Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DXCM | ||
Entity Registrant Name | DEXCOM INC | ||
Entity Central Index Key | 1093557 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 77,514,635 | ||
Entity Public Float | $2,916,161,528 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $71.80 | $43.20 |
Short-term marketable securities, available-for-sale | 11.8 | 11.4 |
Accounts receivable, net | 42.4 | 26.1 |
Inventory | 16 | 9 |
Prepaid and other current assets | 3.9 | 3.4 |
Total current assets | 145.9 | 93.1 |
Property and equipment, net | 31.2 | 20.7 |
Restricted cash | 1 | 1 |
Intangible assets, net | 2.7 | 3.6 |
Goodwill | 3.2 | 3.2 |
Other assets | 0.6 | 0.9 |
Total assets | 184.6 | 122.5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 20.4 | 14.1 |
Accrued payroll and related expenses | 17.2 | 15.1 |
Secured Debt, Current | 2.3 | 2.2 |
Current portion of deferred revenue | 0.7 | 0.7 |
Total current liabilities | 40.6 | 32.1 |
Other liabilities | 1.5 | 1.7 |
Secured Long-term Debt, Noncurrent | 2.3 | 4.6 |
Total liabilities | 44.4 | 38.4 |
Commitments and contingencies (Note 4) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 0 | 0 |
Common stock, $0.001 par value, 100.0 authorized; 77.6 and 77.3 issued and outstanding, respectively, at December 31, 2014; and 72.8 and 72.5 shares issued and outstanding, respectively, at December 31, 2013 | 0.1 | 0.1 |
Additional paid-in capital | 638 | 559.5 |
Accumulated other comprehensive loss | -0.1 | -0.1 |
Accumulated deficit | -497.8 | -475.4 |
Total stockholders' equity | 140.2 | 84.1 |
Total liabilities and stockholders' equity | $184.60 | $122.50 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 77,600,000 | 72,800,000 |
Common Stock, Shares, Outstanding | 77,300,000 | 72,500,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product revenue | $257.10 | $157.10 | $93 |
Development grant and other revenue | 2.1 | 2.9 | 6.9 |
Total Revenue | 259.2 | 160 | 99.9 |
Product cost of sales | 82.3 | 58.1 | 48.3 |
Development and other cost of sales | 0.6 | 1.8 | 5 |
Total cost of sales | 82.9 | 59.9 | 53.3 |
Gross profit | 176.3 | 100.1 | 46.6 |
Operating expenses | |||
Research and development | 69.4 | 44.8 | 38.3 |
Selling, general and administrative | 128.4 | 84.2 | 64 |
Total operating expenses | 197.8 | 129 | 102.3 |
Operating loss | -21.5 | -28.9 | -55.7 |
Interest and other income | 0 | 0 | 0.1 |
Interest expense | -0.8 | -0.9 | -0.2 |
Loss before income taxes | -22.3 | -29.8 | -55.8 |
Net tax benefit (expense) | -0.1 | 0 | 1.3 |
Net loss | ($22.40) | ($29.80) | ($54.50) |
Basic and diluted net loss per share | ($0.30) | ($0.42) | ($0.79) |
Shares used to compute basic and diluted net loss per share | 75.2 | 71.1 | 68.7 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ($22,400,000) | ($29,800,000) | ($54,500,000) |
Unrealized gain (loss) on short-term available-for-sale marketable securities | 0 | 0 | 0 |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Comprehensive loss | -22,400,000 | -29,800,000 | -54,500,000 |
Accumulated deficit [Member] | |||
Net loss | ($29,800,000) | ($54,500,000) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] |
In Millions | |||||
Balance at Dec. 31, 2011 | $104.50 | $0.10 | $495.60 | ($0.10) | ($391.10) |
Balance, shares at Dec. 31, 2011 | 67.5 | ||||
Issuance of common stock under equity incentive plans | 2.1 | 2.1 | |||
Issuance of common stock under equity incentive plans, shares | 1.3 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 1.5 | 1.5 | |||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.2 | ||||
Issuance of common stock for SweetSpot acquisition and milestone | 5 | 5 | |||
Issuance of common stock for SweetSpot acquisition and milestone, shares | 0.5 | ||||
Other Significant Noncash Transaction, Value of Sweetspot Contingent Conisederation Settlement | 0 | ||||
Share-based compensation for employee stock options and award grants | 18.4 | 18.4 | |||
Net loss | -54.5 | -54.5 | |||
Balance at Dec. 31, 2012 | 77 | 0.1 | 522.6 | -0.1 | -445.6 |
Balance, shares at Dec. 31, 2012 | 69.5 | ||||
Issuance of common stock under equity incentive plans | 10.2 | 10.2 | |||
Issuance of common stock under equity incentive plans, shares | 2.8 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 1.9 | 1.9 | |||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.2 | ||||
Other Significant Noncash Transaction, Value of Sweetspot Contingent Conisederation Settlement | 0 | ||||
Share-based compensation for employee stock options and award grants | 24.8 | 24.8 | |||
Net loss | -29.8 | -29.8 | |||
Balance at Dec. 31, 2013 | 84.1 | 0.1 | 559.5 | -0.1 | -475.4 |
Balance, shares at Dec. 31, 2013 | 72.5 | ||||
Issuance of common stock under equity incentive plans | 21.4 | 21.4 | |||
Issuance of common stock under equity incentive plans, shares | 4.6 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 2.6 | 2.6 | |||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||
Issuance of common stock for SweetSpot acquisition and milestone, shares | 0.1 | ||||
Other Significant Noncash Transaction, Value of Sweetspot Contingent Conisederation Settlement | 4 | 4 | |||
Share-based compensation for employee stock options and award grants | 50.5 | 50.5 | |||
Net loss | -22.4 | ||||
Balance at Dec. 31, 2014 | $140.20 | $0.10 | $638 | ($0.10) | ($497.80) |
Balance, shares at Dec. 31, 2014 | 77.3 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Paid | $0.40 | $0.50 | $0 |
Operating activities | |||
Net loss | -22.4 | -29.8 | -54.5 |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 8.4 | 7 | 6.6 |
Share-based compensation | 50 | 24.6 | 18.4 |
Accretion and amortization related to investments, net | 0.1 | 0.3 | 0.8 |
Amortization of Financing Costs | 0.3 | 0.4 | 0.1 |
Release of valuation allowance against deferred tax assets | 0 | 0 | -1.3 |
Change in fair value of contingent consideration | -0.2 | 2.5 | 0.7 |
Impairment of Intangible Assets, Finite-lived | 0.2 | 0 | 0 |
Other Noncash Expense | 0 | 0.2 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -16.3 | -6.5 | -7 |
Inventory | -7 | -1.6 | 0.7 |
Prepaid and other assets | -0.4 | -1.4 | -0.8 |
Restricted cash | 0 | 0 | -0.1 |
Accounts payable and accrued liabilities | 8.3 | 2.4 | 0.3 |
Accrued payroll and related expenses | 2.2 | 5.8 | 2.4 |
Deferred revenue | 0 | -1.2 | 0.1 |
Deferred rent and other liabilities | 0.4 | -0.3 | 0.5 |
Net cash used in operating activities | 23.6 | 2.4 | -33.1 |
Investing activities | |||
Purchase of available-for-sale marketable securities | -13.8 | -16.3 | -66.4 |
Proceeds from the maturity of available-for-sale marketable securities | 13.2 | 45.1 | 104.3 |
Purchase of property and equipment | -16.2 | -7.9 | -9.5 |
Net cash provided by (used in) investing activities | -16.8 | 20.9 | 28.4 |
Financing activities | |||
Net proceeds from issuance of common stock | 24 | 12 | 3.6 |
Proceeds from Issuance of Long-term Debt | 0 | 0 | 6.6 |
Repayments of Long-term Debt | -2.2 | -0.2 | 0 |
Net cash provided by financing activities | 21.8 | 11.8 | 10.2 |
Increase in cash and cash equivalents | 28.6 | 35.1 | 5.5 |
Cash and cash equivalents, beginning of period | 43.2 | 8.1 | 2.6 |
Cash and cash equivalents, ending of period | 71.8 | 43.2 | 8.1 |
Supplemental disclosure of non-cash transactions | |||
Issuance of common stock in connection with acquisition and contingent consideration | 0 | 0 | 6.1 |
Other Significant Noncash Transaction, Value of Sweetspot Contingent Conisederation Settlement | $4 | $0 | $0 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Organization And Summary Of Significant Accounting Policies Additional Information [Abstract] | |||||
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies | ||||
Organization and Business | |||||
DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring (“CGM”) systems for ambulatory use by people with diabetes and by healthcare providers in the hospital for the treatment of people with and without diabetes. Unless the context requires otherwise, the terms “we,” “us,” “our,” the “company,” or “DexCom” refer to DexCom, Inc. and its subsidiaries. | |||||
Basis of Presentation | |||||
We have incurred operating losses since our inception and have an accumulated deficit of $497.8 million at December 31, 2014. As of December 31, 2014, we had available cash, cash equivalents and short-term marketable securities totaling $83.6 million, excluding $1.0 million of restricted cash, and working capital of $105.3 million. Our ability to transition to, and maintain, profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned increases in compensation related expenses or other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. We believe our working capital resources will be sufficient to fund our operations through at least December 31, 2015. | |||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of DexCom and our wholly owned subsidiaries, DexCom AB and SweetSpot Diabetes Care, Inc. (“SweetSpot”). All significant intercompany balances and transactions have been eliminated in consolidation. | |||||
Segment Reporting and Geographic Information | |||||
An operating segment is identified as a component of a business that has discrete financial information available, and one for which the chief operating decision maker must decide the level of resource allocation. In addition, the guidance for segment reporting indicates certain quantitative thresholds. The operations of SweetSpot, our subsidiary, does not meet the definition of an operating segment and are currently not material, but may become material in the future. We currently consider our operations to be, and manage our business globally within one reportable segment, which is consistent with how our management reviews our business, makes investment and resource allocation decisions and assesses operating performance. | |||||
We sell our products through a direct sales force in the United States and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, the Middle East and Latin America. Our country of domicile is the United States. | |||||
During the years ended 2014, 2013 and 2012, no individual country, outside of our country of domicile, generated revenue that represented more than 10% of our total revenue. Product revenue is designated based on the geographic location to which we deliver the product. Development grant and other revenue is attributed to countries based upon the location of the headquarters of our customer or their billing address. During fiscal 2014, total revenue attributed to the United States was approximately $224.2 million, or 86%, and revenue attributed to foreign countries was approximately $35.0 million, or 14%, respectively. Revenue attributed to foreign countries for fiscal 2013 and 2012 did not exceed 10% of our total revenue. Substantially all of our long-lived assets are located in the United States. | |||||
Use of Estimates | |||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates include excess or obsolete inventories, valuation of inventory, warranty accruals, clinical trial expenses, allowance for bad debt and share-based compensation expense. | |||||
Cash and Cash Equivalents | |||||
We invest our excess cash in bank deposits, money market accounts, and debt securities. We consider all highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. | |||||
Accounts Receivable | |||||
We grant credit to various customers in the normal course of business. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectible accounts are written-off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectible. Generally, receivable balances greater than one year past due are deemed uncollectable. | |||||
Letters of Credit | |||||
At December 31, 2014 and 2013, we had irrevocable letters of credit outstanding with a commercial bank for approximately $0.7 million and $0.7 million, respectively, securing our facility leases. The letters of credit are secured by cash equivalents and an equal amount of restricted cash has been separately disclosed in the accompanying consolidated balance sheets. | |||||
Concentration of Credit Risk | |||||
Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash with high credit quality financial institutions. We have established guidelines relative to diversification of our cash and investment securities and their maturities that are intended to secure safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates and changes in our operations and financial position. The following table summarizes customers who accounted for 10% or more of net accounts receivable: | |||||
December 31, | |||||
2014 | 2013 | ||||
Customer A | 23% | 19% | |||
Customer B | 12% | 17% | |||
Impairment of Long-Lived Assets | |||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. We have not experienced any material impairment losses on assets used in operations. | |||||
Share-Based Compensation | |||||
Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized, for awards that are ultimately expected to vest, primarily on a straight-line basis over the requisite service period of the individual grants, which typically equals the vesting period. Share-based payments that contain performance conditions are recognized when such conditions are probable of being achieved. | |||||
The fair value of our Restricted Stock Units (RSUs) is based on the market price of our common stock on the date of grant. We estimate the fair value of stock options granted and stock purchase rights under our Employee Stock Purchase Plan (“ESPP”) using the Black-Scholes-Merton ("BSM") option-pricing model. Inherent in this model are assumptions related to our expected stock price volatility over the expected term of the awards, risk-free interest rate and any expected dividends. We determine our expected stock price volatility based on our historical stock price volatility over the most recent period equivalent to the expected life of the award. We determine the expected life of an award by considering various relevant factors, including the vesting period and contractual term of the award, our employees’ historical exercise patterns and length of service and employee characteristics. For stock purchase rights under our ESPP, the expected life is equal to the current offering period. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected life of our employee stock options and stock purchase plan. As we have not paid any cash dividends since our inception and do not anticipate paying dividends in the foreseeable future, we assume a dividend yield of zero. | |||||
We are also required to estimate at grant the likelihood that the award will ultimately vest (the “pre-vesting forfeiture rate”), and to revise the estimate, if necessary, in future periods if the actual forfeiture rate differs. We determine the pre-vesting forfeiture rate of an award based on our historical pre-vesting award forfeiture experience, giving consideration to company-specific events impacting historical pre-vesting award forfeiture experience that are unlikely to occur in the future as well as anticipated future events that may impact forfeiture rates. We use our historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. | |||||
Revenue Recognition | |||||
We sell our durable systems and disposable units through a direct sales force in the United States and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, the Middle East and Latin America. Components are individually priced and can be purchased separately or together. We receive payment directly from customers who use our products, as well as from distributors, organizations and third-party payors. Our durable system includes a reusable transmitter, a receiver, a power cord, data management software and a USB cable. Disposable sensors for use with the durable system are sold separately in packages of four. The initial durable system price is generally not dependent upon the purchase of any amount of disposable sensors. | |||||
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue on product sales is generally recognized upon shipment, which is when title and the risk of loss have been transferred to the customer and there are no other post shipment obligations. With respect to customers who directly pay for products, the products are generally paid for at the time of shipment using a customer’s credit card and do not include customer acceptance provisions. We recognize revenue from contracted insurance payors based on the contracted rate. For non-contracted insurance payors, we obtain prior authorization from the payor and recognize revenue based on the estimated collectible amount and historical experience. We also receive a prescription or statement of medical necessity and, for insurance reimbursement customers, an assignment of benefits prior to shipment. | |||||
We provide a “30-day money back guarantee” program whereby customers who purchase a durable system and a package of four disposable sensors may return the durable system for any reason within thirty days of purchase and receive a full refund of the purchase price of the durable system. We accrue for estimated returns, refunds and rebates, including pharmacy rebates, by reducing revenues and establishing a liability account at the time of shipment based on historical experience. Returns have historically been immaterial. | |||||
We have entered into distribution agreements with Byram, Edgepark and other distributors that allow the distributors to sell our durable systems and disposable units. We have contracts with certain Stocking Distributors, whereby the distributors fulfill orders for our product from their inventory. We also have contracts with certain Drop-Ship Distributors that do not stock our products, but rather products are shipped directly to the customer by us on behalf of our distributor. Revenue on product sales to distributors is generally recognized at the time of shipment, which is when title and risk of loss have been transferred to the distributor and there are no other post-shipment obligations. Revenue is recognized based on contracted prices and invoices are either paid by check following the issuance of a purchase order or letter of credit, or they are paid by wire at the time of placing the order. Terms of distributor orders are generally FOB shipping point (FCA shipping point for international orders). Distributors do not have rights of return per their distribution agreement outside of our standard warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. For any such products, we shall either, at our option, replace the portion of defective or non-conforming product at no additional cost to the distributor or cancel the order and refund any portion of the price paid to us at that time for the sale in question. | |||||
One of our distributors, Byram, accounted for $46.1 million, $24.3 million and $9.6 million in gross revenue, which represents 18%, 15% and 9% of our total revenues for the twelve months ended December 31, 2014, 2013 and 2012, respectively. Another one of our distributors, Edgepark, accounted for $28.1 million, $23.1 million and $14.8 million in gross revenue, which represents 11%, 14% and 15% of our total revenues for the twelve months ended December 31, 2014, 2013 and 2012, respectively. | |||||
We have collaborative license and development arrangements with strategic partners for the development and commercialization of products utilizing our technologies. The terms of these agreements typically include the license of certain intellectual property rights and the provision of multiple deliverables by us (for example, research and development services, product prototypes and products for use in clinical trials) in exchange for consideration to us of some combination of non-refundable license fees, funding of research and development activities, payments based upon achievement of development milestones and royalties in the form of a designated percentage of product sales or profits. With the exception of royalties, these types of consideration are classified as development grant and other revenue in our consolidated statements of operations and are generally recognized over the service period except for substantive milestone payments, which are generally recognized when the milestone is achieved. In determining whether each milestone is substantive, we considered whether the consideration earned by achieving the milestone should (i) be commensurate with either (a) our performance to achieve the milestone or (b) the enhancement of value of the item delivered as a result of a specific outcome resulting from our performance to achieve the milestone, (ii) relate solely to past performance and (iii) be reasonable relative to all deliverables and payment terms in the arrangement. We recognize royalties in the period in which we obtain the royalty report, which is necessary to determine the amount of royalties we are entitled to receive. | |||||
Non-refundable license fees are recognized as revenue when we have a contractual right to receive such payment, the contract price is fixed or determinable, the collection of the resulting receivable is reasonably assured and we have no further performance obligations under the license agreement. Multiple element arrangements, such as license, development and other multiple element service arrangements, are analyzed to determine how the arrangement consideration should be allocated among the separate units of accounting, or whether they must be accounted for as a single unit of accounting. | |||||
For transactions containing multiple element arrangements, we consider deliverables as separate units of accounting and recognize deliverables as revenue upon delivery only if (i) the deliverable has standalone value and (ii) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is probable and substantially controlled by us. We allocate consideration to the separate units of accounting using the relative selling price method, in which allocation of consideration is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”), or if VSOE and TPE are not available, management’s best estimate of a standalone selling price for elements. | |||||
We use judgment in estimating the value allocable to the deliverables in an agreement based on our estimate of the fair value or relative selling price attributable to the related deliverables and the consideration from such an agreement is typically recognized as product revenue or development grant and other revenue. For arrangements that are accounted for as a single unit of accounting, total payments under the arrangement are recognized as revenue on a straight-line basis over the period we expect to complete our performance obligations. We review the estimated period of our performance obligations on a periodic basis and update the recognition period as appropriate. The cumulative amount of revenue earned is limited to the cumulative amount of payments we are entitled to as of the period ending date. | |||||
If we cannot reasonably estimate when our performance obligation either ceases or becomes inconsequential, then revenue is deferred until we can reasonably estimate when the performance obligation ceases or becomes inconsequential. Revenue is then recognized over the remaining estimated period of performance. Deferred revenue amounts are classified as current liabilities to the extent that revenue is expected to be recognized within one year. | |||||
Significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete our performance obligations under an arrangement. | |||||
Warranty Accrual | |||||
Estimated warranty costs associated with a product are recorded at the time of shipment. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and these estimates are evaluated on at least a quarterly basis to determine the continued appropriateness of such assumptions. | |||||
Research and Development | |||||
All costs of research and development are expensed as incurred. Research and development expenses primarily include salaries, bonus and payroll related costs, overhead, part components, share-based compensation, and fees paid to consultants. | |||||
Foreign Currency | |||||
The financial statements of our non-U.S. subsidiary, whose functional currency is the Swedish Krona, are translated into U.S. dollars for financial reporting purposes. Assets and liabilities are translated at period-end exchange rates, and revenue and expense transactions are translated at average exchange rates for the period. Cumulative translation adjustments are recognized as part of comprehensive income and are included in accumulated other comprehensive loss in the consolidated balance sheets. Gains and losses on transactions denominated in other than the functional currency are reflected in operations. To date the results of operations of this subsidiary and related translation adjustments have not been material in our consolidated results. | |||||
Comprehensive Loss | |||||
We report all components of comprehensive loss, including net loss, in the consolidated financial statements in the period in which they are recognized. Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and comprehensive loss, including unrealized gains and losses on short-term marketable securities and foreign currency translation adjustments, are reported, net of their related tax effect, to arrive at comprehensive loss. | |||||
Inventory | |||||
Inventory is valued at the lower of cost or market value on a part-by-part basis that approximates first in, first out. We make adjustments to reduce the cost of inventory to its net realizable value, if required, for estimated excess, obsolete and potential scrapped inventories. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data, and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed. | |||||
Our products require customized products and components that currently are available from a limited number of sources. We purchase certain components and materials from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. | |||||
Deferred Rent | |||||
Rent expense is recorded on a straight-line basis over the term of the lease. The difference between rent expense accrued and amounts paid under the lease agreement is recorded as deferred rent in the accompanying consolidated balance sheets. | |||||
Income Taxes | |||||
In July 2006, the FASB issued authoritative guidance for accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement process for recording in the consolidated financial statements uncertain tax positions taken or expected to be taken in a tax return. Additionally, the accounting standard provides guidance on the derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. | |||||
We file income tax returns in the United States, Sweden and in various state jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. Our policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. As of December 31, 2014, we had no interest or penalties accrued for uncertain tax positions. | |||||
Short-Term Marketable Securities | |||||
We have classified our short-term marketable securities with remaining maturity at purchase of more than three months as “available-for-sale” and carry them at fair value with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Realized gains and losses are calculated using the specific identification method and recorded as interest income. We invest in various types of securities, including debt securities in government-sponsored entities, corporate debt securities, U.S. Treasury securities and commercial paper. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. | |||||
Fair Value Measurements | |||||
The fair value hierarchy described by the authoritative guidance for fair value measurements is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value and include the following: | |||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||
We carry our marketable securities and contingent consideration liability at fair value. The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, are carried at cost, which approximate the related fair values due to the short-term maturities of these instruments. | |||||
Property and Equipment | |||||
Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets, generally three years for computer equipment, four years for machinery and equipment, and five years for furniture and fixtures, using the straight-line method. Leasehold improvements are stated at cost and amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. | |||||
Impairment of Goodwill and Intangible Assets | |||||
We test goodwill and intangible assets with indefinite lives for impairment on an annual basis. Also, between annual tests we test for impairment if events and circumstances indicate it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business and an adverse action or assessment by a regulator. | |||||
Recent Accounting Guidance | |||||
In July 2013, the FASB issued authoritative guidance for Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. We adopted this guidance on January 1, 2014, and the adoption of this guidance did not have a material impact on our consolidated financial statements or related financial statement disclosures. | |||||
In May 2014, the FASB issued authoritative guidance for Revenue from Contracts with Customers, to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The guidance defines a five step process to achieve this core principle and it is possible when the five step process is applied, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The updated standard permits the use of either the retrospective or cumulative effect transition method and is effective for us in our first quarter of fiscal 2017. Early adoption is not permitted. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Common Share | Net Loss Per Common Share | ||||||||
Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, outstanding options and unvested restricted stock units settleable in shares of common stock are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. | |||||||||
Historical outstanding anti-dilutive securities not included in diluted net loss per share attributable to common stockholders calculation (in millions): | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Options outstanding to purchase common stock | 3.1 | 5.8 | 7.4 | ||||||
Unvested restricted stock units | 4.2 | 3.6 | 3 | ||||||
Total | 7.3 | 9.4 | 10.4 | ||||||
Financial_Statement_Details
Financial Statement Details | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Financial Statement Details [Abstract] | ||||||||||||||||
Financial Statement Details | Financial Statement Details (in millions) | |||||||||||||||
Short Term Marketable Securities, Available-for-Sale | ||||||||||||||||
Short term marketable securities, consisting solely of debt securities with remaining contractual maturities of less than one year were as follows: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government agencies | $ | 9.1 | $ | — | $ | — | $ | 9.1 | ||||||||
Corporate debt | 2.3 | — | — | 2.3 | ||||||||||||
Commercial paper | 0.4 | — | — | 0.4 | ||||||||||||
Total | $ | 11.8 | $ | — | $ | — | $ | 11.8 | ||||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government agencies | $ | 8.9 | $ | — | $ | — | $ | 8.9 | ||||||||
Corporate debt | 2.5 | — | — | 2.5 | ||||||||||||
Total | $ | 11.4 | $ | — | $ | — | $ | 11.4 | ||||||||
Accounts Receivable | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts receivable | $ | 46.8 | $ | 28.8 | ||||||||||||
Less allowance for doubtful accounts, sales returns and discounts | (4.4 | ) | (2.7 | ) | ||||||||||||
Total | $ | 42.4 | $ | 26.1 | ||||||||||||
Inventory | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 7.6 | $ | 4.8 | ||||||||||||
Work-in-process | 1 | 0.3 | ||||||||||||||
Finished goods | 7.4 | 3.9 | ||||||||||||||
Total | $ | 16 | $ | 9 | ||||||||||||
Property and Equipment | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Furniture and fixtures | $ | 3.9 | $ | 2.6 | ||||||||||||
Computer equipment | 18.9 | 15.2 | ||||||||||||||
Machinery and equipment | 26.5 | 19 | ||||||||||||||
Leasehold improvements | 14.7 | 10.5 | ||||||||||||||
Total | 64 | 47.3 | ||||||||||||||
Accumulated depreciation and amortization | (32.8 | ) | (26.6 | ) | ||||||||||||
Property and equipment, net | $ | 31.2 | $ | 20.7 | ||||||||||||
Depreciation and amortization expense related to property and equipment for the twelve months ended December 31, 2014, 2013, and 2012 was $7.8 million, $6.4 million, and $6.1 million, respectively. | ||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
Goodwill and intangible assets as of December 31, 2014 consisted of the following (in millions, except months): | ||||||||||||||||
Weighted-Average | Gross | Accumulated | Intangible Assets, net | |||||||||||||
Amortization Period | Amount | Amortization | ||||||||||||||
(in months) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Developed technology | 109 | $ | 3.2 | $ | (1.2 | ) | $ | 2 | ||||||||
Customer-related intangible | 70 | 0.6 | (0.3 | ) | 0.3 | |||||||||||
Covenants not-to-compete | 70 | 0.2 | (0.1 | ) | 0.1 | |||||||||||
Total | $ | 4 | $ | (1.6 | ) | $ | 2.4 | |||||||||
Intangible assets not subject to amortization | ||||||||||||||||
In-process research and development | 0.2 | |||||||||||||||
Trademarks and trade names | 0.1 | |||||||||||||||
Goodwill | 3.2 | |||||||||||||||
Total | $ | 3.5 | ||||||||||||||
Goodwill and intangible assets as of December 31, 2013 consisted of the following (in millions, except months): | ||||||||||||||||
Weighted-Average | Gross | Accumulated | Intangible Assets, net | |||||||||||||
Amortization Period | Amount | Amortization | ||||||||||||||
(in months) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Developed technology | 109 | $ | 3.2 | $ | (0.7 | ) | $ | 2.5 | ||||||||
Customer-related intangible | 70 | 0.6 | (0.2 | ) | 0.4 | |||||||||||
Covenants not-to-compete | 70 | 0.6 | (0.2 | ) | 0.4 | |||||||||||
Total | $ | 4.4 | $ | (1.1 | ) | $ | 3.3 | |||||||||
Intangible assets not subject to amortization | ||||||||||||||||
In-process research and development | 0.2 | |||||||||||||||
Trademarks and trade names | 0.1 | |||||||||||||||
Goodwill | 3.2 | |||||||||||||||
Total | $ | 3.5 | ||||||||||||||
Total expense related to amortization of intangible assets for the twelve months ended December 31, 2014, 2013, and 2012 was $0.6 million, $0.6 million, and $0.5 million, respectively. In the fourth quarter of 2014, we recorded an impairment charge of $0.2 million, included in the "Research and development" line item of the Consolidated Statement of Operations related to our Covenant not-to-compete intangible asset as a result of the SweetSpot settlement agreement entered into on November 3, 2014. | ||||||||||||||||
The following table sets forth the total future amortization expense related to intangible assets subject to amortization as of December 31, 2014: | ||||||||||||||||
Fiscal Year Ending | ||||||||||||||||
2015 | $ | 0.5 | ||||||||||||||
2016 | 0.5 | |||||||||||||||
2017 | 0.5 | |||||||||||||||
2018 | 0.3 | |||||||||||||||
2019 | 0.3 | |||||||||||||||
Thereafter through 2021 | 0.5 | |||||||||||||||
Total | $ | 2.6 | ||||||||||||||
Accounts Payable and Accrued Liabilities | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts payable trade | $ | 9.9 | $ | 4.2 | ||||||||||||
Accrued tax, audit, and legal fees | 1.6 | 1.2 | ||||||||||||||
Clinical trials | 0.4 | 0.3 | ||||||||||||||
Accrued other including warranty | 8.5 | 4.8 | ||||||||||||||
Acquisition-related liabilities | — | 3.6 | ||||||||||||||
Total | $ | 20.4 | $ | 14.1 | ||||||||||||
Accrued Payroll and Related Expenses | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accrued paid time off | $ | 3.2 | $ | 2.7 | ||||||||||||
Accrued wages, bonus and taxes | 12.5 | 11.3 | ||||||||||||||
Other accrued employee benefits | 1.5 | 1.1 | ||||||||||||||
Total | $ | 17.2 | $ | 15.1 | ||||||||||||
Accrued Warranty | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Beginning balance | $ | 0.9 | $ | 0.3 | ||||||||||||
Charges to costs and expenses | 5.2 | 4.1 | ||||||||||||||
Costs incurred | (4.8 | ) | (3.5 | ) | ||||||||||||
Ending balance | $ | 1.3 | $ | 0.9 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Long-Term Debt | ||||
In November 2012, we entered into a loan and security agreement (the “Loan Agreement”) that provides for (i) a $15.0 million revolving line of credit and (ii) a total term loan of up to $20.0 million (the "Term Loan"), in both cases, to be used for general corporate purposes. The borrowings under the Loan Agreement are collateralized by a first priority security interest in substantially all of our assets with a negative pledge on our intellectual property. | ||||
The revolving line of credit is an interest-only financing that bears an interest rate equal to the prime rate plus 0.5% and requires repayment of principal at the maturity date of November 2015. Under the revolving line of credit, available funds, which were up to $15.0 million as of December 31, 2014 can be drawn at any time, and repaid funds can be redrawn. No amounts have been drawn against the revolving line of credit. | ||||
Per the Loan Agreement, $7.0 million was advanced under the Term Loan at the funding date in November 2012 and up to $13.0 million in additional funds was available upon our request until September 30, 2013 (the "Draw Period"). In August 2013, the Loan Agreement was amended to change the Draw Period for the additional funds under the Term Loan to January 1, 2014 through March 31, 2014, at which time the Draw Period expired unused. The Term Loan bears a fixed interest rate equal to the three-year treasury rate at the time of advance plus 6.94% and requires payment of interest only for the first year and amortized payments of interest and principal thereafter through the maturity date of November 2016. The aggregate debt issuance costs and fees incurred with respect to the issuance of the Loan Agreement were $1.1 million. These costs have been capitalized as debt issuance costs on our consolidated balance sheet as other assets. Fees related to the revolving line of credit are being amortized through the maturity date of November 2015. Issuance costs and fees related to the term loan are being amortized through the maturity date of November 2016 using the effective interest method. As of December 31, 2014, the remaining unamortized issuance costs and fees totaled $0.3 million. Principal repayment obligations under the Loan Agreement as of December 31, 2014 were as follows (in millions): | ||||
Fiscal Year Ending | ||||
2015 | $ | 2.3 | ||
2016 | 2.3 | |||
Total | $ | 4.6 | ||
Leases | ||||
In April 2006, we entered into an office lease agreement for facilities located in San Diego, California. In August 2010, we entered into a First Amendment to Office Lease (the “First Lease Amendment”) with Kilroy Realty, L.P. (the “Landlord”) with respect to facilities in the buildings at 6340 Sequence Drive and 6310 Sequence Drive, each in San Diego, California, and on October 1, 2014, we entered into a Second Amendment to Office Lease (the “Second Lease Amendment”) which added the building at 6290 Sequence Drive in San Diego, California to our lease and extended the lease term related to the buildings at 6340 Sequence Drive and 6310 Sequence Drive, and 6290 Sequence Drive, each in San Diego, California (the “Buildings”). | ||||
Under the Second Lease Amendment, we will continue to lease approximately 129,000 square feet in the current locations at 6340 Sequence Drive and 6310 Sequence Drive, and leased an additional 45,000 square feet at 6290 Sequence Drive, for a total of approximately 174,000 square feet of space. We also retain the right and obligation to lease an additional 45,000 square feet in the 6290 Sequence Drive location (the “Additional Space”). The amended lease term extends through March 2022 and we have an option to renew the lease upon the expiration of the initial term for two additional five-year terms by giving notice to the Landlord prior to the end of the initial term of the lease and any extension period, if applicable. Provided we are not in default under the Second Lease Amendment and the Second Lease Amendment is still in effect, we generally have the right to terminate the lease starting at the 55th month of the Second Lease Amendment. | ||||
These facility leases have annual rental increases ranging from approximately 2.5% to 4%. The difference between the straight-line expense over the term of the lease and actual amounts paid are recorded as deferred rent. In September 2008, our subsidiary in Sweden entered into a three-year lease for a small shared office space, which has since been renewed for two additional three-year terms through September 2017 and has a quarterly adjustment clause for rent to increase or decrease in proportion to changes in consumer prices. In July 2012, our subsidiary SweetSpot entered into a five-year lease for a small office space in a multi-tenant commercial building in Portland, Oregon. Rental obligations, excluding real estate taxes, operating costs, and tenant improvement allowances, under all lease agreements as of December 31, 2014 were as follows (in millions): | ||||
Fiscal Year Ending | ||||
2015 | 3.1 | |||
2016 | 3.6 | |||
2017 | 4 | |||
2018 | 5 | |||
2019 | 5.2 | |||
Thereafter | 11.8 | |||
Total | $ | 32.7 | ||
Total rent expense for the twelve months ended December 31, 2014, 2013 and 2012 was $3.6 million, $3.0 million and $2.5 million, respectively. | ||||
Litigation | ||||
Commencing on August 11, 2005, Abbott instituted various patent infringement proceedings against us in the United States District Court for the District of Delaware. In these proceedings Abbott sought, among other things, a declaratory judgment that our continuous glucose monitoring systems infringe certain patents held by Abbott. | ||||
On July 2, 2014, the Abbott Settlement Agreement was entered into in full settlement of all pending patent infringement legal proceedings brought by Abbott against us. In accordance with the Abbott Settlement Agreement, on July 7, 2014, the parties filed a joint stipulation of dismissal of all pending legal proceedings, which was granted by the court on July 11, 2014. | ||||
The Abbott Settlement Agreement does not obligate us to pay any royalties or any other form of financial compensation. The Abbott Settlement Agreement provides for a royalty-free, worldwide, non-exclusive, non-sublicensable cross-license of certain patents. We received a limited license from Abbott to the patents that Abbott has alleged that we infringed (and other Abbott patents that claim priority to such patents). We granted to Abbott a limited license of certain patents with an actual filing date prior to January 1, 2005 (and other of our patents that claim priority to such patents). In addition, each settlement party agreed not to (1) sue the other settlement party for patent infringement based on certain of their respective continuous glucose monitoring products, and (2) challenge any patent or patent application held by the other settlement party, subject to certain limited exceptions, in each case, until March 31, 2021. The cross-license and mutual covenant not to sue granted to each settlement party do not apply to the type of sensor technology used by the other settlement party. | ||||
In the event of a change of control, the settlement party that is not acquired in the change of control (the “Non-Acquired Party”) shall be paid a one-time continuation fee of $25.0 million. If the Non-Acquired Party is not paid the continuation fee within 30 days after the effective date of such change of control, then the license granted by, and all covenants of, the Non-Acquired Party shall expire 30 days after the effective date of the change of control, but the license granted by, and all covenants of, the settlement party that is acquired shall survive such expiration. | ||||
From time to time, we are subject to various claims and suits arising out of the ordinary course of business, including commercial and employment related matters. In addition, from time to time, we may bring claims or initiate lawsuits against various third parties with respect to matters arising out of the ordinary course of our business, including commercial and employment related matters. We do not expect that the resolution of these matters would, or will, have a material adverse effect or material impact on our consolidated financial position. | ||||
Purchase Commitments | ||||
We are party to various purchase arrangements related to our manufacturing and development activities including materials used in our glucose monitoring systems. As of December 31, 2014, we had firm purchase commitments with vendors totaling $18.0 million due within one year. There are no material purchase commitments due beyond one year. |
Development_and_Other_Agreemen
Development and Other Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Development Agreements Additional Information [Abstract] | |
Development and Other Agreements | Development and Other Agreements |
Edwards Lifesciences LLC | |
On November 10, 2008, we entered into a Collaboration Agreement with Edwards. The Collaboration Agreement was amended by the parties on May 5, 2009 (as amended, the “Collaboration Agreement”). Pursuant to the Collaboration Agreement, the parties agreed to develop jointly and to market an in-hospital automatic blood glucose monitoring system ("In-Hospital Product"). Under the terms of the Collaboration Agreement we will receive a royalty of up to 6% of commercial sales of the product. The Collaboration Agreement provides Edwards with an exclusive license to certain of our intellectual property rights used in the In-Hospital Product (“Edwards License”). The Edwards License is limited to the critical care sector of the in-hospital market. Our development obligations under the Collaboration Agreement were completed in the fourth quarter of 2012. Each of the milestones related to the Collaboration Agreement is considered to be substantive under the terms of the Collaboration Agreement and, at the outset of the Collaboration Agreement, we were entitled to receive up to $12.0 million in milestones related to regulatory approvals and manufacturing readiness, subject to reductions based on the timing of the receipt of approvals. We currently do not expect to receive the full amount of such milestones due to regulatory and joint development delays. We did not recognize any consideration for milestones related to the Collaboration Agreement for the twelve months ended December 31, 2014, 2013, and 2012. | |
Tandem Diabetes Care, Inc. | |
On February 1, 2012, we entered into a non-exclusive Development and Commercialization Agreement (the “Tandem Agreement”) with Tandem to integrate a future generation of our continuous glucose monitoring technology with Tandem’s t:slim™ insulin delivery system in the United States. On January 4, 2013, the Tandem Agreement was amended to allow for the integration of our G4 PLATINUM system with Tandem's t:slim insulin delivery system in the United States. | |
We received an initial payment of $1.0 million as a result of the execution of the Tandem Agreement. We recorded $0.2 million and $0.5 million in development grant and other revenue for the twelve months ended December 31, 2014 and 2013 related to the initial consideration received. We received a $1.0 million milestone in July 2014 related to the regulatory submission by Tandem of their CGM enabled insulin pump, which was recognized in development grant and other revenue for the year ended December 31, 2014. | |
Under the terms of the Tandem Agreement, we are entitled to receive up to $1.0 million to offset certain development, clinical and regulatory expenses. We are also entitled to receive up to an additional $1.0 million upon the achievement of a milestone related to regulatory approvals as set forth in the Tandem Agreement. Each of the milestones related to the Tandem Agreement is considered to be substantive. | |
The Leona M. and Harry B Helmsley Charitable Trust | |
In July 2013, we were awarded a $4.0 million grant (the "Helmsley Grant") from the Leona M. and Harry B. Helmsley Charitable Trust (the "Helmsley Trust") to accelerate the development of the sixth generation of our advanced glucose-sensing technologies (the "Gen 6 Sensor"). The funding is milestone-based and is contingent upon our meeting specific development milestones related to the Gen 6 Sensor over the next several years. Upon successful commercialization of our Gen 6 Sensor, we are obligated to either (1) make royalty payments based on a percentage of product sales of up to $2.0 million per year for four years, or (2) at our sole election, make a one-time $6.0 million royalty payment. The Helmsley Grant funds will offset research and development expense as incurred and earned. During 2013, $0.5 million of the Helmsley Grant was received and $0.5 million was earned. During the twelve months ended December 31, 2014, $2.5 million of the Helmsley Grant was received and $2.5 million was earned. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | Fair Value Measurements | |||||||||||||||
We base the fair value of our Level 1 financial instruments that are in active markets using quoted market prices for identical instruments. Our Level 1 financial instruments include certificates of deposit and restricted cash. | ||||||||||||||||
We obtain the fair value of our Level 2 financial instruments, which are not in active markets, from a primary professional pricing source using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Fair value obtained from this professional pricing source can also be based on pricing models whereby all significant observable inputs, including maturity dates, issue dates, settlement date, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers or other market related data, are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. | ||||||||||||||||
We validate the quoted market prices provided by our primary pricing service by comparing the fair values of our Level 2 marketable securities portfolio balance provided by our primary pricing service against the fair values of our Level 2 marketable securities portfolio balance provided by our investment managers. | ||||||||||||||||
Certain contingent consideration liabilities are classified within Level 3 of the fair value hierarchy because they use unobservable inputs. For those liabilities, fair value is determined using a probability-weighted discounted cash flow model, the significant inputs, which include the probability and expected timing of achievement and the discount rate, are not observable in the market. | ||||||||||||||||
The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) measured at fair value on a recurring basis as of December 31, 2014 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 54.3 | $ | — | $ | 54.3 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 9.1 | — | 9.1 | ||||||||||||
Corporate debt | — | 2.3 | — | 2.3 | ||||||||||||
Commercial paper | — | 0.4 | — | 0.4 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.8 | $ | — | $ | 11.8 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 28.7 | $ | — | $ | 28.7 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 8.9 | — | 8.9 | ||||||||||||
Corporate debt | — | 2.5 | — | 2.5 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.4 | $ | — | $ | 11.4 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
Contingent consideration - liability | $ | — | $ | — | $ | 4.2 | $ | 4.2 | ||||||||
There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2014 and December 31, 2013. | ||||||||||||||||
Contingent Consideration Liability | ||||||||||||||||
In connection with the acquisition of SweetSpot in March 2012, at the closing of the acquisition, we agreed to issue up to an additional 357,176 shares of our common stock upon the achievement of certain specified milestones, which is classified as contingent consideration. The fair value of the contingent consideration at the closing of $2.2 million was determined using a probability-weighted discounted cash flow model, the significant inputs of which are not observable in the market. The key assumptions in applying this approach are the interest rate and the estimated probabilities and timing assigned to the milestones being achieved. During 2012, approximately $1.1 million related to the contingent consideration was earned and paid through the issuance of 89,296 shares of our common stock. Changes in fair value are recorded in the consolidated statements of operations as research and development expense since the milestones are related to development activities. | ||||||||||||||||
On November 3, 2014, we entered into the SweetSpot Settlement Agreement. Pursuant to the terms of the SweetSpot Settlement Agreement, we issued 89,300 shares of our common stock (the “Settlement Shares”) to the SweetSpot Security-holders in exchange for the cancellation of the remaining milestone payments. Following the issuance, the resale of these shares of common stock was registered on a Registration Statement on Form S-3 filed by us with the SEC on November 7, 2014. Pursuant to the terms of the SweetSpot Settlement Agreement, upon issuance of the Settlement Shares, we will have no further obligation to issue any additional shares of our Common Stock to the SweetSpot Security-holders related to the acquisition of SweetSpot. | ||||||||||||||||
The following table sets forth the change in the estimated fair value for our liabilities measured on a recurring basis using significant unobservable inputs (Level 3) (in millions): | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fair value measurement at the beginning of period | $ | 4.2 | $ | 1.7 | ||||||||||||
Changes in fair value measurement included in operating expenses | (0.2 | ) | 2.5 | |||||||||||||
Contingent consideration settled | (4.0 | ) | — | |||||||||||||
Fair value measurement at end of period | $ | — | $ | 4.2 | ||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes | 7. Income Taxes | |||||||||
We have recorded a net tax expense of $0.1 million and a net tax benefit $12,000 for the years ended December 31, 2014 and 2013, respectively. The tax expense for the years ended December 31, 2014 and 2013 were primarily related to foreign income taxes and state minimum taxes. | ||||||||||
At December 31, 2014, we had federal and state tax net operating loss carryforwards of approximately $507.5 million and $333.1 million, respectively. The federal and state tax loss carryforwards will begin to expire in 2019 and 2015, respectively, unless previously utilized. California net operating loss carryforwards of $10.0 million, $39.6 million and $14.1 million will expire in 2015, 2016 and 2017, respectively. California net operating loss carryforwards of $223.5 million will expire from 2028 through 2034. We also had federal and state research and development tax credit carryforwards of approximately $8.1 million and $10.8 million, respectively. The federal research and development tax credit will begin to expire in 2020, unless previously utilized. The state research and development tax credit will carryforward indefinitely until utilized. | ||||||||||
Utilization of net operating losses and credit carryforwards are subject to an annual limitation due to ownership change limitations provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state provisions. An ownership change limitation occurred as a result of the stock offering completed in February 2009. The limitation will likely result in approximately $2.1 million of U.S. income tax credits that will expire unused. The related deferred tax assets have been removed from the components of our deferred tax assets as summarized below. The tax benefits related to the remaining federal and state net operating losses and tax credit carryforwards may be further limited or lost if future cumulative changes in ownership exceed 50% within any three-year period. | ||||||||||
Significant components of our deferred tax assets as of December 31, 2014 and 2013 are shown below (in millions). A valuation allowance of approximately $169.0 million has been established as of December 31, 2014 to offset the deferred tax assets, as realization of such assets is uncertain. We maintain a deferred tax liability related to indefinite lived intangible assets that is not netted against deferred tax assets, as reversal of the taxable temporary difference cannot serve as a source of income for realization of the deferred tax assets, because the deferred tax liability will not reverse until the asset is sold or written down due to impairment. | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carryforwards | $ | 132.2 | $ | 132.8 | ||||||
Capitalized research and development expenses | 5 | 7.2 | ||||||||
Tax credits | 9 | 7.3 | ||||||||
Share-based compensation | 15.5 | 12.2 | ||||||||
Fixed and intangible assets | 1.2 | 1.1 | ||||||||
Other, net | 7 | 5.4 | ||||||||
Total gross deferred tax assets | 169.9 | 166 | ||||||||
Less: valuation allowance | (169.0 | ) | (164.7 | ) | ||||||
Deferred tax liability related to acquired intangibles assets | (1.0 | ) | (1.4 | ) | ||||||
Net deferred tax liability | $ | (0.1 | ) | $ | (0.1 | ) | ||||
We recognize windfall tax benefits associated with the exercise of share-based compensation directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits occurring from January 1, 2006 onward. At December 31, 2014, deferred tax assets do not include $63.9 million of excess tax benefits from share-based compensation. | ||||||||||
The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Income taxes at statutory rates | 35 | % | 35 | % | 35 | % | ||||
State income tax, net of federal benefit | (1.56 | )% | 2.7 | % | 2.74 | % | ||||
Permanent items | (0.80 | )% | (3.64 | )% | (0.84 | )% | ||||
Research and development credits | 7.5 | % | 6.17 | % | 1.43 | % | ||||
Stock and officers compensation | (15.93 | )% | (2.23 | )% | (3.01 | )% | ||||
Rate change | (1.66 | )% | 7.11 | % | (2.13 | )% | ||||
Other | (3.97 | )% | 0.08 | % | (1.15 | )% | ||||
Change in valuation allowance | (19.24 | )% | (45.15 | )% | (29.76 | )% | ||||
(0.66 | )% | 0.04 | % | 2.28 | % | |||||
The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): | ||||||||||
Balance at January 1, 2012 | $ | 4.4 | ||||||||
Increases related to current year tax positions | 0.5 | |||||||||
Decreases due to statute of limitation expiration | (0.1 | ) | ||||||||
Balance at December 31, 2012 | 4.8 | |||||||||
Adjustments related to prior year tax positions | 0.5 | |||||||||
Increases related to current year tax positions | 0.9 | |||||||||
Balance at December 31, 2013 | 6.2 | |||||||||
Increases related to current year tax positions | 1.4 | |||||||||
Balance at December 31, 2014 | $ | 7.6 | ||||||||
Due to the valuation allowance recorded against our deferred tax assets, none of the total unrecognized tax benefits as of December 31, 2014 would reduce our annual effective tax rate if recognized. Interest and penalties are classified as a component of income tax expense and were not material for all the periods presented. Due to net operating losses incurred, tax years from 1999 and forward remain open to examination by the major taxing jurisdictions to which we are subject. We do not expect any changes to our unrecognized tax benefits over the next twelve months. | ||||||||||
As of December 31, 2014, U.S. income taxes have not been provided on approximately $1.0 million of accumulated undistributed earnings of our foreign subsidiary in Sweden, as we currently intend to indefinitely reinvest these earnings in our foreign operations. It is not practicable to estimate the amount of tax that might be payable if some or all of such earnings were to be remitted. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Employee Benefit Plans | . Employee Benefit Plans | |||||||||||||
401(k) Plan | ||||||||||||||
We have a defined contribution 401(k) retirement plan (the “401(k) Plan”) covering substantially all employees that meet certain age requirements. Employees may contribute up to 90% of their compensation per year (subject to a maximum limit by federal tax law). Under the 401(k) Plan, we may elect to match a discretionary percentage of contributions. No such matching contributions have been made to the 401(k) Plan since its inception. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
The ESPP permits our eligible employees to purchase shares of common stock, at semi-annual intervals, through periodic payroll deductions. Payroll deductions may not exceed 10% of the participant’s cash compensation subject to certain limitations, and the purchase price will not be less than 85% of the lower of the fair market value of the stock at either the beginning of the applicable Offering Period or the Purchase Date. Each Offering Period is twelve months, with new Offering Periods commencing every six months on the dates of February 1 and August 1 of each year. Each Offering Period consists of two (2) six month purchase periods (each a “Purchase Period”) during which payroll deductions of the participants are accumulated under the ESPP. The last business day of each Purchase Period is referred to as the “Purchase Date.” Purchase Dates are every six months on the dates of January 31 and July 31. Annually in January of each year, subject to Board discretion and certain limitations, shares reserved for the ESPP will automatically be increased by a number of shares equal to 1% of the total number of issued and outstanding shares of our common stock at the preceding year end. On January 31, 2012, July 31, 2012, January 31, 2013, July 31, 2013, January 31, 2014 and July 31, 2014 we issued 68,960, 89,114, 93,246, 106,415, 64,563 and 70,494, respectively, shares of common stock under the ESPP. | ||||||||||||||
Equity Incentive Plans | ||||||||||||||
In 2005, we adopted the 2005 Equity Incentive Plan, as amended (the “2005 Plan”), which replaced the 1999 Incentive Stock Plan and provides for the grant of incentive and nonstatutory stock options, restricted stock, stock bonuses, stock appreciation rights, and restricted stock units to employees, directors or consultants of the Company. Shares reserved include all shares that were available under the 1999 Incentive Stock Plan on the day it was terminated. Options generally vest over three or four years and expire ten years from the date of grant. In addition, incentive stock options may not be granted at a price less than the 100% of the fair market value on the date of grant. The term of the 2005 Plan is scheduled to end in March 2015. Annually in January of each year, subject to Board discretion and certain limitations, shares reserved for the 2005 Plan will automatically be increased by a number of shares equal to 3% of the total number of issued and outstanding shares of our common stock during the preceding year end. | ||||||||||||||
A summary of our stock option activity, and related information for the year ended December 31, 2014 is as follows (in millions except weighted-average exercise price and weighted-average remaining contractual term): | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate Intrinsic | |||||||||||
Shares | Average | Average | Value | |||||||||||
Exercise | Remaining | |||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at December 31, 2013 | 5.9 | $ | 7.94 | |||||||||||
Exercised | (2.8 | ) | 7.92 | |||||||||||
Forfeited | — | 11.53 | ||||||||||||
Outstanding at December 31, 2014 | 3.1 | $ | 7.95 | 3.53 | $ | 147.5 | ||||||||
Exercisable at December 31, 2014 | 3.1 | $ | 7.95 | 3.53 | $ | 147.5 | ||||||||
The total intrinsic value of options exercised as of the date of exercise and total fair value of options vested was as follows (in millions): | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Intrinsic value of options exercised | $ | 99 | $ | 29.8 | $ | 2.7 | ||||||||
Fair value of options vested | $ | 0.4 | $ | 1.3 | $ | 3.7 | ||||||||
We define in-the-money options at December 31, 2014 as options that had exercise prices that were lower than the $55.05 closing market price of our common stock at that date. The aggregate intrinsic value of options outstanding at December 31, 2014 is calculated as the difference between the exercise price of the underlying options and the market price of our common stock for the 3.1 million options that were in-the-money at that date. There were 3.1 million in-the-money options exercisable at December 31, 2014. | ||||||||||||||
The following table sets forth a summary of our nonvested stock options and activity as of and for the year ended December 31, 2014: | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(in millions) | ||||||||||||||
Nonvested at December 31, 2013 | 0.1 | $ | 4.6 | |||||||||||
Vested | (0.1 | ) | 4.6 | |||||||||||
Forfeited | — | — | ||||||||||||
Nonvested at December 31, 2014 | — | $ | — | |||||||||||
Valuation and expense information | ||||||||||||||
The following table summarizes share-based compensation expense related to employee stock options, restricted stock units and employee stock purchases for the years ended December 31, 2014, 2013 and 2012 were allocated as follows (in millions): | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of sales | $ | 4.5 | $ | 2.6 | $ | 2.1 | ||||||||
Research and development | 17 | 8.5 | 6.2 | |||||||||||
Selling, general and administrative | 28.5 | 13.5 | 10.1 | |||||||||||
Share-based compensation expense included in operating expenses | $ | 50 | $ | 24.6 | $ | 18.4 | ||||||||
At December 31, 2014, unrecognized estimated compensation costs related to unvested restricted stock units totaled $105.1 million and are expected to be recognized through 2018. | ||||||||||||||
We issued performance restricted stock units (the “Performance Awards”) in connection with our acquisition of SweetSpot in March 2012. The performance targets for these Performance Awards are tied to earnings before interest, taxes, depreciation and amortization (“EBITDA”) for fiscal years 2013 and 2014. We recognize expense for the Performance Awards when it is probable that the EBITDA targets will be met. The performance targets for fiscal 2014 and 2013 EBITDA were not achieved and as such no expense was recognized related to the Performance Awards for fiscal years 2014 and 2013. | ||||||||||||||
We estimate the fair value of each option grant and ESPP purchase rights on the date of grant using the Black-Scholes option pricing model with the below assumptions. | ||||||||||||||
Options: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk free interest rate | n/a | n/a | 1.2 | % | ||||||||||
Dividend yield | n/a | n/a | — | % | ||||||||||
Expected volatility of the Company’s stock | n/a | n/a | 0.7 | |||||||||||
Expected life (in years) | n/a | n/a | 6.1 | |||||||||||
ESPP: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk free interest rate | 0.10 – 0.12 | 0.13 – 0.17 | 0.11 – 0.19 | |||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||
Expected volatility of the Company’s stock | 0.41 – 0.50 | 0.30 – 0.39 | 0.39 – 0.70 | |||||||||||
Expected life (in years) | 1 | 1 | 1 | |||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
RSU awards typically vest annually over three or four years, and vesting is subject to continued employment. The RSUs had a weighted-average grant date fair value of $46.19, $17.29 and $10.58 per share for the years ended December 31, 2014, 2013 and 2012, respectively. The total fair value of RSUs vested was $27.0 million, $17.5 million and $11.8 million for the years ended 2014, 2013 and 2012, respectively. | ||||||||||||||
The following table sets forth a summary of our RSU activity as of and for the year ended December 31, 2014 (in millions except weighted average grant date fair value): | ||||||||||||||
Shares | Weighted Average | Aggregate | ||||||||||||
Grant Date | Intrinsic Value | |||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2013 | 3.6 | $ | 15.13 | |||||||||||
Granted | 2.6 | 46.19 | ||||||||||||
Vested | (1.8 | ) | 15.47 | |||||||||||
Forfeited | (0.2 | ) | 28.1 | |||||||||||
Nonvested at December 31, 2014 | 4.2 | $ | 33.35 | $ | 233.7 | |||||||||
Reserved Shares | ||||||||||||||
We have reserved shares of common stock for future issuance as follows (in millions): | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options and awards under our plans: | ||||||||||||||
Stock options granted and outstanding | 3.1 | 5.9 | ||||||||||||
Unvested restricted stock units | 4.2 | 3.6 | ||||||||||||
Reserved for future grant | 0.3 | 0.5 | ||||||||||||
Employee Stock Purchase Plan | 2.5 | 2.6 | ||||||||||||
Total | 10.1 | 12.6 | ||||||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information | . Quarterly Financial Information (Unaudited) | ||||||||||||||||
The following is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013 (in millions except per share data): | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
December 31 | September 30 | June 30 | March 31 | ||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Revenues | $ | 84.3 | $ | 69 | $ | 58.8 | $ | 47.1 | |||||||||
Gross profit | 59.4 | 47.2 | 39.9 | 29.8 | |||||||||||||
Total operating expenses | 57.8 | 52.2 | 45.7 | 42.1 | |||||||||||||
Net income (loss) | 1.3 | (5.2 | ) | (6.0 | ) | (12.5 | ) | ||||||||||
Basic net income (loss) per share (a) | $ | 0.02 | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.17 | ) | ||||||
Diluted net income (loss) per share (a) | $ | 0.02 | $ | (0.08 | ) | $ | (0.09 | ) | $ | (0.17 | ) | ||||||
Year ended December 31, 2013 | |||||||||||||||||
Revenues | $ | 51.7 | $ | 42.9 | $ | 35.8 | $ | 29.6 | |||||||||
Gross profit | 34.1 | 27.6 | 21.9 | 16.5 | |||||||||||||
Total operating expenses | 36.4 | 33.4 | 31.8 | 27.4 | |||||||||||||
Net loss | (2.6 | ) | (6.0 | ) | (10.1 | ) | (11.1 | ) | |||||||||
Basic and diluted net loss per share | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.16 | ) | |||||
(a) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||
Dec. 31, 2014 | ||||
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||
(in millions) | ||||
Allowance for doubtful accounts | ||||
Balance December 31, 2011 | $ | 0.6 | ||
Provision for doubtful accounts | 1.2 | |||
Write-off and adjustments | (0.7 | ) | ||
Recoveries | 0.1 | |||
Balance December 31, 2012 | $ | 1.2 | ||
Allowance for doubtful accounts | ||||
Balance December 31, 2012 | $ | 1.2 | ||
Provision for doubtful accounts | 2.7 | |||
Write-off and adjustments | (1.4 | ) | ||
Recoveries | 0.1 | |||
Balance December 31, 2013 | $ | 2.6 | ||
Allowance for doubtful accounts | ||||
Balance December 31, 2013 | $ | 2.6 | ||
Provision for doubtful accounts | 4 | |||
Write-off and adjustments | (2.6 | ) | ||
Recoveries | 0.3 | |||
Balance December 31, 2014 | $ | 4.3 | ||
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events |
On January 28, 2015, in anticipation of a shareholder proposal and approval of a new 2015 Employee Stock Purchase Plan (the “2015 ESPP”), our Board amended the Offering Period commencing on February 1, 2015 (the “Final Offering”) of our 2005 ESPP to extend the second Purchase Period of such Final Offering, commencing on August 1, 2015, from a six month Purchase Period to a seven month Purchase Period, ending on February 29, 2016. The 2005 ESPP was also amended to allow for automatic rollover enrollment of each participant currently enrolled in the 2005 ESPP to the September 1, 2015 Offering Period of the 2015 ESPP at the same participation rates, if approved. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Organization And Summary Of Significant Accounting Policies Additional Information [Abstract] | |||||
Organization and Business | Organization and Business | ||||
DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring (“CGM”) systems for ambulatory use by people with diabetes and by healthcare providers in the hospital for the treatment of people with and without diabetes. Unless the context requires otherwise, the terms “we,” “us,” “our,” the “company,” or “DexCom” refer to DexCom, Inc. and its subsidiaries. | |||||
Basis of Presentation | Basis of Presentation | ||||
We have incurred operating losses since our inception and have an accumulated deficit of $497.8 million at December 31, 2014. As of December 31, 2014, we had available cash, cash equivalents and short-term marketable securities totaling $83.6 million, excluding $1.0 million of restricted cash, and working capital of $105.3 million. Our ability to transition to, and maintain, profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned increases in compensation related expenses or other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. We believe our working capital resources will be sufficient to fund our operations through at least December 31, 2015. | |||||
Principles of Consolidation | Principles of Consolidation | ||||
The consolidated financial statements include the accounts of DexCom and our wholly owned subsidiaries, DexCom AB and SweetSpot Diabetes Care, Inc. (“SweetSpot”). All significant intercompany balances and transactions have been eliminated in consolidation. | |||||
Segment Reporting | Segment Reporting and Geographic Information | ||||
An operating segment is identified as a component of a business that has discrete financial information available, and one for which the chief operating decision maker must decide the level of resource allocation. In addition, the guidance for segment reporting indicates certain quantitative thresholds. The operations of SweetSpot, our subsidiary, does not meet the definition of an operating segment and are currently not material, but may become material in the future. We currently consider our operations to be, and manage our business globally within one reportable segment, which is consistent with how our management reviews our business, makes investment and resource allocation decisions and assesses operating performance. | |||||
We sell our products through a direct sales force in the United States and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, the Middle East and Latin America. Our country of domicile is the United States. | |||||
During the years ended 2014, 2013 and 2012, no individual country, outside of our country of domicile, generated revenue that represented more than 10% of our total revenue. Product revenue is designated based on the geographic location to which we deliver the product. Development grant and other revenue is attributed to countries based upon the location of the headquarters of our customer or their billing address. During fiscal 2014, total revenue attributed to the United States was approximately $224.2 million, or 86%, and revenue attributed to foreign countries was approximately $35.0 million, or 14%, respectively. Revenue attributed to foreign countries for fiscal 2013 and 2012 did not exceed 10% of our total revenue. Substantially all of our long-lived assets are located in the United States. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates include excess or obsolete inventories, valuation of inventory, warranty accruals, clinical trial expenses, allowance for bad debt and share-based compensation expense. | |||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||
We invest our excess cash in bank deposits, money market accounts, and debt securities. We consider all highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. | |||||
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Short-Term Marketable Securities | ||||
We have classified our short-term marketable securities with remaining maturity at purchase of more than three months as “available-for-sale” and carry them at fair value with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Realized gains and losses are calculated using the specific identification method and recorded as interest income. We invest in various types of securities, including debt securities in government-sponsored entities, corporate debt securities, U.S. Treasury securities and commercial paper. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. | |||||
Receivables, Policy [Policy Text Block] | Accounts Receivable | ||||
We grant credit to various customers in the normal course of business. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectible accounts are written-off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectible. Generally, receivable balances greater than one year past due are deemed uncollectable. | |||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | |||||
Letters Of Credit Policy [Text Block] | Letters of Credit | ||||
At December 31, 2014 and 2013, we had irrevocable letters of credit outstanding with a commercial bank for approximately $0.7 million and $0.7 million, respectively, securing our facility leases. The letters of credit are secured by cash equivalents and an equal amount of restricted cash has been separately disclosed in the accompanying consolidated balance sheets. | |||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk | ||||
Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investment securities, and accounts receivable. We limit our exposure to credit loss by placing our cash with high credit quality financial institutions. We have established guidelines relative to diversification of our cash and investment securities and their maturities that are intended to secure safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates and changes in our operations and financial position. The following table summarizes customers who accounted for 10% or more of net accounts receivable: | |||||
December 31, | |||||
2014 | 2013 | ||||
Customer A | 23% | 19% | |||
Customer B | 12% | 17% | |||
Property and Equipment | Property and Equipment | ||||
Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets, generally three years for computer equipment, four years for machinery and equipment, and five years for furniture and fixtures, using the straight-line method. Leasehold improvements are stated at cost and amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. | |||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets | ||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. We have not experienced any material impairment losses on assets used in operations. | |||||
Share-Based Compensation | Share-Based Compensation | ||||
Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized, for awards that are ultimately expected to vest, primarily on a straight-line basis over the requisite service period of the individual grants, which typically equals the vesting period. Share-based payments that contain performance conditions are recognized when such conditions are probable of being achieved. | |||||
The fair value of our Restricted Stock Units (RSUs) is based on the market price of our common stock on the date of grant. We estimate the fair value of stock options granted and stock purchase rights under our Employee Stock Purchase Plan (“ESPP”) using the Black-Scholes-Merton ("BSM") option-pricing model. Inherent in this model are assumptions related to our expected stock price volatility over the expected term of the awards, risk-free interest rate and any expected dividends. We determine our expected stock price volatility based on our historical stock price volatility over the most recent period equivalent to the expected life of the award. We determine the expected life of an award by considering various relevant factors, including the vesting period and contractual term of the award, our employees’ historical exercise patterns and length of service and employee characteristics. For stock purchase rights under our ESPP, the expected life is equal to the current offering period. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected life of our employee stock options and stock purchase plan. As we have not paid any cash dividends since our inception and do not anticipate paying dividends in the foreseeable future, we assume a dividend yield of zero. | |||||
We are also required to estimate at grant the likelihood that the award will ultimately vest (the “pre-vesting forfeiture rate”), and to revise the estimate, if necessary, in future periods if the actual forfeiture rate differs. We determine the pre-vesting forfeiture rate of an award based on our historical pre-vesting award forfeiture experience, giving consideration to company-specific events impacting historical pre-vesting award forfeiture experience that are unlikely to occur in the future as well as anticipated future events that may impact forfeiture rates. We use our historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. | |||||
Revenue Recognition | Revenue Recognition | ||||
We sell our durable systems and disposable units through a direct sales force in the United States and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, the Middle East and Latin America. Components are individually priced and can be purchased separately or together. We receive payment directly from customers who use our products, as well as from distributors, organizations and third-party payors. Our durable system includes a reusable transmitter, a receiver, a power cord, data management software and a USB cable. Disposable sensors for use with the durable system are sold separately in packages of four. The initial durable system price is generally not dependent upon the purchase of any amount of disposable sensors. | |||||
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue on product sales is generally recognized upon shipment, which is when title and the risk of loss have been transferred to the customer and there are no other post shipment obligations. With respect to customers who directly pay for products, the products are generally paid for at the time of shipment using a customer’s credit card and do not include customer acceptance provisions. We recognize revenue from contracted insurance payors based on the contracted rate. For non-contracted insurance payors, we obtain prior authorization from the payor and recognize revenue based on the estimated collectible amount and historical experience. We also receive a prescription or statement of medical necessity and, for insurance reimbursement customers, an assignment of benefits prior to shipment. | |||||
We provide a “30-day money back guarantee” program whereby customers who purchase a durable system and a package of four disposable sensors may return the durable system for any reason within thirty days of purchase and receive a full refund of the purchase price of the durable system. We accrue for estimated returns, refunds and rebates, including pharmacy rebates, by reducing revenues and establishing a liability account at the time of shipment based on historical experience. Returns have historically been immaterial. | |||||
We have entered into distribution agreements with Byram, Edgepark and other distributors that allow the distributors to sell our durable systems and disposable units. We have contracts with certain Stocking Distributors, whereby the distributors fulfill orders for our product from their inventory. We also have contracts with certain Drop-Ship Distributors that do not stock our products, but rather products are shipped directly to the customer by us on behalf of our distributor. Revenue on product sales to distributors is generally recognized at the time of shipment, which is when title and risk of loss have been transferred to the distributor and there are no other post-shipment obligations. Revenue is recognized based on contracted prices and invoices are either paid by check following the issuance of a purchase order or letter of credit, or they are paid by wire at the time of placing the order. Terms of distributor orders are generally FOB shipping point (FCA shipping point for international orders). Distributors do not have rights of return per their distribution agreement outside of our standard warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. For any such products, we shall either, at our option, replace the portion of defective or non-conforming product at no additional cost to the distributor or cancel the order and refund any portion of the price paid to us at that time for the sale in question. | |||||
One of our distributors, Byram, accounted for $46.1 million, $24.3 million and $9.6 million in gross revenue, which represents 18%, 15% and 9% of our total revenues for the twelve months ended December 31, 2014, 2013 and 2012, respectively. Another one of our distributors, Edgepark, accounted for $28.1 million, $23.1 million and $14.8 million in gross revenue, which represents 11%, 14% and 15% of our total revenues for the twelve months ended December 31, 2014, 2013 and 2012, respectively. | |||||
We have collaborative license and development arrangements with strategic partners for the development and commercialization of products utilizing our technologies. The terms of these agreements typically include the license of certain intellectual property rights and the provision of multiple deliverables by us (for example, research and development services, product prototypes and products for use in clinical trials) in exchange for consideration to us of some combination of non-refundable license fees, funding of research and development activities, payments based upon achievement of development milestones and royalties in the form of a designated percentage of product sales or profits. With the exception of royalties, these types of consideration are classified as development grant and other revenue in our consolidated statements of operations and are generally recognized over the service period except for substantive milestone payments, which are generally recognized when the milestone is achieved. In determining whether each milestone is substantive, we considered whether the consideration earned by achieving the milestone should (i) be commensurate with either (a) our performance to achieve the milestone or (b) the enhancement of value of the item delivered as a result of a specific outcome resulting from our performance to achieve the milestone, (ii) relate solely to past performance and (iii) be reasonable relative to all deliverables and payment terms in the arrangement. We recognize royalties in the period in which we obtain the royalty report, which is necessary to determine the amount of royalties we are entitled to receive. | |||||
Non-refundable license fees are recognized as revenue when we have a contractual right to receive such payment, the contract price is fixed or determinable, the collection of the resulting receivable is reasonably assured and we have no further performance obligations under the license agreement. Multiple element arrangements, such as license, development and other multiple element service arrangements, are analyzed to determine how the arrangement consideration should be allocated among the separate units of accounting, or whether they must be accounted for as a single unit of accounting. | |||||
For transactions containing multiple element arrangements, we consider deliverables as separate units of accounting and recognize deliverables as revenue upon delivery only if (i) the deliverable has standalone value and (ii) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is probable and substantially controlled by us. We allocate consideration to the separate units of accounting using the relative selling price method, in which allocation of consideration is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”), or if VSOE and TPE are not available, management’s best estimate of a standalone selling price for elements. | |||||
We use judgment in estimating the value allocable to the deliverables in an agreement based on our estimate of the fair value or relative selling price attributable to the related deliverables and the consideration from such an agreement is typically recognized as product revenue or development grant and other revenue. For arrangements that are accounted for as a single unit of accounting, total payments under the arrangement are recognized as revenue on a straight-line basis over the period we expect to complete our performance obligations. We review the estimated period of our performance obligations on a periodic basis and update the recognition period as appropriate. The cumulative amount of revenue earned is limited to the cumulative amount of payments we are entitled to as of the period ending date. | |||||
If we cannot reasonably estimate when our performance obligation either ceases or becomes inconsequential, then revenue is deferred until we can reasonably estimate when the performance obligation ceases or becomes inconsequential. Revenue is then recognized over the remaining estimated period of performance. Deferred revenue amounts are classified as current liabilities to the extent that revenue is expected to be recognized within one year. | |||||
Significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete our performance obligations under an arrangement. | |||||
Warranty Accrual | Warranty Accrual | ||||
Estimated warranty costs associated with a product are recorded at the time of shipment. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and these estimates are evaluated on at least a quarterly basis to determine the continued appropriateness of such assumptions. | |||||
Research and Development Expense, Policy [Policy Text Block] | Research and Development | ||||
All costs of research and development are expensed as incurred. Research and development expenses primarily include salaries, bonus and payroll related costs, overhead, part components, share-based compensation, and fees paid to consultants. | |||||
Foreign Currency | Foreign Currency | ||||
The financial statements of our non-U.S. subsidiary, whose functional currency is the Swedish Krona, are translated into U.S. dollars for financial reporting purposes. Assets and liabilities are translated at period-end exchange rates, and revenue and expense transactions are translated at average exchange rates for the period. Cumulative translation adjustments are recognized as part of comprehensive income and are included in accumulated other comprehensive loss in the consolidated balance sheets. Gains and losses on transactions denominated in other than the functional currency are reflected in operations. To date the results of operations of this subsidiary and related translation adjustments have not been material in our consolidated results. | |||||
Comprehensive Loss | Comprehensive Loss | ||||
We report all components of comprehensive loss, including net loss, in the consolidated financial statements in the period in which they are recognized. Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and comprehensive loss, including unrealized gains and losses on short-term marketable securities and foreign currency translation adjustments, are reported, net of their related tax effect, to arrive at comprehensive loss. | |||||
Inventory | Inventory | ||||
Inventory is valued at the lower of cost or market value on a part-by-part basis that approximates first in, first out. We make adjustments to reduce the cost of inventory to its net realizable value, if required, for estimated excess, obsolete and potential scrapped inventories. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data, and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed. | |||||
Our products require customized products and components that currently are available from a limited number of sources. We purchase certain components and materials from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. | |||||
Lease, Policy [Policy Text Block] | Deferred Rent | ||||
Rent expense is recorded on a straight-line basis over the term of the lease. The difference between rent expense accrued and amounts paid under the lease agreement is recorded as deferred rent in the accompanying consolidated balance sheets. | |||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||
In July 2006, the FASB issued authoritative guidance for accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement process for recording in the consolidated financial statements uncertain tax positions taken or expected to be taken in a tax return. Additionally, the accounting standard provides guidance on the derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. | |||||
We file income tax returns in the United States, Sweden and in various state jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. Our policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. As of December 31, 2014, we had no interest or penalties accrued for uncertain tax positions. | |||||
Fair Value Measurements | Fair Value Measurements | ||||
The fair value hierarchy described by the authoritative guidance for fair value measurements is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value and include the following: | |||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||
We carry our marketable securities and contingent consideration liability at fair value. The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, are carried at cost, which approximate the related fair values due to the short-term maturities of these instruments. | |||||
Impairment of Goodwill and Intangible Assets | Impairment of Goodwill and Intangible Assets | ||||
We test goodwill and intangible assets with indefinite lives for impairment on an annual basis. Also, between annual tests we test for impairment if events and circumstances indicate it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business and an adverse action or assessment by a regulator. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Guidance | ||||
In July 2013, the FASB issued authoritative guidance for Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. We adopted this guidance on January 1, 2014, and the adoption of this guidance did not have a material impact on our consolidated financial statements or related financial statement disclosures. | |||||
In May 2014, the FASB issued authoritative guidance for Revenue from Contracts with Customers, to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The guidance defines a five step process to achieve this core principle and it is possible when the five step process is applied, more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The updated standard permits the use of either the retrospective or cumulative effect transition method and is effective for us in our first quarter of fiscal 2017. Early adoption is not permitted. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Organization And Summary Of Significant Accounting Policies Additional Information [Abstract] | ||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The following table summarizes customers who accounted for 10% or more of net accounts receivable: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Customer A | 23% | 19% | ||||||||||||||
Customer B | 12% | 17% | ||||||||||||||
Fair Value Hierarchy for Financial Assets | The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) measured at fair value on a recurring basis as of December 31, 2014 (in millions): | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 54.3 | $ | — | $ | 54.3 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 9.1 | — | 9.1 | ||||||||||||
Corporate debt | — | 2.3 | — | 2.3 | ||||||||||||
Commercial paper | — | 0.4 | — | 0.4 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.8 | $ | — | $ | 11.8 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 28.7 | $ | — | $ | 28.7 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 8.9 | — | 8.9 | ||||||||||||
Corporate debt | — | 2.5 | — | 2.5 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.4 | $ | — | $ | 11.4 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
Contingent consideration - liability | $ | — | $ | — | $ | 4.2 | $ | 4.2 | ||||||||
Change in Estimated Fair Value of Liabilities Measured on Recurring Basis | The following table sets forth the change in the estimated fair value for our liabilities measured on a recurring basis using significant unobservable inputs (Level 3) (in millions): | |||||||||||||||
Twelve Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fair value measurement at the beginning of period | $ | 4.2 | $ | 1.7 | ||||||||||||
Changes in fair value measurement included in operating expenses | (0.2 | ) | 2.5 | |||||||||||||
Contingent consideration settled | (4.0 | ) | — | |||||||||||||
Fair value measurement at end of period | $ | — | $ | 4.2 | ||||||||||||
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Historical Outstanding Anti-Dilutive Securities | Historical outstanding anti-dilutive securities not included in diluted net loss per share attributable to common stockholders calculation (in millions): | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Options outstanding to purchase common stock | 3.1 | 5.8 | 7.4 | ||||||
Unvested restricted stock units | 4.2 | 3.6 | 3 | ||||||
Total | 7.3 | 9.4 | 10.4 | ||||||
Financial_Statement_Details_Ta
Financial Statement Details (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Financial Statement Details [Abstract] | ||||||||||||||||
Short Term Marketable Securities, Available for Sale | Short term marketable securities, consisting solely of debt securities with remaining contractual maturities of less than one year were as follows: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government agencies | $ | 9.1 | $ | — | $ | — | $ | 9.1 | ||||||||
Corporate debt | 2.3 | — | — | 2.3 | ||||||||||||
Commercial paper | 0.4 | — | — | 0.4 | ||||||||||||
Total | $ | 11.8 | $ | — | $ | — | $ | 11.8 | ||||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||||
Gains | Losses | Value | ||||||||||||||
U.S. government agencies | $ | 8.9 | $ | — | $ | — | $ | 8.9 | ||||||||
Corporate debt | 2.5 | — | — | 2.5 | ||||||||||||
Total | $ | 11.4 | $ | — | $ | — | $ | 11.4 | ||||||||
Accounts Receivable | Accounts Receivable | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts receivable | $ | 46.8 | $ | 28.8 | ||||||||||||
Less allowance for doubtful accounts, sales returns and discounts | (4.4 | ) | (2.7 | ) | ||||||||||||
Total | $ | 42.4 | $ | 26.1 | ||||||||||||
Inventory | Inventory | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 7.6 | $ | 4.8 | ||||||||||||
Work-in-process | 1 | 0.3 | ||||||||||||||
Finished goods | 7.4 | 3.9 | ||||||||||||||
Total | $ | 16 | $ | 9 | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Furniture and fixtures | $ | 3.9 | $ | 2.6 | ||||||||||||
Computer equipment | 18.9 | 15.2 | ||||||||||||||
Machinery and equipment | 26.5 | 19 | ||||||||||||||
Leasehold improvements | 14.7 | 10.5 | ||||||||||||||
Total | 64 | 47.3 | ||||||||||||||
Accumulated depreciation and amortization | (32.8 | ) | (26.6 | ) | ||||||||||||
Property and equipment, net | $ | 31.2 | $ | 20.7 | ||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and Intangible Assets | |||||||||||||||
Goodwill and intangible assets as of December 31, 2014 consisted of the following (in millions, except months): | ||||||||||||||||
Weighted-Average | Gross | Accumulated | Intangible Assets, net | |||||||||||||
Amortization Period | Amount | Amortization | ||||||||||||||
(in months) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Developed technology | 109 | $ | 3.2 | $ | (1.2 | ) | $ | 2 | ||||||||
Customer-related intangible | 70 | 0.6 | (0.3 | ) | 0.3 | |||||||||||
Covenants not-to-compete | 70 | 0.2 | (0.1 | ) | 0.1 | |||||||||||
Total | $ | 4 | $ | (1.6 | ) | $ | 2.4 | |||||||||
Intangible assets not subject to amortization | ||||||||||||||||
In-process research and development | 0.2 | |||||||||||||||
Trademarks and trade names | 0.1 | |||||||||||||||
Goodwill | 3.2 | |||||||||||||||
Total | $ | 3.5 | ||||||||||||||
Goodwill and intangible assets as of December 31, 2013 consisted of the following (in millions, except months): | ||||||||||||||||
Weighted-Average | Gross | Accumulated | Intangible Assets, net | |||||||||||||
Amortization Period | Amount | Amortization | ||||||||||||||
(in months) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Developed technology | 109 | $ | 3.2 | $ | (0.7 | ) | $ | 2.5 | ||||||||
Customer-related intangible | 70 | 0.6 | (0.2 | ) | 0.4 | |||||||||||
Covenants not-to-compete | 70 | 0.6 | (0.2 | ) | 0.4 | |||||||||||
Total | $ | 4.4 | $ | (1.1 | ) | $ | 3.3 | |||||||||
Intangible assets not subject to amortization | ||||||||||||||||
In-process research and development | 0.2 | |||||||||||||||
Trademarks and trade names | 0.1 | |||||||||||||||
Goodwill | 3.2 | |||||||||||||||
Total | $ | 3.5 | ||||||||||||||
Schedule of Estimated Future Amortization Expense | The following table sets forth the total future amortization expense related to intangible assets subject to amortization as of December 31, 2014: | |||||||||||||||
Fiscal Year Ending | ||||||||||||||||
2015 | $ | 0.5 | ||||||||||||||
2016 | 0.5 | |||||||||||||||
2017 | 0.5 | |||||||||||||||
2018 | 0.3 | |||||||||||||||
2019 | 0.3 | |||||||||||||||
Thereafter through 2021 | 0.5 | |||||||||||||||
Total | $ | 2.6 | ||||||||||||||
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts payable trade | $ | 9.9 | $ | 4.2 | ||||||||||||
Accrued tax, audit, and legal fees | 1.6 | 1.2 | ||||||||||||||
Clinical trials | 0.4 | 0.3 | ||||||||||||||
Accrued other including warranty | 8.5 | 4.8 | ||||||||||||||
Acquisition-related liabilities | — | 3.6 | ||||||||||||||
Total | $ | 20.4 | $ | 14.1 | ||||||||||||
Accrued Payroll And Related Expenses | Accrued Payroll and Related Expenses | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Accrued paid time off | $ | 3.2 | $ | 2.7 | ||||||||||||
Accrued wages, bonus and taxes | 12.5 | 11.3 | ||||||||||||||
Other accrued employee benefits | 1.5 | 1.1 | ||||||||||||||
Total | $ | 17.2 | $ | 15.1 | ||||||||||||
Accrued Warranty | Accrued Warranty | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Beginning balance | $ | 0.9 | $ | 0.3 | ||||||||||||
Charges to costs and expenses | 5.2 | 4.1 | ||||||||||||||
Costs incurred | (4.8 | ) | (3.5 | ) | ||||||||||||
Ending balance | $ | 1.3 | $ | 0.9 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Principal repayment obligations under the Loan Agreement as of December 31, 2014 were as follows (in millions): | |||
Fiscal Year Ending | ||||
2015 | $ | 2.3 | ||
2016 | 2.3 | |||
Total | $ | 4.6 | ||
Rental Obligations | Rental obligations, excluding real estate taxes, operating costs, and tenant improvement allowances, under all lease agreements as of December 31, 2014 were as follows (in millions): | |||
Fiscal Year Ending | ||||
2015 | 3.1 | |||
2016 | 3.6 | |||
2017 | 4 | |||
2018 | 5 | |||
2019 | 5.2 | |||
Thereafter | 11.8 | |||
Total | $ | 32.7 | ||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Change in Estimated Fair Value of Liabilities Measured on Recurring Basis | The following table sets forth the change in the estimated fair value for our liabilities measured on a recurring basis using significant unobservable inputs (Level 3) (in millions): | |||||||||||||||
Twelve Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fair value measurement at the beginning of period | $ | 4.2 | $ | 1.7 | ||||||||||||
Changes in fair value measurement included in operating expenses | (0.2 | ) | 2.5 | |||||||||||||
Contingent consideration settled | (4.0 | ) | — | |||||||||||||
Fair value measurement at end of period | $ | — | $ | 4.2 | ||||||||||||
Fair Value Hierarchy for Financial Assets | The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) measured at fair value on a recurring basis as of December 31, 2014 (in millions): | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 54.3 | $ | — | $ | 54.3 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 9.1 | — | 9.1 | ||||||||||||
Corporate debt | — | 2.3 | — | 2.3 | ||||||||||||
Commercial paper | — | 0.4 | — | 0.4 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.8 | $ | — | $ | 11.8 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
The following table represents our fair value hierarchy for our financial assets (cash equivalents, marketable securities and restricted cash) and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | — | $ | 28.7 | $ | — | $ | 28.7 | ||||||||
Marketable securities, available for sale | ||||||||||||||||
U.S. government agencies | — | 8.9 | — | 8.9 | ||||||||||||
Corporate debt | — | 2.5 | — | 2.5 | ||||||||||||
Total marketable securities, available for sale | $ | — | $ | 11.4 | $ | — | $ | 11.4 | ||||||||
Restricted cash | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
Contingent consideration - liability | $ | — | $ | — | $ | 4.2 | $ | 4.2 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Deferred Tax Assets and Liabilities | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carryforwards | $ | 132.2 | $ | 132.8 | ||||||
Capitalized research and development expenses | 5 | 7.2 | ||||||||
Tax credits | 9 | 7.3 | ||||||||
Share-based compensation | 15.5 | 12.2 | ||||||||
Fixed and intangible assets | 1.2 | 1.1 | ||||||||
Other, net | 7 | 5.4 | ||||||||
Total gross deferred tax assets | 169.9 | 166 | ||||||||
Less: valuation allowance | (169.0 | ) | (164.7 | ) | ||||||
Deferred tax liability related to acquired intangibles assets | (1.0 | ) | (1.4 | ) | ||||||
Net deferred tax liability | $ | (0.1 | ) | $ | (0.1 | ) | ||||
Reconciliation Between Effective Tax Rate and Statutory Rate | The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: | |||||||||
December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Income taxes at statutory rates | 35 | % | 35 | % | 35 | % | ||||
State income tax, net of federal benefit | (1.56 | )% | 2.7 | % | 2.74 | % | ||||
Permanent items | (0.80 | )% | (3.64 | )% | (0.84 | )% | ||||
Research and development credits | 7.5 | % | 6.17 | % | 1.43 | % | ||||
Stock and officers compensation | (15.93 | )% | (2.23 | )% | (3.01 | )% | ||||
Rate change | (1.66 | )% | 7.11 | % | (2.13 | )% | ||||
Other | (3.97 | )% | 0.08 | % | (1.15 | )% | ||||
Change in valuation allowance | (19.24 | )% | (45.15 | )% | (29.76 | )% | ||||
(0.66 | )% | 0.04 | % | 2.28 | % | |||||
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): | |||||||||
Balance at January 1, 2012 | $ | 4.4 | ||||||||
Increases related to current year tax positions | 0.5 | |||||||||
Decreases due to statute of limitation expiration | (0.1 | ) | ||||||||
Balance at December 31, 2012 | 4.8 | |||||||||
Adjustments related to prior year tax positions | 0.5 | |||||||||
Increases related to current year tax positions | 0.9 | |||||||||
Balance at December 31, 2013 | 6.2 | |||||||||
Increases related to current year tax positions | 1.4 | |||||||||
Balance at December 31, 2014 | $ | 7.6 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary of Stock Option Activity | A summary of our stock option activity, and related information for the year ended December 31, 2014 is as follows (in millions except weighted-average exercise price and weighted-average remaining contractual term): | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate Intrinsic | |||||||||||
Shares | Average | Average | Value | |||||||||||
Exercise | Remaining | |||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at December 31, 2013 | 5.9 | $ | 7.94 | |||||||||||
Exercised | (2.8 | ) | 7.92 | |||||||||||
Forfeited | — | 11.53 | ||||||||||||
Outstanding at December 31, 2014 | 3.1 | $ | 7.95 | 3.53 | $ | 147.5 | ||||||||
Exercisable at December 31, 2014 | 3.1 | $ | 7.95 | 3.53 | $ | 147.5 | ||||||||
Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested | The total intrinsic value of options exercised as of the date of exercise and total fair value of options vested was as follows (in millions): | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Intrinsic value of options exercised | $ | 99 | $ | 29.8 | $ | 2.7 | ||||||||
Fair value of options vested | $ | 0.4 | $ | 1.3 | $ | 3.7 | ||||||||
Schedule of Nonvested Stock Option Activity | The following table sets forth a summary of our nonvested stock options and activity as of and for the year ended December 31, 2014: | |||||||||||||
Shares | Weighted Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
(in millions) | ||||||||||||||
Nonvested at December 31, 2013 | 0.1 | $ | 4.6 | |||||||||||
Vested | (0.1 | ) | 4.6 | |||||||||||
Forfeited | — | — | ||||||||||||
Nonvested at December 31, 2014 | — | $ | — | |||||||||||
Schedule of Share-Based Compensation Expenses | The following table summarizes share-based compensation expense related to employee stock options, restricted stock units and employee stock purchases for the years ended December 31, 2014, 2013 and 2012 were allocated as follows (in millions): | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of sales | $ | 4.5 | $ | 2.6 | $ | 2.1 | ||||||||
Research and development | 17 | 8.5 | 6.2 | |||||||||||
Selling, general and administrative | 28.5 | 13.5 | 10.1 | |||||||||||
Share-based compensation expense included in operating expenses | $ | 50 | $ | 24.6 | $ | 18.4 | ||||||||
Schedule of Valuation Assumptions for Each Option Grant and Employee Stock Purchase Plan Purchase Rights | We estimate the fair value of each option grant and ESPP purchase rights on the date of grant using the Black-Scholes option pricing model with the below assumptions. | |||||||||||||
Options: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk free interest rate | n/a | n/a | 1.2 | % | ||||||||||
Dividend yield | n/a | n/a | — | % | ||||||||||
Expected volatility of the Company’s stock | n/a | n/a | 0.7 | |||||||||||
Expected life (in years) | n/a | n/a | 6.1 | |||||||||||
Estimate of Fair Value of ESPP | ESPP: | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk free interest rate | 0.10 – 0.12 | 0.13 – 0.17 | 0.11 – 0.19 | |||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||
Expected volatility of the Company’s stock | 0.41 – 0.50 | 0.30 – 0.39 | 0.39 – 0.70 | |||||||||||
Expected life (in years) | 1 | 1 | 1 | |||||||||||
Schedule of Restricted Stock Units Activity | The following table sets forth a summary of our RSU activity as of and for the year ended December 31, 2014 (in millions except weighted average grant date fair value): | |||||||||||||
Shares | Weighted Average | Aggregate | ||||||||||||
Grant Date | Intrinsic Value | |||||||||||||
Fair Value | ||||||||||||||
Nonvested at December 31, 2013 | 3.6 | $ | 15.13 | |||||||||||
Granted | 2.6 | 46.19 | ||||||||||||
Vested | (1.8 | ) | 15.47 | |||||||||||
Forfeited | (0.2 | ) | 28.1 | |||||||||||
Nonvested at December 31, 2014 | 4.2 | $ | 33.35 | $ | 233.7 | |||||||||
Schedule of Stock Options Reserved for Future Issuance | Reserved Shares | |||||||||||||
We have reserved shares of common stock for future issuance as follows (in millions): | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options and awards under our plans: | ||||||||||||||
Stock options granted and outstanding | 3.1 | 5.9 | ||||||||||||
Unvested restricted stock units | 4.2 | 3.6 | ||||||||||||
Reserved for future grant | 0.3 | 0.5 | ||||||||||||
Employee Stock Purchase Plan | 2.5 | 2.6 | ||||||||||||
Total | 10.1 | 12.6 | ||||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Quarterly Financial Information | The following is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013 (in millions except per share data): | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
December 31 | September 30 | June 30 | March 31 | ||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Revenues | $ | 84.3 | $ | 69 | $ | 58.8 | $ | 47.1 | |||||||||
Gross profit | 59.4 | 47.2 | 39.9 | 29.8 | |||||||||||||
Total operating expenses | 57.8 | 52.2 | 45.7 | 42.1 | |||||||||||||
Net income (loss) | 1.3 | (5.2 | ) | (6.0 | ) | (12.5 | ) | ||||||||||
Basic net income (loss) per share (a) | $ | 0.02 | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.17 | ) | ||||||
Diluted net income (loss) per share (a) | $ | 0.02 | $ | (0.08 | ) | $ | (0.09 | ) | $ | (0.17 | ) | ||||||
Year ended December 31, 2013 | |||||||||||||||||
Revenues | $ | 51.7 | $ | 42.9 | $ | 35.8 | $ | 29.6 | |||||||||
Gross profit | 34.1 | 27.6 | 21.9 | 16.5 | |||||||||||||
Total operating expenses | 36.4 | 33.4 | 31.8 | 27.4 | |||||||||||||
Net loss | (2.6 | ) | (6.0 | ) | (10.1 | ) | (11.1 | ) | |||||||||
Basic and diluted net loss per share | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.16 | ) | |||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 06, 2012 |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Letters of Credit Outstanding, Amount | $0.70 | $0.70 | $0.70 | $0.70 | ||||||||
Maturity Threshold Of Investments Classified To Cash Equivalents | 90 | |||||||||||
Accumulated deficit | 497.8 | 475.4 | 497.8 | 475.4 | ||||||||
Cash, cash equivalents and short-term investments | 83.6 | 83.6 | ||||||||||
Restricted cash | 1 | 1 | 1 | 1 | ||||||||
Working capital | 105.3 | 105.3 | ||||||||||
Unrecognized compensation cost | 105.1 | 105.1 | ||||||||||
Money back guarantee period (days) | 30 days | |||||||||||
Revenues | 84.3 | 69 | 58.8 | 47.1 | 51.7 | 42.9 | 35.8 | 29.6 | ||||
Valuation allowance amount | 169 | 164.7 | 169 | 164.7 | ||||||||
Net tax benefit (expense) | -0.1 | 0 | 1.3 | |||||||||
Tax Credit Carryforward, Expiration Date | 1-Jan-20 | |||||||||||
Fair value of contingent consideration | 2.2 | |||||||||||
Customer [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||||
Byram [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Revenues | 46.1 | 24.3 | 9.6 | |||||||||
Concentration Risk, Percentage | 18.00% | 15.00% | 9.00% | |||||||||
Edgepark [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Revenues | $28.10 | $23.10 | $14.80 | |||||||||
Concentration Risk, Percentage | 11.00% | 14.00% | 15.00% | |||||||||
Computer Equipment [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||||
Machinery and Equipment [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Property, Plant and Equipment, Useful Life | 4 years | |||||||||||
Furniture and Fixtures [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||||||||
International [Member] | ||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Revenue, Percentage | 14.00% | 10.00% | 10.00% |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies - Concentration of Credit Risk (Detail) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer [Member] | ||
Entity Wide Accounts Receivable By Major Customer Percentage | 23.00% | 19.00% |
Customer B [Member] | ||
Entity Wide Accounts Receivable By Major Customer Percentage | 12.00% | 17.00% |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies Organization and Significant Accounting Policies - Segment Reporting and Geographic Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Reportable Segments | 1 | ||
Total Revenue | $259.20 | $160 | $99.90 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, Percentage | 86.00% | ||
Total Revenue | 224.2 | ||
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, Percentage | 14.00% | 10.00% | 10.00% |
Total Revenue | $35 | ||
Maximum [Member] | All Countries [Domain] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, Percentage | 10.00% |
Net_Loss_Per_Common_Share_Hist
Net Loss Per Common Share - Historical Outstanding Anti-Dilutive Securities (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding anti-dilutive securities | 7.3 | 9.4 | 10.4 |
Options outstanding to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding anti-dilutive securities | 3.1 | 5.8 | 7.4 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding anti-dilutive securities | 4.2 | 3.6 | 3 |
Financial_Statement_Details_Sh
Financial Statement Details - Short Term Marketable Securities, Available for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | $11.80 | $11.40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 11.8 | 11.4 |
U.S. government agencies [Member] | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 9.1 | 8.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 9.1 | 8.9 |
Corporate debt [Member] | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 2.3 | 2.5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 2.3 | 2.5 |
Commercial paper [Member] | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 0.4 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Market Value | $0.40 |
Financial_Statement_Details_Fi
Financial Statement Details Financial Statement Details - Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accounts Receivable, Gross | $46.80 | $28.80 |
Allowance for Doubtful Accounts Receivable | -4.4 | -2.7 |
Accounts Receivable, Net | $42.40 | $26.10 |
Financial_Statement_Details_In
Financial Statement Details - Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure of Financial Statement Details [Abstract] | ||
Raw materials | $7.60 | $4.80 |
Work-in-process | 1 | 0.3 |
Finished goods | 7.4 | 3.9 |
Total | $16 | $9 |
Financial_Statement_Details_Fi1
Financial Statement Details Financial Statement Details - Property and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $64 | $47.30 | |
Accumulated Depreciation and Amortization | -32.8 | -26.6 | |
Property and equipment, net | 31.2 | 20.7 | |
Depreciation | 7.8 | 6.4 | 6.1 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 3.9 | 2.6 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 18.9 | 15.2 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 26.5 | 19 | |
Property, Plant and Equipment, Type [Domain] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $14.70 | $10.50 |
Financial_Statement_Details_Fi2
Financial Statement Details Financial Statement Details - Schedule of Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | $2.60 | ||
Amortization of Intangible Assets | 0.6 | 0.6 | 0.5 |
Impairment of Intangible Assets, Finite-lived | 0.2 | 0 | 0 |
Intangible Assets Not Subject To Amortization [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 3.5 | 3.5 | |
Intangible Assets Not Subject To Amortization [Member] | In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 0.2 | 0.2 | |
Intangible Assets Not Subject To Amortization [Member] | Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 0.1 | 0.1 | |
Intangible Assets Not Subject To Amortization [Member] | Goodwill [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 3.2 | 3.2 | |
Intangible Assets Subject To Amortization [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 4 | 4.4 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -1.6 | -1.1 | |
Finite-Lived Intangible Assets, Net | 2.4 | 3.3 | |
Intangible Assets Subject To Amortization [Member] | Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Asset Weighted Average Amortization Period | 109 months | 109 months | |
Finite-Lived Intangible Assets, Gross | 3.2 | 3.2 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -1.2 | -0.7 | |
Finite-Lived Intangible Assets, Net | 2 | 2.5 | |
Intangible Assets Subject To Amortization [Member] | Customer-Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Asset Weighted Average Amortization Period | 70 months | 70 months | |
Finite-Lived Intangible Assets, Gross | 0.6 | 0.6 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -0.3 | -0.2 | |
Finite-Lived Intangible Assets, Net | 0.3 | 0.4 | |
Intangible Assets Subject To Amortization [Member] | Covenants Not To Compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite Lived Intangible Asset Weighted Average Amortization Period | 70 months | 70 months | |
Finite-Lived Intangible Assets, Gross | 0.2 | 0.6 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -0.1 | -0.2 | |
Finite-Lived Intangible Assets, Net | $0.10 | $0.40 |
Financial_Statement_Details_Fi3
Financial Statement Details Financial Statement Details - Schedule of Future Amortization Expense (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Disclosure Financial Statement Details Schedule Of Future Amortization Expense [Abstract] | |
Future Amortization Expense, 2015 | $0.50 |
Future Amortization Expense, 2016 | 0.5 |
Future Amortization Expense, 2017 | 0.5 |
Future Amortization Expense, 2018 | 0.3 |
Future Amortization Expense, 2019 | 0.3 |
Future Amortization Expense, Thereafter through 2021 | 0.5 |
Finite-Lived Intangible Assets, Net | $2.60 |
Financial_Statement_Details_Ac
Financial Statement Details - Accounts Payable and Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure of Financial Statement Details [Abstract] | ||
Accounts payable trade | $9.90 | $4.20 |
Accrued tax, audit, and legal fees | 1.6 | 1.2 |
Clinical trials | 0.4 | 0.3 |
Accrued other including warranty | 8.5 | 4.8 |
Acquisition-related liabilities | 0 | 3.6 |
Total | $20.40 | $14.10 |
Financial_Statement_Details_Fi4
Financial Statement Details Financial Statement Details - Accrued Payroll and Related Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure Financial Statement Details Accrued Payroll And Related Expenses [Abstract] | ||
Accrued Vacation | $3.20 | $2.70 |
Accrued Wages Bonus And Taxes | 12.5 | 11.3 |
Accrued Employee Benefits, Current | 1.5 | 1.1 |
Employee-related Liabilities | $17.20 | $15.10 |
Financial_Statement_Details_Ac1
Financial Statement Details - Accrued Warranty (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $0.90 | $0.30 |
Charges to costs and expenses | 5.2 | 4.1 |
Costs incurred | -4.8 | -3.5 |
Ending balance | $1.30 | $0.90 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2012 |
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of days the cross-license expires upon change of control when cross-licensing continuation fee is not paid | 30 days | ||
Long-term Line of Credit | $15 | ||
Term Loan Debt | 20 | ||
Prime Rate Plus | 0.50% | ||
Term Loan Advances Aggregate Amount | 7 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 13 | 15 | |
Debt Instrument Basis Spread On Treasury Variable Rate | 6.94% | ||
Debt Instrument, Maturity Date | 1-Nov-16 | ||
Debt Issuance Cost | 1.1 | ||
Unamortized Debt Issuance Expense | 0.3 | ||
Potential Rental Rate Adjustment Minimum | 2.50% | ||
Potential Rental Rate Adjustment Maximum | 4.00% | ||
Purchase commitments with vendors total | 18 | ||
Purchase commitments with vendors total maximum term, in years | 1 year | ||
2015 | 2.3 | ||
2016 | 2.3 | ||
Total | $4.60 | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||
6310,6340 and 6290 Sequence Drive Lease [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | 2 | ||
Sweden Lease [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | 2 | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 3 years | ||
Sweetspot [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Term of lease (years) | 5 years |
Commitments_and_Contingencies_2
Commitments and Contingencies - Rental Obligations (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2014 |
sqft | ||||
Operating Leases, Rent Expense | $3.60 | $3 | $2.50 | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||
Potential Rental Rate Adjustment Minimum | 2.50% | |||
Potential Rental Rate Adjustment Maximum | 4.00% | |||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 3.1 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 3.6 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 4 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 5 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 5.2 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 11.8 | |||
Total | $32.70 | |||
Leased Buildings -6340 Sequence Drive and 6310 Sequence Drive [Member] | ||||
Leased Square Footage | 129,000 | |||
Leased Building, 6290 Sequence Drive [Member] | ||||
Leased Square Footage | 45,000 | |||
Additional Available Space, 6290 Sequence Drive [Member] | ||||
Leased Square Footage | 45,000 | |||
6310,6340 and 6290 Sequence Drive Lease [Member] | ||||
Leased Square Footage | 174,000 | |||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | 2 | |||
Sweden Lease [Member] | ||||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | 2 | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 3 years |
Commitments_and_Contingencies_3
Commitments and Contingencies Commitments and Contingencies - Litigation (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Loss Contingencies [Line Items] | |
Cross-licensing continuation fee upon change of control | $25 |
Number of days a cross-licensing continuation fee is due upon change of control | 30 days |
Number of days the cross-license expires upon change of control when cross-licensing continuation fee is not paid | 30 days |
Development_and_Other_Agreemen1
Development and Other Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Nov. 30, 2008 | Feb. 29, 2012 | Jul. 31, 2014 | Feb. 01, 2012 |
Development Agreements [Line Items] | ||||||||
Development grant and other revenue | $2.10 | $2.90 | $6.90 | |||||
Research and Development Arrangement, Value of Grant | 4 | |||||||
Research and Development Arrangement, Grants Received During Period | 2.5 | 0.5 | ||||||
Helmsley Grant [Member] | Research and Development Grant [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned | 2.5 | 0.5 | ||||||
Option One [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Royalty Guarantees, Commitments, Commitment Period | 4 years | |||||||
Option Two [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Royalty Guarantees, Commitments, Amount | 6 | |||||||
Option One [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Royalty Guarantees, Commitments, Amounts, Per Year | 2 | |||||||
Edwards Lifesciences LLC [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Commercial sales royalty maximum | 6.00% | |||||||
Money eligible to be received related to regulatory approvals and manufacturing readiness | 12 | |||||||
Tandem Diabetes Care, Inc. [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Development grant and other revenue | 0.2 | 0.5 | ||||||
Tandem Diabetes Care, Inc. [Member] | Maximum [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Third party contribution to off set expenses | 1 | |||||||
Tandem Diabetes Care, Inc. [Member] | Initial Payment [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
One-time milestone payment, received | 1 | |||||||
Regulatory Submission Milestone [Member] | Tandem Diabetes Care, Inc. [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Additional milestone payments | 1 | |||||||
Regulatory Approval Milestone [Member] [Member] | Tandem Diabetes Care, Inc. [Member] | ||||||||
Development Agreements [Line Items] | ||||||||
Additional milestone payments | $1 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 54.3 | $28.70 |
Available-for-sale Securities, Debt Securities, Current | 11.8 | 11.4 |
Restricted cash | 1 | 1 |
Contingent Consideration Fair Value Disclosure | 4.2 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 0 | 0 |
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
Restricted cash | 1 | 1 |
Contingent Consideration Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 54.3 | 28.7 |
Available-for-sale Securities, Debt Securities, Current | 11.8 | 11.4 |
Restricted cash | 0 | 0 |
Contingent Consideration Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 0 | 0 |
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
Restricted cash | 0 | 0 |
Contingent Consideration Fair Value Disclosure | 4.2 | |
U.S. government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 9.1 | 8.9 |
U.S. government agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
U.S. government agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 8.9 | |
U.S. government agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
Corporate debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 2.3 | 2.5 |
Corporate debt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
Corporate debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 2.5 | |
Corporate debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | 0 |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0.4 | |
Commercial paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | |
Commercial paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 0 | |
Furniture and Fixtures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years |
Fair_Value_Measurements_Contin
Fair Value Measurements Contingent Consideration (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $0 | $4.20 | $1.70 |
Changes in fair value measurement included in operating expenses | -0.2 | 2.5 | |
Other Significant Noncash Transaction, Value of Sweetspot Contingent Conisederation Settlement | $4 | $0 | $0 |
Fair_Value_Measurements_Contin1
Fair Value Measurements Contingent Consideration Details (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Nov. 04, 2014 | Mar. 06, 2012 | Dec. 31, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Combination, Contingent Consideration, Liability Shares | 357,176 | ||
Fair value of contingent consideration | $2.20 | ||
Business Acquisition Contingent Consideration Settlement | $1.10 | ||
Business Acquisition Contingent Consideration Settlement Shares Issued | 89,296 | ||
Business Acquisition Contingent Consideration Settlement Shares | 89,300 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Net tax benefit (expense) | ($100,000) | $0 | $1,300,000 |
Tax Credit Carryforward, Expiration Date | 1-Jan-20 | ||
Tax credit carryforwards subject to expiration | 2,100,000 | ||
Net operating losses and tax credit carryforwards, limitations on use, ownership changes | 50.00% | ||
Net operating losses and tax credit carryforwards, limitations on use, ownership change period (years) | 3 years | ||
Valuation allowance amount | 169,000,000 | 164,700,000 | |
Share-based compensation, excess tax benefits | 63,900,000 | ||
Unrecognized tax benefits | 0 | ||
Undistributed Earnings of Foreign Subsidiaries | 1,000,000 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 507,500,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 8,100,000 | ||
Operating Loss Carryforwards, Expiration Dates | 1-Jan-19 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 333,100,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $10,800,000 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary Of Net Deferred Tax Assets [Line Items] | ||
Net operating loss carryforwards | $132.20 | $132.80 |
Capitalized research and development expenses | 5 | 7.2 |
Tax credits | 9 | 7.3 |
Share-based compensation | 15.5 | 12.2 |
Fixed and intangible assets | 1.2 | 1.1 |
Other, net | 7 | 5.4 |
Total gross deferred tax assets | 169.9 | 166 |
Less: valuation allowance | -169 | -164.7 |
Deferred tax liability related to acquired intangibles assets | -1 | -1.4 |
Net deferred tax asset (liability) | ($0.10) | ($0.10) |
Income_Taxes_Reconciliation_Be
Income Taxes - Reconciliation Between Effective Tax Rate and Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | |||
Income taxes (benefit) at statutory rates | 35.00% | 35.00% | 35.00% |
State income tax, net of federal benefit | -1.56% | 2.70% | 2.74% |
Permanent items | -0.80% | -3.64% | -0.84% |
Research and development credits | 7.50% | 6.17% | 1.43% |
Stock and officers compensation | -15.93% | -2.23% | -3.01% |
Rate change | -1.66% | 7.11% | -2.13% |
Other | -3.97% | 0.08% | -1.15% |
Change in valuation allowance | -19.24% | -45.15% | -29.76% |
Effective tax rate on income (loss) from continuing operations, total | -0.66% | 0.04% | 2.28% |
Income_Taxes_Summary_of_Unreco
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation Of Unrecognized Tax Benefits [Line Items] | |||
Beginning Balance | $6.20 | $4.80 | $4.40 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0.5 | ||
Increases related to current year tax positions | 1.4 | 0.9 | 0.5 |
Decreases due to statute of limitation expiration | -0.1 | ||
Ending Balance | $7.60 | $6.20 | $4.80 |
Income_Taxes_Net_Operating_Los
Income Taxes Net Operating Loss Carryforwards (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Expiration Date | 1-Jan-20 |
California Franchise Tax Board [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards Expiring In Next Twelve Months | 10 |
Net Operating Loss Carryforwards Expiring In Year Two | 39.6 |
Net Operating Loss Carryforwards Expiring In Year Three | 14.1 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 507.5 |
Operating Loss Carryforwards, Expiration Dates | 1-Jan-19 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 8.1 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 333.1 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 10.8 |
California Franchise Tax Board [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Dates | 1-Jan-15 |
Net Operating Loss Carryforwards Expiring In Year Fourteen and Thereafter | 223.5 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized compensation cost | $105.10 | ||||||||
Maximum employee contribution percentage | 90.00% | ||||||||
Maximum payroll deductions, percentage | 10.00% | ||||||||
Employee purchase price floor, percentage | 85.00% | ||||||||
Offering period (months) | 12 months | ||||||||
Offering periods, frequency (months) | 6 months | ||||||||
Number of purchase periods within an offering period | 2 | ||||||||
Purchase Period Months | 6 months | ||||||||
Purchase date, frequency (months) | 6 months | ||||||||
Increase in shares reserved for ESPP, percentage | 1.00% | ||||||||
Common stock issued under ESPP | 70,494 | 64,563 | 106,415 | 93,246 | 89,114 | 68,960 | |||
Vesting period, maximum, years | 10 years | ||||||||
Equity Incentive Plan fair market value on grant date floor, percentage | 100.00% | ||||||||
Increase in shares reserved for Equity Incentive Plans, percentage | 3.00% | ||||||||
In-the-money options, maximum exercise price | $55.05 | ||||||||
Options in-the-money, number | 3,100,000 | ||||||||
Options in-the-money, exercisable, number | 3,100,000 | ||||||||
Minimum [Member] | |||||||||
Vesting period, years | 3 years | ||||||||
Maximum [Member] | |||||||||
Vesting period, years | 4 years | ||||||||
Restricted Stock [Member] | |||||||||
Weighted average fair value of options granted | $46.19 | $17.29 | $10.58 | ||||||
Total fair value of RSUs vested | $27 | $17.50 | $11.80 | ||||||
Restricted Stock [Member] | Minimum [Member] | |||||||||
Vesting period, years | 3 years | ||||||||
Restricted Stock [Member] | Maximum [Member] | |||||||||
Vesting period, years | 4 years |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Schedule Of Stock Options [Line Items] | |
Outstanding, Beginning | 5.9 |
Exercised, Number of Shares | -2.8 |
Cancelled, Number of Shares | 0 |
Outstanding, Ending | 3.1 |
Exercisable, Number of Shares | 3.1 |
Outstanding, Weighted-Average Exercise Price | $7.94 |
Exercised, Weighted-Average Exercise Price | $7.92 |
Cancelled, Weighted-Average Exercise Price | $11.53 |
Outstanding, Weighted-Average Exercise Price | $7.95 |
Exercisable, Weighted-Average Exercise Price | $7.95 |
Outstanding, Weighted-Average Remaining Contractual Term (years) | 3 years 6 months 12 days |
Exercisable, Weighted-Average Remaining Contractual Term (years) | 3 years 6 months 12 days |
Outstanding, Aggregate Intrinsic Value | $147.50 |
Exercisable, Aggregate Intrinsic Value | $147.50 |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans - Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intrinsic value of options exercised | $99 | $29.80 | $2.70 |
Fair value of options vested | $0.40 | $1.30 | $3.70 |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans - Schedule of Nonvested Stock Options Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Outstanding, Beginning | 5.9 | |
Vested, Shares | -0.1 | |
Forfeited, Shares | 0 | |
Outstanding, Ending | 3.1 | |
Outstanding, Weighted-Average Grant Date Fair Value | $4.60 | |
Outstanding, Weighted-Average Grant Date Fair Value | $4.60 | |
Outstanding, Weighted-Average Grant Date Fair Value | $0 | |
Outstanding, Weighted-Average Grant Date Fair Value | $0 | |
Nonvested [Member] | ||
Outstanding, Beginning | 0.1 | |
Outstanding, Ending | 0 | 0.1 |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans - Schedule of Share Based Compensation Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $50 | $24.60 | $18.40 |
Cost of sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 4.5 | 2.6 | 2.1 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 17 | 8.5 | 6.2 |
Selling, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $28.50 | $13.50 | $10.10 |
Employee_Benefit_Plans_Schedul3
Employee Benefit Plans - Schedule of Valuation Assumptions for Each Option Grant and Employee Stock Purchase Plan Purchase Rights (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.00% | ||
Dividend yield | 0.00% | ||
Expected volatility of the Company's stock | 100.00% | ||
Expected life (in years) | 6 years 1 month 6 days | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 1 year | 1 year | 1 year |
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.10% | 0.13% | 0.11% |
Expected volatility of the Company's stock | 0.40% | 0.30% | 0.39% |
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.12% | 0.17% | 0.19% |
Expected volatility of the Company's stock | 0.50% | 0.40% | 0.70% |
Employee_Benefit_Plans_Schedul4
Employee Benefit Plans - Schedule of Restricted Stock Units Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding,Shares | 3.6 | |
Outstanding, Shares | 4.2 | 3.6 |
Unvested restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding,Shares | 3.6 | |
Granted, Shares | 2.6 | |
Vested, Shares | -1.8 | |
Forfeited, Shares | -0.2 | |
Outstanding, Shares | 4.2 | |
Outstanding, Weighted Average Grant Date Fair Value | $15.13 | |
Granted, Weighted Average Grant Date Fair Value | $46.19 | |
Vested, Weighted Average Grant Date Fair Value | $15.47 | |
Forfeited, Weighted Average Grant Date Fair Value | $28.10 | |
Outstanding, Weighted Average Grant Date Fair Value | $33.35 | |
Outstanding, Aggregate Intrinsic Value | $233.70 |
Employee_Benefit_Plans_Schedul5
Employee Benefit Plans - Schedule of Stock Options Reserved for Future Issuance (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Stock options granted and outstanding | 3.1 | 5.9 |
Unvested RSUs | 4.2 | 3.6 |
Reserved for future grant | 0.3 | 0.5 |
Employee Stock Purchase Plan | 2.5 | 2.6 |
Total | 10.1 | 12.6 |
Quarterly_Financial_Informatio2
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | $84.30 | $69 | $58.80 | $47.10 | $51.70 | $42.90 | $35.80 | $29.60 | |||
Gross profit | 59.4 | 47.2 | 39.9 | 29.8 | 34.1 | 27.6 | 21.9 | 16.5 | 176.3 | 100.1 | 46.6 |
Total operating costs | 57.8 | 52.2 | 45.7 | 42.1 | 36.4 | 33.4 | 31.8 | 27.4 | 197.8 | 129 | 102.3 |
Net loss | $1.30 | ($5.20) | ($6) | ($12.50) | ($2.60) | ($6) | ($10.10) | ($11.10) | ($22.40) | ($29.80) | ($54.50) |
Income (Loss) from Continuing Operations, Per Basic Share | $0.02 | ($0.07) | ($0.08) | ($0.17) | |||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.02 | ($0.08) | ($0.09) | ($0.17) | |||||||
Basic and diluted net loss per share | $0 | $0 | $0 | $0 | ($0.30) | ($0.42) | ($0.79) |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Allowance for doubtful accounts | ||||
Balance, beginning | $2.60 | $1.20 | $0.60 | |
Provision for doubtful accounts | 4 | 2.7 | 1.2 | |
Write-off and adjustments | -2.6 | -1.4 | -0.7 | |
Recoveries | 0.3 | 0.1 | 0.1 | |
Balance, ending | $4.30 | $2.60 | $1.20 | $0.60 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | 0 Months Ended | |||||
Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2012 | |
Shareholders Equity [Line Items] | ||||||
Common stock issued under ESPP | 70,494 | 64,563 | 106,415 | 93,246 | 89,114 | 68,960 |
Subsequent_Events_Details
Subsequent Events (Details) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Jan. 29, 2015 | |
Subsequent Event [Line Items] | ||
Purchase Period Months | 6 months | |
2005 Employee Stock Purchase Plan [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase Period Months | 6 years | |
2015 Employee Stock Purchase Plan [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase Period Months | 7 years |