Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 27, 2019 | Oct. 21, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-30235 | |
Entity Registrant Name | EXELIXIS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3257395 | |
Entity Central Index Key | 0000939767 | |
Current Fiscal Year End Date | --01-03 | |
Entity Address, Address Line One | 1851 Harbor Bay Parkway | |
Entity Address, City or Town | Alameda, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94502 | |
City Area Code | 650 | |
Local Phone Number | 837-7000 | |
Title of 12(b) Security | Common Stock $.001 Par Value per Share | |
Trading Symbol | EXEL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 303,846,306 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 242,317 | $ 314,775 | |
Short-term investments | 518,350 | 378,559 | |
Trade receivables, net | 169,788 | 162,771 | |
Other receivables | 13,801 | 16,056 | |
Inventory, net | 13,366 | 9,838 | |
Prepaid expenses and other current assets | 14,490 | 15,017 | |
Total current assets | 972,112 | 897,016 | |
Long-term investments | 486,763 | 157,187 | |
Long-term restricted cash and investments | 1,000 | 1,100 | |
Property and equipment, net | 49,467 | 50,897 | |
Operating lease right-of-use assets | 17,735 | 5,867 | |
Deferred tax assets, net | 186,836 | 244,111 | |
Goodwill | 63,684 | 63,684 | |
Other long-term assets | 7,268 | 2,424 | |
Total assets | 1,784,865 | 1,422,286 | |
Current liabilities: | |||
Accounts payable | 8,352 | 10,901 | |
Accrued compensation and benefits | 31,713 | 32,142 | |
Accrued clinical trial liabilities | 30,330 | 18,231 | |
Rebates and fees due to customers | 16,782 | 14,954 | |
Accrued collaboration liabilities | 7,973 | 7,419 | |
Other current liabilities | 45,919 | 21,825 | |
Total current liabilities | 141,069 | 105,472 | |
Long-term portion of lease liabilities | 23,705 | 12,178 | |
Long-term portion of deferred revenue | 15,399 | 15,897 | |
Other long-term liabilities | 975 | 1,286 | |
Total liabilities | 181,148 | 134,833 | |
Commitments | |||
Stockholders’ equity: | |||
Preferred stock, $0.001 par value, 10,000,000 shares authorized and no shares issued | 0 | 0 | |
Common stock, $0.001 par value; 400,000,000 shares authorized; issued and outstanding: 303,776,032 and 299,876,080 at September 30, 2019 and December 31, 2018, respectively | 304 | 300 | |
Additional paid-in capital | 2,228,839 | 2,168,217 | |
Accumulated other comprehensive income (loss) | 2,668 | (701) | |
Accumulated deficit | (628,094) | (880,363) | |
Total stockholders’ equity | 1,603,717 | 1,287,453 | |
Total liabilities and stockholders’ equity | $ 1,784,865 | $ 1,422,286 | |
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 27, 2019 | Dec. 28, 2018 | [1] |
Preferred stock | |||
Par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Shares issued (in shares) | 0 | 0 | |
Common stock | |||
Par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Shares issued (in shares) | 303,776,032 | 299,876,080 | |
Shares outstanding (in shares) | 303,776,032 | 299,876,080 | |
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Operating expenses: | ||||
Cost of goods sold | 7,537 | 7,360 | 22,577 | 18,996 |
Research and development | 97,295 | 44,741 | 242,516 | 124,986 |
Selling, general and administrative | 51,265 | 48,120 | 170,218 | 153,989 |
Total operating expenses | 156,097 | 100,221 | 435,311 | 297,971 |
Income from operations | 115,606 | 125,176 | 292,154 | 327,253 |
Other income (expense), net: | ||||
Interest income | 7,191 | 3,507 | 20,253 | 8,099 |
Other, net | (140) | 271 | 688 | 368 |
Total other income (expense), net: | 7,051 | 3,778 | 20,941 | 8,467 |
Income before income taxes | 122,657 | 128,954 | 313,095 | 335,720 |
Provision for income taxes | (25,205) | (2,324) | (60,826) | (5,739) |
Net income | $ 97,452 | $ 126,630 | $ 252,269 | $ 329,981 |
Net income per share, basic (in dollars per share) | $ 0.32 | $ 0.42 | $ 0.84 | $ 1.11 |
Net income per share, diluted (in dollars per share) | $ 0.31 | $ 0.41 | $ 0.80 | $ 1.05 |
Shares used in computing net income per share, basic (in shares) | 303,268 | 298,416 | 301,999 | 297,700 |
Shares used in computing net income per share, diluted (in shares) | 315,453 | 312,346 | 315,046 | 313,200 |
Net product revenues | ||||
Total revenues | $ 191,768 | $ 162,946 | $ 565,024 | $ 443,054 |
Collaboration revenue | ||||
Total revenues | $ 79,935 | $ 62,451 | $ 162,441 | $ 182,170 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 97,452 | $ 126,630 | $ 252,269 | $ 329,981 | |
Other comprehensive income (loss): | |||||
Net unrealized gains or losses on available-for-sale securities, net of tax impact of $___, $0, $___ and $0, respectively | [1] | 461 | 218 | 3,369 | (166) |
Total other comprehensive income (loss) | 461 | 218 | 3,369 | (166) | |
Comprehensive income | $ 97,913 | $ 126,848 | $ 255,638 | $ 329,815 | |
[1] | Reclassification adjustments to net income resulting from realized gains or losses on the sale of securities and the related tax impact were nominal or zero during the periods presented. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Other comprehensive income (loss): | ||||
Unrealized gains or losses on available-for-sale securities, tax impact | $ (129) | $ 0 | $ (936) | $ 0 |
Reclassification adjustments to net income resulting from realized gains or losses on sale of securities | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | |
Balance (in shares) at Dec. 29, 2017 | 296,209,426 | |||||
Balance at Dec. 29, 2017 | $ 284,961 | $ 296 | $ 2,114,184 | $ (347) | $ (1,829,172) | |
Net income | 329,981 | 329,981 | ||||
Other comprehensive income (loss) | (166) | (166) | ||||
Issuance of common stock under equity incentive and stock purchase plans (in shares) | 2,672,458 | |||||
Issuance of common stock under equity incentive and stock purchase plans | 14,121 | $ 3 | 14,118 | |||
Stock-based compensation | 28,330 | 28,330 | ||||
Balance (in shares) at Sep. 28, 2018 | 298,881,884 | |||||
Balance at Sep. 28, 2018 | 915,966 | $ 299 | 2,156,632 | (513) | (1,240,452) | |
Balance (in shares) at Jun. 29, 2018 | 297,892,180 | |||||
Balance at Jun. 29, 2018 | 775,202 | $ 298 | 2,142,717 | (731) | (1,367,082) | |
Net income | 126,630 | 126,630 | ||||
Other comprehensive income (loss) | 218 | 218 | ||||
Issuance of common stock under equity incentive and stock purchase plans (in shares) | 989,704 | |||||
Issuance of common stock under equity incentive and stock purchase plans | 4,174 | $ 1 | 4,173 | |||
Stock-based compensation | 9,742 | 9,742 | ||||
Balance (in shares) at Sep. 28, 2018 | 298,881,884 | |||||
Balance at Sep. 28, 2018 | $ 915,966 | $ 299 | 2,156,632 | (513) | (1,240,452) | |
Balance (in shares) at Dec. 28, 2018 | 299,876,080 | [1] | 299,876,080 | |||
Balance at Dec. 28, 2018 | $ 1,287,453 | [1] | $ 300 | 2,168,217 | (701) | (880,363) |
Net income | 252,269 | 252,269 | ||||
Other comprehensive income (loss) | 3,369 | 3,369 | ||||
Issuance of common stock under equity incentive and stock purchase plans (in shares) | 3,899,952 | |||||
Issuance of common stock under equity incentive and stock purchase plans | 19,879 | $ 4 | 19,875 | |||
Stock-based compensation | $ 40,747 | 40,747 | ||||
Balance (in shares) at Sep. 27, 2019 | 303,776,032 | 303,776,032 | ||||
Balance at Sep. 27, 2019 | $ 1,603,717 | $ 304 | 2,228,839 | 2,668 | (628,094) | |
Balance (in shares) at Jun. 28, 2019 | 302,784,854 | |||||
Balance at Jun. 28, 2019 | 1,488,632 | $ 303 | 2,211,668 | 2,207 | (725,546) | |
Net income | 97,452 | 97,452 | ||||
Other comprehensive income (loss) | 461 | 461 | ||||
Issuance of common stock under equity incentive and stock purchase plans (in shares) | 991,178 | |||||
Issuance of common stock under equity incentive and stock purchase plans | 4,033 | $ 1 | 4,032 | |||
Stock-based compensation | $ 13,139 | 13,139 | ||||
Balance (in shares) at Sep. 27, 2019 | 303,776,032 | 303,776,032 | ||||
Balance at Sep. 27, 2019 | $ 1,603,717 | $ 304 | $ 2,228,839 | $ 2,668 | $ (628,094) | |
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | ||
Statement of Cash Flows [Abstract] | |||
Net income | $ 252,269 | $ 329,981 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,088 | 2,876 | |
Stock-based compensation | 40,747 | 28,330 | |
401(k) matching contributions made in common stock | 4,079 | 3,232 | |
Amortization and other changes in right-of-use assets | (6,367) | 2,732 | |
Deferred income taxes | 56,339 | 0 | |
Gain on other equity investments | (730) | (209) | |
Accretion of investments, net and other | (3,970) | (1,423) | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (7,017) | (12,707) | |
Other receivables | 2,469 | (2,938) | |
Inventory, net | (3,528) | (3,776) | |
Current portion of unbilled collaboration revenue | (2,640) | (32,673) | |
Prepaid expenses and other current assets | 527 | (3,529) | |
Other long-term assets | (6,294) | (542) | |
Accounts payable | (2,708) | (1,248) | |
Accrued compensation and benefits | (429) | 6,210 | |
Accrued clinical trial liabilities | 12,099 | (891) | |
Rebates and fees due customers | 1,828 | 4,124 | |
Accrued collaboration liability | 554 | (577) | |
Current and long-term deferred revenue | 3,592 | (1,548) | |
Long-term portion of lease liabilities | 6,087 | (974) | |
Other current and long-term liabilities | 15,940 | (3,321) | |
Net cash provided by operating activities | 368,935 | 311,129 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,575) | (30,403) | |
Proceeds from sale of property and equipment | 0 | 308 | |
Purchases of investments | (887,698) | (368,304) | |
Proceeds from maturities of investments | 422,419 | 231,204 | |
Proceeds from sale of investments | 13,078 | 11,935 | |
Proceeds from other equity investments | 730 | 209 | |
Net cash used in investing activities | (457,046) | (155,051) | |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 14,811 | 10,390 | |
Proceeds from employee stock purchase plan | 4,145 | 3,650 | |
Taxes paid related to net share settlement of equity awards | (3,369) | (3,205) | |
Principal payments on financing lease obligation | (34) | 0 | |
Net cash provided by financing activities | 15,553 | 10,835 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (72,558) | 166,913 | |
Cash, cash equivalents and restricted cash at beginning of period | 315,875 | 188,314 | |
Cash, cash equivalents and restricted cash at end of period | 243,317 | 355,227 | |
Supplemental cash flow disclosure: | |||
Right-of-use assets obtained in exchange for lease obligations | [1] | 12,944 | 17,180 |
Unpaid liabilities incurred to acquire Property and equipment | 159 | 1,281 | |
Unpaid liabilities incurred to acquire investments | $ 8,961 | $ 0 | |
[1] | Amounts for the nine months ended September 30, 2019 include receipt of a tenant incentive payment and an amendment to our existing lease for office and research space. Amounts for the nine months ended September 30, 2018 include the transition adjustment for the adoption of Topic 842. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Exelixis, Inc. (Exelixis, we, our or us) is an oncology-focused biotechnology company that strives to accelerate the discovery, development and commercialization of new medicines for difficult-to-treat cancers. Since we were founded in 1994, four products resulting from our discovery efforts have progressed through clinical development, received regulatory approval and have launched commercially. Two are derived from cabozantinib, an inhibitor of multiple tyrosine kinases including MET, AXL, VEGF receptors and RET. These are: CABOMETYX® (cabozantinib) tablets approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC); and COMETRIQ® (cabozantinib) capsules approved for progressive, metastatic medullary thyroid cancer. The other two products resulting from our discovery efforts are: COTELLIC® (cobimetinib), an inhibitor of MEK, approved as part of a combination regimen to treat a specific form of advanced melanoma and marketed under a collaboration with Genentech, Inc. (a member of the Roche Group) (Genentech); and MINNEBRO® (esaxerenone), an oral, non-steroidal, selective blocker of the mineralocorticoid receptor (MR), approved for the treatment of hypertension in Japan and licensed to Daiichi Sankyo Company, Limited (Daiichi Sankyo). Basis of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial statements for the periods presented have been included. We have adopted a 52- or 53-week fiscal year policy that generally ends on the Friday closest to December 31 st . Fiscal year 2019, which is a 53-week fiscal year, will end on January 3, 2020 and fiscal year 2018, which was a 52-week fiscal year, ended on December 28, 2018. For convenience, references in this report as of and for the fiscal periods ended September 27, 2019, June 28, 2019, September 28, 2018 and June 29, 2018, and as of and for the fiscal years ending January 3, 2020, and ended December 28, 2018 and December 29, 2017, are indicated as being as of and for the periods ended September 30, 2019, June 30, 2019, September 30, 2018 and June 30, 2018 and the years ending December 31, 2019, and ended December 31, 2018 and December 31, 2017, respectively. Similarly, references in this report to the first day of the fiscal year ended January 3, 2020 are indicated as being as of January 1, 2019 and the first day of the fiscal quarter ended September 27, 2019 are indicated as being as of July 1, 2019. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any future period. The accompanying Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2018 , included in our Annual Report on Form 10-K filed with the SEC on February 22, 2019 . Segment Information We operate in one business segment that focuses on the discovery, development and commercialization of new medicines for difficult-to-treat cancers . Our Chief Executive Officer, as the chief operating decision-maker, manages and allocates resources to our operations on a total consolidated basis. Consistent with this decision-making process, our Chief Executive Officer uses consolidated, single-segment financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. All of our long-lived assets are located in the U.S. See “Note 2. Revenues” for enterprise-wide disclosures about product sales, revenues from major customers and revenues by geographic region. Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements conforms to accounting principles generally accepted in the U.S., which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to: those related to revenue recognition, including determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, and variable consideration such as rebates, chargebacks, sales returns, sales allowances, and milestone payments included in collaboration arrangements; the amounts of revenues and expenses under our profit and loss sharing agreement; the recoverability of inventory; the amounts of operating lease right-of-use assets and lease liabilities; the amounts of deferred tax assets and liabilities including the related valuation allowance; the accrual for certain liabilities including accrued clinical trial liabilities; and valuations of equity awards used to determine stock-based compensation, including certain awards with vesting subject to market or performance conditions. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Recently Adopted Accounting Pronouncements On July 1, 2019, we adopted ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Accounting Standards Codification (ASC) Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense and requires us to expense the capitalized implementation costs over the term of the hosting arrangement, which includes reasonably certain renewals. ASU 2018-15 was adopted using the prospective transition method in the accompanying Condensed Consolidated Financial Statements. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. On January 1, 2019, we adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) (ASU 2018-02). There was no financial impact from the adoption of ASU 2018-02 and we did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from Accumulated other comprehensive income (loss) to Accumulated deficit. In connection with the adoption of ASU 2018-02, we have adopted the individual unit of account approach for releasing income tax effects from Accumulated other comprehensive income (loss) . On January 1, 2019, we also adopted ASU 2017-08 , Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The financial impact from the adoption of ASU 2017-08 was nominal. Recent Accounting Pronouncements Not Yet Adopted In November 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the counterparty is a customer for a distinct good or service (i.e. a unit of account). For units of account that are in the scope of Topic 606, all of the guidance in Topic 606 should be applied, including the guidance on recognition, measurement, presentation and disclosure. ASU 2018-18 also adds a reference in ASC Topic 808, Collaborative Arrangements (Topic 808) to the unit of account guidance in Topic 606 and requires that it be applied only to assess whether transactions in a collaborative arrangement are in the scope of Topic 606. ASU 2018-18 will preclude entities from presenting amounts related to transactions with a counterparty in a collaborative arrangement that is not a customer as revenue from contracts with customers. ASU 2018-18 is effective for us for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are in the process of assessing the impact of ASU 2018-18 on our Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04) . ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASU 2016-13) . ASU 2016-13 implements an impairment model, known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses. 2016-13 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2016-13 to have a material impact on our Condensed Consolidated Financial Statements. |
Revenues
Revenues | 9 Months Ended |
Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenues by disaggregated category were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Product revenues: Gross product revenues $ 239,916 $ 193,356 $ 704,084 $ 525,438 Discounts and allowances (48,148 ) (30,410 ) (139,060 ) (82,384 ) Net product revenues 191,768 162,946 565,024 443,054 Collaboration revenues: License revenues (1) 68,035 51,323 128,937 152,261 Research and development services revenues (2) 12,988 10,560 35,814 27,464 Other collaboration revenues (3) (1,088 ) 568 (2,310 ) 2,445 Total collaboration revenues 79,935 62,451 162,441 182,170 Total revenues $ 271,703 $ 225,397 $ 727,465 $ 625,224 ____________________ (1) License revenues included the recognition of the portion of milestones allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant revenue reversal would not occur, as well as royalty revenues from Ipsen Pharma SAS (Ipsen), Genentech and Daiichi Sankyo. (2) Research and development services revenues included the recognition of deferred revenue for the portion of upfront and milestone payments that have been allocated to research and development services performance obligations, as well as development cost reimbursements earned on our collaboration agreements. (3) Other collaboration revenues included the profit on the U.S. commercialization of COTELLIC from Genentech and revenues on product supply services provided to Ipsen and Takeda Pharmaceutical Company Ltd. (Takeda), which were offset by the 3% royalty we are required to pay GlaxoSmithKline (GSK) on the net sales by Ipsen of any product incorporating cabozantinib. Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the p rofit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented . Net product revenues disaggregated by product were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 CABOMETYX $ 187,410 $ 158,262 $ 552,315 $ 428,317 COMETRIQ 4,358 4,684 12,709 14,737 Net product revenues $ 191,768 $ 162,946 $ 565,024 $ 443,054 Total revenues disaggregated by significant customer were as follows (dollars in thousands): Three Months Ended September 30, 2019 2018 Dollars Percent of Total Dollars Percent of Total Ipsen $ 76,016 28 % $ 57,186 25 % Caremark L.L.C. 35,703 13 % 30,707 14 % Affiliates of McKesson Corporation 31,901 12 % 26,597 12 % Affiliates of AmerisourceBergen Corporation 25,235 9 % 17,232 8 % Others, individually less than 10% of Total revenues for all periods presented 102,848 38 % 93,675 41 % Total revenues $ 271,703 100 % $ 225,397 100 % Nine Months Ended September 30, 2019 2018 Dollars Percent of Total Dollars Percent of Total Ipsen $ 120,133 17 % $ 145,038 23 % Caremark L.L.C. 105,638 15 % 83,516 13 % Affiliates of McKesson Corporation 88,496 12 % 71,249 11 % Affiliates of AmerisourceBergen Corporation 70,503 10 % 49,995 8 % Others, individually less than 10% of Total revenues for all periods presented 342,695 46 % 275,426 45 % Total revenues $ 727,465 100 % $ 625,224 100 % Total revenues disaggregated by geographic region were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 U.S. $ 194,484 $ 166,270 $ 572,957 $ 453,342 Europe 76,017 57,186 120,134 145,038 Japan 1,202 1,941 34,374 26,844 Total revenues $ 271,703 $ 225,397 $ 727,465 $ 625,224 Net product revenues are attributed to geographic region based on the ship-to location. Collaboration revenues are attributed to geographic region based on the location of our collaboration partners’ headquarters. Product Sales Discounts and Allowances The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands): Chargebacks and Discounts for Prompt Payment Other Customer Credits/Fees and Co-pay Assistance Rebates Total Balance at December 31, 2018 $ 2,322 $ 3,038 $ 11,916 $ 17,276 Provision related to sales made in: Current period 92,769 11,190 35,422 139,381 Prior periods (130 ) (106 ) (85 ) (321 ) Payments and customer credits issued (92,317 ) (11,466 ) (33,127 ) (136,910 ) Balance at September 30, 2019 $ 2,644 $ 2,656 $ 14,126 $ 19,426 Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables and the remaining reserve balances are classified as Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Contract Assets and Liabilities We receive payments from our licensees based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as unbilled collaboration revenue when recognized. Unbilled collaboration revenue was zero as of both September 30, 2019 and December 31, 2018 . Upfront and milestone payments may require deferral of revenue recognition to a future period until we perform our obligations under these arrangements and are recorded as deferred revenue upon receipt or when due. Deferred revenue was $15.4 million and $15.9 million as of September 30, 2019 and December 31, 2018 , respectively. The amount of revenues recognized during the nine months ended September 30, 2019 and 2018 that were included in the beginning deferred revenue balance as of December 31, 2018 and December 31, 2017 was $2.7 million and $6.1 million , respectively During the three and nine months ended September 30, 2019 , we recognized $67.7 million and $129.0 million , respectively, in revenues under Topic 606 for performance obligations satisfied in previous periods as compared to $48.2 million and $151.8 million during the same periods in 2018. Such revenues primarily related to milestone and royalty payments allocated to our license performance obligations of our collaborations with Ipsen, Takeda and Daiichi Sankyo. |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATION AGREEMENTS | COLLABORATION AGREEMENTS We have established multiple collaborations with leading pharmaceutical companies for the commercialization and further development of cabozantinib, as well as with smaller, discovery-focused biotechnology companies to expand our product pipeline. Additionally, in line with our business strategy prior to the commercialization of our first product, COMETRIQ, we entered into other collaborations with leading pharmaceutical companies including Genentech, Daiichi Sankyo and Bristol-Myers Squibb Company for other compounds and programs in our portfolio. See “Note 3. Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 for a description of each of our collaboration agreements. Under these collaborations, we are generally entitled to receive milestone and royalty payments, and for certain collaborations, payments for product supply services, development cost reimbursements, and/or profit-sharing payments. See “Note 2. Revenues” for information on collaboration revenues recognized during the three and nine months ended September 30, 2019 and 2018 . Commercial Collaborations Ipsen Collaboration In February 2016, we entered into a collaboration and license agreement with Ipsen for the commercialization and further development of cabozantinib. Pursuant to the terms of the collaboration agreement, Ipsen received exclusive commercialization rights for current and potential future cabozantinib indications outside of the U.S., Canada and Japan. The collaboration agreement was subsequently amended on three occasions, including in December 2016 to include commercialization rights in Canada. We have also agreed to collaborate with Ipsen on the development of cabozantinib for current and potential future indications. Collaboration revenues under the collaboration agreement with Ipsen were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Ipsen collaboration revenues $ 76,016 $ 57,186 $ 120,133 $ 145,038 As of September 30, 2019 , $47.1 million of the transaction price allocated to our research and development services performance obligation had not been satisfied. As of September 30, 2019 , the net contract liability for the collaboration agreement with Ipsen was $7.2 million which was included in the Long-term portion of deferred revenue in the accompanying Condensed Consolidated Balance Sheets. Takeda Collaboration In January 2017, we entered into a collaboration and license agreement with Takeda. Pursuant to this collaboration agreement, Takeda has exclusive commercialization rights for current and potential future cabozantinib indications in Japan, and the parties have agreed to collaborate on the clinical development of cabozantinib in Japan. The collaboration agreement was subsequently amended in March 2018 and April 2019. The second amendment to the collaboration agreement with Takeda, which was executed on April 29, 2019 and became effective on May 7, 2019 (the Amendment), among other things, reduced the amount of reimbursements we will receive from Takeda for costs associated with our required global pharmacovigilance activities and limits those reimbursements to $1.0 million per year. It also increased the total potential development, regulatory and first-sale milestone payments to be paid to us by Takeda for second-line RCC , first-line RCC and second-line HCC by $12.0 million to $102.0 million , including an increase from $10.0 million to $16.0 million for the milestone we received for the April 2019 submission of a regulatory application for cabozantinib as a treatment for patients with advanced RCC to the Japanese Ministry of Health, Labour and Welfare (MHLW) . We continue to be eligible to receive additional development, regulatory and first-sale milestone payments for other potential future indications. The Amendment also increased the amount of Takeda’s total potential commercial milestones by $6.0 million to $89.0 million . We continue to be eligible to receive royalties on net sales of cabozantinib in Japan. Collaboration revenues under the collaboration agreement with Takeda were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Takeda collaboration revenues $ 1,187 $ 1,940 $ 14,245 $ 6,843 As of September 30, 2019 , $18.7 million of the transaction price allocated to our research and development services performance obligation had not been satisfied. As of September 30, 2019 , the net contract liability for the collaboration agreement with Takeda was $8.2 million which was included in the Long-term portion of deferred revenue in the accompanying Condensed Consolidated Balance Sheets. Genentech Collaboration In December 2006, we out-licensed the development and commercialization of cobimetinib to Genentech pursuant to a worldwide collaboration agreement. Under the terms of the collaboration agreement, we developed cobimetinib through the determination of the maximum tolerated dose in a phase 1 clinical trial, and Genentech had the option to co-develop cobimetinib, an option that Genentech exercised, and in March 2009, we granted to Genentech an exclusive worldwide revenue-bearing license to cobimetinib, at which point Genentech became responsible for completing the phase 1 clinical trial and the subsequent clinical development. In November 2015, the U.S. Food and Drug Administration (FDA) approved cobimetinib, under the brand name COTELLIC, in combination with Genentech’s Zelboraf (vemurafenib) as a treatment for patients with BRAF V600E or V600K mutation-positive advanced melanoma. COTELLIC in combination with Zelboraf has also been approved in the European Union and multiple additional countries for use in the same indication. Profits on U.S. commercialization and Royalty revenues on ex-U.S. sales were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Profits on U.S. commercialization $ 1,102 $ 1,935 $ 3,507 $ 6,004 Royalty revenues on ex-U.S. sales $ 1,614 $ 1,390 $ 4,426 $ 4,285 Daiichi Sankyo In March 2006, we entered into a collaboration agreement with Daiichi Sankyo pursuant to which we granted to Daiichi Sankyo an exclusive, worldwide license to certain intellectual property primarily relating to compounds that modulate MR, including esaxerenone, an oral, non-steroidal, selective MR antagonist. Daiichi Sankyo was responsible for all further preclinical and clinical development, regulatory, manufacturing and commercialization activities for the compounds. In January 2019, the Japanese MHLW approved esaxerenone, under the brand name MINNEBRO, as a treatment for patients with hypertension and in May 2019, Daiichi Sankyo had its first commercial sale of MINNEBRO . As a result of the launch, we received a $20.0 million milestone payment from Daiichi Sankyo in June 2019. We are eligible for low double-digit royalties on sales of MINNEBRO. In addition, pursuant to a license agreement we entered into with Ligand Pharmaceuticals, Inc. (Ligand), we are required to pay a royalty of 0.5% to Ligand on net sales of MINNEBRO. Collaboration revenues under the collaboration agreement with Daiichi Sankyo were as follows (in thousands): Nine Months Ended September 30, 2019 2018 Daiichi Sankyo collaboration revenues $ 20,130 $ 20,000 Such collaboration revenues were nominal or zero for the three months ended September 30, 2019 and 2018. Iconic Therapeutics, Inc. (Iconic) Collaboration In May 2019, we entered into an exclusive option and license agreement with Iconic. Under the terms of the agreement, we gained an exclusive option to license ICON-2, Iconic’s lead oncology antibody-drug conjugate program, in exchange for an upfront payment to Iconic of $7.5 million and a commitment for preclinical development funding. As of September 30, 2019 , we accrued $6.6 million for the preclinical development funding commitment. Both the upfront payment and the accrual for the preclinical development funding commitment were included in Research and development expenses in the accompanying Condensed Consolidated Statements of Income. If we exercise the option, we would be required to make an option exercise fee payment of $20.0 million to Iconic, we would assume responsibilities for all subsequent clinical development and commercialization activities, and Iconic would become eligible for up to $190.6 million in potential development, regulatory and first-sale milestone payments, $262.5 million in potential commercial milestone payments, as well as royalties on potential sales. Aurigene Discovery Technologies Limited (Aurigene) Collaboration In July 2019, we entered into an exclusive collaboration, option and license agreement with Aurigene, and India-based biotechnology company focused on oncology and inflammatory disorders, to in-license as many as six programs. Under the terms of the agreement, we made an upfront payment of $10.0 million for exclusive options to license three preexisting programs. In addition, we and Aurigene selected three additional Aurigene-led drug discovery programs on mutually agreed upon targets, in exchange for additional option payments totaling $7.5 million . We are also responsible for up to $32.6 million in research funding for the discovery and preclinical development work on these programs. As of September 30, 2019 , we accrued $1.3 million for the discovery and preclinical development funding commitment. For each option we decide to exercise, we would be required to pay an exercise fee of either $10.0 million or $12.0 million , depending on the program, and would assume responsibilities for all subsequent clinical development, commercialization and global manufacturing of that program. Aurigene would then become eligible for up to $148.8 million per program in potential development and regulatory milestone payments, $280.0 million per program in potential commercial milestone payments, as well as royalties on potential sales. Under the terms of the agreement, Aurigene retains limited development and commercial rights for India and Russia. GSK In October 2002, we established a product development and commercialization collaboration agreement with GSK. Under the terms of the collaboration agreement, GSK had the right to choose cabozantinib for further development and commercialization, but notified us in October 2008 that it had waived its right to select the compound for such activities. Although the collaboration agreement was terminated in December 2014, we continue to be required to pay a 3% royalty to GSK on the net sales of any product incorporating cabozantinib by us and our collaboration partners. Royalties accruing to GSK in connection with the sales of cabozantinib are included in Cost of goods sold for sales by us and as a reduction of Collaboration revenues for sales by Ipsen. Such royalties accruing to GSK were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Royalties accruing to GSK $ 7,964 $ 6,268 $ 23,079 $ 17,021 |
Cash and Investments
Cash and Investments | 9 Months Ended |
Sep. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
CASH AND INVESTMENTS | CASH AND INVESTMENTS Cash, Cash Equivalents and Restricted Cash A reconciliation of Cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the amount reported within the accompanying Condensed Consolidated Statements of Cash Flows was as follows (in thousands): September 30, 2019 December 31, 2018 September 30, 2018 December 31, 2017 Cash and cash equivalents $ 242,317 $ 314,775 $ 353,623 $ 183,164 Restricted cash included in short-term restricted cash and investments — — 504 504 Restricted cash included in long-term restricted cash and investments 1,000 1,100 1,100 4,646 Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows $ 243,317 $ 315,875 $ 355,227 $ 188,314 Restricted cash includes certificates of deposit used to collateralize letters of credit and, in prior periods, a purchasing card program. Cash and Investments Cash and investments by security type were as follows (in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments available-for-sale: Money market funds $ 26,641 $ — $ — $ 26,641 Commercial paper 332,239 — — 332,239 Corporate bonds 703,325 3,549 (67 ) 706,807 U.S. Treasury and government sponsored enterprises 152,531 143 (24 ) 152,650 Total investments available-for-sale 1,214,736 3,692 (91 ) 1,218,337 Cash and restricted cash 901 — — 901 Certificates of deposit 29,189 3 — 29,192 Total cash and investments $ 1,244,826 $ 3,695 $ (91 ) $ 1,248,430 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments available-for-sale: Money market funds $ 47,744 $ — $ — $ 47,744 Commercial paper 381,134 — (1 ) 381,133 Corporate bonds 344,741 180 (857 ) 344,064 U.S. Treasury and government sponsored enterprises 55,224 2 (25 ) 55,201 Total investments available-for-sale 828,843 182 (883 ) 828,142 Cash and restricted cash 6,883 — — 6,883 Certificates of deposit 16,596 — — 16,596 Total cash and investments $ 852,322 $ 182 $ (883 ) $ 851,621 Gains and losses on the sales of investments available-for-sale were nominal during the three and nine months ended September 30, 2019 and 2018 . The fair value and gross unrealized losses on investments available-for-sale in an unrealized loss position were as follows (in thousands): September 30, 2019 In an Unrealized Loss Position Less than 12 Months In an Unrealized Loss Position 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds $ 73,064 $ (66 ) $ 4,398 $ (1 ) $ 77,462 $ (67 ) U.S. Treasury and government sponsored enterprises 46,744 (24 ) — — 46,744 (24 ) Total $ 119,808 $ (90 ) $ 4,398 $ (1 ) $ 124,206 $ (91 ) December 31, 2018 In an Unrealized Loss Position Less than 12 Months In an Unrealized Loss Position 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds $ 236,162 $ (606 ) $ 39,627 $ (251 ) $ 275,789 $ (857 ) U.S. Treasury and government sponsored enterprises 28,105 (16 ) 9,182 (9 ) 37,287 (25 ) Commercial paper 7,091 (1 ) — — 7,091 (1 ) Total $ 271,358 $ (623 ) $ 48,809 $ (260 ) $ 320,167 $ (883 ) There were 43 and 199 investments in an unrealized loss position as of September 30, 2019 and December 31, 2018 , respectively. During the three and nine months ended September 30, 2019 and 2018 we did no t record any other-than-temporary impairment charges on our available-for-sale securities. Based upon our quarterly impairment review, we determined that the unrealized losses were not attributed to credit risk, but were primarily associated with changes in interest rates. Based on the scheduled maturities of our investments and our determination that it was more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis, we concluded that the unrealized losses in our investment securities were not other-than-temporary. The fair value of investments available-for-sale by contractual maturity were as follows (in thousands): September 30, December 31, 2018 Maturing in one year or less $ 743,768 $ 674,455 Maturing after one year through five years 474,569 153,687 Total investments available-for-sale $ 1,218,337 $ 828,142 Related Party Transactions BlackRock, Inc. (BlackRock), a global provider of investment, advisory and risk management solutions, reported that as of December 31, 2018 , the most recent date for which they reported ownership data, their beneficial ownership was more than 10% of our outstanding common stock. BlackRock manages a portion of our cash and investments portfolio. As of September 30, 2019 and December 31, 2018 , respectively, the fair value of cash and investments managed by BlackRock was $470.8 million and $298.5 million , which included $1.9 million and $3.0 million invested in the BlackRock Liquidity Money Market Fund. As of September 30, 2019 , we also had a $9.0 million payable to BlackRock for unsettled trades that was included in Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. We incurred $0.2 million in fees for BlackRock advisory services performed during the nine months ended September 30, 2019 . |
Inventory
Inventory | 9 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following (in thousands): September 30, December 31, 2018 Raw materials $ 1,906 $ 1,922 Work in process 11,035 6,170 Finished goods 7,311 3,836 Total $ 20,252 $ 11,928 Balance Sheet classification: Current portion included in Inventory $ 13,366 $ 9,838 Long-term portion included in Other long-term assets 6,886 2,090 Total $ 20,252 $ 11,928 Write-downs related to excess and expiring inventory are charged to Cost of goods sold or the cost of supplied product included in Collaboration revenues. Such write-downs were $0.4 million and $0.8 million for the nine months ended September 30, 2019 and 2018 , respectively. Inventory not expected to be used in production or sold in the next 12 months is classified as Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. As of both September 30, 2019 and December 31, 2018 , the long-term portion of inventory consisted of portions of our raw materials and finished goods, and as of September 30, 2019 , also a portion of our work in process. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): September 30, December 31, Leasehold improvements $ 33,769 $ 33,941 Computer equipment and software 17,017 15,022 Furniture and fixtures 13,053 12,709 Laboratory equipment 8,408 5,668 Construction in progress 617 866 72,864 68,206 Less: accumulated depreciation and amortization (23,397 ) (17,309 ) Property and equipment, net $ 49,467 $ 50,897 Depreciation expense was $2.1 million and $6.1 million for the three and nine months ended September 30, 2019 , respectively, as compared to $1.7 million and $2.9 million and for the comparable periods in 2018 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We allocated the stock-based compensation expense for our equity incentive plans and our 2000 Employee Stock Purchase Plan (ESPP) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 4,301 $ 3,169 $ 13,745 $ 9,102 Selling, general and administrative 8,838 6,573 27,002 19,228 Total stock-based compensation $ 13,139 $ 9,742 $ 40,747 $ 28,330 We have several equity incentive plans under which we have granted stock options and restricted stock units (RSUs) to employees and directors. At September 30, 2019 , 6,024,995 shares were available for grant under our equity incentive plans. We used a Monte Carlo simulation pricing model to value stock options that include market vesting conditions and a Black-Scholes Merton option pricing model to value other stock options and ESPP purchases. The weighted average grant-date fair value per share of stock options and ESPP purchases were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options $ 7.71 $ 8.67 $ 8.57 $ 9.13 ESPP $ 5.39 $ 6.19 $ 4.93 $ 6.96 The grant-date fair value of stock option grants and ESPP purchases was estimated using the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options: Risk-free interest rate 1.57 % 2.91 % 1.82 % 2.83 % Dividend yield — % — % — % — % Volatility 48 % 55 % 48 % 55 % Expected life 4.0 years 4.4 years 4.4 years 4.4 years ESPP: Risk-free interest rate 2.09 % 2.11 % 2.34 % 1.74 % Dividend yield — % — % — % — % Volatility 43 % 51 % 52 % 52 % Expected life 6 months 6 months 6 months 6 months We considered our implied volatility and our historical volatility in developing our estimates of expected volatility. The assumptions for the expected life of stock options were based on historical exercise patterns and post-vesting termination behavior. The risk-free interest rate is based on U.S. Treasury rates with the same or similar term as the underlying award. Our dividend rate is based on historical experience and our investors’ current expectations. The fair value of RSUs was based on the closing price of the underlying common stock on the date of grant. Activity for stock options during the nine months ended September 30, 2019 was as follows (dollars in thousands , except per share amounts): Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2018 22,674,062 $ 8.71 Granted 1,042,286 $ 20.81 Exercised (3,042,201 ) $ 4.94 Forfeited (160,241 ) $ 16.76 Expired (35,045 ) $ 23.41 Options outstanding at September 30, 2019 20,478,861 $ 9.80 3.4 years $ 186,407 Exercisable at September 30, 2019 15,860,131 $ 7.02 2.8 years $ 181,542 As of September 30, 2019 , there was $38.0 million of unrecognized compensation expense related to our unvested stock options. The compensation expense for the unvested stock options will be recognized over a weighted-average period of 2.3 years . Activity for RSUs during the nine months ended September 30, 2019 was as follows (dollars in thousands , except per share amounts): Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value RSUs outstanding at December 31, 2018 4,857,334 $ 18.42 Awarded 5,635,362 $ 19.54 Vested and released (484,731 ) $ 12.33 Forfeited (258,142 ) $ 18.47 RSUs outstanding at September 30, 2019 9,749,823 $ 19.37 2.2 years $ 175,448 As of September 30, 2019 , there was $166.0 million of unrecognized compensation expense related to our unvested RSUs, including those RSUs granted in September 2018 and September 2019 that will vest upon the achievement of specific performance targets (PSUs) described below. The compensation expense for the unvested RSUs will be recognized over a weighted-average period of 2.8 years . During 2019, in connection with our long-term incentive compensation program, we awarded 1,926,605 RSUs (the target amount) that will vest upon the achievement of a performance target related to a product approval by the FDA (the 2019 PSUs); employees may earn 150% of the target amount , or an additional 963,136 shares relative to the target amount, if the performance target is achieved before December 31, 2020 and may earn the full 200% of the target amount, or up to an additional 1,926,605 shares relative to the target amount, if we receive a second product approval. During 2018 we awarded 693,131 RSUs that will vest upon the achievement of certain product revenue, late-stage clinical development and pipeline expansion performance targets (the 2018 PSUs). The 2018 PSUs and 2019 PSUs were designed to drive the performance of our management team and employees toward the achievement of key corporate objectives and will be forfeited if the performance targets are not met by December 31, 2021. Expense recognition for PSUs commences when it is determined that attainment of the performance target is probable. During the quarter ended June 30, 2019 , we achieved one of the two product revenue related performance targets for 114,843 of the 2018 PSUs and determined that it was probable that we would achieve the second product revenue related performance target for 172,272 additional 2018 PSUs. D uring the quarter ended September 30, 2019, the second product revenue related performance target of the 2018 PSUs was achieved . Those 2018 PSUs will vest over various dates through February 2021. We recognized $0.9 million and $3.5 million in compensation expense related to those 2018 PSUs during the three and nine months ended September 30, 2019 , respectively; the remaining unrecognized compensation expense for those 2018 PSUs was $1.7 million as of September 30, 2019 . The total unrecognized compensation expense for both the 2019 PSUs and the remaining 2018 PSUs for which we have not yet determined that attainment of the performance target is probable was $82.4 million as of September 30, 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective income tax rate was 20.5% and 19.4% during the three and nine months ended September 30, 2019 , respectively, as compared to 1.8% and 1.7% during the three and nine months ended September 30, 2018 , respectively. The Provision for income taxes relating to our pre-tax income for the three and nine months ended September 30, 2018 was largely offset by a valuation allowance against our net operating loss carryforwards and other deferred tax assets. At December 31, 2018, we released substantially all of our valuation allowance against our deferred tax assets, after we determined that it was more likely than not that these deferred tax assets would be realized. The effective tax rate for the three and nine months ended September 30, 2019 differed from the U.S. federal statutory rate of 21% |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 27, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The basic and diluted net income per share were computed as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 97,452 $ 126,630 $ 252,269 $ 329,981 Denominator: Weighted-average shares of common stock outstanding used in computing basic net income per share 303,268 298,416 301,999 297,700 Dilutive securities 12,185 13,930 13,047 15,500 Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share 315,453 312,346 315,046 313,200 Net income per share, basic $ 0.32 $ 0.42 $ 0.84 $ 1.11 Net income per share, diluted $ 0.31 $ 0.41 $ 0.80 $ 1.05 Dilutive securities include outstanding stock options, unvested RSUs and ESPP contributions. Potential shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Potentially dilutive securities 6,153 5,687 5,740 2,938 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands): September 30, 2019 Level 1 Level 2 Total Money market funds $ 26,641 $ — $ 26,641 Commercial paper — 332,239 332,239 Corporate bonds — 706,807 706,807 U.S. Treasury and government sponsored enterprises — 152,650 152,650 Total investments available-for-sale 26,641 1,191,696 1,218,337 Certificates of deposit — 29,192 29,192 Total financial assets carried at fair value $ 26,641 $ 1,220,888 $ 1,247,529 December 31, 2018 Level 1 Level 2 Total Money market funds $ 47,744 $ — $ 47,744 Commercial paper — 381,133 381,133 Corporate bonds — 344,064 344,064 U.S. Treasury and government sponsored enterprises — 55,201 55,201 Total investments available-for-sale 47,744 780,398 828,142 Certificates of deposit — 16,596 16,596 Total financial assets carried at fair value $ 47,744 $ 796,994 $ 844,738 We did not have any financial liabilities measured and recorded at fair value on a recurring basis as of September 30, 2019 or December 31, 2018 . We did not have any financial assets or liabilities classified as Level 3 in the fair value hierarchy as of September 30, 2019 or December 31, 2018 . There were no transfers of financial assets or liabilities between Levels 1, 2 and 3 during the three and nine months ended September 30, 2019 or 2018 . When available, we value investments based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining investments are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals for similar assets as observable inputs for pricing, which is a Level 2 input. See “Note 11. Leases” for a description of the determination of the amount of operating lease liabilities. Our remaining financial assets and liabilities include cash and restricted cash, Trade receivables, net, Other receivables, Accounts payable, Accrued compensation and benefits, Accrued clinical trial liabilities, Accrued collaboration liabilities and Rebates and fees due to customers. Those financial assets and liabilities are carried at cost, which approximates their fair values. |
Leases
Leases | 9 Months Ended |
Sep. 27, 2019 | |
Leases [Abstract] | |
LEASES | LEASES In May 2017, we entered into a Lease Agreement (the Lease) for our corporate headquarters located at 1851, 1801 and 1751 Harbor Bay Parkway, Alameda, California (the Initial Premises). The Lease was subsequently amended in October 2017, June 2018 and April 2019, resulting in the addition of the building located at 1601 Harbor Bay Parkway and increasing the leased space to an aggregate of 169,606 square feet (the Current Premises) as of September 30, 2019 . We have made certain tenant improvements to the space leased on the Initial Premises, for which we received $8.2 million in reimbursements in January 2019. The Lease’s initial term is through January 31, 2028. Rent payments began February 1, 2018, following the conclusion of a partial twelve-month rent abatement period. We have two five-year options to extend the Lease and a one-time option to terminate the Lease without cause on the last day of the 8 th year of the initial term (the Early Termination Right); none of these optional periods have been considered in the determination of the right-of-use asset or the lease liability for the Lease as we did not consider it reasonably certain that we would exercise any such options. The Lease further provides that we are obligated to pay the landlord certain variable costs, including taxes and operating expenses. The April 2019 amendment to the Lease (the Third Lease Amendment) provides, among other things, for the (i) expansion of the Initial Premises by 37,544 square feet of office facilities located at 1601 Harbor Bay Parkway, Alameda, California (the 1601 Expansion Space) and (ii) surrender of 2,703 square feet of office facilities located at 1751 Harbor Bay Parkway, Alameda, California (the 1751 Space). The term for the 1601 Expansion Space will run coterminous with the term of the Lease for the existing space. We have been provided an allowance of $1.7 million for tenant improvements to the 1601 Expansion Space. As of September 30, 2019 , we have surrendered the 1751 Space and we have taken possession of the 1601 Expansion Space, and accordingly we have adjusted our right-of-use asset and lease liability, and have begun to recognize lease costs for the Third Lease Amendment. The balance sheet classification of our lease liabilities were as follows (in thousands): September 30, December 31, 2018 Operating lease liabilities: Current portion included in Other current liabilities $ 2,695 $ 2,738 Long-term portion of lease liabilities 23,661 12,099 Total operating lease liabilities 26,356 14,837 Financing lease liabilities: Current portion included in Other current liabilities 50 49 Long-term portion of lease liabilities 44 79 Total financing lease liabilities 94 128 Total lease liabilities $ 26,450 $ 14,965 The components of lease costs for operating leases, which were included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 692 $ 1,614 $ 1,768 $ 3,587 Variable lease cost 274 363 654 1,366 Total lease costs $ 966 $ 1,977 $ 2,422 $ 4,953 Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $2.1 million and was included in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows. As of September 30, 2019 , the maturities of our operating lease liabilities were as follows (in thousands): Remainder of 2019 $ 745 Years ending December 31, 2020 3,625 2021 3,731 2022 3,852 2023 3,959 Thereafter 17,444 Total lease payments 33,356 Less: Present value adjustment (5,258 ) Tenant improvement reimbursements (1) (1,742 ) Operating lease liabilities $ 26,356 ____________________ (1) Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space. Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, we use our incremental borrowing rate. The weighted average discount rate used to determine the operating lease liability was 4.20% . As of September 30, 2019 , the weighted average remaining lease term is 8.3 years |
LEASES | LEASES In May 2017, we entered into a Lease Agreement (the Lease) for our corporate headquarters located at 1851, 1801 and 1751 Harbor Bay Parkway, Alameda, California (the Initial Premises). The Lease was subsequently amended in October 2017, June 2018 and April 2019, resulting in the addition of the building located at 1601 Harbor Bay Parkway and increasing the leased space to an aggregate of 169,606 square feet (the Current Premises) as of September 30, 2019 . We have made certain tenant improvements to the space leased on the Initial Premises, for which we received $8.2 million in reimbursements in January 2019. The Lease’s initial term is through January 31, 2028. Rent payments began February 1, 2018, following the conclusion of a partial twelve-month rent abatement period. We have two five-year options to extend the Lease and a one-time option to terminate the Lease without cause on the last day of the 8 th year of the initial term (the Early Termination Right); none of these optional periods have been considered in the determination of the right-of-use asset or the lease liability for the Lease as we did not consider it reasonably certain that we would exercise any such options. The Lease further provides that we are obligated to pay the landlord certain variable costs, including taxes and operating expenses. The April 2019 amendment to the Lease (the Third Lease Amendment) provides, among other things, for the (i) expansion of the Initial Premises by 37,544 square feet of office facilities located at 1601 Harbor Bay Parkway, Alameda, California (the 1601 Expansion Space) and (ii) surrender of 2,703 square feet of office facilities located at 1751 Harbor Bay Parkway, Alameda, California (the 1751 Space). The term for the 1601 Expansion Space will run coterminous with the term of the Lease for the existing space. We have been provided an allowance of $1.7 million for tenant improvements to the 1601 Expansion Space. As of September 30, 2019 , we have surrendered the 1751 Space and we have taken possession of the 1601 Expansion Space, and accordingly we have adjusted our right-of-use asset and lease liability, and have begun to recognize lease costs for the Third Lease Amendment. The balance sheet classification of our lease liabilities were as follows (in thousands): September 30, December 31, 2018 Operating lease liabilities: Current portion included in Other current liabilities $ 2,695 $ 2,738 Long-term portion of lease liabilities 23,661 12,099 Total operating lease liabilities 26,356 14,837 Financing lease liabilities: Current portion included in Other current liabilities 50 49 Long-term portion of lease liabilities 44 79 Total financing lease liabilities 94 128 Total lease liabilities $ 26,450 $ 14,965 The components of lease costs for operating leases, which were included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 692 $ 1,614 $ 1,768 $ 3,587 Variable lease cost 274 363 654 1,366 Total lease costs $ 966 $ 1,977 $ 2,422 $ 4,953 Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $2.1 million and was included in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows. As of September 30, 2019 , the maturities of our operating lease liabilities were as follows (in thousands): Remainder of 2019 $ 745 Years ending December 31, 2020 3,625 2021 3,731 2022 3,852 2023 3,959 Thereafter 17,444 Total lease payments 33,356 Less: Present value adjustment (5,258 ) Tenant improvement reimbursements (1) (1,742 ) Operating lease liabilities $ 26,356 ____________________ (1) Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space. Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, we use our incremental borrowing rate. The weighted average discount rate used to determine the operating lease liability was 4.20% . As of September 30, 2019 , the weighted average remaining lease term is 8.3 years |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 27, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS Build to Suit Lease On October 25, 2019 , we entered into a build-to-suit Lease Agreement (the Build-to-Suit Lease) with Ernst Development Partners, Inc. (Ernst), for approximately 220,000 square feet of office space located in Alameda, California (the New Premises), adjacent to the Current Premises. The term of the Build-to-Suit Lease is for a period of 242 months (the Term), which will begin on the completion of the building and tenant improvements by Ernst. The Term is currently anticipated to begin on October 25, 2021 . The monthly base rent under the Build-to-Suit Lease will equal to a percentage of the total development costs incurred in connection with the development of the New Premises (excluding the cost of the tenant improvements in excess of the allowance provided by Ernst and any development costs we pay) and is currently estimated to be about $726,000 , subject to an annual increase of 3% during the Term. The monthly base rent will begin sixty days following commencement of the Term. We will also be responsible for paying operating expenses related to the New Premises. The Build-to-Suit Lease includes two five-year options to extend the term of the Build-to-Suit Lease, exercisable under certain conditions and at a market rate determined in accordance with the Build-to-Suit Lease. We have a one-time option to terminate the Build-to-Suit Lease without cause after the 180 th month of the Term, exercisable under certain conditions as described in the Build-to-Suit Lease and subject to a termination payment calculated in accordance with the Build-to-Suit Lease. See Part II, Item 5 of this Quarterly Report on Form 10-Q for more information about the Build to Suit Lease. Fourth Amendment to the Lease In the fourth quarter of 2019, Hillwood Enterprises, L.P. (Hillwood) is expected to purchase the project known as 1750 North Loop Road and 1601, 1701, 1751, 1801 and 1851 Harbor Bay Parkway, Alameda, California from Ascentris 105, LLC (the Purchase), which project includes the Current Premises. Effective upon the Purchase, Hillwood will become the landlord pursuant to the Lease. On August 30, 2019, we entered into an amendment to the Lease with Hillwood (the Fourth Lease Amendment), pursuant to which each of our rights and obligations are contingent upon the Purchase. Effective upon the Purchase, the Fourth Lease Amendment will provide for, among other things, the (i) expansion of the Current Premises by 59,335 square feet of laboratory facilities located at 1701 Harbor Bay Parkway, Alameda, California, (ii) extension of the Lease term through October 31, 2031 and (iii) elimination of the Early Termination Right. As of September 30, 2019, we have not yet recorded a right-of-use asset or lease liability for the Fourth Lease Amendment, and the remainder of the disclosures in this note do not reflect the impact of this amendment. See Part II, Item 5 of this Quarterly Report on Form 10-Q for more information about the Fourth Lease Amendment. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial statements for the periods presented have been included. |
Fiscal Period | We have adopted a 52- or 53-week fiscal year policy that generally ends on the Friday closest to December 31 st . Fiscal year 2019, which is a 53-week fiscal year, will end on January 3, 2020 and fiscal year 2018, which was a 52-week fiscal year, ended on December 28, 2018. For convenience, references in this report as of and for the fiscal periods ended September 27, 2019, June 28, 2019, September 28, 2018 and June 29, 2018, and as of and for the fiscal years ending January 3, 2020, and ended December 28, 2018 and December 29, 2017, are indicated as being as of and for the periods ended September 30, 2019, June 30, 2019, September 30, 2018 and June 30, 2018 and the years ending December 31, 2019, and ended December 31, 2018 and December 31, 2017, respectively. Similarly, references in this report to the first day of the fiscal year ended January 3, 2020 are indicated as being as of January 1, 2019 and the first day of the fiscal quarter ended September 27, 2019 are indicated as being as of July 1, 2019. |
Segment Information | Segment Information We operate in one business segment that focuses on the discovery, development and commercialization of new medicines for difficult-to-treat cancers . Our Chief Executive Officer, as the chief operating decision-maker, manages and allocates resources to our operations on a total consolidated basis. Consistent with this decision-making process, our Chief Executive Officer uses consolidated, single-segment financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. |
Use of Estimates | Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements conforms to accounting principles generally accepted in the U.S., which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to: those related to revenue recognition, including determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, and variable consideration such as rebates, chargebacks, sales returns, sales allowances, and milestone payments included in collaboration arrangements; the amounts of revenues and expenses under our profit and loss sharing agreement; the recoverability of inventory; the amounts of operating lease right-of-use assets and lease liabilities; the amounts of deferred tax assets and liabilities including the related valuation allowance; the accrual for certain liabilities including accrued clinical trial liabilities; and valuations of equity awards used to determine stock-based compensation, including certain awards with vesting subject to market or performance conditions. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements On July 1, 2019, we adopted ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Accounting Standards Codification (ASC) Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense and requires us to expense the capitalized implementation costs over the term of the hosting arrangement, which includes reasonably certain renewals. ASU 2018-15 was adopted using the prospective transition method in the accompanying Condensed Consolidated Financial Statements. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. On January 1, 2019, we adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) (ASU 2018-02). There was no financial impact from the adoption of ASU 2018-02 and we did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from Accumulated other comprehensive income (loss) to Accumulated deficit. In connection with the adoption of ASU 2018-02, we have adopted the individual unit of account approach for releasing income tax effects from Accumulated other comprehensive income (loss) . On January 1, 2019, we also adopted ASU 2017-08 , Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The financial impact from the adoption of ASU 2017-08 was nominal. Recent Accounting Pronouncements Not Yet Adopted In November 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the counterparty is a customer for a distinct good or service (i.e. a unit of account). For units of account that are in the scope of Topic 606, all of the guidance in Topic 606 should be applied, including the guidance on recognition, measurement, presentation and disclosure. ASU 2018-18 also adds a reference in ASC Topic 808, Collaborative Arrangements (Topic 808) to the unit of account guidance in Topic 606 and requires that it be applied only to assess whether transactions in a collaborative arrangement are in the scope of Topic 606. ASU 2018-18 will preclude entities from presenting amounts related to transactions with a counterparty in a collaborative arrangement that is not a customer as revenue from contracts with customers. ASU 2018-18 is effective for us for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are in the process of assessing the impact of ASU 2018-18 on our Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04) . ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASU 2016-13) . ASU 2016-13 implements an impairment model, known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses. 2016-13 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2016-13 to have a material impact on our Condensed Consolidated Financial Statements. |
Revenues | Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables and the remaining reserve balances are classified as Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Contract Assets and Liabilities We receive payments from our licensees based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as unbilled collaboration revenue when recognized. Unbilled collaboration revenue was zero as of both September 30, 2019 and December 31, 2018 Net product revenues are attributed to geographic region based on the ship-to location. Collaboration revenues are attributed to geographic region based on the location of our collaboration partners’ headquarters. Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the p rofit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented . |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues by disaggregated category were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Product revenues: Gross product revenues $ 239,916 $ 193,356 $ 704,084 $ 525,438 Discounts and allowances (48,148 ) (30,410 ) (139,060 ) (82,384 ) Net product revenues 191,768 162,946 565,024 443,054 Collaboration revenues: License revenues (1) 68,035 51,323 128,937 152,261 Research and development services revenues (2) 12,988 10,560 35,814 27,464 Other collaboration revenues (3) (1,088 ) 568 (2,310 ) 2,445 Total collaboration revenues 79,935 62,451 162,441 182,170 Total revenues $ 271,703 $ 225,397 $ 727,465 $ 625,224 ____________________ (1) License revenues included the recognition of the portion of milestones allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant revenue reversal would not occur, as well as royalty revenues from Ipsen Pharma SAS (Ipsen), Genentech and Daiichi Sankyo. (2) Research and development services revenues included the recognition of deferred revenue for the portion of upfront and milestone payments that have been allocated to research and development services performance obligations, as well as development cost reimbursements earned on our collaboration agreements. (3) Other collaboration revenues included the profit on the U.S. commercialization of COTELLIC from Genentech and revenues on product supply services provided to Ipsen and Takeda Pharmaceutical Company Ltd. (Takeda), which were offset by the 3% royalty we are required to pay GlaxoSmithKline (GSK) on the net sales by Ipsen of any product incorporating cabozantinib. Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the p rofit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented . Net product revenues disaggregated by product were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 CABOMETYX $ 187,410 $ 158,262 $ 552,315 $ 428,317 COMETRIQ 4,358 4,684 12,709 14,737 Net product revenues $ 191,768 $ 162,946 $ 565,024 $ 443,054 Total revenues disaggregated by significant customer were as follows (dollars in thousands): Three Months Ended September 30, 2019 2018 Dollars Percent of Total Dollars Percent of Total Ipsen $ 76,016 28 % $ 57,186 25 % Caremark L.L.C. 35,703 13 % 30,707 14 % Affiliates of McKesson Corporation 31,901 12 % 26,597 12 % Affiliates of AmerisourceBergen Corporation 25,235 9 % 17,232 8 % Others, individually less than 10% of Total revenues for all periods presented 102,848 38 % 93,675 41 % Total revenues $ 271,703 100 % $ 225,397 100 % Nine Months Ended September 30, 2019 2018 Dollars Percent of Total Dollars Percent of Total Ipsen $ 120,133 17 % $ 145,038 23 % Caremark L.L.C. 105,638 15 % 83,516 13 % Affiliates of McKesson Corporation 88,496 12 % 71,249 11 % Affiliates of AmerisourceBergen Corporation 70,503 10 % 49,995 8 % Others, individually less than 10% of Total revenues for all periods presented 342,695 46 % 275,426 45 % Total revenues $ 727,465 100 % $ 625,224 100 % Total revenues disaggregated by geographic region were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 U.S. $ 194,484 $ 166,270 $ 572,957 $ 453,342 Europe 76,017 57,186 120,134 145,038 Japan 1,202 1,941 34,374 26,844 Total revenues $ 271,703 $ 225,397 $ 727,465 $ 625,224 |
Activities and Ending Reserve Balances for Significant Categories of Discounts and Allowances | The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands): Chargebacks and Discounts for Prompt Payment Other Customer Credits/Fees and Co-pay Assistance Rebates Total Balance at December 31, 2018 $ 2,322 $ 3,038 $ 11,916 $ 17,276 Provision related to sales made in: Current period 92,769 11,190 35,422 139,381 Prior periods (130 ) (106 ) (85 ) (321 ) Payments and customer credits issued (92,317 ) (11,466 ) (33,127 ) (136,910 ) Balance at September 30, 2019 $ 2,644 $ 2,656 $ 14,126 $ 19,426 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Collaborative Revenues Under Collaboration Agreement | Collaboration revenues under the collaboration agreement with Takeda were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Takeda collaboration revenues $ 1,187 $ 1,940 $ 14,245 $ 6,843 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Ipsen collaboration revenues $ 76,016 $ 57,186 $ 120,133 $ 145,038 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Profits on U.S. commercialization $ 1,102 $ 1,935 $ 3,507 $ 6,004 Royalty revenues on ex-U.S. sales $ 1,614 $ 1,390 $ 4,426 $ 4,285 Collaboration revenues under the collaboration agreement with Daiichi Sankyo were as follows (in thousands): Nine Months Ended September 30, 2019 2018 Daiichi Sankyo collaboration revenues $ 20,130 $ 20,000 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Royalties accruing to GSK $ 7,964 $ 6,268 $ 23,079 $ 17,021 |
Cash and Investments (Tables)
Cash and Investments (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | A reconciliation of Cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the amount reported within the accompanying Condensed Consolidated Statements of Cash Flows was as follows (in thousands): September 30, 2019 December 31, 2018 September 30, 2018 December 31, 2017 Cash and cash equivalents $ 242,317 $ 314,775 $ 353,623 $ 183,164 Restricted cash included in short-term restricted cash and investments — — 504 504 Restricted cash included in long-term restricted cash and investments 1,000 1,100 1,100 4,646 Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows $ 243,317 $ 315,875 $ 355,227 $ 188,314 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | A reconciliation of Cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the amount reported within the accompanying Condensed Consolidated Statements of Cash Flows was as follows (in thousands): September 30, 2019 December 31, 2018 September 30, 2018 December 31, 2017 Cash and cash equivalents $ 242,317 $ 314,775 $ 353,623 $ 183,164 Restricted cash included in short-term restricted cash and investments — — 504 504 Restricted cash included in long-term restricted cash and investments 1,000 1,100 1,100 4,646 Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows $ 243,317 $ 315,875 $ 355,227 $ 188,314 |
Investments by Security Type | Cash and investments by security type were as follows (in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments available-for-sale: Money market funds $ 26,641 $ — $ — $ 26,641 Commercial paper 332,239 — — 332,239 Corporate bonds 703,325 3,549 (67 ) 706,807 U.S. Treasury and government sponsored enterprises 152,531 143 (24 ) 152,650 Total investments available-for-sale 1,214,736 3,692 (91 ) 1,218,337 Cash and restricted cash 901 — — 901 Certificates of deposit 29,189 3 — 29,192 Total cash and investments $ 1,244,826 $ 3,695 $ (91 ) $ 1,248,430 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments available-for-sale: Money market funds $ 47,744 $ — $ — $ 47,744 Commercial paper 381,134 — (1 ) 381,133 Corporate bonds 344,741 180 (857 ) 344,064 U.S. Treasury and government sponsored enterprises 55,224 2 (25 ) 55,201 Total investments available-for-sale 828,843 182 (883 ) 828,142 Cash and restricted cash 6,883 — — 6,883 Certificates of deposit 16,596 — — 16,596 Total cash and investments $ 852,322 $ 182 $ (883 ) $ 851,621 |
Fair Value and Gross Unrealized Losses of Investments Available-for-Sale in an Unrealized Loss Position | The fair value and gross unrealized losses on investments available-for-sale in an unrealized loss position were as follows (in thousands): September 30, 2019 In an Unrealized Loss Position Less than 12 Months In an Unrealized Loss Position 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds $ 73,064 $ (66 ) $ 4,398 $ (1 ) $ 77,462 $ (67 ) U.S. Treasury and government sponsored enterprises 46,744 (24 ) — — 46,744 (24 ) Total $ 119,808 $ (90 ) $ 4,398 $ (1 ) $ 124,206 $ (91 ) December 31, 2018 In an Unrealized Loss Position Less than 12 Months In an Unrealized Loss Position 12 Months or Greater Total Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds $ 236,162 $ (606 ) $ 39,627 $ (251 ) $ 275,789 $ (857 ) U.S. Treasury and government sponsored enterprises 28,105 (16 ) 9,182 (9 ) 37,287 (25 ) Commercial paper 7,091 (1 ) — — 7,091 (1 ) Total $ 271,358 $ (623 ) $ 48,809 $ (260 ) $ 320,167 $ (883 ) |
Fair Value of Cash Equivalents and Investments by Contractual Maturity | The fair value of investments available-for-sale by contractual maturity were as follows (in thousands): September 30, December 31, 2018 Maturing in one year or less $ 743,768 $ 674,455 Maturing after one year through five years 474,569 153,687 Total investments available-for-sale $ 1,218,337 $ 828,142 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following (in thousands): September 30, December 31, 2018 Raw materials $ 1,906 $ 1,922 Work in process 11,035 6,170 Finished goods 7,311 3,836 Total $ 20,252 $ 11,928 Balance Sheet classification: Current portion included in Inventory $ 13,366 $ 9,838 Long-term portion included in Other long-term assets 6,886 2,090 Total $ 20,252 $ 11,928 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following (in thousands): September 30, December 31, Leasehold improvements $ 33,769 $ 33,941 Computer equipment and software 17,017 15,022 Furniture and fixtures 13,053 12,709 Laboratory equipment 8,408 5,668 Construction in progress 617 866 72,864 68,206 Less: accumulated depreciation and amortization (23,397 ) (17,309 ) Property and equipment, net $ 49,467 $ 50,897 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Allocated Employee Stock-Based Compensation Expense | We allocated the stock-based compensation expense for our equity incentive plans and our 2000 Employee Stock Purchase Plan (ESPP) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 4,301 $ 3,169 $ 13,745 $ 9,102 Selling, general and administrative 8,838 6,573 27,002 19,228 Total stock-based compensation $ 13,139 $ 9,742 $ 40,747 $ 28,330 |
Weighted Average Grant-Date Fair Value of Stock Options and ESPP Purchases | The weighted average grant-date fair value per share of stock options and ESPP purchases were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options $ 7.71 $ 8.67 $ 8.57 $ 9.13 ESPP $ 5.39 $ 6.19 $ 4.93 $ 6.96 |
Valuation Assumptions Used to Estimate Grant-Date Fair Value | The grant-date fair value of stock option grants and ESPP purchases was estimated using the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options: Risk-free interest rate 1.57 % 2.91 % 1.82 % 2.83 % Dividend yield — % — % — % — % Volatility 48 % 55 % 48 % 55 % Expected life 4.0 years 4.4 years 4.4 years 4.4 years ESPP: Risk-free interest rate 2.09 % 2.11 % 2.34 % 1.74 % Dividend yield — % — % — % — % Volatility 43 % 51 % 52 % 52 % Expected life 6 months 6 months 6 months 6 months |
Stock Option Activity | Activity for stock options during the nine months ended September 30, 2019 was as follows (dollars in thousands , except per share amounts): Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2018 22,674,062 $ 8.71 Granted 1,042,286 $ 20.81 Exercised (3,042,201 ) $ 4.94 Forfeited (160,241 ) $ 16.76 Expired (35,045 ) $ 23.41 Options outstanding at September 30, 2019 20,478,861 $ 9.80 3.4 years $ 186,407 Exercisable at September 30, 2019 15,860,131 $ 7.02 2.8 years $ 181,542 |
RSU Activity | Activity for RSUs during the nine months ended September 30, 2019 was as follows (dollars in thousands , except per share amounts): Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value RSUs outstanding at December 31, 2018 4,857,334 $ 18.42 Awarded 5,635,362 $ 19.54 Vested and released (484,731 ) $ 12.33 Forfeited (258,142 ) $ 18.47 RSUs outstanding at September 30, 2019 9,749,823 $ 19.37 2.2 years $ 175,448 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The basic and diluted net income per share were computed as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 97,452 $ 126,630 $ 252,269 $ 329,981 Denominator: Weighted-average shares of common stock outstanding used in computing basic net income per share 303,268 298,416 301,999 297,700 Dilutive securities 12,185 13,930 13,047 15,500 Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share 315,453 312,346 315,046 313,200 Net income per share, basic $ 0.32 $ 0.42 $ 0.84 $ 1.11 Net income per share, diluted $ 0.31 $ 0.41 $ 0.80 $ 1.05 |
Potential Shares of Common Stock Not Included in the Computation of Diluted Net Income (Loss) Per Share | Potential shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Potentially dilutive securities 6,153 5,687 5,740 2,938 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
Classification of Financial Assets Measured and Recorded at Fair Value on a Recurring Basis | The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands): September 30, 2019 Level 1 Level 2 Total Money market funds $ 26,641 $ — $ 26,641 Commercial paper — 332,239 332,239 Corporate bonds — 706,807 706,807 U.S. Treasury and government sponsored enterprises — 152,650 152,650 Total investments available-for-sale 26,641 1,191,696 1,218,337 Certificates of deposit — 29,192 29,192 Total financial assets carried at fair value $ 26,641 $ 1,220,888 $ 1,247,529 December 31, 2018 Level 1 Level 2 Total Money market funds $ 47,744 $ — $ 47,744 Commercial paper — 381,133 381,133 Corporate bonds — 344,064 344,064 U.S. Treasury and government sponsored enterprises — 55,201 55,201 Total investments available-for-sale 47,744 780,398 828,142 Certificates of deposit — 16,596 16,596 Total financial assets carried at fair value $ 47,744 $ 796,994 $ 844,738 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 27, 2019 | |
Leases [Abstract] | |
Balance Sheet Classification of Lease Liabilities | The balance sheet classification of our lease liabilities were as follows (in thousands): September 30, December 31, 2018 Operating lease liabilities: Current portion included in Other current liabilities $ 2,695 $ 2,738 Long-term portion of lease liabilities 23,661 12,099 Total operating lease liabilities 26,356 14,837 Financing lease liabilities: Current portion included in Other current liabilities 50 49 Long-term portion of lease liabilities 44 79 Total financing lease liabilities 94 128 Total lease liabilities $ 26,450 $ 14,965 |
Components of Lease Expense | The components of lease costs for operating leases, which were included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 692 $ 1,614 $ 1,768 $ 3,587 Variable lease cost 274 363 654 1,366 Total lease costs $ 966 $ 1,977 $ 2,422 $ 4,953 |
Maturities of Operating Lease Liabilities | As of September 30, 2019 , the maturities of our operating lease liabilities were as follows (in thousands): Remainder of 2019 $ 745 Years ending December 31, 2020 3,625 2021 3,731 2022 3,852 2023 3,959 Thereafter 17,444 Total lease payments 33,356 Less: Present value adjustment (5,258 ) Tenant improvement reimbursements (1) (1,742 ) Operating lease liabilities $ 26,356 ____________________ (1) Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 27, 2019segmentproduct | |
Organization And Summary Of Significant Policies [Line Items] | |
Number of products that entered in the commercial marketplace | 4 |
Number of business segments | segment | 1 |
Products Derived from Cabozantinib | |
Organization And Summary Of Significant Policies [Line Items] | |
Number of products that entered in the commercial marketplace | 2 |
Resulting from Discovery Efforts | |
Organization And Summary Of Significant Policies [Line Items] | |
Number of products that entered in the commercial marketplace | 2 |
Revenues - Revenues by Disaggre
Revenues - Revenues by Disaggregated Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Collaborative Arrangement with Ipsen | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 76,016 | 57,186 | $ 120,133 | 145,038 |
GSK | Collaborative Arrangement with Ipsen | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of royalty on net sale | 3.00% | |||
Net product revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 191,768 | 162,946 | $ 565,024 | 443,054 |
Gross product revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 239,916 | 193,356 | 704,084 | 525,438 |
Discounts and allowances | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 48,148 | 30,410 | 139,060 | 82,384 |
Total collaboration revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 79,935 | 62,451 | 162,441 | 182,170 |
License revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 68,035 | 51,323 | 128,937 | 152,261 |
Research and development services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12,988 | 10,560 | 35,814 | 27,464 |
Other collaboration revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ (1,088) | $ 568 | $ (2,310) | $ 2,445 |
Revenues - Net Product Revenues
Revenues - Net Product Revenues Disaggregated by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net product revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Net product revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net product revenues | 191,768 | 162,946 | 565,024 | 443,054 |
CABOMETYX | ||||
Disaggregation of Revenue [Line Items] | ||||
Net product revenues | 187,410 | 158,262 | 552,315 | 428,317 |
COMETRIQ | ||||
Disaggregation of Revenue [Line Items] | ||||
Net product revenues | $ 4,358 | $ 4,684 | $ 12,709 | $ 14,737 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Significant Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Ipsen | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 76,016 | $ 57,186 | $ 120,133 | $ 145,038 |
Ipsen | Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 28.00% | 25.00% | 17.00% | 23.00% |
Caremark L.L.C. | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 35,703 | $ 30,707 | $ 105,638 | $ 83,516 |
Caremark L.L.C. | Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 13.00% | 14.00% | 15.00% | 13.00% |
Affiliates of McKesson Corporation | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 31,901 | $ 26,597 | $ 88,496 | $ 71,249 |
Affiliates of McKesson Corporation | Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 12.00% | 12.00% | 12.00% | 11.00% |
Affiliates of AmerisourceBergen Corporation | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 25,235 | $ 17,232 | $ 70,503 | $ 49,995 |
Affiliates of AmerisourceBergen Corporation | Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 9.00% | 8.00% | 10.00% | 8.00% |
Others, individually less than 10% of Total revenues for all periods presented | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 102,848 | $ 93,675 | $ 342,695 | $ 275,426 |
Others, individually less than 10% of Total revenues for all periods presented | Revenue | Customer Concentration Risk | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent of total revenues | 38.00% | 41.00% | 46.00% | 45.00% |
Revenues - Revenues Disaggreg_2
Revenues - Revenues Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 194,484 | 166,270 | 572,957 | 453,342 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 76,017 | 57,186 | 120,134 | 145,038 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 1,202 | $ 1,941 | $ 34,374 | $ 26,844 |
Revenues - Activities and Endin
Revenues - Activities and Ending Reserve Balances for Significant Categories of Discounts and Allowances (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2019USD ($) | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Balance at December 31, 2018 | $ 17,276 |
Provision related to sales made in: | |
Current period | 139,381 |
Prior periods | (321) |
Payments and customer credits issued | (136,910) |
Balance at September 30, 2019 | 19,426 |
Chargebacks and Discounts for Prompt Payment | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Balance at December 31, 2018 | 2,322 |
Provision related to sales made in: | |
Current period | 92,769 |
Prior periods | (130) |
Payments and customer credits issued | (92,317) |
Balance at September 30, 2019 | 2,644 |
Other Customer Credits/Fees and Co-pay Assistance | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Balance at December 31, 2018 | 3,038 |
Provision related to sales made in: | |
Current period | 11,190 |
Prior periods | (106) |
Payments and customer credits issued | (11,466) |
Balance at September 30, 2019 | 2,656 |
Rebates | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Balance at December 31, 2018 | 11,916 |
Provision related to sales made in: | |
Current period | 35,422 |
Prior periods | (85) |
Payments and customer credits issued | (33,127) |
Balance at September 30, 2019 | $ 14,126 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities under Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Dec. 28, 2018 | ||
Revenue from Contract with Customer [Abstract] | ||||||
Unbilled collaboration revenue | $ 0 | $ 0 | $ 0 | |||
Deferred revenue | 15,399 | 15,399 | $ 15,897 | [1] | ||
Amount of revenues recognized included in the beginning contract liability balance | 2,700 | $ 6,100 | ||||
Revenues recognized for performance obligations satisfied in previous periods | $ 67,700 | $ 48,200 | $ 129,000 | $ 151,800 | ||
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Collaboration Agreements - Coll
Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Ipsen (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Collaborative Arrangement with Ipsen | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 76,016 | $ 57,186 | $ 120,133 | $ 145,038 |
Collaboration Agreements - Ipse
Collaboration Agreements - Ipsen Collaboration (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 | [1] |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Net contract liability | $ 15,399 | $ 15,897 | |
Collaborative Arrangement with Ipsen | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Remaining performance obligation | 47,100 | ||
Net contract liability | $ 7,200 | ||
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Collaboration Agreements - Co_2
Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Takeda (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Collaborative Arrangement with Takeda | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 1,187 | $ 1,940 | $ 14,245 | $ 6,843 |
Collaboration Agreements - Take
Collaboration Agreements - Takeda Collaboration (Details) - Collaborative Arrangement with Takeda - USD ($) $ in Millions | Apr. 29, 2019 | Apr. 28, 2019 | Sep. 27, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Limit on reimbursement per year | $ 1 | ||
Increase in maximum amount eligible for development and regulatory milestones | 12 | ||
Maximum amount eligible for development and regulatory milestones | 102 | ||
Milestone payments earned | 16 | $ 10 | |
Increase in maximum amount eligible for commercial milestones under collaborations agreement | 6 | ||
Maximum amount eligible for commercial milestones under collaborations agreement | $ 89 | ||
Remaining performance obligation | $ 18.7 | ||
Net contract liability | $ 8.2 |
Collaboration Agreements - Roya
Collaboration Agreements - Royalty Revenues under the Collaboration Agreement with Genentech (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Royalty revenues on ex-U.S. sales | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Collaborative Arrangement with Genentech | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Profits and losses on U.S. commercialization | 1,102 | 1,935 | 3,507 | 6,004 |
Royalty revenues on ex-U.S. sales | $ 1,614 | $ 1,390 | $ 4,426 | $ 4,285 |
Collaboration Agreements - Daii
Collaboration Agreements - Daiichi Sankyo (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 | |
Collaboration revenue | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total revenues | 79,935 | 62,451 | 162,441 | 182,170 | |
Collaboration Agreement with Daiichi Sankyo | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total revenues | $ 0 | $ 0 | $ 20,130 | $ 20,000 | |
Percent of royalty on net sale | 0.50% | ||||
Collaboration Agreement with Daiichi Sankyo | Collaboration revenue | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total revenues | $ 20,000 |
Collaboration Agreements - Co_3
Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Daiichi Sankyo (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 271,703 | $ 225,397 | $ 727,465 | $ 625,224 |
Collaboration Agreement with Daiichi Sankyo | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 0 | $ 0 | $ 20,130 | $ 20,000 |
Collaboration Agreements - Icon
Collaboration Agreements - Iconic Therapeutics, Inc. (Iconic) Collaboration (Details) - Collaboration Agreement with Iconic Therapeutics, Inc. - USD ($) $ in Millions | 1 Months Ended | |
May 31, 2019 | Sep. 27, 2019 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Upfront payment | $ 7.5 | |
Preclinical development funding commitment accrued | $ 6.6 | |
Option exercise fee payment, if exercised | 20 | |
Maximum amount eligible for development, regulatory and first-sale milestones | 190.6 | |
Maximum amount eligible for commercial milestones under collaborations agreement | $ 262.5 |
Collaboration Agreements - Auri
Collaboration Agreements - Aurigene Discovery Technologies Limited (Aurigene) Collaboration (Details) $ in Millions | 1 Months Ended | |
Jul. 31, 2019USD ($)program | Sep. 27, 2019USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Additional option payments | $ 7.5 | |
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Collaboration agreement, number of programs | program | 6 | |
Upfront payment | $ 10 | |
Collaboration agreement, number of preexisting programs | program | 3 | |
Collaboration agreement, number of drug discovery programs | program | 3 | |
Research and development obligation | $ 32.6 | |
Preclinical development funding commitment accrued | $ 1.3 | |
Maximum amount eligible for development and regulatory milestones | 148.8 | |
Maximum amount eligible for commercial milestones under collaborations agreement | 280 | |
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement | Minimum | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Option exercise fee payment, if exercised | 10 | |
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement | Maximum | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Option exercise fee payment, if exercised | $ 12 |
Collaboration Agreements - Ro_2
Collaboration Agreements - Royalty Revenues under the Collaboration Agreement with GSK (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Collaboration Agreement with GlaxoSmithKline | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Royalties accruing to GSK | $ 7,964 | $ 6,268 | $ 23,079 | $ 17,021 |
GSK | Collaborative Arrangement with Ipsen | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Percent of royalty on net sale | 3.00% |
Cash and Investments - Reconcil
Cash and Investments - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 242,317 | $ 314,775 | [1] | $ 353,623 | $ 183,164 |
Restricted cash included in short-term restricted cash and investments | 0 | 0 | [1] | 504 | 504 |
Restricted cash included in long-term restricted cash and investments | 1,000 | 1,100 | [1] | 1,100 | 4,646 |
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows | $ 243,317 | $ 315,875 | $ 355,227 | $ 188,314 | |
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Cash and Investments - Investme
Cash and Investments - Investments by Security Type (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 |
Investment [Line Items] | ||||
Investments, available-for-sale, Amortized Cost | $ 1,214,736 | $ 828,843 | ||
Investments available-for-sale, Gross Unrealized Gains | 3,692 | 182 | ||
Investments available-for-sale, Gross Unrealized Losses | (91) | (883) | ||
Investments available-for-sale, Fair Value | 1,218,337 | 828,142 | ||
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows | 243,317 | 315,875 | $ 355,227 | $ 188,314 |
Total cash and investments, Amortized Cost | 1,244,826 | 852,322 | ||
Total cash and investments, Gross Unrealized Gains | 3,695 | 182 | ||
Total cash and investments, Gross Unrealized Losses | (91) | (883) | ||
Total cash and investments, Fair Value | 1,248,430 | 851,621 | ||
Money market funds | ||||
Investment [Line Items] | ||||
Investments, available-for-sale, Amortized Cost | 26,641 | 47,744 | ||
Investments available-for-sale, Gross Unrealized Gains | 0 | 0 | ||
Investments available-for-sale, Gross Unrealized Losses | 0 | 0 | ||
Investments available-for-sale, Fair Value | 26,641 | 47,744 | ||
Commercial paper | ||||
Investment [Line Items] | ||||
Investments, available-for-sale, Amortized Cost | 332,239 | 381,134 | ||
Investments available-for-sale, Gross Unrealized Gains | 0 | 0 | ||
Investments available-for-sale, Gross Unrealized Losses | 0 | (1) | ||
Investments available-for-sale, Fair Value | 332,239 | 381,133 | ||
Corporate bonds | ||||
Investment [Line Items] | ||||
Investments, available-for-sale, Amortized Cost | 703,325 | 344,741 | ||
Investments available-for-sale, Gross Unrealized Gains | 3,549 | 180 | ||
Investments available-for-sale, Gross Unrealized Losses | (67) | (857) | ||
Investments available-for-sale, Fair Value | 706,807 | 344,064 | ||
U.S. Treasury and government sponsored enterprises | ||||
Investment [Line Items] | ||||
Investments, available-for-sale, Amortized Cost | 152,531 | 55,224 | ||
Investments available-for-sale, Gross Unrealized Gains | 143 | 2 | ||
Investments available-for-sale, Gross Unrealized Losses | (24) | (25) | ||
Investments available-for-sale, Fair Value | 152,650 | 55,201 | ||
Cash and restricted cash | ||||
Investment [Line Items] | ||||
Investments available-for-sale, Gross Unrealized Gains | 0 | |||
Investments available-for-sale, Gross Unrealized Losses | 0 | |||
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows | 901 | 6,883 | ||
Cash, cash equivalents, and restricted cash, Gross Unrealized Gains | 0 | |||
Cash, cash equivalents, and restricted cash, Gross Unrealized Losses | 0 | |||
Cash, restricted cash and certificates of deposit, Fair Value | 901 | 6,883 | ||
Certificates of deposit | ||||
Investment [Line Items] | ||||
Investments available-for-sale, Gross Unrealized Gains | 0 | |||
Investments available-for-sale, Gross Unrealized Losses | 0 | |||
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows | 29,189 | 16,596 | ||
Cash, cash equivalents, and restricted cash, Gross Unrealized Gains | 3 | |||
Cash, cash equivalents, and restricted cash, Gross Unrealized Losses | 0 | |||
Cash, restricted cash and certificates of deposit, Fair Value | $ 29,192 | $ 16,596 |
Cash and Investments - Fair Val
Cash and Investments - Fair Value and Gross Unrealized Losses of Investments Available-for-Sale in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
In an Unrealized Loss Position Less than 12 Months, Fair Value | $ 119,808 | $ 271,358 |
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses | (90) | (623) |
In an Unrealized Loss Position 12 Months or Greater, Fair Value | 4,398 | 48,809 |
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses | (1) | (260) |
Total, Fair Value | 124,206 | 320,167 |
Total, Gross Unrealized Losses | (91) | (883) |
Corporate bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
In an Unrealized Loss Position Less than 12 Months, Fair Value | 73,064 | 236,162 |
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses | (66) | (606) |
In an Unrealized Loss Position 12 Months or Greater, Fair Value | 4,398 | 39,627 |
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses | (1) | (251) |
Total, Fair Value | 77,462 | 275,789 |
Total, Gross Unrealized Losses | (67) | (857) |
U.S. Treasury and government sponsored enterprises | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
In an Unrealized Loss Position Less than 12 Months, Fair Value | 46,744 | 28,105 |
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses | (24) | (16) |
In an Unrealized Loss Position 12 Months or Greater, Fair Value | 0 | 9,182 |
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses | 0 | (9) |
Total, Fair Value | 46,744 | 37,287 |
Total, Gross Unrealized Losses | $ (24) | (25) |
Commercial paper | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
In an Unrealized Loss Position Less than 12 Months, Fair Value | 7,091 | |
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses | (1) | |
In an Unrealized Loss Position 12 Months or Greater, Fair Value | 0 | |
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses | 0 | |
Total, Fair Value | 7,091 | |
Total, Gross Unrealized Losses | $ (1) |
Cash and Investments - Narrativ
Cash and Investments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2019USD ($)investment | Sep. 28, 2018USD ($) | Sep. 27, 2019USD ($)investment | Sep. 28, 2018USD ($) | Dec. 28, 2018USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||||
Gain (loss) on sales of investments available-for-sale | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of investments in an unrealized loss position | investment | 43 | 43 | 199 | ||
Other-than-temporary impairment charges on available-for-sale securities | $ 0 | $ 0 | $ 0 | ||
Beneficial ownership interest by BlackRock (more than) | 10.00% | ||||
Fair value of cash and investments managed by BlackRock | 470,800,000 | 470,800,000 | $ 298,500,000 | ||
Fair value of cash and investments managed by BlackRock in the BlackRock Liquidity Money Market Fund | 1,900,000 | 1,900,000 | $ 3,000,000 | ||
Payable to BlackRock | $ 9,000,000 | 9,000,000 | |||
Fees for advisory services paid to BlackRock | $ 200,000 |
Cash and Investments - Fair V_2
Cash and Investments - Fair Value of Cash Equivalents and Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 743,768 | $ 674,455 |
Maturing after one year through five years | 474,569 | 153,687 |
Total investments available-for-sale | $ 1,218,337 | $ 828,142 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Dec. 28, 2018 | |
Inventory [Line Items] | |||
Raw materials | $ 1,906 | $ 1,922 | |
Work in process | 11,035 | 6,170 | |
Finished goods | 7,311 | 3,836 | |
Total | 20,252 | 11,928 | |
Write-downs on inventory | 400 | $ 800 | |
Current portion included in Inventory | |||
Inventory [Line Items] | |||
Total | 13,366 | 9,838 | |
Long-term portion included in Other long-term assets | |||
Inventory [Line Items] | |||
Total | $ 6,886 | $ 2,090 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 72,864 | $ 68,206 | |
Less: accumulated depreciation and amortization | (23,397) | (17,309) | |
Property and equipment, net | 49,467 | 50,897 | [1] |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 33,769 | 33,941 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 17,017 | 15,022 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13,053 | 12,709 | |
Laboratory equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,408 | 5,668 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 617 | $ 866 | |
[1] | The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date. |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 2.1 | $ 1.7 | $ 6.1 | $ 2.9 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocated Employee Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 13,139 | $ 9,742 | $ 40,747 | $ 28,330 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 4,301 | 3,169 | 13,745 | 9,102 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 8,838 | $ 6,573 | $ 27,002 | $ 19,228 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Dec. 28, 2018 | Jun. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | 6,024,995 | 6,024,995 | ||||
Compensation expense | $ 13,139 | $ 9,742 | $ 40,747 | $ 28,330 | ||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | 38,000 | $ 38,000 | ||||
Weighted-average cost recognition period | 2 years 3 months 18 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 166,000 | $ 166,000 | ||||
Weighted-average cost recognition period | 2 years 9 months 18 days | |||||
RSUs awarded (in shares) | 5,635,362 | |||||
Product revenue related performance targets, shares vested and released (in shares) | 9,749,823 | 9,749,823 | 4,857,334 | |||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSUs awarded (in shares) | 1,926,605 | 693,131 | ||||
Compensation expense | $ 900 | $ 3,500 | ||||
PSUs | Achieved | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Product revenue related performance targets, shares vested and released (in shares) | 114,843 | |||||
PSUs | Probable | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | 1,700 | 1,700 | ||||
Product revenue related performance targets, shares vested and released (in shares) | 172,272 | |||||
PSUs | Not Probable | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 82,400 | $ 82,400 | ||||
PSUs, achieved before December 31, 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum potential to vest, percentage | 150.00% | |||||
Maximum potential to vest (in shares) | 963,136 | |||||
PSUs, second product approval | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum potential to vest, percentage | 200.00% | |||||
Maximum potential to vest (in shares) | 1,926,605 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Grant-Date Fair Value of Stock Options and ESPP Purchases (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value (in dollars per share) | $ 7.71 | $ 8.67 | $ 8.57 | $ 9.13 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value (in dollars per share) | $ 5.39 | $ 6.19 | $ 4.93 | $ 6.96 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions Used to Estimate Grant-Date Fair Value (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.57% | 2.91% | 1.82% | 2.83% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 48.00% | 55.00% | 48.00% | 55.00% |
Expected life | 4 years | 4 years 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 2.09% | 2.11% | 2.34% | 1.74% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 43.00% | 51.00% | 52.00% | 52.00% |
Expected life | 6 months | 6 months | 6 months | 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 27, 2019USD ($)$ / sharesshares | |
Shares | |
Options outstanding at beginning of period (in shares) | shares | 22,674,062 |
Granted (in shares) | shares | 1,042,286 |
Exercised (in shares) | shares | (3,042,201) |
Forfeited (in shares) | shares | (160,241) |
Expired (in shares) | shares | (35,045) |
Options outstanding at end of period (in shares) | shares | 20,478,861 |
Exercisable at end of period (in shares) | shares | 15,860,131 |
Weighted Average Exercise Price Per Share | |
Options outstanding at beginning of period (in dollars per share) | $ / shares | $ 8.71 |
Granted (in dollars per share) | $ / shares | 20.81 |
Exercised (in dollars per share) | $ / shares | 4.94 |
Forfeited (in dollars per share) | $ / shares | 16.76 |
Expired (in dollars per share) | $ / shares | 23.41 |
Options outstanding at end of period (in dollars per share) | $ / shares | 9.80 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 7.02 |
Weighted Average Remaining Contractual Term | |
Options outstanding at end of period | 3 years 4 months 24 days |
Exercisable at end of period | 2 years 9 months 18 days |
Aggregate Intrinsic Value | |
Options outstanding at end of period | $ | $ 186,407 |
Exercisable at end of period | $ | $ 181,542 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - RSUs $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 27, 2019USD ($)$ / sharesshares | |
Shares | |
RSUs outstanding at beginning of period (in shares) | shares | 4,857,334 |
Awarded (in shares) | shares | 5,635,362 |
Vested and released (in shares) | shares | (484,731) |
Forfeited (in shares) | shares | (258,142) |
RSUs outstanding at end of period (in shares) | shares | 9,749,823 |
Weighted Average Grant Date Fair Value Per Share | |
RSUs outstanding at beginning of period (in dollars per share) | $ / shares | $ 18.42 |
Awarded (in dollars per share) | $ / shares | 19.54 |
Vested and released (in dollars per share) | $ / shares | 12.33 |
Forfeited (in dollars per share) | $ / shares | 18.47 |
RSUs outstanding at end of period (in dollars per share) | $ / shares | $ 19.37 |
Weighted Average Remaining Contractual Term | |
RSUs outstanding at end of period | 2 years 2 months 12 days |
Aggregate Intrinsic Value | |
RSUs outstanding at end of period | $ | $ 175,448 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2019 | Sep. 29, 2018 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 29, 2018 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Effective income tax rate | 20.50% | 1.80% | 19.40% | 1.70% | ||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Numerator: | ||||
Net income | $ 97,452 | $ 126,630 | $ 252,269 | $ 329,981 |
Denominator: | ||||
Weighted-average shares of common stock outstanding used in computing basic net income per share (in shares) | 303,268 | 298,416 | 301,999 | 297,700 |
Dilutive securities (in shares) | 12,185 | 13,930 | 13,047 | 15,500 |
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share (in shares) | 315,453 | 312,346 | 315,046 | 313,200 |
Net income per share, basic (in dollars per share) | $ 0.32 | $ 0.42 | $ 0.84 | $ 1.11 |
Net income per share, diluted (in dollars per share) | $ 0.31 | $ 0.41 | $ 0.80 | $ 1.05 |
Net Income Per Share - Potentia
Net Income Per Share - Potential Shares of Common Stock Not Included in the Computation of Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Potentially dilutive securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 6,153 | 5,687 | 5,740 | 2,938 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | $ 1,218,337 | $ 828,142 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 1,218,337 | 828,142 |
Total financial assets carried at fair value | 1,247,529 | 844,738 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 26,641 | 47,744 |
Total financial assets carried at fair value | 26,641 | 47,744 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 1,191,696 | 780,398 |
Total financial assets carried at fair value | 1,220,888 | 796,994 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 26,641 | 47,744 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 26,641 | 47,744 |
Money market funds | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 26,641 | 47,744 |
Money market funds | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 332,239 | 381,133 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 332,239 | 381,133 |
Commercial paper | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 0 | 0 |
Commercial paper | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 332,239 | 381,133 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 706,807 | 344,064 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 706,807 | 344,064 |
Corporate bonds | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 0 | 0 |
Corporate bonds | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 706,807 | 344,064 |
U.S. Treasury and government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 152,650 | 55,201 |
U.S. Treasury and government sponsored enterprises | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 152,650 | 55,201 |
U.S. Treasury and government sponsored enterprises | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 0 | 0 |
U.S. Treasury and government sponsored enterprises | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments available-for-sale | 152,650 | 55,201 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 29,192 | 16,596 |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 29,192 | 16,596 |
Certificates of deposit | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 0 | 0 |
Certificates of deposit | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | $ 29,192 | $ 16,596 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
May 31, 2017 | Sep. 27, 2019USD ($)ft²renewal_option | Aug. 30, 2019ft² | Apr. 30, 2019USD ($)ft² | Jan. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Tenant improvement allowance | $ 1,742 | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 2,100 | ||||
Weighted average operating discount rate used to determine the operating lease liability | 4.20% | ||||
Weighted average remaining lease term for operating lease | 8 years 3 months 18 days | ||||
Alameda, California | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of lease property (in square feet) | ft² | 169,606 | ||||
Tenant improvement reimbursements | $ 8,200 | ||||
Number of options to extend the Lease | renewal_option | 2 | ||||
Option to terminate lease (after period) | 8 years | ||||
Lease option to extend period | 5 years | ||||
Operating lease, expansion (in square feet) | ft² | 59,335 | 37,544 | |||
Operating lease, surrendered (in square feet) | ft² | 2,703 | ||||
Tenant improvement allowance | $ 1,700 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 |
Operating lease liabilities: | ||
Current portion included in Other current liabilities | $ 2,695 | $ 2,738 |
Long-term portion of lease liabilities | 23,661 | 12,099 |
Total operating lease liabilities | 26,356 | 14,837 |
Financing lease liabilities: | ||
Current portion included in Other current liabilities | 50 | 49 |
Long-term portion of lease liabilities | 44 | 79 |
Financing obligation for build-to-suit lease | 94 | 128 |
Total lease liabilities | $ 26,450 | $ 14,965 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 692 | $ 1,614 | $ 1,768 | $ 3,587 |
Variable lease cost | 274 | 363 | 654 | 1,366 |
Total lease costs | $ 966 | $ 1,977 | $ 2,422 | $ 4,953 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Dec. 28, 2018 |
Maturities of Operating Lease Liabilities | ||
Remainder of 2019 | $ 745 | |
Years ending December 31, | ||
2020 | 3,625 | |
2021 | 3,731 | |
2022 | 3,852 | |
2023 | 3,959 | |
Thereafter | 17,444 | |
Total lease payments | 33,356 | |
Less: | ||
Present value adjustment | (5,258) | |
Tenant improvement reimbursements | (1,742) | |
Operating lease liabilities | $ 26,356 | $ 14,837 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Oct. 25, 2019USD ($)ft²renewal_option | May 31, 2017 | Sep. 27, 2019ft²renewal_option | Aug. 30, 2019ft² | Apr. 30, 2019ft² |
Alameda, California | |||||
Subsequent Event [Line Items] | |||||
Area of lease property (in square feet) | 169,606 | ||||
Number of options to extend the Lease | renewal_option | 2 | ||||
Lease option to extend period | 5 years | ||||
Option to terminate lease (after period) | 8 years | ||||
Operating lease, expansion (in square feet) | 59,335 | 37,544 | |||
Subsequent Event | Built-To-Suit Lease | |||||
Subsequent Event [Line Items] | |||||
Option to terminate lease (after period) | 180 months | ||||
Subsequent Event | Built-To-Suit Lease | Alameda, California | |||||
Subsequent Event [Line Items] | |||||
Area of lease property (in square feet) | 220,000 | ||||
Operating lease term | 242 months | ||||
Estimated monthly base rent under Build-to-Suite Leases | $ | $ 726 | ||||
Monthly base rent, lease not yet commenced, annual percentage increase | 3.00% | ||||
Number of options to extend the Lease | renewal_option | 2 | ||||
Lease option to extend period | 5 years |
Uncategorized Items - exel20190
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 258,505,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 258,505,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 234,000 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 234,000 |