81 4.89 $ 50,099 Options vested and expected to vest at end of period 578 $ 181.61 5.37 $ 50,807 |
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted | The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted were as follows: For the Three Months Ended June 30, 2022 2021 Weighted average grant-date fair value $ 121.69 $ 103.03 Valuation assumptions: Risk-free interest rate 3.01 % 0.79 % Expected option life (years) 5.54 4.20 Expected volatility 43.51 % 44.28 % |
Restricted Stock Units | |
Summary of Restricted Stock Units Activity | The following table summarizes activity of restricted stock units for the three months ended June 30, 2022: Weighted Average Number of Grant Date Shares Fair Value (in thousands) (per share) Restricted stock units at beginning of period 307 $ 274.32 Granted (1) 258 266.07 Vested ( 106 ) 282.80 Forfeited ( 3 ) 272.26 Restricted stock units at end of period 456 $ 267.00 (1) Includes 19,000 performance-based awards granted due to greater than 100% target vesting. |
Summary of Assumptions Used To Value Awards And Estimated Grant-Date Fair Value | The table below sets forth the assumptions used to value the outstanding market-based restricted stock units and the estimated grant-date fair value: May 2021 May 2020 Risk-free interest rate 0.3 % 0.2 % Expected volatility 44.8 % 35.5 % Dividend yield — — Remaining performance period (years) 2.8 2.9 Estimated fair value per share $ 292.40 $ 349.28 Target performance (number of shares) 25,172 15,425 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Long-Lived Assets by Geographic Location | Geographic information about long-lived assets, net excluding goodwill and other intangible assets is as follows: June 30, 2022 March 31, 2022 (in thousands) United States $ 146,573 $ 147,403 Europe 55,832 59,368 Japan 4,438 5,237 Total $ 206,843 $ 212,008 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
May 28, 2021 | Apr. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||
Fair value of in-process research and development | $ 0 | $ 115,490 | ||
Pre C A R D I A Inc | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business acquisition interests acquired percentage | 100% | |||
Payments to acquire businesses | $ 115,200 | |||
Potential payouts payments | 5,000 | |||
Cash given to repurchase of shares from shareholders | 82,800 | |||
Business acquisition, transaction costs | 32,400 | |||
Gain on previously owned minority interest | 21,000 | |||
Net asset acquired | 115,200 | |||
Fair value of in-process research and development | 115,500 | |||
Net liabilities assumed | $ 300 | |||
Breethe | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments to acquire businesses | $ 55,000 | |||
Maximum | Breethe | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Potential payouts payments | $ 55,000 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 54,554 | $ (26,525) |
Weighted average shares – basic | 45,575 | 45,311 |
Net income per share – basic | $ 1.20 | $ (0.59) |
Effect of dilutive securities | 347 | |
Weighted average shares – diluted | 45,922 | 45,311 |
Net income (loss) per share - diluted | $ 1.19 | $ (0.59) |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Shares excluded from the calculation of diluted weighted average shares outstanding | 0.2 | 1.1 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue by Major Business Line and Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 277,149 | $ 252,585 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 226,520 | 207,143 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 33,836 | 32,237 |
Japan [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13,235 | 11,284 |
Rest of world [member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,558 | 1,921 |
Outside the U.S. [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 50,629 | 45,442 |
Product [member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 264,472 | 241,474 |
Service and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 12,677 | $ 11,111 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue | $ 23,624 | $ 26,362 | |
Deferred Revenue, Revenue Recognized | $ 13,700 | $ 9,200 |
Investable Cash Equivalents and
Investable Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 899,296 | $ 915,660 |
Gross Unrealized Gains | 1 | 37 |
Gross Unrealized Losses | 10,301 | 7,906 |
Fair Market Value | 888,996 | 907,791 |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 65,293 | 61,916 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 3 |
Fair Market Value | 65,291 | 61,913 |
Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 669,349 | 628,200 |
Gross Unrealized Gains | 1 | 37 |
Gross Unrealized Losses | 5,521 | 2,448 |
Fair Market Value | 663,829 | 625,789 |
Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 164,654 | 225,544 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,778 | 5,455 |
Fair Market Value | 159,876 | 220,089 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Market Value | 59,296 | 32,955 |
Money Market Funds | Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 59,296 | 32,955 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 59,296 | 32,955 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Market Value | 5,995 | 28,958 |
Commercial Paper | Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 5,997 | 28,961 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 3 |
Fair Market Value | 5,995 | 28,958 |
Commercial Paper | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 116,738 | 148,128 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 457 | 397 |
Fair Market Value | 116,281 | 147,731 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 359,213 | 287,010 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,010 | 1,384 |
Fair Market Value | 356,203 | 285,626 |
U.S. Treasury mutual fund securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 48,631 | 89,168 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,428 | 1,796 |
Fair Market Value | 47,203 | 87,372 |
Government-backed securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 160,288 | 131,954 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 1,875 | 554 |
Fair Market Value | 158,414 | 131,401 |
Government-backed securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 105,838 | 126,150 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,026 | 3,378 |
Fair Market Value | 102,812 | 122,772 |
Corporate Debt Securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 33,110 | 61,108 |
Gross Unrealized Gains | 0 | 36 |
Gross Unrealized Losses | 179 | 113 |
Fair Market Value | 32,931 | 61,031 |
Corporate Debt Securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 10,185 | 10,226 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 324 | 281 |
Fair Market Value | $ 9,861 | $ 9,945 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | |||||
Apr. 30, 2020 USD ($) | Jul. 31, 2014 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) | Mar. 31, 2022 USD ($) | Oct. 31, 2019 EUR (€) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Present value of expected payments related to contingent consideration | $ 18,151 | $ 21,510 | |||||
Level 3 | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Present value of expected payments related to contingent consideration | 18,200 | 21,500 | |||||
Undiscounted value of payments | $ 67,500 | $ 67,500 | |||||
Ecp | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Payments to acquire businesses | $ 13,000 | ||||||
Potential payouts payments | $ 15,000 | ||||||
Operational budget and long range strategic plans rate | 0.94 | ||||||
Ecp | Minimum [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Discount rate | 0.047 | 0.047 | |||||
Commercial milestones probabilities rate | 10% | ||||||
Ecp | Maximum | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Discount rate | 0.165 | 0.165 | |||||
Commercial milestones probabilities rate | 55% | ||||||
Breethe | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Payments to acquire businesses | $ 55,000 | ||||||
Operational budget and long range strategic plans rate | 0.12 | ||||||
Breethe | Minimum [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Discount rate | 0.047 | 0.047 | |||||
Commercial milestones probabilities rate | 10% | ||||||
Breethe | Maximum | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Potential payouts payments | $ 55,000 | ||||||
Discount rate | 0.126 | 0.126 | |||||
Commercial milestones probabilities rate | 50% | ||||||
Intercompany Agreement [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Loan to subsidiary | € | € 85 | ||||||
Cross Currency Interest Rate Contract | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Derivative notional amount | $ 93,500 | € 85 | |||||
Other income (expense), net | $ 500 | $ 400 |
Schedule of Cross-Currency Rate
Schedule of Cross-Currency Rate Swap Derivatives (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Pay EUR | |
Effective Date | Oct. 15, 2019 |
Maturity | Oct. 15, 2024 |
Fixed Rate | 2.75% |
Derivative notional amount | $ 85,000 |
Receive U.S $ | |
Fixed Rate | 4.64% |
Derivative notional amount | $ 93,457 |
Schedule of Fair Value of Compa
Schedule of Fair Value of Company's Derivative Instrument (Detail) - Cross Currency Interest Rate Contract - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Other Assets | ||
Fair Value | $ 4,508 | |
other long-term liabilities | ||
Fair Value | $ (489) |
Financial Instruments Measured
Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 888,996 | $ 907,791 |
Contingent consideration | 18,151 | 21,510 |
Cross Currency Interest Rate Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative fair value | 4,508 | (489) |
Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 663,829 | 625,789 |
Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 159,876 | 220,089 |
Shockwave Medical | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,730 | 61,535 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 59,296 | 32,955 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 5,995 | 28,958 |
Commercial Paper | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 116,281 | 147,731 |
Level 1 | Shockwave Medical | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,730 | 61,535 |
Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 59,296 | 32,955 |
Level 2 | Cross Currency Interest Rate Contract | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative fair value | 4,508 | (489) |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 5,995 | 28,958 |
Level 2 | Commercial Paper | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 116,281 | 147,731 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration | 18,151 | 21,510 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 356,203 | 285,626 |
U.S. Treasury mutual fund securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 47,203 | 87,372 |
U.S. Treasury mutual fund securities | Level 2 | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 356,203 | 285,626 |
U.S. Treasury mutual fund securities | Level 2 | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 47,203 | 87,372 |
Government-backed securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 158,414 | 131,401 |
Government-backed securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 102,812 | 122,772 |
Government-backed securities | Level 2 | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 158,414 | 131,401 |
Government-backed securities | Level 2 | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 102,812 | 122,772 |
Corporate Debt Securities | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 32,931 | 61,031 |
Corporate Debt Securities | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 9,861 | 9,945 |
Corporate Debt Securities | Level 2 | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 32,931 | 61,031 |
Corporate Debt Securities | Level 2 | Long Term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 9,861 | $ 9,945 |
Schedule of Portfolio of Equity
Schedule of Portfolio of Equity Method and Other Investments and Change in Balance (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning Balance | $ 70,314 |
Additions | 4,591 |
Change in fair value | 4,731 |
Ending Balance | $ 79,636 |
Schedule of Components of Conti
Schedule of Components of Contingent Consideration Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Total contingent consideration | $ 18,151 | $ 21,510 |
ECP | ||
Total contingent consideration | 11,651 | 12,010 |
Breethe | ||
Total contingent consideration | $ 6,500 | $ 9,500 |
Change in Fair Value of Conting
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | |
Beginning balance | $ 21,510 |
Change in fair value | (3,359) |
Ending balance | $ 18,151 |
Components of Inventories, net
Components of Inventories, net (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 30,970 | $ 28,326 |
Work-in-progress | 38,707 | 34,788 |
Finished goods | 25,696 | 30,867 |
Inventories, net | $ 95,373 | $ 93,981 |
Property and Equipment, net - C
Property and Equipment, net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 10,391 | $ 10,643 |
Building and building improvements | 153,191 | 152,374 |
Leasehold improvements | 1,787 | 1,810 |
Machinery and equipment | 104,845 | 104,407 |
Furniture and fixtures | 15,443 | 15,420 |
Construction in progress | 18,862 | 19,898 |
Total cost | 304,519 | 304,552 |
Less accumulated depreciation | (106,041) | (102,062) |
Property and equipment, net | $ 198,478 | $ 202,490 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 6.1 | $ 6.4 |
Goodwill And Other Intangible O
Goodwill And Other Intangible Other Assets, net - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill | $ 74,855,000 | $ 76,786,000 |
Accumulated impairment loss, goodwill | 0 | |
Accumulated impairment losses on IPR&D assets | $ 0 | |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Estimated useful life | 15 years |
Carrying Value of Goodwill and
Carrying Value of Goodwill and Change in Balance (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 76,786 |
Foreign currency translation | (1,931) |
Ending balance | $ 74,855 |
Other Intangible Assets, net (D
Other Intangible Assets, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Mar. 31, 2022 | |
Goodwill [Line Items] | ||
Other intangible assets, Total cost | $ 41,168 | $ 42,068 |
Other Intangible Assets, Gross, accumulated amortization | (3,000) | (2,550) |
Other intangibles, net | 38,168 | 39,518 |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross carrying amount. finite lived intangible assets, cost | $ 27,000 | $ 27,000 |
Gross carrying amount. finite lived intangible assets, weighted average useful life | 13 years 4 months 24 days | 13 years 7 months 6 days |
Gross carrying amount. finite lived intangible assets, Accumulated amortization | $ (3,000) | $ (2,550) |
Gross carrying amount, finite lived intangible assets net carrying value | 24,000 | 24,450 |
In Process Research and Development | ||
Goodwill [Line Items] | ||
Gross carrying amount. infinite lived intangible assets, cost | 14,168 | 15,068 |
Gross carrying amount, indefinite lived intangible assets net carrying value | $ 14,168 | $ 15,068 |
Other Assets - Summary of Compo
Other Assets - Summary of Components of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Investment in Shockwave Medical | $ 56,730 | $ 61,535 |
Other investments (Note 6) | 79,636 | 70,314 |
Operating lease right of use assets | 8,365 | 9,518 |
Other intangible assets and other assets | 10,073 | 6,118 |
Total other assets | $ 154,804 | $ 147,485 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Goodwill [Line Items] | |||
Investment in Shockwave Medical | $ 56,730 | $ 61,535 | |
Operating lease right of use assets | 8,365 | 9,518 | |
Shockwave Medical | |||
Goodwill [Line Items] | |||
Investment in Shockwave Medical | 56,700 | $ 61,500 | |
Shockwave Medical | Other Income (Expense) | |||
Goodwill [Line Items] | |||
Gain (loss) recorded in other income (expense) | $ (4,800) | $ 17,600 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Leases [Abstract] | ||
Operating lease right of use assets | $ 8,365 | $ 9,518 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 42,665 | $ 50,649 |
Sales and income taxes | 14,555 | 1,931 |
Research and development | 8,486 | 7,337 |
Professional, legal, and accounting fees | 1,656 | 1,479 |
Warranty | 1,912 | 1,935 |
Marketing | 2,231 | 2,289 |
Other | 7,506 | 7,009 |
Accrued expenses | $ 79,011 | $ 72,629 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Aug. 31, 2019 |
Stockholders' Equity Note [Abstract] | |||
Class B Preferred Stock, par value | $ 0.01 | $ 0.01 | |
Class B Preferred Stock, Authorized | 1,000,000 | 1,000,000 | |
Class B Preferred Stock, Issued | 0 | 0 | |
Class B Preferred Stock, outstanding | 0 | 0 | |
Stock repurchase program, authorized amount | $ 200 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 89.3 |
Schedule of Stock Repurchase Ac
Schedule of Stock Repurchase Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Shares repurchased | 60,282 | 0 |
Average price per share | $ 240.79 | $ 0 |
Value of shares repurchased (in millions) | $ 14,517 | $ 0 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Shareholders Equity [Line Items] | ||
Beginning Balance | $ 1,503,326 | $ 1,329,675 |
Ending Balance | 1,536,196 | 1,307,522 |
Foreign Currency Translation (Losses) Gains | ||
Shareholders Equity [Line Items] | ||
Beginning Balance | (20,562) | (14,718) |
Other comprehensive income (loss) | (8,729) | 83 |
Ending Balance | (29,291) | (14,635) |
Unrealized Gains (Losses) on Derivative Instruments | ||
Shareholders Equity [Line Items] | ||
Beginning Balance | 125 | 1,904 |
Other comprehensive income (loss) | (384) | (217) |
Ending Balance | (259) | 1,687 |
Net Unrealized Gains (Losses) on Marketable Securities, net of Tax | ||
Shareholders Equity [Line Items] | ||
Beginning Balance | (6,723) | 1,369 |
Other comprehensive income (loss) | (1,998) | (632) |
Ending Balance | (8,721) | 737 |
Accumulated Other Comprehensive (Loss) | ||
Shareholders Equity [Line Items] | ||
Beginning Balance | (27,160) | (11,445) |
Other comprehensive income (loss) | (11,111) | (766) |
Ending Balance | $ (38,271) | $ (12,211) |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 13,362 | $ 12,608 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,396 | 1,030 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 2,798 | 2,109 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 9,168 | $ 9,469 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Mar. 31, 2021 | |
Options | ||
Outstanding at beginning of period | ||
Granted | 2 | |
Exercised | (18) | |
Cancelled and expired | (1) | |
Outstanding at end of period | 578 | 595 |
Exercisable at end of period | 503 | |
Options vested and expected to vest at end of period | 578 | |
Outstanding at beginning of period | ||
Granted | $ 275.58 | |
Exercised | 84.37 | |
Cancelled and expired | 284.46 | |
Outstanding at end of period | 181.61 | $ 178.54 |
Exercisable at end of period | 168.81 | |
Options vested and expected to vest at end of period | $ 181.61 | |
Outstanding | 5 years 4 months 13 days | 5 years 6 months 18 days |
Exercisable at end of period | 4 years 10 months 20 days | |
Options vested and expected to vest at end of period | 5 years 4 months 13 days | |
Outstanding at end of period | $ 50,807 | |
Exercisable at end of period | 50,099 | |
Options vested and expected to vest at end of period | $ 50,807 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
May 31, 2021 | May 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 2 months 12 days | ||||
Aggregate intrinsic value of options exercised in period | $ 3,700 | ||||
Proceeds from the exercise of stock options | 1,531 | $ 2,120 | |||
Fair value of units vested | $ 29,900 | ||||
Target performance (number of shares) | 25,172 | 15,425 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized stock-based compensation expense | $ 6,500 | ||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 9 months 18 days | ||||
Compensation expense period description | The fair value related to these awards is recorded as compensation expense over the vesting term | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized stock-based compensation expense | $ 100,100 | ||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | ||||
Weighted average grant-date fair value | [1] | $ 266.07 | |||
Target performance (number of shares) | [1] | 258 | |||
Performance And Market Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense | $ 33,700 | ||||
[1] Includes 19,000 performance-based awards granted due to greater than 100% target vesting. |
Summary of Weighted Average Gra
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | ||
May 31, 2021 | May 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Valuation assumptions: | ||||
Risk-free interest rate | 0.30% | 0.20% | ||
Expected option life (years) | 2 years 9 months 18 days | 2 years 10 months 24 days | ||
Expected volatility | 44.80% | 35.50% | ||
Stock Options | ||||
Valuation assumptions: | ||||
Weighted average grant-date fair value | $ 121.69 | $ 103.03 | ||
Risk-free interest rate | 3.01% | 0.79% | ||
Expected option life (years) | 5 years 6 months 14 days | 4 years 2 months 12 days | ||
Expected volatility | 43.51% | 44.28% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | ||
May 31, 2021 | May 31, 2020 | Jun. 30, 2022 | ||
Number of Shares | ||||
Granted (1) | 25,172 | 15,425 | ||
Restricted Stock Units | ||||
Number of Shares | ||||
Beginning Balance | 307 | |||
Granted (1) | [1] | 258 | ||
Vested | (106) | |||
Forfeited | (3) | |||
Ending Balance | 456,000 | |||
Weighted Average Grant Date Fair Value | ||||
Beginning Balance | $ 274.32 | |||
Granted (1) | [1] | 266.07 | ||
Vested | 282.80 | |||
Forfeited | 272.26 | |||
Ending Balance | $ 267 | |||
[1] Includes 19,000 performance-based awards granted due to greater than 100% target vesting. |
Summary of Assumptions Used To
Summary of Assumptions Used To Value Awards And Estimated Grant-Date Fair Value (Detail) - $ / shares | 1 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.30% | 0.20% |
Expected volatility | 44.80% | 35.50% |
Remaining performance period (years) | 2 years 9 months 18 days | 2 years 10 months 24 days |
Estimated fair value per share | $ 292.40 | $ 349.28 |
Target performance (number of shares) | 25,172 | 15,425 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 15,268 | $ 17,175 |
Effective income tax rate | 21.90% | 183.70% |
U.S. federal statutory corporate tax rate | 21% | 21% |
Excess tax benefits from stock-based awards | $ 1,000 | $ 3,600 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) - Segment | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Customer Concentration Risk | Revenue | Intercompany Agreement [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue accounted | 18% | 18% |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Revenues Based on Location of Legal Entity and Information on Long-Lived Assets and Net Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 206,843 | $ 212,008 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 146,573 | 147,403 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 55,832 | 59,368 |
Japan [member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 4,438 | $ 5,237 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
401(k) Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1.4 | $ 1.2 |