Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DXCM | ||
Entity Registrant Name | DEXCOM INC | ||
Entity Central Index Key | 1,093,557 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 86,997,158 | ||
Entity Public Float | $ 6,243,418,847 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 441.5 | $ 94.5 |
Short-term marketable securities, available-for-sale | 107.1 | 29.2 |
Accounts receivable, net | 134.3 | 101.7 |
Inventory | 45.2 | 45.4 |
Prepaid and other current assets | 16.6 | 9.2 |
Total current assets | 744.7 | 280 |
Property and equipment, net | 145.6 | 109.4 |
Goodwill | 12.1 | 11.3 |
Other assets | 1.7 | 2.1 |
Total assets | 904.1 | 402.8 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 87.2 | 68.1 |
Accrued payroll and related expenses | 48.5 | 33.4 |
Deferred revenue | 3.2 | 0.9 |
Total current liabilities | 138.9 | 102.4 |
Other liabilities | 18.2 | 16.6 |
Long term senior convertible notes | 327.6 | 0 |
Total liabilities | 484.7 | 119 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 0 | 0 |
Common stock, $0.001 par value, 200.0 authorized; 87.3 and 87.0 issued and outstanding, respectively, at December 31, 2017; and 100.0 authorized; 84.9 and 84.6 shares issued and outstanding, respectively, at December 31, 2016 | 0.1 | 0.1 |
Additional paid-in capital | 1,093.7 | 905.7 |
Accumulated other comprehensive loss | (2.6) | (1) |
Accumulated deficit | (671.8) | (621) |
Total stockholders’ equity | 419.4 | 283.8 |
Total liabilities and stockholders’ equity | $ 904.1 | $ 402.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 87,300,000 | 84,900,000 |
Common Stock, Shares Outstanding | 87,000,000 | 84,600,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product revenue | $ 718.5 | $ 573.3 | $ 400.7 |
Development grant and other revenue | 0 | 0 | 1.3 |
Total revenue | 718.5 | 573.3 | 402 |
Cost of sales | 226.4 | 194.9 | 123.6 |
Gross profit | 492.1 | 378.4 | 278.4 |
Operating expenses | |||
Research and development | 185.4 | 156.1 | 137.5 |
Selling, general and administrative | 349.2 | 286.2 | 198 |
Total operating expenses | 534.6 | 442.3 | 335.5 |
Operating loss | (42.5) | (63.9) | (57.1) |
Other income (expense) | 3.4 | (0.7) | 0 |
Interest income | 3.3 | 0.4 | 0 |
Interest expense | (12.8) | (0.7) | (0.4) |
Loss before income taxes | (48.6) | (64.9) | (57.5) |
Income tax expense | (1.6) | (0.7) | (0.1) |
Net loss | $ (50.2) | $ (65.6) | $ (57.6) |
Basic and diluted net loss per share | $ (0.58) | $ (0.78) | $ (0.72) |
Shares used to compute basic and diluted net loss per share | 86.3 | 83.6 | 79.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (50.2) | $ (65.6) | $ (57.6) |
Unrealized loss on short-term available-for-sale marketable securities | (0.2) | 0 | 0 |
Foreign currency translation loss | (1.4) | (0.7) | (0.2) |
Comprehensive loss | $ (51.8) | $ (66.3) | $ (57.8) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] | Verily Life Sciences [Member]Common stock [Member] | Verily Life Sciences [Member]Additional paid-in capital [Member] | Nintamed [Member]Common stock [Member] | Nintamed [Member]Additional paid-in capital [Member] |
Balance at December 31, 2016 at Dec. 31, 2014 | $ 140.2 | $ 0.1 | $ 638 | $ (0.1) | $ (497.8) | ||||
Balance at December 31, 2016, shares at Dec. 31, 2014 | 77.3 | ||||||||
Issuance of common stock under equity incentive plans, shares | 3.9 | ||||||||
Issuance of common stock under equity incentive plans | 15.3 | 15.3 | |||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||||||
Issuance of common stock for Employee Stock Purchase Plan | 3.8 | 3.8 | |||||||
Issuance of common stock related to Verily Collaboration Agreement, shares | 0.4 | ||||||||
Issuance of common stock related to Verily Collaboration Agreement | 36.5 | $ 36.5 | |||||||
Share-based compensation for employee stock option and award grants | 83.2 | 83.2 | |||||||
Net loss | (57.6) | (57.6) | |||||||
Other comprehensive loss | (0.2) | ||||||||
Other comprehensive loss | (0.2) | ||||||||
Balance at December 31, 2017 at Dec. 31, 2015 | 221.2 | $ 0.1 | 776.8 | (0.3) | (555.4) | ||||
Balance, shares at Dec. 31, 2015 | 81.7 | ||||||||
Issuance of common stock under equity incentive plans, shares | 2.7 | ||||||||
Issuance of common stock under equity incentive plans | 4.4 | 4.4 | |||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||||||
Issuance of common stock for Employee Stock Purchase Plan | 6 | 6 | |||||||
Issuance of common stock in connection with acquisitions, shares | 0.1 | ||||||||
Issuance of common stock in connection with acquisition | 7.2 | $ 7.2 | |||||||
Share-based compensation for employee stock option and award grants | 111.3 | 111.3 | |||||||
Net loss | (65.6) | ||||||||
Other comprehensive loss | (0.7) | ||||||||
Other comprehensive loss | (0.7) | ||||||||
Balance at December 31, 2017 at Dec. 31, 2016 | 283.8 | $ 0.1 | 905.7 | (1) | (621) | ||||
Balance, shares at Dec. 31, 2016 | 84.6 | ||||||||
Issuance of common stock under equity incentive plans, shares | 2.3 | ||||||||
Issuance of common stock under equity incentive plans | 2.7 | 2.7 | |||||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 0.1 | ||||||||
Issuance of common stock for Employee Stock Purchase Plan | 7.4 | 7.4 | |||||||
Share-based compensation for employee stock option and award grants | 106.7 | 106.7 | |||||||
Equity component of convertible note issuance, net of issuance costs | 70.6 | 70.6 | |||||||
Net loss | (50.2) | ||||||||
Other comprehensive loss | (1.4) | (1.6) | |||||||
Other comprehensive loss | (1.6) | ||||||||
Balance at December 31, 2017 at Dec. 31, 2017 | $ 419.4 | $ 0.1 | 1,093.7 | $ (2.6) | (671.8) | ||||
Balance, shares at Dec. 31, 2017 | 87 | ||||||||
Adoption of ASU 2016-09 | Accounting Standards Update 2016-09 [Member] | $ 0.6 | $ (0.6) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net loss | $ (50.2) | $ (65.6) | $ (57.6) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 16.1 | 15 | 10.8 |
Share-based compensation | 106.2 | 110.8 | 82.7 |
Non-cash interest expense | 9.4 | 0.1 | 0.2 |
Non-cash research and development charge through issuance of common stock | 0 | 0 | 36.5 |
Other non-cash expenses | 7.9 | 2.2 | 0.8 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (31.8) | (27.2) | (31.7) |
Inventory | 0.4 | (9.8) | (19.2) |
Prepaid and other assets | (6.7) | (3.9) | (2.5) |
Restricted cash | 0 | 0 | 1 |
Accounts payable and accrued liabilities | 21.1 | 21.1 | 17.8 |
Accrued payroll and related expenses | 14.8 | 8.5 | 7.7 |
Deferred revenue | 2.2 | 0.1 | 0.1 |
Deferred rent and other liabilities | 2.6 | 4.9 | 2.4 |
Net cash provided by operating activities | 92 | 56.2 | 49 |
Investing activities | |||
Purchase of available-for-sale marketable securities | (171.8) | (39.2) | (45.2) |
Proceeds from the maturity of available-for-sale marketable securities | 93.4 | 38.7 | 27.5 |
Purchase of property and equipment | (66) | (55.7) | (33.3) |
Acquisitions, net of cash acquired | 0 | 0.3 | (0.5) |
Net cash used in investing activities | (144.4) | (55.9) | (51.5) |
Financing activities | |||
Net proceeds from issuance of common stock | 10.1 | 10.4 | 19.1 |
Proceeds from issuance of convertible debt, net of issuance costs | 389 | 0 | 0 |
Proceeds from short-term borrowings | 75 | 0 | 0 |
Repayment of short-term borrowings | (75) | 0 | 0 |
Repayment of long-term debt | 0 | (2.3) | (2.3) |
Net cash provided by financing activities | 399.1 | 8.1 | 16.8 |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0 | 0 |
Increase in cash and cash equivalents | 347 | 8.4 | 14.3 |
Cash and cash equivalents, beginning of period | 94.5 | 86.1 | 71.8 |
Cash and cash equivalents, end of period | 441.5 | 94.5 | 86.1 |
Supplemental disclosure of non-cash transactions | |||
Issuance of common stock in connection with acquisition | 0 | 7.2 | 0 |
Acquisition-related holdback liability | 0 | 1.8 | 0 |
Assets acquired and financing obligation under build-to-suit leasing arrangement | 0 | 6 | 0 |
Acquisition of property and equipment included in accounts payable and accrued liabilities | 6.3 | 10.5 | 2.9 |
Cash paid during the year for interest | 2.4 | 0.1 | 0.3 |
Cash paid during the year for taxes | $ 1.4 | $ 0.1 | $ 0.1 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 for the treatment of people with 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 $671.8 million at December 31, 2017 . As of December 31, 2017 , we had available cash, cash equivalents and marketable securities totaling $548.6 million and working capital of $605.8 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 expenses and other operating expenses needed to support the growth of our business 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 February 27, 2019 . Principles of Consolidation The consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 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. None of the operations of our subsidiaries 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 President and Chief Executive Officer, who is our chief operating decision maker, reviews our business, makes investment and resource allocation decisions and assesses operating performance. We sell our products through a direct sales force in the United States, Canada and portions of Europe, and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, Latin America, the Middle East and Africa. DexCom, Inc. is domiciled in the United States. During the years ended 2017 , 2016 and 2015 , no individual country, outside the United States, 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 years 2017 , 2016 and 2015 , total revenues attributable to the United States and outside of the United States were as follows (in millions, except percentages): Years Ended December 31, 2017 2016 2015 Amount % Amount % Amount % Revenues: United States $ 596.2 83 % $ 497.5 87 % $ 347.4 86 % Outside of the United States 122.3 17 % 75.8 13 % 54.6 14 % Total $ 718.5 100 % $ 573.3 100 % $ 402.0 100 % 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, convertible debt, clinical trial expenses, allowance for bad debt and refunds and rebates, including pharmacy rebates. 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 uncollectible. Letters of Credit At December 31, 2017 and 2016 , we had irrevocable letters of credit outstanding with a commercial bank for approximately $4.4 million and $4.3 million , respectively, securing our facility leases. 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, 2017 2016 Customer A 13% 22% Customer B 19% 18% 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 straight-line over the requisite service period of the individual grants, which typically equals the vesting period. Shared-based compensation arrangements include Restricted Stock Units (“RSUs”) and purchases of common stock at a discount under our Employee Stock Purchase Plan, or ESPP. We estimate the fair value of RSUs based on the market price of our common stock on the date of grant and the fair value of ESPP purchase rights on the date of grant using the Black-Scholes option pricing model. As discussed under " Recent Accounting Guidance", we adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”) in the first quarter of 2017 and elected to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $0.6 million . Prior to the adoption of this accounting standard we estimated at grant the likelihood that the award will ultimately vest (the “pre-vesting forfeiture rate”), and revised the estimate, if necessary, in future periods if the actual forfeiture rate differed. We used our historical data and company-specific events to estimate pre-vesting forfeitures and recorded stock-based compensation expense only for those awards that were expected to vest. Revenue Recognition We sell our durable systems and disposable units through a direct sales force in the United States, Canada and portions of Europe, and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, Latin America, the Middle East and Africa. 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 and a USB cable. Disposable sensors for use with the durable system are sold separately in packages of four. We provide free of charge software and mobile applications for use with our durable systems and disposable sensors. The initial durable system price is generally not dependent upon the subsequent purchase of any amount of disposable sensors. 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 generally 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. Allowances for rebates include contracted discounts with commercial payors and are amounts owed after the final dispensing of the product by a distributor or retail pharmacy to a pharmacy benefit plan participant and are based upon contractual agreements with private sector benefit providers. The allowance for rebates is based on contractual discount rates, expected utilization under each contract and our estimate of the amount of inventory in the distribution channel that will become subject to such rebates. Our estimates for expected utilization for rebates are based on historical rebate claims and to a lesser extent third party market research data. Rebates are generally invoiced and paid monthly or quarterly in arrears so that our accrual consists of an estimate of the amount expected to be incurred for the current month's or quarter’s activity, plus an accrual for unpaid rebates from prior periods, and an accrual for inventory in the distribution channel. We have entered into distribution agreements with Byram Healthcare and its subsidiaries (“Byram”), Cardinal Health and affiliates (including Edgepark Medical Supplies) and other distributors that allow the distributors to sell our durable systems and disposable units. The majority of our distributors stock our products, and we refer to these distributors as Stocking Distributors, whereby the Stocking Distributors fulfill orders for our product from their inventory. We also have contracts with certain distributors that do not stock our products, but rather products are shipped directly to the customer by us on behalf of our distributor, and we refer to these distributors as Drop-Ship Distributors. Revenue is recognized based on contracted prices. Terms of distributor orders are generally Freight on Board (or Free Carrier (“FCA”) shipping point for international orders). Most distributors do not have rights of return per their distribution agreement outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. 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. Shipping charges billed to customers are included in revenue while related costs are included as cost of sales. One of our distributors, Byram , accounted for $98.5 million , $96.5 million and $74.1 million in product revenue, which represents 14% , 17% and 18% of our total revenues for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. Another one of our distributors, Cardinal Health and affiliates (including Edgepark Medical Supplies) , accounted for $120.4 million , $93.2 million and $66.1 million in gross revenue, which represents 17% , 16% and 16% of our total revenues for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. 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 expectations for future warranty activity based on changes and improvements to the product or process that are, or will be in place in the future. 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. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses are primarily related to employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials including clinical site reimbursement, clinical trial product and associated travel expenses. Our research and development expenses also include fees for design services, contractors and development materials. Foreign Currency The financial statements of our foreign subsidiaries 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. Translation related adjustments are recognized as part of comprehensive income and are included in accumulated other comprehensive loss in the consolidated balance sheet. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each subsidiary give rise to foreign exchange gains or losses reflected in operations. To date the results of operations of these subsidiaries and related translation adjustments and foreign exchange gains or losses 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 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 net realizable 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. Deferred Cost of Sales Deferred Cost of Sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. These costs are recognized in cost of sales when the associated revenue is recognized. Deferred Cost of Sales are presented within “Prepaid and Other Current Assets” on our consolidated balance sheets. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized, which requires significant judgment. We establish a valuation allowance against our net deferred tax assets to reduce them to the amount expected to be realized. The realization of deferred tax assets is dependent, in part, upon future taxable income. In assessing whether our deferred tax assets will be realized, we consider all available evidence, both positive and negative. Such evidence includes historical earnings, future reversals of existing taxable temporary differences, estimates of future taxable income, and the feasibility of ongoing tax planning strategies. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We file federal and state income tax returns in the United States and income tax returns in various other foreign jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. 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, 2017 , we had no interest or penalties accrued for uncertain tax positions. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The Company has made a provisional calculation of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. As a result, we have reduced our net U.S. deferred tax assets by a provisional amount of $105.7 million offset by a decrease in the valuation allowance, resulting in no tax expense. The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was nil based on cumulative foreign deficits in earnings of $41.2 million . On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $105.7 million of deferred tax expense offset by an increase in valuation allowance in connection with the remeasurement of our U.S. deferred tax assets and liabilities, and the analysis of our foreign deficits in earnings in connection with the transition tax on the mandatory deemed repatriation of foreign earnings were provisional amounts and reasonable estimates at December 31, 2017. Additional work is necessary to do a more detailed analysis of the gross balances of our U.S. deferred tax assets and liabilities. Any subsequent adjustment to these amounts are expected to have no tax effect due to our valuation allowance against net deferred tax assets. We are evaluating the newly enacted tax on global intangible low-taxed income ("GILTI") and have not yet made an accounting policy election to reflect GILTI in deferred taxes or as period costs. This analysis will be completed within one year of the enactment date. See Note 8 to the consolidated financial statements for further information regarding income taxes. Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term available-for-sale marketable securities. Marketable securities with remaining maturities of greater than one year are also classified as short-term available-for-sale marketable securities as such marketable securities represent the investment of cash that is available for current operations. We carry our marketable securities 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 or expense. 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 generally 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 at maturity. Fair Value Measurements Our financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, and Senior Convertible Notes. 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 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. For additional detail see Note 7 “Fair Value Measurements.” 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, two to fifteen years for machinery and equipment dependent on the nature of such 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. Goodwill We test goodwill 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. The change in goodwill for the twelve months ended months ended December 31, 2017 represents translation adjustments on our foreign currency denominated goodwill related to the May 2016 acquisition of Nintamed, our distributor that served Germany, Switzerland and Austria. Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expense was $21.9 million , $11.9 million and $4.0 million for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. Recent Accounting Guidance Recently adopted accounting pronouncements In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”), which is intended to simplify several areas of accounting for share-based payment arrangements. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard in the first quarter of 2017 . We had excess tax benefits for which a benefit could not be previously recognized of approximately $161.8 million . Upon adoption, we recognized the previously unrecognized excess tax benefits of $161.8 million deferred tax assets with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with no net impact on our financial statements. All excess tax benefits and all tax deficiencies generated in the current and future periods will be recognized prospectively and recorded as income tax benefit or expense in our Consolidated Statements of Operations in the reporting period in which they occur. Until such time that we release our valuation allowance against deferred tax assets, the tax impact of any excess tax benefits and deficiencies will be offset with the change in our valuation allowance. In addition, we elected to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $0.6 million . Due to the full valuation allowance on the U.S. deferred tax assets, we have determined that none of the provisions of ASU 2016-09 have a significant impact on our 2017 consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance for Revenue from Contracts with Customers ("ASU 2014-09"), 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 modified retrospective transition method and is effective for us in our first quarter of 2018. We will apply this standard using the modified retrospective method. We have completed our assessment of the new revenue standard and are finalizing the new required disclosures. We do not expect the timing of revenue recognition under the new standard to differ materially from our current revenue recognition policy. Our analysis of open contracts as of December 31, 2017, has resulted in no material cumulative effect from applying ASU 2014-09. In July 2015, the FASB issued guidance in ASU 2015-11 to change the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The guidance requires that inventory accounted for under the first-in, first-out (FIFO) or average cost methods be measured at the lower of cost and net realizable value, where net realizable value represents the estimated selling price of inventory in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance was effective for us in the first quarter of fiscal 2017 with no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which require a lessee to recognize a lease payment liability and a corresponding right of use asset on their balance sheet for all lease terms longer than 12 months, lessor accounting remains largely unchanged. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2018 and early adoption is permitted. We are currently evaluating the effect this guidance will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes - Intra-Entity Asset Transfer other than Inventory (Topic 740) (“ASU 2016-16”), which would require the recognition of the tax expense from the sale of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party or otherwise recovered through use. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning period of adoption. Due to the full valuation allowance on the U.S. deferred tax assets, we have determined that none of the provisions of ASU 2016-16 will have a significant |
Net Loss Per Common Share
Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
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 is computed using the weighted average number of common shares outstanding and, when dilutive, potential common share equivalents from outstanding options and unvested RSUs settleable in shares of common stock (using the treasury-stock method), and potential common shares from convertible securities (using the if-converted method). Because the Company reported a net loss for the twelve months ended months ended December 31, 2017 and the twelve months ended months ended December 31, 2016 , all potential dilutive common shares have been excluded from the computation of the diluted net loss per share for all periods presented, as the effect would have been anti-dilutive. Outstanding anti-dilutive securities not included in diluted net loss per share attributable to common stockholders calculation (in millions): Years Ended December 31, 2017 2016 2015 Options outstanding to purchase common stock 0.4 0.7 1.3 Unvested restricted stock units 2.7 3.7 4.1 Senior convertible notes 4.0 — — Total 7.1 4.4 5.4 |
Financial Statement Details
Financial Statement Details | 12 Months Ended |
Dec. 31, 2017 | |
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 were as follows: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value U.S. government agencies $ 87.5 $ — $ (0.2 ) $ 87.3 Commercial paper 14.7 — — 14.7 Corporate debt 5.1 — — 5.1 Total $ 107.3 $ — $ (0.2 ) $ 107.1 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value U.S. government agencies $ 22.2 $ — $ — $ 22.2 Corporate debt 3.8 — — 3.8 Commercial paper 3.2 — — 3.2 Total $ 29.2 $ — $ — $ 29.2 As of December 31, 2017 , the estimated market value of available-for-sale marketable securities with contractual maturities of up to one year and up to 16 months were $92.7 million and $14.4 million , respectively. Accounts Receivable December 31, 2017 2016 Accounts receivable $ 145.8 $ 114.3 Less allowance for doubtful accounts, sales returns and discounts (11.5 ) (12.6 ) Total $ 134.3 $ 101.7 Inventory December 31, 2017 2016 Raw materials $ 20.0 $ 20.1 Work-in-process 8.2 2.3 Finished goods 17.0 23.0 Total $ 45.2 $ 45.4 During 2016, we recorded charges of $3.5 million in cost of goods sold related to excess and obsolete receiver inventory primarily related to the February 23, 2016 customer notification regarding the audible alarms and alerts associated with our receivers which was classified as a voluntary Class 1 recall by the FDA and was closed as of August 11, 2017. Property and Equipment December 31, 2017 2016 Building (1) $ 6.0 $ 6.0 Furniture and fixtures 5.7 5.8 Computer equipment 25.6 22.7 Machinery and equipment 33.8 31.4 Leasehold improvements 41.7 25.6 Construction in progress (2) 87.6 65.1 Total 200.4 156.6 Accumulated depreciation (54.8 ) (47.2 ) Property and equipment, net $ 145.6 $ 109.4 (1) As described in Footnote 5 “Commitments and Contingencies,” although we do not legally own these premises, we were deemed the owner of the construction project during the construction period of our new manufacturing facility in Mesa, Arizona under a build-to suit lease arrangement. (2) Construction in progress as of December 31, 2017 and December 31, 2016 include approximately $33.6 million and $24.8 million , respectively, related to our new manufacturing facility in Mesa, Arizona with the remaining balance as of December 31, 2017 and December 31, 2016 primarily related to machinery and equipment. Depreciation expense related to property and equipment for the twelve months ended December 31, 2017 , 2016 , and 2015 was $16.1 million , $14.4 million , and $10.2 million , respectively. During 2017 we recorded a $9.2 million loss on disposal of machinery and equipment, the majority of which was previously contained within the construction in progress balance. The loss on disposal was recorded in operating expense, primarily within the "Research and development" line item on our Consolidated Statements of Operations and was associated with changes in our product portfolio. Accounts Payable and Accrued Liabilities December 31, 2017 2016 Accounts payable trade (1) $ 46.7 $ 41.1 Accrued tax, audit, and legal fees 7.1 4.5 Accrued rebates 13.9 8.2 Accrued warranty 8.8 9.8 Accrued other (1) 10.7 4.5 Total $ 87.2 $ 68.1 (1) December 31, 2016 amounts have been modified for comparative reporting purposes. Accrued Payroll and Related Expenses December 31, 2017 2016 Accrued paid time off $ 7.9 $ 6.4 Accrued wages, bonus and taxes 37.6 24.5 Other accrued employee benefits 3.0 2.5 Total $ 48.5 $ 33.4 Accrued Warranty Warranty costs are reflected in the consolidated statements of operations as cost of sales. A reconciliation of our accrued warranty costs for the twelve months ended December 31, 2017 and 2016 were as follows: Years Ended December 31, 2017 2016 Beginning balance $ 9.8 $ 3.3 Charges to costs and expenses 18.4 25.0 Costs incurred (19.4 ) (18.5 ) Ending balance $ 8.8 $ 9.8 Other Liabilities December 31, 2017 December 31, 2016 Financing lease obligations $ 6.7 $ 6.7 Deferred rent 8.7 7.3 Other 2.8 2.6 Total $ 18.2 $ 16.6 |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt 0.75% Senior Convertible Notes due 2022 (in millions) December 31, 2017 December 31, 2016 0.75% Senior convertible notes due 2022: Principal amount $ 400.0 $ — Unamortized debt discount (64.4 ) — Unamortized debt issuance costs (8.0 ) — Net carrying amount of senior convertible notes $ 327.6 $ — Fair value of outstanding notes $ 381.3 $ — In May 2017, we completed an offering of $350.0 million aggregate principal amount of 0.75% convertible senior notes due 2022 ("2022 Notes") and, in June 2017 the initial purchasers exercised their option to purchase an additional $50.0 million aggregate principal amount of 2022 Notes. The 2022 Notes have a stated interest rate of 0.75% and a maturity date of May 15, 2022 . The net proceeds from the offering, after deducting initial purchasers' discounts and costs directly related to the offering, were approximately $389.0 million . The 2022 Notes may be settled in cash, stock, or a combination thereof, solely at the Company's discretion. The initial conversion rate of the 2022 Notes is 10.0918 shares per $1,000 principal amount, which is equivalent to a conversion price of approximately $99.09 per share, subject to adjustments. The Company uses the if-converted method for assumed conversion of the 2022 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. As upon conversion by the holders, we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity, which resulted in recognizing $72.6 million in additional paid-in-capital during 2017. The interest expense recognized on the 2022 Notes during the twelve months ended December 31, 2017 includes $1.9 million , $8.2 million and $1.0 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the 2022 Notes is 5.1% , which includes the interest on the notes, amortization of the debt discount and debt issuance costs. The discount on the 2022 Notes is amortized through May 15, 2022. Interest on the 2022 Notes began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. Holders of the Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture) or following the delivery by DexCom of a notice of redemption are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change (as defined in the Indenture), holders of the Notes may require us to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of Notes, plus any accrued and unpaid interest, including any additional interest, to, but excluding, the repurchase date. Holders of the Notes may convert all or a portion of their Notes at their option prior to 5:00 p.m., New York City time, on the business day immediately preceding February 15, 2022, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after September 30, 2017 (and only during such calendar quarter), if the last reported sale price of common stock for • at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the Notes on each such trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate of the Notes on such trading day; • if we call any or all of the Notes for redemption, at any time prior to the close on business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate transactions. On or after February 15, 2022, until 5:00 p.m., New York City time, on the business day immediately preceding the maturity date, holders of the Notes may convert all or a portion of their Notes regardless of the foregoing circumstances. The redemption price will be equal to 100% of the principal amount of such 2022 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. No principal payments are due on the 2022 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the Indenture includes customary terms and covenants, including certain events of default after which the Notes may be due and payable immediately. We are unaware of any current events or market conditions that would allow holders to convert the 2022 Notes. Revolving Credit Agreement In June 2016, we entered into a $200.0 million revolving credit agreement (“Credit Agreement”), and amended in May 2017, with JPMorgan Chase Bank, NA, as administrative agent, Bank of America, Silicon Valley Bank and Union Bank. In addition to allowing borrowings in US dollars, the Credit Agreement provides a $25.0 million sublimit for borrowings in Canadian Dollars, Euros, British Pounds, Swedish Krona, Japanese Yen and any other currency that is subsequently approved by JPMorgan Chase and each lender. The Credit Agreement also provides a sub-facility of up to $10.0 million for letters of credit, of which $5.6 million is still available. The interest rate under the Credit Agreement ranges from 0.75% to 2.75% plus our choice of one of two base rates, LIBOR or a rate based on the publicly announced JPMorgan Chase prime rate, the federal funds rate or the overnight bank funding rate. We will also pay a commitment fee of between 0.25% and 0.45% , payable quarterly in arrears, on the average daily unused amount of the revolving facility based on our leverage ratio. The aggregate debt issuance costs and fees incurred with respect to entering into the Credit Agreement were $0.7 million , which have been capitalized on our Consolidated Balance Sheet within “Other Assets” and will be amortized through the maturity date of June 2021 on a straight line basis. Our obligations under the Credit Agreement are guaranteed by our existing and future wholly-owned domestic subsidiaries, and are secured by a first-priority security interest in substantially all of the assets of DexCom and the guarantors, including all or a portion of the equity interests of our domestic subsidiaries and first-tier foreign subsidiaries but excluding real property and intellectual property (which is subject to a negative pledge). Short-term borrowings On March 3, 2017 we drew $75.0 million on the Credit Agreement under a six month term. We repaid the entire principal balance on May 19, 2017. As of December 31, 2017 we had no outstanding borrowings under the Credit Agreement, and $200.0 million under the Credit Agreement remains available. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases Under the office lease agreement, as amended (“Office Lease”), with John Hancock Life Insurance Company (U.S.A.) (“Landlord”) we lease approximately 219,000 square feet of space in the buildings at 6340 Sequence Drive, 6310 Sequence Drive and 6290 Sequence Drive. The amended Office 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 Office Lease and the Office Lease is still in effect, we generally have the right to terminate the lease starting at the 55 th month of the Office Lease. We have received $3.6 million of tenant improvement allowance associated with the Office Lease, which is recorded as a deferred rent obligation and amortized over the term of the lease and reflected as a reduction to rent expense. Leasehold improvements associated with the tenant improvement allowance are included in Property and equipment, net in our consolidated balance sheets. On February 1, 2016, we entered into a Sublease (“Sublease”) with Entropic Communications, LLC with respect to the building at 6350 Sequence Drive in San Diego, California (“6350 Building”). Under the Sublease, we have leased approximately 132,600 square feet of space in the 6350 Building. The Sublease term extends through January 2022. On April 28, 2016, we entered into a certain Industrial Net Lease (“Mesa Lease”) with PRA/LB, L.L.C. with respect to facilities in the building at 232 South Dobson Road in Mesa, Arizona (“Mesa Building"). Under the Mesa Lease, we have leased approximately 148,797 square feet of space in the Mesa Building, of which approximately 78,000 square feet was available to us on May 1, 2016 and the remaining portion of the Mesa Building will become available to us on or around January 1, 2018. The term of the Mesa Lease extends through March 2028 with four options to extend the Mesa Lease term, each for five -year periods. The Mesa Lease arrangement involves the construction of our new manufacturing facility where we are involved in the design and construction of the leased space, including non-standard tenant improvements paid for by us. This arrangement is referred to as a build-to suit lease and for accounting purposes, we are considered the owner of the construction project during the construction period. During the second quarter of 2016, we capitalized the fair value of the Mesa Building of $6.0 million within “Property and Equipment, net,” and recorded a corresponding financing lease obligation liability of $6.0 million within “Other Liabilities” in the Consolidated Balance Sheet. We have concluded that the Mesa Lease does not qualify for “sale-leaseback” treatment due to prohibited continuing involvement, accordingly the Mesa Lease will be treated as a financing arrangement. We have also entered into other operating lease agreements, primarily for office and warehouse space, that expire at various times through July 2026. 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. Rental obligations, excluding real estate taxes, operating costs, and tenant improvement allowances, under all lease agreements as of December 31, 2017 were as follows (in millions): Fiscal Year Ending 2018 $ 10.1 2019 11.0 2020 11.4 2021 11.7 2022 3.7 Thereafter 9.4 Total $ 57.3 Total rent expense for the twelve months ended December 31, 2017 , 2016 and 2015 was $11.1 million , $9.0 million and $5.6 million , respectively. Litigation On March 28, 2016, AgaMatrix, Inc. filed a patent infringement lawsuit against us in the United States District Court for the District of Oregon, asserting that certain of our products infringe certain patents held by AgaMatrix. On June 6, 2016, AgaMatrix filed a First Amended Complaint asserting the same three patents. On August 25, 2016, we filed petitions for inter partes review with the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office seeking a determination that two of the three asserted patents are invalid under the U.S. patent law and those petitions were granted on March 6, 2017. Based on those grants, most activity in the patent infringement lawsuit against us in the District of Oregon was stayed until the inter partes review of the Patent Trial and Appeal Board is completed. On March 8, 2017, we filed a petition for inter partes review with the Patent Trial and Appeal Board seeking a determination that the third of the three asserted patents is invalid under U.S. patent law. This petition was granted on September 15, 2017. It is our position that AgaMatrix’s assertions of infringement have no merit. As of December 31, 2017 , no amounts have been accrued in respect of this litigation. On August 6, 2016, DexCom filed a patent infringement lawsuit in the United States Central District Court of California ("C.D. Cal."), asserting certain AgaMatrix products infringed a patent held by DexCom. On September 30, 2016 DexCom filed a First Amended Complaint asserting the same patent. In a summary judgement ruling dated February 5, 2018, the C.D. Cal. judge found that the AgaMatrix products did not infringe DexCom’s asserted patent. On September 15, 2017, DexCom filed a patent infringement lawsuit against AgaMatrix in the United States District Court for the District of Delaware, asserting certain single-point blood glucose monitoring products of AgaMatrix infringe two patents held by DexCom. The patents asserted in the Delaware litigation are unrelated to the patent asserted in the Central District of California litigation. On September 18, 2017, we also filed a Complaint against AgaMatrix in the International Trade Commission (“ITC”) requesting the ITC institute an investigation and issue an order excluding certain products of AgaMatrix from importation into or sale in the United States based on AgaMatrix’s infringement of the same two patents asserted in the Delaware litigation. The ITC granted DexCom’s request to institute the investigation on October 18, 2017. On January 19, 2018, Arbmetrics, LLC filed a patent infringement lawsuit against us in the United States Southern District of California. It is our position that Arbmetric’s assertions of infringement have no merit. Neither the outcome of these lawsuits nor the amount and range of potential fees associated with the lawsuits can be assessed at this time. As of December 31, 2017 , no amounts have been accrued in respect of these suits. We are subject to various claims, complaints and legal actions that arise from time to time in the normal course of business, including commercial insurance, product liability and employment related matters. In addition from time to time, we may bring claims or initiate lawsuits against various third parties with respect to matters arising out of the ordinary course of our business, including commercial and employment related matters. We do not expect that the resolution of these matters would, or will, have a material adverse effect or material impact on our consolidated financial position. Purchase Commitments We are party to various purchase arrangements related to our manufacturing and development activities including materials used in our CGM systems. As of December 31, 2017 , we had purchase commitments with vendors totaling $71.7 million due within one year. There are no material purchase commitments due beyond one year. |
Development and Other Agreement
Development and Other Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Development Agreements Additional Information [Abstract] | |
Development and Other Agreements | Development and Other Agreements Collaboration with Verily Life Sciences On August 10, 2015, we entered into a Collaboration and License Agreement (“ Verily Collaboration Agreement ”) with Google Life Sciences LLC , now renamed Verily Life Sciences (“ Verily ”). Pursuant to the Verily Collaboration Agreement , we and Verily have agreed to jointly develop a series of next-generation CGM products. The Verily Collaboration Agreement provides us with an exclusive license to use certain intellectual property of Verily related to the development, manufacture and commercialization of the products contemplated under the Verily Collaboration Agreement . The Verily Collaboration Agreement provides for the establishment of a joint steering committee, joint development committee and joint commercialization committee to oversee and coordinate the parties’ activities under the collaboration. We and Verily have agreed to make committee decisions by consensus. Certain aspects of this collaboration were clarified and amended on October 25, 2016. Under the terms of Verily Collaboration Agreement we paid an upfront fee of $35.0 million through the issuance of 404,591 shares of our common stock. We recorded $36.5 million in research and development expense in our consolidated statement of operations during 2015 related to the issuance of the 404,591 shares of our common stock, based on our stock price of $90.29 per share as of the date of Verily Collaboration Agreement . In addition, we will pay Verily up to $65.0 million in additional milestones upon achievement of various development and regulatory objectives, which payments may be paid in cash or shares of our common stock at our sole election, calculated based on the volume weighted average trading price during a period of twenty consecutive trading days ending on the trading day prior to the date on which the applicable objective has been achieved. In addition, Verily is eligible to receive tiered royalty payments associated with the commercialization of the products contemplated under the Verily Collaboration Agreement , which are subject to regulatory approval. Unless we attain annual product sales subject to the Verily Collaboration Agreement in excess of $750.0 million , there will be no royalty paid by us to Verily . Above this range, and upon marketing approval of the initial product contemplated by the Verily Collaboration Agreement , or upon commercialization of any other DexCom product that incorporates Verily intellectual property, we will pay to Verily a royalty percentage starting in the high single digits and declining to the mid-single digits based on our annual aggregate product sales. The Verily Collaboration Agreement shall be terminable by either party (a) upon uncured material breach of the Verily Collaboration Agreement by the other party, (b) if the second product contemplated by the Verily Collaboration Agreement has not been submitted to the FDA for approval by a specified date and (c) if the annual net sales for the products developed with Verily under the Verily Collaboration Agreement are less than a specified aggregate dollar amount. Additionally, we have the right to terminate the Verily Collaboration Agreement upon the expiration of the last to expire patent that covers a product developed under the Verily Collaboration Agreement . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 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. 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. The following table represents our fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis as of December 31, 2017 (in millions): Fair Value Measurements Using Level 1 Level 2 Level 3 Total Cash equivalents $ 306.6 $ 38.0 $ — $ 344.6 Marketable securities, available for sale U.S. government agencies — 87.3 — 87.3 Commercial paper — 14.7 — 14.7 Corporate debt — 5.1 — 5.1 Total marketable securities, available for sale $ — $ 107.1 $ — $ 107.1 The following table represents our fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis as of December 31, 2016 (in millions): Fair Value Measurements Using Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 32.3 $ — $ 32.3 Marketable securities, available for sale U.S. government agencies — 22.2 — 22.2 Corporate debt — 3.8 — 3.8 Commercial paper — 3.2 — 3.2 Total marketable securities, available for sale $ — $ 29.2 $ — $ 29.2 There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2017 and December 31, 2016 . There were no transfers into or out of Level 3 securities during the years ended December 31, 2017 and 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | Income Taxes Income (Loss) before income taxes subject to taxes in the following jurisdictions is as follows: December 31, 2017 2016 2015 United States $ 12.4 $ (44.4 ) $ (57.8 ) Outside of the United States (61.0 ) (20.5 ) 0.3 Total $ (48.6 ) $ (64.9 ) $ (57.5 ) Significant components of the provision for income taxes are as follows: December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State 0.1 0.1 0.1 Foreign 1.5 0.8 — Total current income taxes 1.6 0.9 0.1 Deferred: Federal — (0.1 ) — State — — — Foreign — (0.1 ) — Total deferred income taxes — (0.2 ) — Total $ 1.6 $ 0.7 $ 0.1 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The Company has made a provisional calculation of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. As a result, we have reduced our net U.S. deferred tax assets by a provisional amount of $105.7 million offset by a decrease in the valuation allowance, resulting in no tax expense. The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was nil based on cumulative foreign deficits in earnings of $41.2 million . On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $105.7 million of deferred tax expense offset by an increase in valuation allowance in connection with the remeasurement of our U.S. deferred tax assets and liabilities, and the analysis of our foreign deficits in earnings in connection with the transition tax on the mandatory deemed repatriation of foreign earnings were provisional amounts and reasonable estimates at December 31, 2017. Additional work is necessary to do a more detailed analysis of the gross balances of our U.S. deferred tax assets and liabilities. Any subsequent adjustment to these amounts are expected to have no tax effect due to our valuation allowance against net deferred tax assets. We are evaluating the newly enacted tax on global intangible low-taxed income ("GILTI") and have not yet made an accounting policy election to reflect GILTI in deferred taxes or as period costs. This analysis will be completed within one year of the enactment date. At December 31, 2017 , we had federal, state and foreign tax net operating loss carryforwards of approximately $761.6 million , $456.3 million , and $42.1 million respectively. The federal and state tax loss carryforwards will begin to expire in 2020 and 2018 , respectively, unless previously utilized. California net operating loss carryforwards of $20.7 million will expire in 2028. California net operating loss carryforwards of $324.2 million will expire from 2029 through 2037. Other state net operating loss carryforwards of $111.4 million will begin to expire in 2020. The foreign net operating losses carry forward indefinitely. We also had federal and state research and development tax credit carryforwards of approximately $33.3 million and $33.8 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, 2017 and 2016 are shown below (in millions). A valuation allowance of approximately $263.5 million has been established as of December 31, 2017 to offset the deferred tax assets, as realization of such assets is uncertain. December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 188.7 $ 101.9 Capitalized research and development expenses 8.4 14.3 Tax credits 47.8 30.7 Share-based compensation 13.8 24.9 Fixed and intangible assets 0.4 — Accrued liabilities and reserves 20.9 26.0 Total gross deferred tax assets 280.0 197.8 Less: valuation allowance (263.5 ) (193.4 ) Deferred tax liability: Fixed assets and acquired intangibles assets (0.1 ) (4.3 ) Convertible debt discount (15.9 ) — Unrealized exchange gain (0.4 ) — Net deferred tax asset (liability) $ 0.1 $ 0.1 In February 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU 2016-09"), which is intended to simplify several areas of accounting for share-based payment arrangements. The amendments in this update cover such areas as the recognition for excess tax benefits and deficiencies, the classification of those excess benefits on the statement of cash flows, an accounting policy election for forfeitures, an amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. $161.8 million of excess tax benefits was recorded as an increase in deferred tax assets, with an offsetting increase in valuation allowance, through retained earnings. The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: December 31, 2017 2016 2015 Income taxes at statutory rates $ (17.0 ) $ (22.7 ) $ (20.1 ) State income tax, net of federal benefit (0.7 ) 1.2 (1.0 ) Permanent items 0.7 0.8 0.3 Research and development credits (13.3 ) (11.7 ) (10.0 ) Foreign rate differential 5.4 4.5 — Stock and officers compensation (10.4 ) 4.0 3.1 Rate change (0.1 ) (0.1 ) 0.2 Unrecognized tax benefits (15.4 ) 27.7 — Impact of Tax Cuts and Jobs Act of 2017 105.7 — — Other (2.2 ) — 0.2 Change in valuation allowance (51.1 ) (3.0 ) 27.4 Income taxes at effective rates $ 1.6 $ 0.7 $ 0.1 The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): Balance at January 1, 2015 $ 7.6 Increases related to prior year tax positions 2.6 Increase related to current year tax positions 5.4 Balance at December 31, 2015 15.6 Decreases related to prior year tax positions (8.4 ) Increases related to current year tax positions 32.6 Balance at December 31, 2016 39.8 Decreases related to prior year tax positions (14.9 ) Increases related to current year tax positions 3.3 Decrease related to Tax Cuts and Jobs Act of 2017 (5.4 ) Balance at December 31, 2017 $ 22.8 Due to the valuation allowance recorded against our deferred tax assets, none of the total unrecognized tax benefits as of December 31, 2017 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 for federal and state purposes and foreign jurisdictions from 2016 and forward remain open to examination by the major taxing jurisdictions to which we are subject. The IRS commenced an audit of our 2015 and 2016 federal income tax returns in February 2018. We do not expect any changes to our unrecognized tax benefits over the next twelve months. We intend to indefinitely reinvest all current accumulated earnings and profits related to our foreign subsidiaries to ensure working capital to support and expand existing operations outside of the United States. Accordingly, no U.S. income taxes have been provided on $1.2 million of undistributed earnings of our foreign subsidiaries, as we currently intend to indefinitely reinvest these earnings in our foreign operations as of December 31, 2017 . The amount of unrecognized deferred U.S. income tax liability related to these earnings is $0.4 million . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan We have a defined contribution 401(k) retirement plan (“401(k) Plan”) covering substantially all employees in the United States 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, or ESPP In May 2015, we adopted a new ESPP, the 2015 Employee Stock Purchase Plan (“2015 ESPP”) which replaced our 2005 ESPP and 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. Under our 2015 ESPP, each Offering Period is twelve months, with new Offering Periods commencing every six months on the dates of March 1 and September 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 February 28 or February 29 and August 31. We issued 122,857 and 99,192 shares of common stock under the 2015 ESPP during the twelve months ended December 31, 2017 and December 31, 2016 , respectively. We issued 8,539 and 115,848 shares of common stock under the 2005 ESPP during the years ended 2016 and 2015, respectively. Equity Incentive Plans In May 2015, we adopted the 2015 Equity Incentive Plan (“2015 Plan”) , which replaced the 2005 Equity Incentive Plan and provides for the grant of incentive and nonstatutory stock options, restricted stock, stock bonuses, stock appreciation rights, and restricted stock units to employees, directors or consultants of the Company. The total number of shares reserved for issuance pursuant to the 2015 Plan as of the date of adoption was 4.0 million and forfeited shares under the 2005 Equity Incentive Plan subsequent to May 28, 2015 are returned to the share reserve under the 2015 Plan and will be available for future awards. Stockholder approval is required to increase the maximum number of securities that may be issued under the 2015 Plan . A summary of our stock option activity, and related information for the year ended December 31, 2017 is as follows (in millions except weighted-average exercise price and weighted-average remaining contractual term): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2016 0.7 $ 7.40 Exercised (0.3 ) 8.21 Forfeited — — Outstanding at December 31, 2017 0.4 $ 6.71 1.30 $ 19.5 Exercisable at December 31, 2017 0.4 $ 6.71 1.30 $ 19.5 The total intrinsic value of options exercised as of the date of exercise was as follows (in millions): Years Ended December 31, 2017 2016 2015 Intrinsic value of options exercised $ 21.6 $ 39.9 $ 125.8 We define in-the-money options at December 31, 2017 as options that had exercise prices that were lower than the $57.39 closing market price of our common stock at that date. There were 0.4 million in-the-money options exercisable at December 31, 2017 . The aggregate intrinsic value of options outstanding at December 31, 2017 is calculated as the difference between the exercise price of the underlying options and the market price of our common stock for the 0.4 million options that were in-the-money at that date. 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, 2017 , 2016 and 2015 (in millions): Years Ended December 31, 2017 2016 2015 Cost of sales $ 9.6 $ 12.0 $ 8.1 Research and development 37.5 39.8 28.5 Selling, general and administrative 59.1 59.0 46.1 Share-based compensation expense included in net loss $ 106.2 $ 110.8 $ 82.7 At December 31, 2017 , unrecognized estimated compensation costs related to unvested restricted stock units totaled $128.4 million and are expected to be recognized through 2021 . 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. We did not have any option grants during the years ended 2017 , 2016 and 2015 . ESPP: Years Ended December 31, 2017 2016 2015 Risk free interest rate 0.75 – 1.12 0.46 – 0.57 0.15 – 0.25 Dividend yield — % — % — % Expected volatility of the Company’s stock 0.33 – 0.56 0.33 – 0.57 0.30 – 0.44 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 $75.78 , $68.16 and $63.63 per share for the years ended December 31, 2017 , 2016 and 2015 , respectively. The total fair value of RSUs vested was $112.2 million , $95.8 million and $60.0 million for the years ended 2017 , 2016 and 2015 , respectively. The following table sets forth a summary of our RSU activity as of and for the year ended December 31, 2017 (in millions except weighted average grant date fair value): Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested at December 31, 2016 3.7 $ 62.51 Granted 1.3 75.78 Vested (1.9 ) 58.92 Forfeited (0.4 ) 67.97 Nonvested at December 31, 2017 2.7 $ 70.68 $ 154.5 Reserved Shares We have reserved shares of common stock for future issuance as follows (in millions): December 31, 2017 2016 Stock options and awards under our plans: Stock options granted and outstanding 0.4 0.7 Unvested restricted stock units 2.7 3.7 Reserved for future grant 4.7 2.0 Employee Stock Purchase Plan 1.3 1.4 Total 9.1 7.8 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016 (in millions except per share data): For the Three Months Ended December 31 September 30 June 30 March 31 Year ended December 31, 2017 Revenues $ 221.0 $ 184.6 $ 170.6 $ 142.3 Gross profit 153.5 127.0 117.5 94.1 Total operating expenses 141.5 127.5 131.1 134.5 Net income (loss) (9.4 ) (2.0 ) 2.9 (41.7 ) Basic and diluted net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) Year ended December 31, 2016 Revenues $ 171.2 $ 148.6 $ 137.3 $ 116.2 Gross profit 116.7 101.1 85.5 75.1 Total operating expenses 122.8 119.6 105.6 94.3 Net loss (7.4 ) (18.8 ) (20.2 ) (19.2 ) Basic and diluted net loss per share (a) $ (0.09 ) $ (0.22 ) $ (0.24 ) $ (0.23 ) (a) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2017 , 2016 and 2015 (in millions) Allowance for doubtful accounts Balance December 31, 2014 $ 4.3 Provision for doubtful accounts 7.8 Write-off and adjustments (4.5 ) Recoveries 0.2 Balance December 31, 2015 $ 7.8 Allowance for doubtful accounts Balance December 31, 2015 $ 7.8 Provision for doubtful accounts 9.5 Write-off and adjustments (5.6 ) Recoveries 0.7 Balance December 31, 2016 $ 12.4 Allowance for doubtful accounts Balance December 31, 2016 $ 12.4 Provision for doubtful accounts 5.3 Write-off and adjustments (7.0 ) Recoveries 0.7 Balance December 31, 2017 $ 11.4 |
Organization and Summary of S19
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 for the treatment of people with 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 $671.8 million at December 31, 2017 . As of December 31, 2017 , we had available cash, cash equivalents and marketable securities totaling $548.6 million and working capital of $605.8 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 expenses and other operating expenses needed to support the growth of our business 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 February 27, 2019 . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
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. None of the operations of our subsidiaries 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 President and Chief Executive Officer, who is our chief operating decision maker, reviews our business, makes investment and resource allocation decisions and assesses operating performance. We sell our products through a direct sales force in the United States, Canada and portions of Europe, and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, Latin America, the Middle East and Africa. DexCom, Inc. is domiciled in the United States. During the years ended 2017 , 2016 and 2015 , no individual country, outside the United States, 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 years 2017 , 2016 and 2015 , total revenues attributable to the United States and outside of the United States were as follows (in millions, except percentages): Years Ended December 31, 2017 2016 2015 Amount % Amount % Amount % Revenues: United States $ 596.2 83 % $ 497.5 87 % $ 347.4 86 % Outside of the United States 122.3 17 % 75.8 13 % 54.6 14 % Total $ 718.5 100 % $ 573.3 100 % $ 402.0 100 % 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, convertible debt, clinical trial expenses, allowance for bad debt and refunds and rebates, including pharmacy rebates. |
Cash and Cash Equivalents | 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 Receivables | 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 uncollectible. |
Letters Of Credit | Letters of Credit At December 31, 2017 and 2016 , we had irrevocable letters of credit outstanding with a commercial bank for approximately $4.4 million and $4.3 million , respectively, securing our facility leases. |
Concentration of Credit Risk | 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, 2017 2016 Customer A 13% 22% Customer B 19% 18% |
Impairment of Long-Lived Assets | 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 straight-line over the requisite service period of the individual grants, which typically equals the vesting period. Shared-based compensation arrangements include Restricted Stock Units (“RSUs”) and purchases of common stock at a discount under our Employee Stock Purchase Plan, or ESPP. We estimate the fair value of RSUs based on the market price of our common stock on the date of grant and the fair value of ESPP purchase rights on the date of grant using the Black-Scholes option pricing model. As discussed under " Recent Accounting Guidance", we adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”) in the first quarter of 2017 and elected to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $0.6 million . Prior to the adoption of this accounting standard we estimated at grant the likelihood that the award will ultimately vest (the “pre-vesting forfeiture rate”), and revised the estimate, if necessary, in future periods if the actual forfeiture rate differed. We used our historical data and company-specific events to estimate pre-vesting forfeitures and recorded stock-based compensation expense only for those awards that were expected to vest. |
Revenue Recognition | Revenue Recognition We sell our durable systems and disposable units through a direct sales force in the United States, Canada and portions of Europe, and through distribution arrangements in the United States, Canada, Australia, New Zealand, and in portions of Europe, Asia, Latin America, the Middle East and Africa. 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 and a USB cable. Disposable sensors for use with the durable system are sold separately in packages of four. We provide free of charge software and mobile applications for use with our durable systems and disposable sensors. The initial durable system price is generally not dependent upon the subsequent purchase of any amount of disposable sensors. 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 generally 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. Allowances for rebates include contracted discounts with commercial payors and are amounts owed after the final dispensing of the product by a distributor or retail pharmacy to a pharmacy benefit plan participant and are based upon contractual agreements with private sector benefit providers. The allowance for rebates is based on contractual discount rates, expected utilization under each contract and our estimate of the amount of inventory in the distribution channel that will become subject to such rebates. Our estimates for expected utilization for rebates are based on historical rebate claims and to a lesser extent third party market research data. Rebates are generally invoiced and paid monthly or quarterly in arrears so that our accrual consists of an estimate of the amount expected to be incurred for the current month's or quarter’s activity, plus an accrual for unpaid rebates from prior periods, and an accrual for inventory in the distribution channel. We have entered into distribution agreements with Byram Healthcare and its subsidiaries (“Byram”), Cardinal Health and affiliates (including Edgepark Medical Supplies) and other distributors that allow the distributors to sell our durable systems and disposable units. The majority of our distributors stock our products, and we refer to these distributors as Stocking Distributors, whereby the Stocking Distributors fulfill orders for our product from their inventory. We also have contracts with certain distributors that do not stock our products, but rather products are shipped directly to the customer by us on behalf of our distributor, and we refer to these distributors as Drop-Ship Distributors. Revenue is recognized based on contracted prices. Terms of distributor orders are generally Freight on Board (or Free Carrier (“FCA”) shipping point for international orders). Most distributors do not have rights of return per their distribution agreement outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. 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. Shipping charges billed to customers are included in revenue while related costs are included as cost of sales. One of our distributors, Byram , accounted for $98.5 million , $96.5 million and $74.1 million in product revenue, which represents 14% , 17% and 18% of our total revenues for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. Another one of our distributors, Cardinal Health and affiliates (including Edgepark Medical Supplies) , accounted for $120.4 million , $93.2 million and $66.1 million in gross revenue, which represents 17% , 16% and 16% of our total revenues for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. |
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 expectations for future warranty activity based on changes and improvements to the product or process that are, or will be in place in the future. These estimates are evaluated on at least a quarterly basis to determine the continued appropriateness of such assumptions. |
Research and Development | Research and Development All costs of research and development are expensed as incurred. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses are primarily related to employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials including clinical site reimbursement, clinical trial product and associated travel expenses. Our research and development expenses also include fees for design services, contractors and development materials. |
Foreign Currency | Foreign Currency The financial statements of our foreign subsidiaries 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. Translation related adjustments are recognized as part of comprehensive income and are included in accumulated other comprehensive loss in the consolidated balance sheet. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each subsidiary give rise to foreign exchange gains or losses reflected in operations. To date the results of operations of these subsidiaries and related translation adjustments and foreign exchange gains or losses 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 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 net realizable 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 | 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. |
Deferred Cost of Sales | Deferred Cost of Sales Deferred Cost of Sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. These costs are recognized in cost of sales when the associated revenue is recognized. Deferred Cost of Sales are presented within “Prepaid and Other Current Assets” on our consolidated balance sheets. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized, which requires significant judgment. We establish a valuation allowance against our net deferred tax assets to reduce them to the amount expected to be realized. The realization of deferred tax assets is dependent, in part, upon future taxable income. In assessing whether our deferred tax assets will be realized, we consider all available evidence, both positive and negative. Such evidence includes historical earnings, future reversals of existing taxable temporary differences, estimates of future taxable income, and the feasibility of ongoing tax planning strategies. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We file federal and state income tax returns in the United States and income tax returns in various other foreign jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. 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, 2017 , we had no interest or penalties accrued for uncertain tax positions. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The Company has made a provisional calculation of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. As a result, we have reduced our net U.S. deferred tax assets by a provisional amount of $105.7 million offset by a decrease in the valuation allowance, resulting in no tax expense. The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was nil based on cumulative foreign deficits in earnings of $41.2 million . On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $105.7 million of deferred tax expense offset by an increase in valuation allowance in connection with the remeasurement of our U.S. deferred tax assets and liabilities, and the analysis of our foreign deficits in earnings in connection with the transition tax on the mandatory deemed repatriation of foreign earnings were provisional amounts and reasonable estimates at December 31, 2017. Additional work is necessary to do a more detailed analysis of the gross balances of our U.S. deferred tax assets and liabilities. Any subsequent adjustment to these amounts are expected to have no tax effect due to our valuation allowance against net deferred tax assets. We are evaluating the newly enacted tax on global intangible low-taxed income ("GILTI") and have not yet made an accounting policy election to reflect GILTI in deferred taxes or as period costs. This analysis will be completed within one year of the enactment date. See Note 8 to the consolidated financial statements for further information regarding income taxes. |
Marketable Securities | Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term available-for-sale marketable securities. Marketable securities with remaining maturities of greater than one year are also classified as short-term available-for-sale marketable securities as such marketable securities represent the investment of cash that is available for current operations. We carry our marketable securities 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 or expense. 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 generally 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 at maturity. |
Fair Value Measurements | Fair Value Measurements Our financial instruments consist principally of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, and Senior Convertible Notes. 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 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. For additional detail see Note 7 “Fair Value Measurements.” |
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, two to fifteen years for machinery and equipment dependent on the nature of such 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. |
Goodwill and Intangible Assets | Goodwill We test goodwill 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. The change in goodwill for the twelve months ended months ended December 31, 2017 represents translation adjustments on our foreign currency denominated goodwill related to the May 2016 acquisition of Nintamed, our distributor that served Germany, Switzerland and Austria. |
Advertising Costs | Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expense was $21.9 million , $11.9 million and $4.0 million for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. |
Recent Accounting Guidance | Recent Accounting Guidance Recently adopted accounting pronouncements In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”), which is intended to simplify several areas of accounting for share-based payment arrangements. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard in the first quarter of 2017 . We had excess tax benefits for which a benefit could not be previously recognized of approximately $161.8 million . Upon adoption, we recognized the previously unrecognized excess tax benefits of $161.8 million deferred tax assets with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with no net impact on our financial statements. All excess tax benefits and all tax deficiencies generated in the current and future periods will be recognized prospectively and recorded as income tax benefit or expense in our Consolidated Statements of Operations in the reporting period in which they occur. Until such time that we release our valuation allowance against deferred tax assets, the tax impact of any excess tax benefits and deficiencies will be offset with the change in our valuation allowance. In addition, we elected to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $0.6 million . Due to the full valuation allowance on the U.S. deferred tax assets, we have determined that none of the provisions of ASU 2016-09 have a significant impact on our 2017 consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance for Revenue from Contracts with Customers ("ASU 2014-09"), 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 modified retrospective transition method and is effective for us in our first quarter of 2018. We will apply this standard using the modified retrospective method. We have completed our assessment of the new revenue standard and are finalizing the new required disclosures. We do not expect the timing of revenue recognition under the new standard to differ materially from our current revenue recognition policy. Our analysis of open contracts as of December 31, 2017, has resulted in no material cumulative effect from applying ASU 2014-09. In July 2015, the FASB issued guidance in ASU 2015-11 to change the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The guidance requires that inventory accounted for under the first-in, first-out (FIFO) or average cost methods be measured at the lower of cost and net realizable value, where net realizable value represents the estimated selling price of inventory in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance was effective for us in the first quarter of fiscal 2017 with no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which require a lessee to recognize a lease payment liability and a corresponding right of use asset on their balance sheet for all lease terms longer than 12 months, lessor accounting remains largely unchanged. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2018 and early adoption is permitted. We are currently evaluating the effect this guidance will have on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes - Intra-Entity Asset Transfer other than Inventory (Topic 740) (“ASU 2016-16”), which would require the recognition of the tax expense from the sale of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party or otherwise recovered through use. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning period of adoption. Due to the full valuation allowance on the U.S. deferred tax assets, we have determined that none of the provisions of ASU 2016-16 will have a significant impact on our consolidated financial statements. |
Organization and Summary of S20
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Organization And Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | During fiscal years 2017 , 2016 and 2015 , total revenues attributable to the United States and outside of the United States were as follows (in millions, except percentages): Years Ended December 31, 2017 2016 2015 Amount % Amount % Amount % Revenues: United States $ 596.2 83 % $ 497.5 87 % $ 347.4 86 % Outside of the United States 122.3 17 % 75.8 13 % 54.6 14 % Total $ 718.5 100 % $ 573.3 100 % $ 402.0 100 % |
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, 2017 2016 Customer A 13% 22% Customer B 19% 18% |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Historical Outstanding Anti-Dilutive Securities | Years Ended December 31, 2017 2016 2015 Options outstanding to purchase common stock 0.4 0.7 1.3 Unvested restricted stock units 2.7 3.7 4.1 Senior convertible notes 4.0 — — Total 7.1 4.4 5.4 |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Financial Statement Details [Abstract] | |
Short Term Marketable Securities, Available for Sale | Short-term marketable securities, consisting solely of debt securities were as follows: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value U.S. government agencies $ 87.5 $ — $ (0.2 ) $ 87.3 Commercial paper 14.7 — — 14.7 Corporate debt 5.1 — — 5.1 Total $ 107.3 $ — $ (0.2 ) $ 107.1 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value U.S. government agencies $ 22.2 $ — $ — $ 22.2 Corporate debt 3.8 — — 3.8 Commercial paper 3.2 — — 3.2 Total $ 29.2 $ — $ — $ 29.2 |
Accounts Receivable | Accounts Receivable December 31, 2017 2016 Accounts receivable $ 145.8 $ 114.3 Less allowance for doubtful accounts, sales returns and discounts (11.5 ) (12.6 ) Total $ 134.3 $ 101.7 |
Inventory | Inventory December 31, 2017 2016 Raw materials $ 20.0 $ 20.1 Work-in-process 8.2 2.3 Finished goods 17.0 23.0 Total $ 45.2 $ 45.4 |
Property and Equipment | Property and Equipment December 31, 2017 2016 Building (1) $ 6.0 $ 6.0 Furniture and fixtures 5.7 5.8 Computer equipment 25.6 22.7 Machinery and equipment 33.8 31.4 Leasehold improvements 41.7 25.6 Construction in progress (2) 87.6 65.1 Total 200.4 156.6 Accumulated depreciation (54.8 ) (47.2 ) Property and equipment, net $ 145.6 $ 109.4 |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities December 31, 2017 2016 Accounts payable trade (1) $ 46.7 $ 41.1 Accrued tax, audit, and legal fees 7.1 4.5 Accrued rebates 13.9 8.2 Accrued warranty 8.8 9.8 Accrued other (1) 10.7 4.5 Total $ 87.2 $ 68.1 |
Accrued Payroll And Related Expenses | Accrued Payroll and Related Expenses December 31, 2017 2016 Accrued paid time off $ 7.9 $ 6.4 Accrued wages, bonus and taxes 37.6 24.5 Other accrued employee benefits 3.0 2.5 Total $ 48.5 $ 33.4 |
Accrued Warranty | Accrued Warranty Warranty costs are reflected in the consolidated statements of operations as cost of sales. A reconciliation of our accrued warranty costs for the twelve months ended December 31, 2017 and 2016 were as follows: Years Ended December 31, 2017 2016 Beginning balance $ 9.8 $ 3.3 Charges to costs and expenses 18.4 25.0 Costs incurred (19.4 ) (18.5 ) Ending balance $ 8.8 $ 9.8 |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other Liabilities December 31, 2017 December 31, 2016 Financing lease obligations $ 6.7 $ 6.7 Deferred rent 8.7 7.3 Other 2.8 2.6 Total $ 18.2 $ 16.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | 0.75% Senior Convertible Notes due 2022 (in millions) December 31, 2017 December 31, 2016 0.75% Senior convertible notes due 2022: Principal amount $ 400.0 $ — Unamortized debt discount (64.4 ) — Unamortized debt issuance costs (8.0 ) — Net carrying amount of senior convertible notes $ 327.6 $ — Fair value of outstanding notes $ 381.3 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rental Obligations | Rental obligations, excluding real estate taxes, operating costs, and tenant improvement allowances, under all lease agreements as of December 31, 2017 were as follows (in millions): Fiscal Year Ending 2018 $ 10.1 2019 11.0 2020 11.4 2021 11.7 2022 3.7 Thereafter 9.4 Total $ 57.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Financial Assets | The following table represents our fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis as of December 31, 2017 (in millions): Fair Value Measurements Using Level 1 Level 2 Level 3 Total Cash equivalents $ 306.6 $ 38.0 $ — $ 344.6 Marketable securities, available for sale U.S. government agencies — 87.3 — 87.3 Commercial paper — 14.7 — 14.7 Corporate debt — 5.1 — 5.1 Total marketable securities, available for sale $ — $ 107.1 $ — $ 107.1 The following table represents our fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis as of December 31, 2016 (in millions): Fair Value Measurements Using Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 32.3 $ — $ 32.3 Marketable securities, available for sale U.S. government agencies — 22.2 — 22.2 Corporate debt — 3.8 — 3.8 Commercial paper — 3.2 — 3.2 Total marketable securities, available for sale $ — $ 29.2 $ — $ 29.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (Loss) before income taxes subject to taxes in the following jurisdictions is as follows: December 31, 2017 2016 2015 United States $ 12.4 $ (44.4 ) $ (57.8 ) Outside of the United States (61.0 ) (20.5 ) 0.3 Total $ (48.6 ) $ (64.9 ) $ (57.5 ) |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes are as follows: December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State 0.1 0.1 0.1 Foreign 1.5 0.8 — Total current income taxes 1.6 0.9 0.1 Deferred: Federal — (0.1 ) — State — — — Foreign — (0.1 ) — Total deferred income taxes — (0.2 ) — Total $ 1.6 $ 0.7 $ 0.1 |
Deferred Tax Assets and Liabilities | December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 188.7 $ 101.9 Capitalized research and development expenses 8.4 14.3 Tax credits 47.8 30.7 Share-based compensation 13.8 24.9 Fixed and intangible assets 0.4 — Accrued liabilities and reserves 20.9 26.0 Total gross deferred tax assets 280.0 197.8 Less: valuation allowance (263.5 ) (193.4 ) Deferred tax liability: Fixed assets and acquired intangibles assets (0.1 ) (4.3 ) Convertible debt discount (15.9 ) — Unrealized exchange gain (0.4 ) — Net deferred tax asset (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, 2017 2016 2015 Income taxes at statutory rates $ (17.0 ) $ (22.7 ) $ (20.1 ) State income tax, net of federal benefit (0.7 ) 1.2 (1.0 ) Permanent items 0.7 0.8 0.3 Research and development credits (13.3 ) (11.7 ) (10.0 ) Foreign rate differential 5.4 4.5 — Stock and officers compensation (10.4 ) 4.0 3.1 Rate change (0.1 ) (0.1 ) 0.2 Unrecognized tax benefits (15.4 ) 27.7 — Impact of Tax Cuts and Jobs Act of 2017 105.7 — — Other (2.2 ) — 0.2 Change in valuation allowance (51.1 ) (3.0 ) 27.4 Income taxes at effective rates $ 1.6 $ 0.7 $ 0.1 |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): Balance at January 1, 2015 $ 7.6 Increases related to prior year tax positions 2.6 Increase related to current year tax positions 5.4 Balance at December 31, 2015 15.6 Decreases related to prior year tax positions (8.4 ) Increases related to current year tax positions 32.6 Balance at December 31, 2016 39.8 Decreases related to prior year tax positions (14.9 ) Increases related to current year tax positions 3.3 Decrease related to Tax Cuts and Jobs Act of 2017 (5.4 ) Balance at December 31, 2017 $ 22.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Stock Option Activity | A summary of our stock option activity, and related information for the year ended December 31, 2017 is as follows (in millions except weighted-average exercise price and weighted-average remaining contractual term): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2016 0.7 $ 7.40 Exercised (0.3 ) 8.21 Forfeited — — Outstanding at December 31, 2017 0.4 $ 6.71 1.30 $ 19.5 Exercisable at December 31, 2017 0.4 $ 6.71 1.30 $ 19.5 |
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 was as follows (in millions): Years Ended December 31, 2017 2016 2015 Intrinsic value of options exercised $ 21.6 $ 39.9 $ 125.8 |
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, 2017 , 2016 and 2015 (in millions): Years Ended December 31, 2017 2016 2015 Cost of sales $ 9.6 $ 12.0 $ 8.1 Research and development 37.5 39.8 28.5 Selling, general and administrative 59.1 59.0 46.1 Share-based compensation expense included in net loss $ 106.2 $ 110.8 $ 82.7 |
Schedule of Valuation Assumptions for Employee Stock Purchase Plan | ESPP: Years Ended December 31, 2017 2016 2015 Risk free interest rate 0.75 – 1.12 0.46 – 0.57 0.15 – 0.25 Dividend yield — % — % — % Expected volatility of the Company’s stock 0.33 – 0.56 0.33 – 0.57 0.30 – 0.44 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, 2017 (in millions except weighted average grant date fair value): Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested at December 31, 2016 3.7 $ 62.51 Granted 1.3 75.78 Vested (1.9 ) 58.92 Forfeited (0.4 ) 67.97 Nonvested at December 31, 2017 2.7 $ 70.68 $ 154.5 |
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, 2017 2016 Stock options and awards under our plans: Stock options granted and outstanding 0.4 0.7 Unvested restricted stock units 2.7 3.7 Reserved for future grant 4.7 2.0 Employee Stock Purchase Plan 1.3 1.4 Total 9.1 7.8 |
Quarterly Financial Informati28
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Quarterly Financial Information | The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016 (in millions except per share data): For the Three Months Ended December 31 September 30 June 30 March 31 Year ended December 31, 2017 Revenues $ 221.0 $ 184.6 $ 170.6 $ 142.3 Gross profit 153.5 127.0 117.5 94.1 Total operating expenses 141.5 127.5 131.1 134.5 Net income (loss) (9.4 ) (2.0 ) 2.9 (41.7 ) Basic and diluted net income (loss) per share (a) $ (0.11 ) $ (0.02 ) $ 0.03 $ (0.49 ) Year ended December 31, 2016 Revenues $ 171.2 $ 148.6 $ 137.3 $ 116.2 Gross profit 116.7 101.1 85.5 75.1 Total operating expenses 122.8 119.6 105.6 94.3 Net loss (7.4 ) (18.8 ) (20.2 ) (19.2 ) Basic and diluted net loss per share (a) $ (0.09 ) $ (0.22 ) $ (0.24 ) $ (0.23 ) |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Advertising Expense | $ 21,900,000 | $ 11,900,000 | $ 4,000,000 | ||||||||
Accumulated deficit | $ 671,800,000 | $ 621,000,000 | 671,800,000 | 621,000,000 | |||||||
Cash, cash equivalents and short-term investments | 548,600,000 | 548,600,000 | |||||||||
Working capital | 605,800,000 | $ 605,800,000 | |||||||||
Maturity Threshold Of Investments Classified To Cash Equivalents | 90 | ||||||||||
Letters of Credit Outstanding, Amount | 4,400,000 | 4,300,000 | $ 4,400,000 | 4,300,000 | |||||||
Sales return period | 30 days | ||||||||||
Revenues | 221,000,000 | $ 184,600,000 | $ 170,600,000 | $ 142,300,000 | $ 171,200,000 | $ 148,600,000 | $ 137,300,000 | $ 116,200,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | $ 0 | |||||||||
TCJA, Provisional tax expense (benefit) offset by valuation allowance | 105,700,000 | ||||||||||
TCJA, Provisional income tax expense (benefit) | 0 | ||||||||||
Foreign Earnings Repatriated | 0 | ||||||||||
Cumulative Foreign Deficits | $ 41,200,000 | ||||||||||
Share-based compensation, excess tax benefits | $ 161,800,000 | ||||||||||
Computer equipment | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||
Furniture and fixtures | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||
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 | $ 98,500,000 | $ 96,500,000 | $ 74,100,000 | ||||||||
Concentration Risk, Percentage | 14.00% | 17.00% | 18.00% | ||||||||
Edgepark [Member] | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 120,400,000 | $ 93,200,000 | $ 66,100,000 | ||||||||
Concentration Risk, Percentage | 17.00% | 16.00% | 16.00% | ||||||||
Accounting Standards Update 2016-09 [Member] | Accumulated deficit [Member] | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Adoption of ASU 2016-09 | $ (600,000) | $ (600,000) | |||||||||
Minimum [Member] | Machinery and Equipment [Member] | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||||||
Maximum [Member] | Machinery and Equipment [Member] | |||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 15 years |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies - Concentration of Credit Risk (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Percentage | 100.00% | 100.00% | 100.00% |
Customer [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Entity Wide Accounts Receivable By Major Customer Percentage | 13.00% | 22.00% | |
Customer B [Member] | |||
Entity Wide Accounts Receivable By Major Customer Percentage | 19.00% | 18.00% | |
Byram [Member] | |||
Concentration Risk, Percentage | 14.00% | 17.00% | 18.00% |
Edgepark [Member] | |||
Concentration Risk, Percentage | 17.00% | 16.00% | 16.00% |
Individual Country [Member] | Maximum [Member] | |||
Revenue, Percentage | 10.00% | 10.00% | 10.00% |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies Organization and Significant Accounting Policies - Segment Reporting and Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Reportable Segments | 1 | ||
Revenue, Percentage | 100.00% | 100.00% | 100.00% |
Total Revenue | $ 718.5 | $ 573.3 | $ 402 |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, Percentage | 17.00% | 13.00% | 14.00% |
Total Revenue | $ 122.3 | $ 75.8 | $ 54.6 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue, Percentage | 83.00% | 87.00% | 86.00% |
Total Revenue | $ 596.2 | $ 497.5 | $ 347.4 |
Net Loss Per Common Share - His
Net Loss Per Common Share - Historical Outstanding Anti-Dilutive Securities (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 7.1 | 4.4 | 5.4 |
Options outstanding to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 0.4 | 0.7 | 1.3 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 2.7 | 3.7 | 4.1 |
Senior convertible notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total | 4 | 0 | 0 |
Financial Statement Details - S
Financial Statement Details - Short Term Marketable Securities, Available for Sale (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Statement Details [Line Items] | ||
Available-for-sale Securities, Current | $ 92.7 | |
Amortized Cost | 107.3 | $ 29.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | 0 |
Estimated Market Value | 107.1 | 29.2 |
Estimated Market Value | 107.1 | 29.2 |
Available-for-sale Securities, Noncurrent | 14.4 | |
U.S. government agencies | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 87.5 | 22.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | 0 |
Estimated Market Value | 87.3 | 22.2 |
Estimated Market Value | 87.3 | 22.2 |
Commercial paper | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 14.7 | 3.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 14.7 | 3.2 |
Estimated Market Value | 14.7 | 3.2 |
Corporate debt | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 5.1 | 3.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 5.1 | 3.8 |
Estimated Market Value | $ 5.1 | $ 3.8 |
Financial Statement Details Fin
Financial Statement Details Financial Statement Details - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 145.8 | $ 114.3 |
Less allowance for doubtful accounts, sales returns and discounts | (11.5) | (12.6) |
Total | $ 134.3 | $ 101.7 |
Financial Statement Details - I
Financial Statement Details - Inventory (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Raw materials | $ 20.1 | $ 20 |
Work-in-process | 2.3 | 8.2 |
Finished goods | 23 | 17 |
Total | 45.4 | $ 45.2 |
Customer Notification Related Inventory Reserve [Member] | ||
Inventory Write-down | $ 3.5 |
Financial Statement Details F36
Financial Statement Details Financial Statement Details - Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 200.4 | $ 156.6 | |
Accumulated depreciation | (54.8) | (47.2) | |
Property and equipment, net | 145.6 | 109.4 | |
Depreciation | 16.1 | 14.4 | $ 10.2 |
Building (1) | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 6 | 6 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 5.7 | 5.8 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 25.6 | 22.7 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 33.8 | 31.4 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 41.7 | 25.6 | |
Construction in progress (2) | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 87.6 | 65.1 | |
Property, Plant and Equipment, Disposals | 9.2 | ||
Leased Buildings -232 South Dobson Road [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | $ 33.6 | $ 24.8 |
Financial Statement Details F37
Financial Statement Details Financial Statement Details - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition-related holdback liability | $ 0 | $ 1.8 | $ 0 |
Issuance of common stock in connection with acquisition | $ 0 | $ 7.2 | $ 0 |
Financial Statement Details - A
Financial Statement Details - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Financial Statement Details [Abstract] | |||
Accounts payable trade | $ 46.7 | $ 41.1 | |
Accrued tax, audit, and legal fees | 7.1 | 4.5 | |
Accrued rebates | 13.9 | 8.2 | |
Accrued warranty | 8.8 | 9.8 | $ 3.3 |
Accrued other | 10.7 | 4.5 | |
Total | $ 87.2 | $ 68.1 |
Financial Statement Details F39
Financial Statement Details Financial Statement Details - Accrued Payroll and Related Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Financial Statement Details Accrued Payroll And Related Expenses [Abstract] | ||
Accrued paid time off | $ 7.9 | $ 6.4 |
Accrued wages, bonus and taxes | 37.6 | 24.5 |
Other accrued employee benefits | 3 | 2.5 |
Total | $ 48.5 | $ 33.4 |
Financial Statement Details -40
Financial Statement Details - Accrued Warranty (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 9.8 | $ 3.3 |
Charges to costs and expenses | 18.4 | 25 |
Costs incurred | (19.4) | (18.5) |
Ending balance | $ 8.8 | $ 9.8 |
Financial Statement Details F41
Financial Statement Details Financial Statement Details - Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Statement Details [Abstract] | ||
Financing lease obligations | $ 6.7 | $ 6.7 |
Deferred rent | 8.7 | 7.3 |
Other | 2.8 | 2.6 |
Other liabilities | $ 18.2 | $ 16.6 |
Debt 0.75% Senior convertible n
Debt 0.75% Senior convertible notes due 2022 (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 400 | $ 0 |
Unamortized debt discount | 64.4 | 0 |
Unamortized debt issuance costs | 8 | 0 |
Net carrying amount of senior convertible notes | 327.6 | 0 |
Fair value of outstanding notes | $ 381.3 | $ 0 |
Debt 0.75 Senior convertible no
Debt 0.75 Senior convertible notes due 2022 Narrative (Details) | May 13, 2017 | Dec. 31, 2017USD ($)d | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 12, 2017USD ($) | May 12, 2017USD ($)$ / shares |
Debt Instrument [Line Items] | ||||||
Line of Credit, Current | $ 0 | |||||
Non-cash interest expense | 9,400,000 | $ 100,000 | $ 200,000 | |||
Principal amount | 400,000,000 | 0 | ||||
Proceeds from issuance of convertible debt, net of issuance costs | 389,000,000 | $ 0 | $ 0 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 200,000,000 | |||||
0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Conversion Ratio | 0.0100918 | |||||
Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-cash interest expense | 8,200,000 | |||||
Principal amount | $ 50,000,000 | $ 350,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | |||||
Proceeds from issuance of convertible debt, net of issuance costs | 389,000,000 | |||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 99.09 | |||||
Interest Expense, Debt, Excluding Amortization | 1,900,000 | |||||
Amortization of Debt Issuance Costs | $ 1,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.14% | |||||
Debt Instrument, Covenant Repurchase Price, Percentage | 100.00% | |||||
Debt Instrument, Convertible, Terms of Conversion Feature, Conversion Amount | $ 1,000 | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Additional paid-in capital [Member] | Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | $ 72,600,000 | |||||
Debt Instrument Conversion Term One [Member] | Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | |||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 20 | |||||
Debt Instrument Conversion Term One [Member] | Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 30 | |||||
Debt Instrument Conversion Term Two [Member] | Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 5 | |||||
Debt Instrument Conversion Term Two [Member] | Senior Notes [Member] | 0.75% Senior Convertible Notes [Member] | Convertible Notes due 2022 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 98.00% | |||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 5 |
Debt Revolving Credit Agreement
Debt Revolving Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jun. 17, 2016 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 200 | |
Proceeds from Lines of Credit | $ 75 | |
Debt Instrument, Term | 6 months | |
Line of Credit, Current | $ 0 | |
Foreign Currency Line of Credit [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | 200 | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | 0.7 | |
Line of Credit [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 5.6 | |
Maximum [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | |
Minimum [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% |
Commitments and Contingencies -
Commitments and Contingencies - Long-Term Debt and PO Commitments (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 17, 2016 | |
Estimated Litigation Liability | $ 0 | ||
Recorded Unconditional Purchase Obligation Due in Next Twelve Months | 71,700,000 | ||
Property and Equipment, Gross | 200,400,000 | $ 156,600,000 | |
Financing lease obligations | $ 6,700,000 | $ 6,700,000 | |
Purchase commitments with vendors total maximum term, in years | 1 year | ||
Line of Credit [Member] | |||
Long-term Line of Credit | $ 200,000,000 | ||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 700,000 |
Commitments and Contingencies46
Commitments and Contingencies - Rental Obligations (Detail) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)renewal_term | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 01, 2016USD ($)ft² | Apr. 28, 2016ft² | Feb. 01, 2016ft² | Oct. 01, 2014ft² | |
Operating Leases, Rent Expense | $ 11.1 | $ 9 | $ 5.6 | ||||
Payments for (Proceeds from) Tenant Allowance | (3.6) | ||||||
Property and Equipment, Gross | 200.4 | 156.6 | |||||
Financing lease obligations | 6.7 | 6.7 | |||||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | 10.1 | ||||||
Operating Leases, Future Minimum Payments, 2016 | 11 | ||||||
Operating Leases, Future Minimum Payments, 2017 | 11.4 | ||||||
Operating Leases, Future Minimum Payments, 2018 | 11.7 | ||||||
Operating Leases, Future Minimum Payments, 2019 | 3.7 | ||||||
Thereafter | 9.4 | ||||||
Total | $ 57.3 | ||||||
Leased Buildings - 6350 Sequence [Member] | |||||||
Leased Square Footage | ft² | 132,600 | ||||||
Leased Buildings -6340 Sequence Drive, 6310 Sequence Drive, 6290 Sequence drive [Member] | |||||||
Leased Square Footage | ft² | 219,000 | ||||||
Leased Buildings -232 South Dobson Road [Member] | |||||||
Leased Square Footage | ft² | 78,000 | 148,797 | |||||
Leased Buildings -232 South Dobson Road [Member] | |||||||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | renewal_term | 4 | ||||||
Lessee, Operating Lease, Renewal Term | 5 years | ||||||
Leased Buildings -6340 Sequence Drive, 6310 Sequence Drive, 6290 Sequence drive [Member] | |||||||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Term | renewal_term | 2 | ||||||
Lessee, Operating Lease, Renewal Term | 5 years | ||||||
Building (1) | |||||||
Property and Equipment, Gross | $ 6 | $ 6 | |||||
Property, Plant and Equipment [Member] | Building (1) | |||||||
Property and Equipment, Gross | $ 6 | ||||||
Other Noncurrent Liabilities [Member] | Leased Buildings -232 South Dobson Road [Member] | |||||||
Financing lease obligations | $ 6 | ||||||
Minimum [Member] | |||||||
Potential Rental Rate Adjustment Maximum | 2.50% | ||||||
Maximum [Member] | |||||||
Potential Rental Rate Adjustment Maximum | 4.00% |
Commitments and Contingencies R
Commitments and Contingencies Revolving Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jun. 17, 2016 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | $ 200 | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | 0.7 | |
Letter of Credit [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 10 | |
Letter of Credit [Member] | Foreign Currency Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 | |
Maximum [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | |
Minimum [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% |
Development and Other Agreeme48
Development and Other Agreements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 10, 2015 | |
Development Agreements [Line Items] | |||||
Issuance of common stock related to Verily Collaboration Agreement | $ 36.5 | ||||
Development grant and other revenue | $ 0 | $ 0 | 1.3 | ||
Verily Life Sciences [Member] | Collaborative Arrangement [Member] | |||||
Development Agreements [Line Items] | |||||
Collaborative Arrangement, Royalty Eligible Sales | $ 750 | ||||
Collaborative Arrangement, Commitment Amount, Royalty Eligible Sales Threshold Not Achieved | $ 0 | ||||
Verily Life Sciences [Member] | Collaborative Arrangement [Member] | Collaborative Arrangement, Milestone Payments [Member] | |||||
Development Agreements [Line Items] | |||||
Collaborative Arrangement, Development & Regulatory Milestones | 65 | ||||
Verily Life Sciences [Member] | Collaborative Arrangement [Member] | Initial Payment [Member] | |||||
Development Agreements [Line Items] | |||||
Collaborative Arrangement, Upfront Fee | $ 35 | ||||
Issuance of common stock related to Verily Collaboration Agreement, shares | 404,591 | ||||
Share Price | $ 90.29 | ||||
Research and Development Expense [Member] | Verily Life Sciences [Member] | Collaborative Arrangement [Member] | Initial Payment [Member] | |||||
Development Agreements [Line Items] | |||||
Issuance of common stock related to Verily Collaboration Agreement | $ 36.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 107,100,000 | $ 29,200,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Cash Equivalents, at Carrying Value | 344,600,000 | 32,300,000 |
Available-for-sale Securities, Debt Securities, Current | 107,100,000 | 29,200,000 |
Leve 3 transfers in or out | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 306,600,000 | 0 |
Available-for-sale Securities, Debt Securities, Current | 0 | 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 | 38,000,000 | 32,300,000 |
Available-for-sale Securities, Debt Securities, Current | 107,100,000 | 29,200,000 |
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 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 87,300,000 | 22,200,000 |
Available-for-sale Securities, Debt Securities, Current | 87,300,000 | 22,200,000 |
U.S. government agencies | 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 | 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 | 87,300,000 | 22,200,000 |
U.S. government agencies | 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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 14,700,000 | 3,200,000 |
Available-for-sale Securities, Debt Securities, Current | 14,700,000 | 3,200,000 |
Commercial paper | 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 |
Commercial paper | 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 | 14,700,000 | 3,200,000 |
Commercial paper | 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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,100,000 | 3,800,000 |
Available-for-sale Securities, Debt Securities, Current | 5,100,000 | 3,800,000 |
Corporate debt | 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 | 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 | 5,100,000 | 3,800,000 |
Corporate debt | 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 |
Income Taxes Income Taxes - Jur
Income Taxes Income Taxes - Jurisdictions, Net Income (Loss) Subject to Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure - Jurisdictions, Net Income (Loss) Subject to Income Taxes [Abstract] | |||
United States | $ 12.4 | $ (44.4) | $ (57.8) |
Outside of the United States | (61) | (20.5) | 0.3 |
Total | $ (48.6) | $ (64.9) | $ (57.5) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
TCJA, Provisional tax expense (benefit) offset by valuation allowance | $ 105,700,000 | |||
TCJA, Provisional income tax expense (benefit) | 0 | |||
Foreign Earnings Repatriated | 0 | |||
Cumulative Foreign Deficits | 41,200,000 | |||
Income tax expense | $ (1,600,000) | $ (700,000) | $ (100,000) | |
Tax Credit Carryforward, Expiration Date | Jan. 1, 2020 | |||
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 | $ 263,500,000 | $ 193,400,000 | ||
Share-based compensation, excess tax benefits | $ 161,800,000 | |||
Unrecognized tax benefits | 0 | |||
Undistributed Earnings of Foreign Subsidiaries | 1,200,000 | |||
Unrecognized deferred tax liability related to earnings of foreign operations | 400,000 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | $ 761,600,000 | |||
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2020 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 33,300,000 | |||
California Franchise Tax Board [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net Operating Loss Carryforwards Expiring In Year Thirteen and Thereafter | 324,200,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | $ 456,300,000 | |||
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2018 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 33,800,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net Operating Loss Carryforwards Expiring In 2020 | $ 111,400,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Net Deferred Tax Assets [Line Items] | ||||
Income Tax Expense (Benefit) | $ 1.6 | $ 0.7 | $ 0.1 | |
Share-based compensation, excess tax benefits | $ 161.8 | |||
Net operating loss carryforwards | 188.7 | 101.9 | ||
Capitalized research and development expenses | 8.4 | 14.3 | ||
Tax credits | 47.8 | 30.7 | ||
Share-based compensation | 13.8 | 24.9 | ||
Fixed and intangible assets | 0.4 | 0 | ||
Accrued liabilities and reserves | 20.9 | 26 | ||
Total gross deferred tax assets | 280 | 197.8 | ||
Less: valuation allowance | (263.5) | (193.4) | ||
Fixed assets and acquired intangibles assets | (0.1) | (4.3) | ||
Convertible debt discount | (15.9) | 0 | ||
Unrealized exchange gain | 0.4 | 0 | ||
Net deferred tax asset (liability) | $ 0.1 | 0.1 | ||
Accounting Standards Update 2016-09 [Member] | ||||
Summary Of Net Deferred Tax Assets [Line Items] | ||||
Deferred Income Tax Assets, Net | $ 161.8 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Tax Rate and Statutory Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | |||
Income taxes at statutory rates | $ (17) | $ (22.7) | $ (20.1) |
State income tax, net of federal benefit | (0.7) | 1.2 | (1) |
Permanent items | 0.7 | 0.8 | 0.3 |
Research and development credits | (13.3) | (11.7) | (10) |
Foreign rate differential | 5.4 | 4.5 | 0 |
Stock and officers compensation | (10.4) | 4 | 3.1 |
Rate change | (0.1) | (0.1) | 0.2 |
Unrecognized tax benefits | (15.4) | 27.7 | 0 |
Impact of Tax Cuts and Jobs Act of 2017 | 105.7 | 0 | 0 |
Other | (2.2) | 0 | 0.2 |
Change in valuation allowance | (51.1) | (3) | 27.4 |
Income taxes at effective rates | $ 1.6 | $ 0.7 | $ 0.1 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Unrecognized Tax Benefits [Line Items] | |||
Beginning Balance | $ 39.8 | $ 15.6 | $ 7.6 |
Increases related to prior year tax positions | 2.6 | ||
Increases related to current year tax positions | 3.3 | 32.6 | 5.4 |
Decreases related to prior year tax positions | (14.9) | (8.4) | |
Decrease related to Tax Cuts and Jobs Act of 2017 | (5.4) | ||
Ending Balance | 22.8 | $ 39.8 | $ 15.6 |
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 0 |
Income Taxes Net Operating Loss
Income Taxes Net Operating Loss Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Foreign Earnings Repatriated | $ 0 |
Tax Credit Carryforward, Expiration Date | Jan. 1, 2020 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards Expiring In 2020 | $ 111.4 |
California Franchise Tax Board [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards Expiring In 2028 | 20.7 |
Foreign Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 42.1 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 761.6 |
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2020 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 33.3 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 456.3 |
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2018 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 33.8 |
California Franchise Tax Board [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards Expiring In Year Thirteen and Thereafter | $ 324.2 |
Income Taxes Income Taxes - Com
Income Taxes Income Taxes - Components of Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Current Foreign Tax Expense (Benefit) | 1.5 | 0.8 | 0 |
Current Income Tax Expense (Benefit) | 1.6 | 0.9 | 0.1 |
Deferred Federal Income Tax Expense (Benefit) | 0 | (0.1) | 0 |
Current State and Local Tax Expense (Benefit) | 0.1 | 0.1 | 0.1 |
Deferred State and Local Income Tax Expense (Benefit) | 0 | 0 | 0 |
Deferred Foreign Income Tax Expense (Benefit) | 0 | (0.1) | 0 |
Deferred Income Tax Expense (Benefit) | 0 | (0.2) | 0 |
Income taxes at effective rates | $ 1.6 | $ 0.7 | $ 0.1 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 28, 2015 | |
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 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | |||
In-the-money options, maximum exercise price | $ 57.39 | |||
Options in-the-money, number | 400,000 | |||
Unrecognized compensation cost | $ 128.4 | |||
Restricted Stock [Member] | ||||
Weighted average fair value of options granted | $ 75.78 | $ 68.16 | $ 63.63 | |
Total fair value of RSUs vested | $ 112.2 | $ 95.8 | $ 60 | |
Restricted Stock [Member] | Minimum [Member] | ||||
Vesting period, years | 3 years | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Vesting period, years | 4 years | |||
2015 Employee Stock Purchase Plan [Member] | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 122,857 | 99,192 | ||
2005 Employee Stock Purchase Plan [Member] | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 8,539 | 115,848 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Schedule Of Stock Options [Line Items] | |
Outstanding at December 31, 2016, number of shares | shares | 0.7 |
Exercised, number of shares | shares | (0.3) |
Forfeited, number of shares | shares | 0 |
Outstanding at December 31, 2017, number of shares | shares | 0.4 |
Exercisable at December 31, 2017, number of shares | shares | 0.4 |
Outstanding at December 31, 2016 | $ / shares | $ 7.40 |
Exercised | $ / shares | 8.21 |
Forfeited | $ / shares | 0 |
Outstanding at December 31, 2017 | $ / shares | 6.71 |
Exercisable at December 31, 2017 | $ / shares | $ 6.71 |
Outstanding, Weighted-Average Remaining Contractual Term (years) | 1 year 3 months 18 days |
Exercisable, Weighted-Average Remaining Contractual Term (years) | 1 year 3 months 18 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 19.5 |
Exercisable, Aggregate Intrinsic Value | $ | $ 19.5 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intrinsic value of options exercised | $ 21.6 | $ 39.9 | $ 125.8 |
Employee Benefit Plans - Sche60
Employee Benefit Plans - Schedule of Share Based Compensation Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 106.2 | $ 110.8 | $ 82.7 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 9.6 | 12 | 8.1 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 37.5 | 39.8 | 28.5 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 59.1 | $ 59 | $ 46.1 |
Employee Benefit Plans - Sche61
Employee Benefit Plans - Schedule of Valuation Assumptions for Each Option Grant and Employee Stock Purchase Plan Purchase Rights (Detail) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.75% | 0.46% | 0.15% |
Expected volatility of the Company’s stock | 0.33% | 0.33% | 0.30% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.12% | 0.57% | 0.25% |
Expected volatility of the Company’s stock | 0.56% | 0.57% | 0.44% |
Employee Benefit Plans - Sche62
Employee Benefit Plans - Schedule of Restricted Stock Units Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested at December 31, 2016, shares | 3.7 | |
Nonvested at December 31, 2017, shares | 2.7 | |
Unvested restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested at December 31, 2016, shares | 3.7 | |
Granted, shares | 1.3 | |
Vested, shares | (1.9) | |
Forfeited, shares | (0.4) | |
Nonvested at December 31, 2017, shares | 2.7 | |
Nonvested | $ 70.68 | $ 62.51 |
Granted | 75.78 | |
Vested | 58.92 | |
Forfeited | $ 67.97 | |
Aggregate Intrinsic Value, Nonvested | $ 154.5 |
Employee Benefit Plans - Sche63
Employee Benefit Plans - Schedule of Stock Options Reserved for Future Issuance (Detail) - shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Stock options granted and outstanding | 0.4 | 0.7 |
Unvested restricted stock units | 2.7 | 3.7 |
Reserved for future grant | 4.7 | 2 |
Employee Stock Purchase Plan | 1.3 | 1.4 |
Total | 9.1 | 7.8 |
Quarterly Financial Informati64
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | $ 221 | $ 184.6 | $ 170.6 | $ 142.3 | $ 171.2 | $ 148.6 | $ 137.3 | $ 116.2 | |||
Gross profit | 153.5 | 127 | 117.5 | 94.1 | 116.7 | 101.1 | 85.5 | 75.1 | $ 492.1 | $ 378.4 | $ 278.4 |
Total operating expenses | 141.5 | 127.5 | 131.1 | 134.5 | 122.8 | 119.6 | 105.6 | 94.3 | 534.6 | 442.3 | 335.5 |
Net loss | $ (9.4) | $ (2) | $ 2.9 | $ (41.7) | $ (7.4) | $ (18.8) | $ (20.2) | $ (19.2) | $ (50.2) | $ (65.6) | $ (57.6) |
Basic and diluted net income (loss) per share (a) | $ (0.11) | $ (0.02) | $ 0.03 | $ (0.49) | $ (0.09) | $ (0.22) | $ (0.24) | $ (0.23) | $ (0.58) | $ (0.78) | $ (0.72) |
Valuation and Qualifying Acco65
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts | |||
Balance December 31, 2016 | $ 12.4 | $ 7.8 | $ 4.3 |
Provision for doubtful accounts | 5.3 | 9.5 | 7.8 |
Write-off and adjustments | (7) | (5.6) | (4.5) |
Recoveries | 0.7 | 0.7 | 0.2 |
Balance December 31, 2017 | $ 11.4 | $ 12.4 | $ 7.8 |