Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 21, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35092 | ||
Entity Registrant Name | EXACT SCIENCES CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 5505 Endeavor Lane | ||
Entity Address, City or Town | Madison | ||
Entity Address, State or Province | WI | ||
Entity Tax Identification Number | 02-0478229 | ||
Entity Address, Postal Zip Code | 53719 | ||
City Area Code | 608 | ||
Local Phone Number | 284‑5700 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | EXAS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21,211,910,456 | ||
Entity Common Stock, Shares Outstanding | 174,116,598 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive proxy statement pursuant to Regulation 14A within 120 days after the end of the fiscal year ended December 31, 2021. Portions of such proxy statement are incorporated by reference into Part III of this Form 10‑K. | ||
Entity Central Index Key | 0001124140 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Audit Information [Abstract] | ||
Auditor Firm ID | 238 | 243 |
Auditor Name | PricewaterhouseCoopers LLP | BDO USA, LLP |
Auditor Location | Chicago, Illinois | Madison, Wisconsin |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 315,471 | $ 1,491,288 |
Marketable securities | 715,005 | 348,699 |
Accounts receivable, net | 216,645 | 233,185 |
Inventory | 104,994 | 92,265 |
Prepaid expenses and other current assets | 74,122 | 33,157 |
Total current assets | 1,426,237 | 2,198,594 |
Long-term assets: | ||
Property, plant and equipment, net | 580,248 | 451,986 |
Operating lease right-of-use assets | 174,225 | 125,947 |
Goodwill | 2,335,172 | 1,237,672 |
Intangible assets, net | 2,094,411 | 847,123 |
Other long-term assets, net | 74,591 | 63,770 |
Total assets | 6,684,884 | 4,925,092 |
Current liabilities: | ||
Accounts payable | 67,829 | 35,709 |
Accrued liabilities | 398,556 | 233,604 |
Operating lease liabilities, current portion | 19,710 | 11,483 |
Convertible notes, net, current portion | 0 | 312,715 |
Debt, current portion | 0 | 1,319 |
Other current liabilities | 30,973 | 38,265 |
Total current liabilities | 517,068 | 633,095 |
Convertible notes, net, less current portion | 2,180,232 | 1,861,685 |
Long-term debt, less current portion | 0 | 22,342 |
Other long-term liabilities | 417,782 | 51,342 |
Operating lease liabilities, less current portion | 182,166 | 121,075 |
Total liabilities | 3,297,248 | 2,689,539 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value Authorized—5,000,000 shares issued and outstanding—no shares at December 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value Authorized—400,000,000 shares issued and outstanding—173,674,067 and 159,423,410 shares at December 31, 2021 and December 31, 2020 | 1,738 | 1,595 |
Additional paid-in capital | 6,028,861 | 4,279,327 |
Accumulated other comprehensive income (loss) | (1,443) | 526 |
Accumulated deficit | (2,641,520) | (2,045,895) |
Total stockholders’ equity | 3,387,636 | 2,235,553 |
Total liabilities and stockholders’ equity | $ 6,684,884 | $ 4,925,092 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued shares (in shares) | 173,674,067 | 159,423,410 |
Common stock, outstanding shares (in shares) | 173,674,067 | 159,423,410 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 1,767,087 | $ 1,491,391 | $ 876,293 |
Operating expenses: | |||
Cost of sales (exclusive of amortization of acquired intangible assets) | 458,757 | 354,324 | 216,717 |
Research and development | 385,646 | 554,052 | 139,694 |
Sales and marketing | 861,889 | 589,919 | 385,176 |
General and administrative | 801,262 | 481,393 | 352,453 |
Amortization of acquired intangible assets | 95,001 | 93,398 | 16,035 |
Intangible asset impairment charge | 20,210 | 209,666 | 0 |
Total operating expenses | 2,622,765 | 2,282,752 | 1,110,075 |
Other operating income | 0 | 23,665 | 0 |
Loss from operations | (855,678) | (767,696) | (233,782) |
Other income (expense) | |||
Investment income, net | 31,778 | 6,574 | 26,530 |
Interest expense | (18,606) | (67,941) | (199,192) |
Total other income (expense) | 13,172 | (61,367) | (172,662) |
Net loss before tax | (842,506) | (829,063) | (406,444) |
Income tax benefit | 246,881 | 5,458 | 193,354 |
Net loss | $ (595,625) | $ (823,605) | $ (213,090) |
Net loss per share - basic (in dollars per share) | $ (3.48) | $ (5.45) | $ (1.62) |
Net loss per share - diluted (in dollars per share) | $ (3.48) | $ (5.45) | $ (1.62) |
Weighted average common shares outstanding - basic (in shares) | 171,348 | 151,137 | 131,257 |
Weighted average common shares outstanding - diluted (in shares) | 171,348 | 151,137 | 131,257 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (595,625) | $ (823,605) | $ (213,090) |
Other comprehensive loss: | |||
Unrealized gain (loss) on available-for-sale investments | (2,162) | 771 | 1,322 |
Foreign currency adjustment | 23 | 25 | 0 |
Comprehensive loss, before tax | (597,764) | (822,809) | (211,768) |
Income tax expense related to items of other comprehensive loss | 170 | (170) | 0 |
Comprehensive loss, net of tax | $ (597,594) | $ (822,979) | $ (211,768) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 123,192,540 | ||||
Beginning balance at Dec. 31, 2018 | $ 447,258 | $ 1,232 | $ 1,456,648 | $ (1,422) | $ (1,009,200) |
Increase (Decrease) in Stockholders' Equity | |||||
Shares issued to settle convertible notes (in shares) | 2,159,716 | 2,159,716 | |||
Shares issued to settle convertible notes | $ 182,435 | $ 22 | 182,413 | ||
Exercise of common stock options (in shares) | 641,925 | ||||
Exercise of common stock options | 8,787 | $ 6 | 8,781 | ||
Issuance of common stock to fund the Company's 401(k) match (in shares) | 86,532 | ||||
Issuance of common stock to fund the Company's 401(k) match | 7,409 | $ 1 | 7,408 | ||
Compensation expense related to issuance of stock options and restricted stock awards (in shares) | 4,322,366 | ||||
Compensation expense related to issuance of stock options and restricted stock awards | 108,483 | $ 43 | 108,440 | ||
Purchase of employee stock purchase plan shares (in shares) | 176,458 | ||||
Purchase of employee stock purchase plan shares | $ 8,396 | $ 2 | 8,394 | ||
Issuance of common stock to fund business combinations (in shares) | 17,046,159 | 17,046,159 | |||
Issuance of common stock for business combinations and asset acquisitions | $ 1,407,080 | $ 171 | 1,406,909 | ||
Stock issuance costs | (441) | (441) | |||
Net loss | (213,090) | (213,090) | |||
Accumulated other comprehensive income (loss) | 1,322 | 1,322 | |||
Ending balance (in shares) at Dec. 31, 2019 | 147,625,696 | ||||
Ending balance at Dec. 31, 2019 | $ 1,957,639 | $ 1,477 | 3,178,552 | (100) | (1,222,290) |
Increase (Decrease) in Stockholders' Equity | |||||
Shares issued to settle convertible notes (in shares) | 2,159,716 | ||||
Exercise of common stock options (in shares) | 702,907 | ||||
Exercise of common stock options | $ 27,077 | $ 7 | 27,070 | ||
Issuance of common stock to fund the Company's 401(k) match (in shares) | 136,559 | ||||
Issuance of common stock to fund the Company's 401(k) match | 12,007 | $ 1 | 12,006 | ||
Compensation expense related to issuance of stock options and restricted stock awards (in shares) | 1,665,408 | ||||
Compensation expense related to issuance of stock options and restricted stock awards | 152,906 | $ 17 | 152,889 | ||
Purchase of employee stock purchase plan shares (in shares) | 301,064 | ||||
Purchase of employee stock purchase plan shares | $ 18,355 | $ 3 | 18,352 | ||
Issuance of common stock to fund business combinations (in shares) | 386,293 | 386,293 | |||
Issuance of common stock for business combinations and asset acquisitions | $ 28,847 | $ 4 | 28,843 | ||
Issuance of common stock for registered direct offering (in shares) | 8,605,483 | ||||
Issuance of common stock for registered direct offering | 861,701 | $ 86 | 861,615 | ||
Stock issuance costs | 0 | ||||
Net loss | (823,605) | (823,605) | |||
Accumulated other comprehensive income (loss) | $ 626 | 626 | |||
Ending balance (in shares) at Dec. 31, 2020 | 159,423,410 | 159,423,410 | |||
Ending balance at Dec. 31, 2020 | $ 2,235,553 | $ 1,595 | 4,279,327 | 526 | (2,045,895) |
Increase (Decrease) in Stockholders' Equity | |||||
Shares issued to settle convertible notes (in shares) | 2,159,716 | ||||
Conversion of convertible notes, net of tax (in shares) | 580 | ||||
Conversion of convertible notes, net of tax | $ 43 | 43 | |||
Exercise of common stock options (in shares) | 1,295,400 | 1,295,104 | |||
Exercise of common stock options | $ 14,437 | $ 13 | 14,424 | ||
Issuance of common stock to fund the Company's 401(k) match (in shares) | 162,606 | ||||
Issuance of common stock to fund the Company's 401(k) match | 22,934 | $ 2 | 22,932 | ||
Compensation expense related to issuance of stock options and restricted stock awards (in shares) | 1,879,169 | ||||
Compensation expense related to issuance of stock options and restricted stock awards | 334,023 | $ 19 | 334,004 | ||
Purchase of employee stock purchase plan shares (in shares) | 331,769 | ||||
Purchase of employee stock purchase plan shares | $ 23,070 | $ 3 | 23,067 | ||
Issuance of common stock to fund business combinations (in shares) | 10,581,429 | 10,581,429 | |||
Issuance of common stock for business combinations and asset acquisitions | $ 1,355,170 | $ 106 | 1,355,064 | ||
Net loss | (595,625) | (595,625) | |||
Accumulated other comprehensive income (loss) | $ (1,969) | (1,969) | |||
Ending balance (in shares) at Dec. 31, 2021 | 173,674,067 | 173,674,067 | |||
Ending balance at Dec. 31, 2021 | $ 3,387,636 | $ 1,738 | $ 6,028,861 | $ (1,443) | $ (2,641,520) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders Equity (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (595,625) | $ (823,605) | $ (213,090) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 85,345 | 69,964 | 34,212 |
Loss on disposal of property, plant and equipment | 1,055 | 2,470 | 1,394 |
Unrealized (gain) loss on equity investments | 1,492 | (1,179) | 207 |
Deferred tax benefit | (253,169) | (6,748) | (193,605) |
Stock-based compensation | 253,063 | 152,906 | 108,483 |
Post-combination expense for acceleration of unvested equity | 80,960 | 0 | 0 |
Realized gain on preferred stock investment | (30,500) | 0 | 0 |
Loss on settlement of convertible notes | 0 | 50,819 | 187,698 |
Amortization of deferred financing costs, convertible note debt discount and issuance costs, and other liabilities | 6,683 | 1,546 | (1,758) |
Accretion (Amortization) of discount (premium) on short-term investments | 4,618 | 1,549 | (3,102) |
Amortization of acquired intangible assets | 95,001 | 93,398 | 16,035 |
Asset acquisition IPR&D expense | 85,337 | 412,568 | 0 |
Intangible asset impairment charge | 20,210 | 209,666 | 0 |
Remeasurement of contingent consideration | 6,360 | (323) | 0 |
Non-cash lease expense | 25,825 | 15,720 | 5,427 |
Changes in assets and liabilities, net of effects of acquisition: | |||
Accounts receivable, net | 25,150 | (100,526) | (27,633) |
Inventory, net | (9,221) | (30,310) | (19,041) |
Operating lease liabilities | (16,685) | (8,784) | (4,114) |
Accounts payable and accrued liabilities | 169,800 | 55,165 | 3,469 |
Other assets and liabilities | (57,935) | 42,186 | (6,237) |
Net cash provided by (used in) operating activities | (102,236) | 136,482 | (111,655) |
Cash flows from investing activities: | |||
Purchases of marketable securities | (1,164,050) | (1,089,953) | (634,117) |
Maturities of marketable securities | 794,322 | 886,675 | 1,657,204 |
Purchases of property, plant and equipment | (135,766) | (65,078) | (172,654) |
Investment in privately held companies | (18,044) | (15,947) | 0 |
Business combination, net of cash acquired | (499,730) | (6,658) | (973,861) |
Asset acquisitions, net of cash acquired | (58,073) | (411,421) | 0 |
Other investing activities | (744) | 345 | (1,000) |
Net cash used in investing activities | (1,082,085) | (702,037) | (124,428) |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible notes, net | 0 | 1,125,547 | 729,477 |
Proceeds from exercise of common stock options | 14,437 | 27,077 | 8,787 |
Proceeds from sale of common stock, net of issuance costs | 0 | 861,701 | 0 |
Proceeds in connection with the Company's employee stock purchase plan | 23,070 | 18,355 | 8,396 |
Payments on settlement of convertible notes | 0 | (150,054) | (493,356) |
Payments on construction loan | (23,749) | (1,250) | 0 |
Other financing activities | (5,286) | (1,755) | (123) |
Net cash provided by financing activities | 8,472 | 1,879,621 | 253,181 |
Effects of exchange rate changes on cash and cash equivalents | 23 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,175,826) | 1,314,066 | 17,098 |
Cash, cash equivalents and restricted cash at the beginning of period | 1,491,594 | 177,528 | 160,430 |
Cash, cash equivalents and restricted cash at the end of period | 315,768 | 1,491,594 | 177,528 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property, plant and equipment acquired but not paid | 33,177 | 2,685 | 10,265 |
Unrealized (loss) gain on available-for-sale investments | (2,162) | 771 | 1,322 |
Issuance of 162,606, 136,559, and 86,532 shares of common stock to fund the Company’s 401(k) matching contribution for 2020, 2019, and 2018, respectively | 22,934 | 12,007 | 7,409 |
Issuance of 2,159,716 shares of common stock upon settlement of convertible notes | 0 | 0 | (182,435) |
Issuance of 10,581,429, 386,293, and 17,046,159 shares of common stock in 2021, 2020, and 2019, respectively, for business combination | (1,355,170) | (28,847) | (1,407,080) |
Business acquisition contingent consideration liability | 350,348 | 0 | 0 |
Supplemental disclosure of cash flow information: | |||
Interest paid | $ 10,735 | $ 9,384 | $ 5,128 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Issuance of shares of common stock to fund the Company's 401(k) matching contribution (in shares) | 162,606 | 136,559 | 86,532 |
Shares issued to settle convertible notes (in shares) | 2,159,716 | 2,159,716 | 2,159,716 |
Issuance of common stock to fund business combinations (in shares) | 10,581,429 | 386,293 | 17,046,159 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Exact Sciences Corporation (together with its subsidiaries, “Exact,” or the “Company”) was incorporated in February 1995. Exact is a leading global cancer diagnostics company. It has developed some of the most impactful tests in cancer screening and diagnostics, including Cologuard ® and Oncotype DX ® . Exact is currently working on the development of additional tests, with the goal of bringing new innovative cancer tests to patients throughout the world. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Exact Sciences Corporation and those of its wholly-owned subsidiaries and variable interest entities. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company's financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021 and through the date of the filing of this Annual Report on Form 10-K. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, marketable and non-marketable investments, software, and the carrying value of the goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. The pandemic and related precautionary measures began to materially disrupt the Company's operations in March 2020 and may continue to disrupt the business for an unknown period of time. As a result, the pandemic had a significant impact on the Company's revenues and operating results. The ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. Cash and Cash Equivalents The Company considers cash on hand, demand deposits in a bank, money market funds, and all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities carried at amortized cost are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value. The unrealized gains and losses, net of tax, on the Company's debt securities are reported in other comprehensive income. Marketable equity securities are measured at fair value and the unrealized gains and losses, net of tax, are recognized in other income (expense) in the consolidated statements of operations. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest rate method. Such amortization is included in investment income, net. Realized gains and losses and declines in value as a result of credit losses on available-for-sale securities are included in the consolidated statements of operations as investment income, net. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in the consolidated statements of operations as investment income, net. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with a contractual term greater than one year from the date of purchase) are classified as current. The Company periodically evaluates its available-for-sale debt securities in unrealized loss positions to determine whether any impairment is a result of a credit loss or other factors. This evaluation includes, but is not limited to, significant quantitative and qualitative assessments and estimates regarding credit ratings, significance of a security’s loss position, adverse conditions specifically related to the security, and the payment structure of the security. Allowance for Doubtful Accounts The Company estimates an allowance for doubtful accounts against accounts receivable using historical collection trends, aging of accounts, current and future implications surrounding the ability to collect such as economic conditions, and regulatory changes. The allowance for doubtful accounts is evaluated on a regular basis and adjusted when trends, significant events, or other substantive evidence indicate that expected collections will be less than applicable accrual rates. At December 31, 2021 and 2020, the allowance for doubtful accounts recorded was not material to the Company's consolidated balance sheets. For the years ended December 31, 2021, 2020 and 2019, there was an immaterial amount of bad debt expense written off against the allowance and charged to operating expense. Inventory Inventory is stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first out method (“FIFO”). The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale, no longer meet quality specifications, or has a cost basis in excess of its estimated realizable value and records a charge to cost of sales for such inventory as appropriate. Direct and indirect manufacturing costs incurred during process validation with probable future economic benefit are capitalized. Validation costs incurred for other research and development activities, which are not permitted to be sold, have been expensed to research and development in the Company’s consolidated statements of operations. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Land is stated at cost and does not depreciate. Additions and improvements are capitalized, including direct and indirect costs incurred to validate equipment and bring to working conditions. Revalidation costs, including maintenance and repairs are expensed when incurred. Software Development Costs Costs related to internal use software, including hosted arrangements, are incurred in three stages: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs incurred during the application development stage that meet the criteria for capitalization are capitalized and amortized, when the software is ready for its intended use, using the straight‑line basis over the estimated useful life of the software, or the duration of the hosting agreement. Investments in Privately Held Companies The Company determines whether its investments in privately held companies are debt or equity based on their characteristics, in accordance with the applicable accounting guidance for such investments. The Company also evaluates the investee to determine if the entity is a variable interest entity (“VIE”) and, if so, whether the Company is the primary beneficiary of the VIE, in order to determine whether consolidation of the VIE is required. If consolidation is not required and the Company does not have voting control of the entity, the investment is evaluated to determine if the equity method of accounting should be applied. The equity method applies to investments in common stock or in substance common stock where the Company exercises significant influence over the investee. Investments in privately held companies determined to be equity securities are accounted for as non-marketable securities. The Company adjusts the carrying value of its non-marketable equity securities for changes from observable transactions for identical or similar investments of the same issuer, less impairment. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in investment income, net in the consolidated statements of operations. Investments in privately held companies determined to be debt securities are accounted for as available-for-sale or held-to-maturity securities, in accordance with the applicable accounting guidance for such investments. Derivative Financial Instruments The Company hedges a portion of its foreign currency exposures related to outstanding monetary assets and liabilities using foreign currency forward contracts. The foreign currency forward contracts are included in prepaid expenses and other current assets or in accrued liabilities in the consolidated balance sheets, depending on the contracts’ net position. These contracts are not designated as hedges, and as a result, changes in their fair value are recorded in other income (expense) in the consolidated statements of operations. Business Combinations and Asset Acquisitions Business Combinations are accounted for under the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The acquisition method requires identifiable assets acquired and liabilities assumed and any non-controlling interest in the business acquired be recognized and measured at fair value on the acquisition date, which is the date that the acquirer obtains control of the acquired business. The amount by which the fair value of consideration transferred as the purchase price exceeds the net fair value of assets acquired and liabilities assumed is recorded as goodwill. Acquisitions that do not meet the definition of a business combination under ASC 805 are accounted for as asset acquisitions. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Goodwill is not recognized in an asset acquisition with any consideration in excess of net assets acquired allocated to acquired assets on a relative fair value basis. Transaction costs are expensed in a business combination and are considered a component of the cost of the acquisition in an asset acquisition. Intangible Assets Purchased intangible assets are recorded at fair value. The Company uses a discounted cash flow model to value intangible assets. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital, terminal values and market participants. Patent costs are capitalized as incurred, only if the Company determines that there is some probable future economic benefit derived from the transaction. A capitalized patent is amortized over its estimated useful life, beginning when such patent is approved. Capitalized patent costs are expensed upon disapproval, upon a decision by the Company to no longer pursue the patent or when the related intellectual property is either sold or deemed to be no longer of value to the Company. The Company determined that all patent costs incurred during the years ended December 31, 2021, 2020 and 2019 should be expensed and not capitalized as the future economic benefit derived from the patent costs incurred cannot be determined. Acquired In-process Research and Development ("IPR&D") Acquired IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The value assigned to acquired IPR&D is determined by estimating the costs to develop the acquired technology into commercially viable products, estimating the resulting revenues from the projects and discounting the net cash flows to present value. The revenues and cost projections used to value acquired IPR&D are, as applicable, reduced based on the probability of success. IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related research and development ("R&D") efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. There are often major risks and uncertainties associated with IPR&D projects as the Company is required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate the products effectiveness. Consequently, the eventual realized value of the IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers various factors for potential impairment, including the current legal and regulatory environment, current and future strategic initiatives and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors' products could result in partial or full impairment of the related intangible assets. Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain regulatory and product development milestones being achieved. The Company records contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The fair value of contingent consideration is measured using projected probabilities of success, projected payment dates, present value-factors, and projected revenues (for revenue-based considerations). Changes in probabilities of success, present-value factors, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within general and administrative expenses on the Company’s consolidated statements of operations. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. Goodwill The Company evaluates goodwill for possible impairment in accordance with ASC 350 on an annual basis during the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant events and factors affecting the Company's business. Based on the qualitative assessment, if it is determined that the fair value of goodwill is more likely than not to be less than its carrying amount, the fair value of a reporting unit will be calculated and compared with its carrying amount and an impairment charge will be recognized for the amount that the carrying value exceeds the fair value. Impairment of Long-Lived Assets The Company evaluates the fair value of long-lived assets, which include property, plant and equipment, finite-lived intangible assets, and investments in privately held companies, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Accounting for Government Assistance There is no GAAP that specifically addresses the accounting by business entities for government assistance and tax credits. Absent authoritative accounting standards, interpretative guidance issued and commonly applied by financial statement preparers allows for the selection of accounting policies amongst acceptable alternatives. Based on the facts and circumstances of the government assistance and tax credits received by the Company as discussed below, the Company determined it most appropriate to account for the these transactions by analogy to International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance. IAS 20 permits for the recognition in earnings either separately under a general heading such as other income, or as a reduction of the related expenses. In April 2020, the Company received $23.7 million from the United States Department of Health and Human Services (“HHS”) as a distribution from the Public Health and Social Services Emergency Fund provided for in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The fund payments are grants, not loans, and HHS will not require repayment provided the funds are utilized to offset expenses incurred to address COVID-19 or to replace lost revenues. The Company accepted the terms and conditions of the grant in May 2020 and recognized the entire $23.7 million during the year ended December 31, 2020, due to lost revenue attributable to COVID-19. The Company has elected to recognize government grant income separately to present a clearer distinction in its consolidated financial statements between its operating income and the amount of income resulting from the CARES Act grant received. The Company believes this presentation method promotes greater comparability amongst all periods presented. Accordingly, the $23.7 million grant recognized during the year ended December 31, 2020 was reflected in other operating income in the consolidated statement of operations and as an operating activity in the consolidated statement of cash flows. In December 2021 the Company entered into an amended agreement with the Wisconsin Economic Development Corporation (“WEDC”) to earn refundable tax credits on the condition of certain capital investment and job creation requirements. The Company has elected to recognize the tax credits as a reduction of the related expenses, as they are earned through the performance of the Company’s ongoing operating activities. Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses. The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: December 31, (In thousands) 2021 2020 2019 Shares issuable in connection with acquisitions 45 157 — Shares issuable upon exercise of stock options 2,284 2,231 2,700 Shares issuable upon the release of restricted stock awards 4,321 3,968 3,801 Shares issuable upon the release of performance share units 878 619 583 Shares issuable upon conversion of convertible notes 20,309 20,309 12,196 27,837 27,284 19,280 Accounting for Stock-Based Compensation The Company requires all share-based payments to employees, including grants of employee stock options, restricted stock, restricted stock units, shares purchased under an employee stock purchase plan (if certain parameters are not met), and performance share units to be recognized in the financial statements based on their grant date fair values. Forfeitures of any share-based awards are recognized as they occur. The fair values and recognition of the Company's share-based payment awards are determined as follows: The fair value of each service-based option award is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes pricing model utilizes the following assumptions: Expected Term —Expected life of an option award is the average length of time over which the Company expects employees will exercise their options, which is based on historical experience with similar grants. Expected Volatility —Expected volatility is based on the Company’s historical stock volatility data over the expected term of the awards. Risk-Free Interest Rate —The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent expected term. The estimated fair value of these awards is recognized to expense using the straight-line method over the expected term. The fair value of service-based awards for each restricted stock unit award is determined on the date of grant using the closing stock price on that day. The estimated fair value of these awards is recognized to expense using the straight-line method over the vesting period. The fair value of performance-based equity awards is determined on the date of grant using the closing stock price on that day. The expense recognized each period is also dependent on the probability of what performance conditions will be met which is determined by management's evaluation of internal and external factors. Determining the appropriate amount to expense based on the anticipated achievement of the stated goals requires judgment, including forecasting future financial results. The estimate of the timing of the expense recognition is revised periodically based on the probability of achieving the goals and adjustments are made as appropriate. The cumulative impact of any revision is reflected in the period of the change. If the financial performance targets and operational milestones are not achieved, the award would not vest resulting in no stock-based compensation being recognized and any previously recognized stock-based compensation expense being reversed. Research and Development Costs Research and development costs are expensed as incurred. These expenses include the costs of the Company's proprietary research and development efforts, as well as costs of IPR&D projects acquired as part of an asset acquisition that have no alternative future use. Upfront and milestone payments due to third parties in connection with research and development collaborations prior to regulatory approval are expensed as incurred. Milestone payments due to third parties upon, or subsequent to, regulatory approval are capitalized and amortized into research and development costs over the shorter of the remaining license or product patent life, when there are no corresponding revenues related to the license or product. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received, rather than when the payment is made. The Company incurred research and development expenses of $385.6 million, $554.1 million, and $139.7 million during the years ended December 31, 2021, 2020, and 2019, respectively, including IPR&D of $85.3 million and $412.6 million that was acquired in asset acquisitions that had no alternative future use during the years ended December 31, 2021 and 2020, respectively. The value of the acquired IPR&D that was expensed was determined by identifying those acquired specific IPR&D projects that would be continued and which (a) were incomplete and (b) had no alternative future use. Acquired IPR&D assets that are acquired in an asset acquisition and which have no alternative future use are classified as an investing cash outflow in the consolidated statements of cash flows. Advertising Costs The Company expenses the costs of media advertising at the time the advertising takes place. The Company expensed approximately $144.0 million, $97.6 million, and $90.5 million of media advertising during the years ended December 31, 2021, 2020, and 2019, respectively, which is recorded in sales and marketing expenses on the Company's consolidated statements of operations. Fair Value Measurements The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance that requires fair value to be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under that standard, fair value measurements are separately disclosed by level within the fair value hierarchy. The fair value hierarchy establishes and prioritizes the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Leases The Company acts as lessee in its lease agreements, which include operating leases for corporate offices, laboratory space, warehouse space, vehicles and certain laboratory and office equipment, and finance leases for certain equipment and vehicles. The Company determines whether an arrangement is, or contains, a lease at inception. At the beginning of fiscal year 2019, the company adopted ASC 842. The Company records the present value of lease payments as right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments based on the present value of lease payments over the lease term. Classification of lease liabilities as either current or non-current is based on the expected timing of payments due under the Company’s obligations. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term and at an amount equal to the lease payments in a similar economic environment. The Company calculates its incremental borrowing rates for specific lease terms, used to discount future lease payments, as a function of the US. Treasury rate and an indicative Moody's rating for operating leases or finance leases. The ROU asset also consists of any lease incentives received. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. “Reasonably certain” is assessed internally based on economic, industry, company, strategic and contractual factors. The leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the lease for up to 10 years, and some of which include options to terminate the lease within 1 year. Operating lease expense and amortization of finance lease ROU assets are recognized on a straight-line basis over the lease term as an operating expense. Finance lease interest expense is recorded as interest expense on the Company’s consolidated statements of operations. The Company accounts for leases acquired in business combinations by measuring the lease liability at the present value of the remaining lease payments as if the acquired lease were a new lease for the Company. This measurement includes recognition of a lease intangible for any below-market terms present in the leases acquired. The below-market lease intangible is included in the ROU asset on the consolidated balance sheets and are amortized over the remaining lease term. The Company has not acquired any leases with above-market terms. The Company has taken advantage of certain practical expedients offered to registrants at adoption of ASC 842. The Company does not apply the recognition requirements of ASC 842 to short-term leases. Instead, those lease payments are recognized in profit or loss on a straight-line basis over the lease term. Further, as a practical expedient, all lease contracts are accounted for as one single lease component, as opposed to separating lease and non-lease components to allocate the consideration within a single lease contract. Revenue Recognition Revenues are recognized when the satisfaction of the performance obligation occurs, in an amount that reflects the consideration the Company expects to collect in exchange for those services. The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard, Oncotype DX, and COVID-19 tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The key aspects considered by the Company include the following: Contracts —The Company’s customer is primarily the patient, but the Company does not enter into a formal reimbursement contract with a patient. The Company establishes a contract with a patient in accordance with other cust |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table presents the Company's revenues disaggregated by revenue source: Year Ended December 31, (In thousands) 2021 2020 2019 Screening Medicare Parts B & C $ 438,646 $ 365,471 $ 404,331 Commercial 569,944 409,671 368,006 Other 53,718 39,925 37,783 Total Screening 1,062,308 815,067 810,120 Precision Oncology Medicare Parts B & C $ 195,069 $ 157,166 $ 24,325 Commercial 189,198 186,043 29,976 International 109,913 77,484 11,444 Other 67,496 19,800 428 Total Precision Oncology 561,676 440,493 66,173 COVID-19 Testing $ 143,103 $ 235,831 $ — Total $ 1,767,087 $ 1,491,391 $ 876,293 Screening revenue primarily includes laboratory service revenue from the Cologuard test while Precision Oncology revenue primarily includes laboratory service revenue from global Oncotype products. The downward adjustment to revenue from changes in transaction price on tests completed in the prior year was $11.8 million for the year ended December 31, 2021 and revenue recognized from changes in transaction price on tests completed in the prior year was $9.6 million and $9.9 million for the years ended December 31, 2020 and 2019, respectively. The Company had deferred revenue of $1.0 million and $25.0 million as of December 31, 2021 and 2020, respectively. As of December 31, 2020, $24.2 million of the Company’s deferred revenue balance is a result of the billing terms pursuant to the existing COVID-19 LSAs with customers. Deferred revenue is reported in other current liabilities in the Company’s consolidated balance sheets. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at December 31, 2021 and 2020: December 31, (In thousands) 2021 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 247,335 $ 901,294 Cash equivalents 68,136 589,994 Restricted cash (1) 297 306 Total cash, cash equivalents and restricted cash 315,768 1,491,594 Marketable securities Available-for-sale debt securities $ 711,669 $ 347,178 Equity securities 3,336 1,521 Total marketable securities 715,005 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,030,773 $ 1,840,293 _________________________________ (1) Restricted cash is included in other long-term assets on the consolidated balance sheets. Available-for-sale debt securities at December 31, 2021 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) (1) Losses in Accumulated Other Comprehensive Income (Loss) (1) Estimated Fair Value Cash equivalents U.S. government agency securities $ 3,543 $ — $ — $ 3,543 Commercial paper 64,593 — — 64,593 Total cash equivalents 68,136 — — 68,136 Marketable securities Corporate bonds $ 313,634 $ 13 $ (493) $ 313,154 U.S. government agency securities 250,793 — (873) 249,920 Asset backed securities 94,565 2 (107) 94,460 Certificates of deposit 47,147 2 (10) 47,139 Commercial paper 6,996 — — 6,996 Total marketable securities 713,135 17 (1,483) 711,669 Total available-for-sale debt securities $ 781,271 $ 17 $ (1,483) $ 779,805 _________________________________ (1) Gains and losses in accumulated other comprehensive income (loss) ("AOCI") are reported before tax impact. Available-for-sale debt securities at December 31, 2020 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) (1) Losses in Accumulated Other Comprehensive Income (Loss) (1) Estimated Fair Value Cash equivalents U.S. government agency securities $ 589,986 $ 8 $ — $ 589,994 Total cash equivalents 589,986 8 — 589,994 Marketable securities Corporate bonds $ 132,301 $ 612 $ — $ 132,913 U.S. government agency securities 207,119 52 — 207,171 Asset backed securities 7,070 24 — 7,094 Total marketable securities 346,490 688 — 347,178 Total available-for-sale debt securities $ 936,476 $ 696 $ — $ 937,172 _________________________________ (1) Gains and losses in AOCI are reported before tax impact. The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at December 31, 2021: Due one year or less Due after one year through five years (In thousands) Cost Fair Value Cost Fair Value Cash equivalents Commercial paper $ 64,593 $ 64,593 $ — $ — U.S. government agency securities 3,543 3,543 — — Total cash equivalents 68,136 68,136 — — Marketable securities U.S. government agency securities $ 48,113 $ 48,046 $ 202,680 $ 201,874 Corporate bonds 180,114 180,008 133,520 133,146 Asset backed securities — — 94,565 94,460 Certificates of deposit 47,147 47,139 — — Commercial paper 6,996 6,996 — — Total marketable securities 282,370 282,189 430,765 429,480 Total available-for-sale securities $ 350,506 $ 350,325 $ 430,765 $ 429,480 The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of December 31, 2021, aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Marketable securities Corporate bonds $ 299,448 $ (493) $ — $ — $ 299,448 $ (493) U.S. government agency securities 249,921 (873) — — 249,921 (873) Asset backed securities 89,990 (107) — — 89,990 (107) Certificates of deposit 24,137 (10) — — 24,137 (10) Total available-for-sale securities $ 663,496 $ (1,483) $ — $ — $ 663,496 $ (1,483) There were no available-for-sale debt securities in an unrealized loss position as of December 31, 2020. The Company evaluates investments that are in an unrealized loss position for impairment as a result of credit loss. It was determined that no credit losses exist as of December 31, 2021 and 2020 because the change in market value for those securities in an unrealized loss position has resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers. The gains and losses recorded are included in investment income, net in the Company’s consolidated statements of operations. The gains and losses recorded on available-for-sale debt securities and equity securities were not significant for the years ended December 31, 2021, 2020, and 2019. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following: December 31, (In thousands) 2021 2020 Raw materials $ 51,321 $ 43,083 Semi-finished and finished goods 53,673 49,182 Total inventory $ 104,994 $ 92,265 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The carrying value and estimated useful lives of property, plant and equipment are as follows: December 31, (In thousands) Estimated Useful Life 2021 2020 Property, plant and equipment Land n/a $ 4,716 $ 4,466 Leasehold and building improvements (1) 147,083 117,865 Land improvements 15 years 5,206 4,864 Buildings 30 - 40 years 210,560 200,980 Computer equipment and computer software 3 years 109,119 75,519 Laboratory equipment 3 - 10 years 189,748 142,110 Furniture and fixtures 3 - 10 years 28,293 24,968 Assets under construction n/a 100,339 18,751 Property, plant and equipment, at cost 795,064 589,523 Accumulated depreciation (214,816) (137,537) Property, plant and equipment, net $ 580,248 $ 451,986 _________________________________ (1) Lesser of remaining lease term, building life, or estimated useful life. Depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $85.3 million, $70.0 million, and $34.2 million, respectively. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The following table summarizes the net-book-value and estimated remaining life of the Company's intangible assets as of December 31, 2021: (In thousands) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Balance at December 31, 2021 Finite-lived intangible assets Trade name 13.4 $ 104,700 $ (13,554) $ 91,146 Customer relationships 9.6 6,700 (1,577) 5,123 Patents and licenses 3.6 10,942 (6,763) 4,178 Supply agreement 5.4 2,295 (101) 2,194 Acquired developed technology 8.6 918,171 (176,402) 741,769 Total finite-lived intangible assets 1,042,808 (198,397) 844,411 In-process research and development n/a 1,250,000 — 1,250,000 Total intangible assets $ 2,292,808 $ (198,397) $ 2,094,411 The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2020: (In thousands) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Balance at December 31, 2020 Finite-lived intangible assets Trade name 14.9 $ 100,700 $ (7,258) $ 93,442 Customer relationships 12.8 2,700 (404) 2,296 Patents 3.7 10,441 (5,422) 5,019 Supply agreement 6.5 30,000 (4,527) 25,473 Acquired developed technology 9.0 814,171 (93,278) 720,893 Total intangible assets $ 958,012 $ (110,889) $ 847,123 As of December 31, 2021, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: (In thousands) 2022 $ 98,614 2023 98,611 2024 98,277 2025 97,230 2026 96,169 Thereafter 355,510 $ 844,411 The Company’s acquired intangible assets are being amortized on a straight-line basis over the estimated useful life. During the third quarter of 2021 and in connection with the preparation of the financial statements included in the Company's Form 10-Q for the period ended September 30, 2021, the Company recorded a non-cash, pre-tax impairment loss of $20.2 million related to the supply agreement intangible asset that was initially recorded as part of the combination with Genomic Health due to lower than anticipated performance of the underlying product. The Company utilized the income approach to measure the fair value of the supply agreement, which involves significant unobservable inputs (Level 3 inputs). The impairment is recorded in intangible asset impairment charge in the consolidated statement of operations for the year ended December 31, 2021. During the third quarter of 2020, the Company began discussions with Biocartis regarding the termination of its agreements with Biocartis related to the development of an in vitro diagnostic (“IVD”) version of the Oncotype DX Breast Recurrence Score ® test. As a result, and in connection with the preparation of the financial statements included in the Company's Form 10-Q for the period ended September 30, 2020, the Company recorded a non-cash, pre-tax impairment loss of $200.0 million related to the in-process research and development intangible asset that was initially recorded as part of the combination with Genomic Health. The impairment is recorded in intangible asset impairment charge in the consolidated statement of operations for the year ended December 31, 2020. The agreements with Biocartis were terminated in November 2020. During the third quarter of 2020, the Company abandoned certain research and development assets acquired in 2017 through an asset purchase agreement with Armune Biosciences, Inc. These assets were expected to complement the Company’s product pipeline and were expected to have alternative future uses at the time of acquisition; however, due to changes in strategic priorities and efforts during the third quarter of 2020, these assets are no longer expected to be utilized to advance the Company’s product pipeline. As a result, and in connection with the preparation of the financial statements included in the Company's Form 10-Q for the period ended September 30, 2020, the Company wrote-off the gross cost basis of the intangible asset of $12.2 million and accumulated amortization of $2.5 million as of September 30, 2020. This write-off resulted in a non-cash, pre-tax impairment loss of $9.7 million, which is recorded in intangible asset impairment charge in the consolidated statement of operations for the year ended December 31, 2020. There were no impairment losses for the year ended December 31, 2019. Goodwill The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 is as follows: (In thousands) Balance, January 1, 2020 (1) $ 1,203,197 Paradigm & Viomics acquisition 30,431 Genomic Health acquisition adjustment (2) 4,044 Balance, December 31, 2020 1,237,672 Thrive acquisition 948,105 Ashion acquisition 56,758 PreventionGenetics acquisition 92,637 Balance, December 31, 2021 $ 2,335,172 _________________________________ (1) The beginning balance represents the goodwill acquired from the acquisitions of Sampleminded, Inc., Biomatrica, Inc., and Genomic Health between 2017 and 2019 totaling $2.0 million, $15.3 million, and $1.19 billion, respectively. (2) The Company recognized a measurement period adjustment to goodwill related to an increase in Genomic Health's pre-acquisition deferred tax liability due to finalization of certain income-tax related items. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The three levels of the fair value hierarchy established are as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. The following table presents the Company’s fair value measurements as of December 31, 2021 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair value at December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash, cash equivalents, and restricted cash Cash and money market $ 247,335 $ 247,335 $ — $ — Commercial paper 64,593 — 64,593 — U.S. government agency securities 3,543 — 3,543 — Restricted cash 297 297 — — Marketable securities Corporate bonds $ 313,154 $ — $ 313,154 $ — U.S. government agency securities 249,920 — 249,920 — Asset backed securities 94,460 — 94,460 — Certificates of deposit 47,139 — 47,139 — Commercial paper 6,996 — 6,996 — Equity securities 3,336 3,336 — — Non-marketable securities $ 3,090 $ — $ — $ 3,090 Liabilities Contingent consideration $ (359,021) $ — $ — $ (359,021) Total $ 674,842 $ 250,968 $ 779,805 $ (355,931) The following table presents the Company’s fair value measurements as of December 31, 2020 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents Cash and money market $ 901,294 $ 901,294 $ — $ — U.S. government agency securities 589,994 — 589,994 — Restricted cash 306 306 — — Marketable securities Corporate bonds $ 132,913 $ — $ 132,913 $ — Asset backed securities 7,094 — 7,094 — U.S. government agency securities 207,171 — 207,171 — Equity securities 1,521 1,521 — — Liabilities Contingent consideration $ (2,477) $ — $ — $ (2,477) Total $ 1,837,816 $ 903,121 $ 937,172 $ (2,477) The equity securities held as of December 31, 2021 were subject to a short-term lock-up restriction after they were obtained in the second quarter of 2021, and the fair value was previously discounted from the observable market prices of the similar unrestricted equity securities, which the Company classified as a Level 2 investment. The lock-up restriction ended during the fourth quarter of 2021, and the equity securities are classified as a Level 1 investment as of December 31, 2021. There was no change in valuation techniques or transfers between fair value measurement levels during the year ended December 31, 2020. The fair value of Level 2 instruments classified as cash equivalents and marketable debt securities are valued using a third-party pricing agency where the valuation is based on observable inputs including pricing for similar assets and other observable market factors. Contingent Consideration The fair value of contingent consideration as of December 31, 2021 and 2020 was $359.0 million and $2.5 million, respectively, which was recorded in other long-term liabilities in the condensed consolidated balance sheets. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: (In thousands) Contingent consideration Balance, January 1, 2020 (1) $ (2,879) Changes in fair value 325 Payments 77 Balance, December 31, 2020 (2,477) Purchase price contingent consideration (2) (350,348) Changes in fair value (6,359) Payments 163 Balance, December 31, 2021 $ (359,021) _________________________________ (1) The change in fair value of the contingent consideration liability during the year ended December 31, 2019 was not material to the consolidated financial statements. (2) The increase in the contingent consideration liability is due to the contingent consideration associated with the acquisitions of Ashion Analytics, LLC (“Ashion”) and Thrive. Refer to Note 19 for further information. This fair value measurement of contingent consideration is categorized as a Level 3 liability, as the measurement amount is based primarily on significant inputs not observable in the market. The fair value of the contingent consideration liability recorded related to regulatory and product development milestones associated with the Thrive and Ashion acquisitions was $357.8 million as of December 31, 2021. The Company evaluates the fair value of the regulatory and product development contingent consideration liabilities using the probability-weighted scenario based discounted cash flow model, which is consistent with the initial measurement of the expected contingent consideration liabilities. Probabilities of success are applied to each potential scenario and the resulting values are discounted using a rate that considers a present-value factor. The passage of time in addition to changes in projected milestone achievement timing, present-value factor, the degree of achievement if applicable, and probabilities of success may result in adjustments to the fair value measurement. The fair value measurements of contingent consideration for which a liability is recorded include significant unobservable inputs. As of December 31, 2021, the fair value of the contingent consideration liability recorded related to regulatory and product development milestones was determined using a weighted average probability of success of 90.5% and a weighted average present-value factor of 2.3%. The projected fiscal year of payment range is from 2024 to 2027. Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. The fair value of the contingent consideration earnout liability related to certain revenue milestones associated with the Biomatrica acquisition was $1.2 million as of December 31, 2021. The revenue milestone associated with the Ashion acquisition is not expected to be achieved and therefore no liability has been recorded for this milestone. Non-Marketable Equity Investments As of December 31, 2021 and 2020, the aggregate carrying amounts of the Company’s non-marketable equity securities without readily determinable fair values were $25.3 million and $28.3 million, respectively, which are classified as a component of other long-term assets in the Company’s consolidated balance sheets. There have been no downward or upward adjustments made on these investments since initial recognition. The Company has committed capital to venture capital investment funds (the “Funds”) of $17.5 million, of which $16.0 million remained callable through 2033 as of December 31, 2021. The aggregate carrying amount of the Funds, which are classified as a component of other long-term assets in the Company's consolidated balance sheets, were $1.5 million and $0.8 million as of December 31, 2021 and 2020, respectively. Derivative Financial Instruments |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities at December 31, 2021 and 2020 consisted of the following: December 31, (In thousands) 2021 2020 Compensation $ 183,517 $ 124,654 Pfizer Promotion Agreement related costs 91,436 46,937 Professional fees 50,077 36,203 Other 32,116 13,064 Assets under construction 22,611 2,118 Research and trial related expenses 15,534 6,111 Licenses 3,265 4,517 $ 398,556 $ 233,604 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Construction Loan Agreement During December 2017, the Company entered into a loan agreement with Fifth Third Bank (formerly MB Financial Bank, N.A.) (the “Construction Loan Agreement”), which provided the Company with a non-revolving construction loan (the “Construction Loan”) of $25.6 million. The Company used the Construction Loan proceeds to finance the construction of an additional clinical laboratory and related facilities in Madison, Wisconsin. The Construction Loan was collateralized by the additional clinical laboratory and related facilities. In November 2021, the Company entered into a revolving loan agreement (the “Revolving Loan Agreement”) with PNC Bank, National Association (“PNC”). As part of the Revolving Loan Agreement, the Company agreed to repay in full all outstanding debt owed to Fifth Third Bank under the Construction Loan Agreement, and as of December 31, 2021, the remaining outstanding balance had been fully repaid in connection with the termination of the Construction Loan Agreement. Prior to the repayment, the Construction Loan Agreement bore interest at a rate equal to the sum of the 1-month LIBOR rate plus 2.25%. Regular monthly payments were interest-only for the first 24 months, with further payments based on a 20-year amortization schedule. Amounts borrowed pursuant to the Construction Loan Agreement could be prepaid at any time without penalty, and the maturity date of the Construction Loan Agreement would have been December 10, 2022. In November 2017, Fifth Third Bank, on behalf of the Company, issued an Irrevocable Standby Letter of Credit in the amount of $0.6 million in favor of the City of Madison, Wisconsin (the “City Letter of Credit”). The City Letter of Credit was deemed to have been issued pursuant to the Construction Loan Agreement. The amount of the City Letter of Credit reduced, dollar for dollar, the amount available for borrowing under the Construction Loan Agreement. As a condition to Fifth Third’s initial advance of loan proceeds under the Construction Loan Agreement, the Company was required to first invest at least $16.4 million of its own cash into the construction project. The Company fulfilled its required initial investment and made its first draw on the Construction Loan in June 2018. In December 2019, the Company began making monthly payments towards the outstanding principal balance plus accrued interest. As of December 31, 2020, the outstanding balance was $23.8 million from the Construction Loan, including $0.7 million of interest incurred, which was accrued for as an interest reserve and represents a portion of the loan balance. The Company capitalized the $0.7 million of interest to the construction project. The Company incurred approximately $0.2 million of debt issuance costs related to the Construction Loan, which were recorded as a direct deduction from the liability. The debt issuance costs were being amortized over the life of the Construction Loan, and any unamortized issuance costs were recorded as a loss as of the date of the repayment of the loan in November 2021. The carrying amount of the Construction Loan approximated fair value due to the short maturity of this instrument. The Construction Loan was privately held with no public market for this debt and therefore was classified as a Level 3 fair value measurement. The change in the fair value during the years ended December 31, 2021 and December 31, 2020 was due to payments made on the loan resulting in a decrease in the liability. Revolving Loan Agreement During November 2021, the Company entered into the Revolving Loan Agreement with PNC. The Revolving Loan Agreement provides the Company with a revolving line of credit of up to $150.0 million (the “Revolver”). The Revolver is collateralized by the Company’s marketable securities held by PNC, which must continue to maintain a minimum market value of $150.0 million. The Revolver is available for general working capital purposes and all other lawful corporate purposes. In addition, the Company may request, in lieu of cash advances, letters of credit with an aggregate stated amount outstanding not to exceed $20.0 million. The availability of advances under the line of credit will be reduced by the stated amount of each letter of credit issued and outstanding. Borrowings under the Revolving Loan Agreement accrue interest at an annual rate equal to the sum of the daily Bloomberg Short-Term Bank Yield Index Rate plus the applicable margin of 0.60%. Loans under the Revolving Loan Agreement may be prepaid at any time without penalty. The Revolver’s maturity date is November 5, 2023. The Company has agreed in the Revolving Loan Agreement to various financial covenants, and as of December 31, 2021, the Company is in compliance with all covenants. During the fourth quarter of 2021, PNC issued a letter of credit of $2.9 million, which reduced the amount available for cash advances under the line of credit to $147.1 million as of December 31, 2021. As of December 31, 2021, the Company has not drawn funds from, nor are any amounts outstanding under, the Revolving Loan Agreement. Tax Increment Financing Loan Agreements The Company entered into two separate Tax Increment Financing Loan Agreements (“TIFs”) in February 2019 and June 2019 with the City of Madison, Wisconsin. The TIFs provide for $4.6 million of financing in the aggregate. In return for the loans, the Company is obligated to create and maintain 500 full-time jobs over a five-year period, starting on the date of occupancy of the buildings constructed. In the event that the job creation goals are not met, the Company would be required to pay a penalty. The Company records the earned financial incentives as the full-time equivalent positions are filled. The amount earned is recorded as a liability and amortized as a reduction of operating expenses over a two-year period, which is the timeframe when the TIFs will be repaid through property taxes. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE DEBT | |
CONVERTIBLE NOTES | CONVERTIBLE NOTES Convertible note obligations included in the consolidated balance sheet consisted of the following as of December 31, 2021: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (18,826) $ 1,131,174 $ 1,139,650 2 2027 Convertible notes - 0.375% 747,500 (11,691) 735,809 771,794 2 2025 Convertible notes - 1.000% (1) 315,005 (1,756) 313,249 415,473 2 Convertible note obligations included in the consolidated balance sheet consisted of the following as of December 31, 2020: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,879) $ 1,128,121 $ 1,526,625 2 2027 Convertible notes - 0.375% 747,500 (13,937) 733,563 992,306 2 2025 Convertible notes - 1.000% (1) 315,049 (2,333) 312,716 601,744 2 ____________________________ (1) Based on the Company's share price on the trading days leading up to December 31, 2020 and through the third quarter of 2021, holders of the 2025 Convertible Notes had the right to convert their debentures beginning on January 1, 2021 and ending on December 31, 2021. As a result, the 2025 Convertible Notes were included within convertible notes, net, current portion on the consolidated balance sheet as of December 31, 2020. Some holders did convert their debentures, resulting in a decrease of the principal amount of the 2025 Convertible Notes. As of December 31, 2021, the 2025 Convertible Notes are not convertible and included within long-term convertible notes, net on the consolidated balance sheet. (2) The fair values are based on observable market prices for this debt, which is traded in less active markets and therefore is classified as a Level 2 fair value measurement. Issuances and Settlements In January 2018, the Company issued and sold $690.0 million in aggregate principal amount of 1.0% Convertible Notes (the “January 2025 Notes”) with a maturity date of January 15, 2025. The January 2025 Notes accrue interest at a fixed rate of 1.0% per year, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018. The net proceeds from the issuance of the January 2025 Notes were approximately $671.1 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In June 2018, the Company issued and sold an additional $218.5 million in aggregate principal amount of 1.0% Convertible Notes (the “June 2025 Notes”). The June 2025 Notes were issued under the same indenture pursuant to which the Company previously issued the January 2025 Notes (the “Indenture”). The January 2025 Notes and the June 2025 Notes (collectively, the “2025 Notes”) have identical terms (including the same January 15, 2025 maturity date) and are treated as a single series of securities. The net proceeds from the issuance of the June 2025 Notes were approximately $225.3 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In March 2019, the Company issued and sold $747.5 million in aggregate principal amount of 0.375% Convertible Notes (the “2027 Notes”) with a maturity date of March 15, 2027. The 2027 Notes accrue interest at a fixed rate of 0.375% per year, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The net proceeds from the issuance of the 2027 Notes were approximately $729.5 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. The Company utilized a portion of the proceeds from the issuance of the 2027 Notes to settle a portion of the 2025 Notes in privately negotiated transactions. In March 2019, the Company used cash of $494.1 million and an aggregate of 2.2 million shares of the Company’s common stock valued at $182.4 million for total consideration of $676.5 million to settle $493.4 million of the 2025 Notes, of which $0.7 million was used to pay off interest accrued on the 2025 Notes. The transaction resulted in a loss on settlement of convertible notes of $187.7 million, which is reflected in interest expense in the Company’s consolidated statement of operations. The loss represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of repurchase. In February 2020, the Company issued and sold $1.15 billion in aggregate principal amount of 0.375% Convertible Notes (the “2028 Notes” and, collectively with the 2025 Notes and the 2027 Notes, the “Notes”) with a maturity date of March 1, 2028. The 2028 Notes accrue interest at a fixed rate of 0.375% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2020. The net proceeds from the issuance of the 2028 Notes were approximately $1.13 billion, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In February 2020, the Company used $150.1 million of the proceeds from the issuance of the 2028 Notes to settle $100.0 million of the 2025 Notes, of which $0.1 million was used to pay off interest accrued on the 2025 Notes. The transaction resulted in a loss on settlement of convertible notes of $50.8 million, which is recorded in interest expense in the Company’s consolidated statement of operations. The loss represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of repurchase. Summary of Conversion Features Until the six-months immediately preceding the maturity date of the applicable series of Notes, each series of Notes is convertible only upon the occurrence of certain events and during certain periods, as set forth in the Indentures filed at the time of the original offerings. On or after the date that is six-months immediately preceding the maturity date of the applicable series of Notes until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert such Notes at any time. The Notes will be convertible into cash, shares of the Company’s common stock (plus, if applicable, cash in lieu of any fractional share), or a combination of cash and shares of the Company’s common stock, at the Company’s election. It is the Company’s intent and policy to settle all conversions through combination settlement. The initial conversion rate is 13.26, 8.96, and 8.21 shares of common stock per $1,000 principal amount for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively, which is equivalent to an initial conversion price of approximately $75.43, $111.66, and $121.84 per share of the Company’s common stock for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively. The 2025 Notes, 2027 Notes, and 2028 Notes may be convertible in up to 4.2 million, 6.7 million, and 9.4 million shares, respectively. The conversion rate is subject to adjustment upon the occurrence of certain specified events as set forth in the Indentures filed at the time of the original offerings but will not be adjusted for accrued and unpaid interest. In addition, holders of the Notes who convert their Notes in connection with a “make-whole fundamental change” (as defined in the Indenture), will, under certain circumstances, be entitled to an increase in the conversion rate. If the Company undergoes a “fundamental change” (as defined in the Indenture), holders of the Notes may require the Company to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest. Based on the closing price of the Company's common stock of $77.83 on December 31, 2021, the if-converted values on the Company's 2025 Notes exceed the principal amount by $10.0 million and the if-converted values of the 2027 Notes and 2028 Notes do not exceed the principal amount. Ranking of Convertible Notes The Notes are the Company’s senior unsecured obligations and (i) rank senior in right of payment to all of its future indebtedness that is expressly subordinated in right of payment to the Notes; (ii) rank equal in right of payment to each outstanding series thereof and to all of the Company’s future liabilities that are not so subordinated, unsecured indebtedness; (iii) are effectively junior to all of the Company's existing and future secured indebtedness and other secured obligations, to the extent of the value of the assets securing that indebtedness and other secured obligations; and (iv) are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries. Issuance costs are amortized to interest expense over the term of the Notes. The following table summarizes the original issuance costs at the time of issuance for each set of Notes: (In thousands) January 2025 Notes $ 10,284 June 2025 Notes 7,362 2027 Notes 14,285 2028 Notes 24,453 The Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company. Interest expense includes the following: Year Ended December 31, (In thousands) 2021 2020 2019 Debt issuance costs amortization $ 5,727 $ 5,303 $ 2,891 Debt discount amortization 147 131 (131) Loss on settlement of convertible notes — 50,819 187,698 Coupon interest expense 10,266 9,631 6,611 Total interest expense on convertible notes 16,140 65,884 197,069 Other interest expense 2,466 2,057 2,123 Total interest expense $ 18,606 $ 67,941 $ 199,192 |
LICENSE AND COLLABORATION AGREE
LICENSE AND COLLABORATION AGREEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
LICENSE AGREEMENTS [Abstract] | |
LICENSE AND COLLABORATION AGREEMENTS | LICENSE AND COLLABORATION AGREEMENTS The Company licenses certain technologies that are, or may be, incorporated into its technology under several license agreements, as well as the rights to commercialize certain diagnostic tests through collaboration agreements. Generally, the license agreements require the Company to pay single-digit royalties based on net revenues received using the technologies and may require minimum royalty amounts, milestone payments, or maintenance fees. Mayo In June 2009, the Company entered into a license agreement with the Mayo Foundation for Medical Education and Research (“Mayo”). The Company’s license agreement with Mayo was most recently amended and restated in September 2020. Under the license agreement, Mayo granted the Company an exclusive, worldwide license to certain Mayo patents and patent applications, as well as a non-exclusive, worldwide license with regard to certain Mayo know-how. The scope of the license covers any screening, surveillance or diagnostic test or tool for use in connection with any type of cancer, pre-cancer, disease or condition. The licensed Mayo patents and patent applications contain both method and composition claims that relate to sample processing, analytical testing and data analysis associated with nucleic acid screening for cancers and other diseases. The jurisdictions covered by these patents and patent applications include the U.S., Australia, Canada, the European Union, China, Japan and Korea. Under the license agreement, the Company assumed the obligation and expense of prosecuting and maintaining the licensed Mayo patents and is obligated to make commercially reasonable efforts to bring to market products using the licensed Mayo intellectual property. Pursuant to the Company’s agreement with Mayo, the Company is required to pay Mayo a single-digit royalty on the Company’s net sales of current and future products using the licensed Mayo intellectual property each year during the term of the Mayo agreement. In addition to the royalties described above, the Company is required to pay Mayo cash of $0.2 million, $0.8 million and $2.0 million upon each product using the licensed Mayo intellectual property reaching $5.0 million, $20.0 million and $50.0 million in cumulative net sales, respectively. As part of the most recent amendment, the Company agreed to pay Mayo an additional $6.3 million, payable in five equal annual installments, through 2024. The annual installments are recorded in research and development expenses in the Company's consolidated statements of operations. The license agreement will remain in effect, unless earlier terminated by the parties in accordance with the agreement, until the last of the licensed patents expires in 2039 (or later, if certain licensed patent applications are issued). However, if the Company is still using the licensed Mayo know-how or certain Mayo-provided biological specimens or their derivatives on such expiration date, the term shall continue until the earlier of the date the Company stops using such know-how and materials and the date that is five years after the last licensed patent expires. The license agreement contains customary termination provisions and permits Mayo to terminate the license agreement if the Company sues Mayo or its affiliates, other than any such suit claiming an uncured material breach by Mayo of the license agreement. In addition to granting the Company a license to the covered Mayo intellectual property, Mayo provides the Company with product development and research and development assistance pursuant to the license agreement and other collaborative arrangements. In September 2020, Mayo also agreed to make available certain personnel to provide such assistance through January 2025. In connection with this collaboration, the Company incurred charges of $5.0 million, $3.9 million, and $4.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. The charges incurred in connection with this collaboration are recorded in research and development expenses in the Company's consolidated statements of operations. Biocartis In September 2017, Genomic Health entered into an exclusive license and development agreement with Biocartis, a molecular diagnostics company based in Belgium, to develop and commercialize an IVD version of the Oncotype DX Breast Recurrence Score test on the Biocartis Idylla platform. Under the terms of the license and development agreement, the Company had an exclusive, worldwide, royalty-bearing license to develop and commercialize an IVD version of the Oncotype DX Breast Recurrence Score test on the Biocartis Idylla platform, and certain options to expand the collaboration. In October 2020, the Company and Biocartis agreed to terminate all agreements between them with a mutual release. As part of the termination, the Company made a payment of $12.0 million and returned certain equipment to Biocartis. The remaining net book value of the equipment was previously written off when it was determined that the agreement with Biocartis would be terminated. The termination payment and equipment write-off are both recorded in general and administrative expenses on the Company's consolidated statement of operations. Johns Hopkins University (“JHU”) Through the acquisition of Thrive, the Company acquired a worldwide exclusive license agreement with JHU for use of several JHU patents and licensed know-how. The license is designed to enable the Company to leverage JHU proprietary data in the development and commercialization of a blood-based, multi-cancer early detection test. The agreement terms include single-digit sales-based royalties and sales-based milestone payments of $10.0 million, $15.0 million, and $20.0 million upon achieving calendar year licensed product revenue using JHU proprietary data of $0.50 billion, $1.00 billion, and $1.50 billion, respectively. |
PFIZER PROMOTION AGREEMENT
PFIZER PROMOTION AGREEMENT | 12 Months Ended |
Dec. 31, 2021 | |
PFIZER PROMOTION AGREEMENT | |
PFIZER PROMOTION AGREEMENT | PFIZER PROMOTION AGREEMENTIn August 2018, the Company entered into a Promotion Agreement (the “Original Promotion Agreement”) with Pfizer, Inc. (“Pfizer”), which was amended and restated in October 2020 (the “Restated Promotion Agreement”). The Restated Promotion Agreement extended the relationship between the Company and Pfizer and restructured the manner in which the Company compensated Pfizer for promotion of the Cologuard test through a service fee, and provision of certain other sales and marketing services related to the Cologuard test. The Restated Promotion Agreement included fixed and performance-related fees, some of which retroactively went into effect on April 1, 2020. In November 2021, the Company and Pfizer entered into an amendment to the Restated Promotion Agreement (the “November 2021 Amendment”), which provides that after November 30, 2021, Pfizer will no longer promote the Cologuard test to healthcare providers. The November 2021 Amendment provides that the Company will pay Pfizer a total of $35.9 million in three installments during the second, third, and fourth quarters of 2022. The November 2021 Amendment eliminates the Company's obligation to pay Pfizer royalties or other fees except for certain media fees, advertising fees, and any detail fees owed to Pfizer for promoting the Cologuard test prior to November 30, 2021. The $35.9 million fee incurred as a result of the November 2021 Amendment was recognized in full during the fourth quarter of 2021. All payments to Pfizer are recorded in sales and marketing expenses in the Company's consolidated statements of operations.Under the Original Promotion Agreement, the service fee was calculated based on incremental gross profits over specified baselines during the term. Under the Restated Promotion Agreement (and prior to giving effect to the November 2021 Amendment), the service fee provided a fee-for-service model that included certain fixed fees and performance-related bonuses. The performance-related bonuses were contingent upon the achievement of certain annual performance criteria with any applicable expense being recognized ratably upon achievement of the payment becoming probable. The Company incurred charges of $81.3 million, $51.2 million, and $68.5 million for the service fee during the years ended December 31, 2021, 2020 and 2019, respectively. The Company incurred charges of $121.0 million, $85.3 million, and $68.9 million for promotion, sales and marketing services performed by Pfizer on behalf of the Company during the years ended December 31, 2021, 2020 and 2019, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Amendment to Certificate of Incorporation In July 2020, the Company filed a Certificate of Amendment (the “Certificate of Amendment”) to its Sixth Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the number of authorized shares of the Company’s common stock from 200 million to 400 million shares. The Certificate of Amendment was approved by the Company’s stockholders at the Company’s 2020 annual meeting in July 2020. PreventionGenetics LLC (“PreventionGenetics”) Acquisition Stock Issuance In December 2021, the Company completed its acquisition of PreventionGenetics. In connection with the acquisition, which is further described in Note 19, the Company issued 1.1 million shares of the Company's common stock that had a fair value of $84.2 million. Ashion Acquisition Stock Issuance In April 2021, the Company completed its acquisition of Ashion. In connection with the acquisition, which is further described in Note 19, the Company issued 0.1 million shares of the Company's common stock that had a fair value of $16.2 million. Thrive Acquisition Stock Issuance In January 2021, the Company completed its acquisition of Thrive. In connection with the acquisition, which is further described in Note 19, the Company issued 9.3 million shares of the Company's common stock that had a fair value of $1.19 billion. Targeted Digital Sequencing (“TARDIS”) License Acquisition Stock Issuance In January 2021, the Company acquired a worldwide exclusive license to the TARDIS technology from The Translational Genomics Research Institute (“TGen”), which is further described in Note 19. As part of the consideration transferred, the Company issued 0.2 million shares of the Company's common stock that had a fair value of $27.3 million. Registered Direct Offering In October 2020, the Company entered into securities purchase agreements with a limited number of institutional investors for the registered direct offering of 8.6 million shares of common stock at a price of $101.00 per share. The Company received, in the aggregate, approximately $861.7 million of net proceeds from the offering, after deducting $7.5 million for the offering expenses and other stock issuance costs paid by the Company. Paradigm Diagnostics, Inc. ("Paradigm") and Viomics, Inc. ("Viomics") Acquisition Stock Issuance In March 2020, the Company completed the acquisitions of Paradigm and Viomics. The purchase price for these acquisitions consisted of cash and stock with a fair value of $40.4 million. Of the $40.4 million purchase price, $32.2 million is expected to be settled through the issuance of 0.4 million shares of common stock. Of the $32.2 million that will be settled through the issuance of common stock, $28.8 million was issued as of December 31, 2021, and the remainder was withheld and may become issuable as additional merger consideration subject to the terms and conditions of the acquisition agreements. Changes in Accumulated Other Comprehensive Income (Loss) The amount recognized in AOCI for the years ended December 31, 2021, 2020 and 2019 were as follows: (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Securities Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ (25) $ (1,397) $ (1,422) Other comprehensive income (loss) before reclassifications — 681 681 Amounts reclassified from accumulated other comprehensive income (loss) — 641 641 Net current period change in accumulated other comprehensive income (loss) (1) — 1,322 1,322 Balance at December 31, 2019 $ (25) $ (75) $ (100) Other comprehensive income (loss) before reclassifications — 771 771 Amounts reclassified from accumulated other comprehensive income (loss) 25 — 25 Net current period change in accumulated other comprehensive income (loss) 25 771 796 Income tax expense related to items of other comprehensive income (loss) — (170) (170) Balance at December 31, 2020 $ — $ 526 $ 526 Other comprehensive income (loss) before reclassifications 23 (1,648) (1,625) Amounts reclassified from accumulated other comprehensive income (loss) — (514) (514) Net current period change in accumulated other comprehensive income (loss) 23 (2,162) (2,139) Income tax expense related to items of other comprehensive income (loss) — 170 170 Balance at December 31, 2021 $ 23 $ (1,466) $ (1,443) _________________________________ (1) There was no tax impact from the amounts recognized in AOCI for the year ended December 31, 2019. Amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, Details about AOCI Components (In thousands) Affected Line Item in the 2021 2020 2019 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income $ (514) $ — $ 641 Foreign currency adjustment General and administrative — 25 — Total reclassifications $ (514) $ 25 $ 641 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation Plans The Company maintains the following plans for which awards were granted from or had shares outstanding in 2021: the 2010 Omnibus Long-Term Incentive Plan (As Amended and Restated Effective July 27, 2017), the 2019 Omnibus Long-Term Incentive Plan, the 2010 Employee Stock Purchase Plan, and the 2016 Inducement Award Plan. These plans are collectively referred to as the “Stock Plans”. The Stock Plans are administered by the Human Capital Committee of the Company’s Board of Directors. The 2019 Omnibus Long-Term Incentive Plan provides that upon an acquisition of the Company, all equity will accelerate by a period of one year. In addition, upon the termination of an employee without cause or for good reason prior to the first anniversary of the completion of the acquisition, all equity awards then outstanding under the respective plan held by that employee will immediately vest. 2019 Omnibus Long-Term Incentive Plan. The Company adopted the 2019 Omnibus Long-Term Incentive Plan (the “2019 Stock Plan”) on July 25, 2019 to grant share-based awards to employees, officers, directors, consultants and advisors. Awards granted under the 2019 Stock Plan may include incentive stock options, as defined under the Internal Revenue Code, non-qualified options, restricted stock awards and other stock awards in amounts and with terms and conditions determined by the human capital committee of the Company’s Board of Directors, subject to the provisions of the 2019 Stock Plan. The 2019 Stock Plan will expire on July 25, 2029 and after such date no further awards may be granted under the plan. Options granted under the 2019 Stock Plan expire ten years from the date of grant. Grants made from the 2019 Stock Plan generally vest over a period of three 2010 Omnibus Long-Term Incentive Plan. The Company adopted the 2010 Omnibus Long-Term Incentive Plan (the “2010 Stock Plan”) on July 16, 2010 to grant share-based awards to employees, officers, directors, consultants and advisors. Awards granted under the 2010 Stock Plan may include incentive stock options, as defined under the Internal Revenue Code, non-qualified options, restricted stock awards and other stock awards in amounts and with terms and conditions determined by the human capital committee of the Company’s Board of Directors, subject to the provisions of the 2010 Stock Plan. The 2010 Stock Plan expired on July 16, 2020 and after such date no further awards may be granted under the plan. Options granted under the 2010 Stock Plan expire ten years from the date of grant. Grants made from the 2010 Stock Plan generally vest over a period of three 2016 Inducement Award Plan. The Company adopted the 2016 Inducement Award Plan (the “2016 Inducement Plan”) on January 25, 2016 to grant share-based awards to employees who were not previously an employee of the Company or any of its Subsidiaries. Awards granted under the 2016 Inducement Plan may include grant incentive stock options, as defined under the Internal Revenue Code, non-qualified options, restricted stock awards and other stock awards in amounts and with terms and conditions determined by the Human Capital committee of the Company’s Board of Directors, subject to the provisions of the 2016 Inducement Plan. The 2016 Inducement Plan expired on July 27, 2017, and after such date no further awards could be granted under the plan. Options granted under the 2016 Inducement Plan expire ten years from the date of grant. Grants made from the 2016 Inducement Plan generally vest over a period of three 2010 Employee Stock Purchase Plan. The 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”) was adopted by the Company on July 16, 2010 to provide participating employees the right to purchase shares of common stock at a discount through a series of offering periods. The 2010 Purchase Plan will expire on October 31, 2030. The Company’s stockholders approved amendments to the 2010 Employee Stock Purchase Plan to increase the number of shares available for purchase thereunder by 500,000 shares and 2,000,000 shares on July 24, 2014 and July 28, 2016, respectively. At December 31, 2021, there were 427,246 shares of common stock available for purchase by participating employees under the 2010 Purchase Plan. Generally, all employees whose customary employment is more than 20 hours per week and more than five months in any calendar year are eligible to participate in the 2010 Purchase Plan. Participating employees authorize an amount, between 1% and 15% of the employee’s compensation, to be deducted from the employee’s pay during the offering period. On the last day of the offering period, the employee is deemed to have exercised the employee’s option to purchase shares of Company common stock, at the option exercise price, to the extent of accumulated payroll deductions. Under the terms of the 2010 Purchase Plan, the option exercise price is an amount equal to 85% of the fair market value, as defined under the 2010 Purchase Plan, and no employee can purchase more than $25,000 of Company common stock under the 2010 Purchase Plan in any calendar year. Rights granted under the 2010 Purchase Plan terminate upon an employee’s voluntary withdrawal from the 2010 Purchase Plan at any time or upon termination of employment. At December 31, 2021, there were 2,372,754 cumulative shares issued under the 2010 Purchase Plan. Stock-Based Compensation Expense The Company records stock-based compensation expense in connection with the amortization of restricted stock and restricted stock unit awards (“RSUs”), stock purchase rights granted under the Company’s employee stock purchase plan and stock options granted to employees, non-employee consultants and non-employee directors. A summary of non-cash stock-based compensation expense by expense category included in the Company's consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019 is as follows: Year Ended December 31, (In thousands) 2021 2020 2019 Cost of sales $ 16,835 $ 12,852 $ 5,799 Research and development 49,723 19,976 17,196 General and administrative 216,952 75,999 64,222 Sales and marketing 55,716 44,079 21,266 Total stock-based compensation $ 339,226 $ 152,906 $ 108,483 As of December 31, 2021, there was approximately $368.5 million of expected total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all equity compensation plans. The Company expects to recognize that cost over a weighted average period of 2.40 years. In connection with the acquisition of Thrive, the Company accelerated the vesting of shares of previously unvested stock options and restricted stock units for employees with qualifying termination events. During the year ended December 31, 2021, the Company accelerated 139,096 shares of previously unvested stock options and 58,171 shares of previously unvested restricted stock awards and restricted stock units and recorded $19.0 million of non-cash stock-based compensation for the accelerated awards. As further discussed in Note 19, the Company also recorded $86.2 million in stock-based compensation related to accelerated vesting of awards held by Thrive employees in connection with the acquisition. In connection with the combination with Genomic Health, the Company accelerated the vesting of shares of previously unvested stock options and restricted stock units for employees with qualifying termination events. During the year ended December 31, 2020, the Company accelerated 83,593 shares of previously unvested stock options and 93,770 shares of previously unvested restricted stock units and recorded $9.7 million of non-cash stock-based compensation for the accelerated awards. During the year ended December 31, 2019, the Company accelerated 364,281 shares of previously unvested stock options and 70,138 shares of previously unvested restricted stock units and recorded $21.6 million of non-cash stock-based compensation for the accelerated awards. There was an immaterial amount of accelerated unvested stock options and restricted stock during the year ended December 31, 2021. Stock Options The Company determines the fair value of each service-based option award on the date of grant using the Black-Scholes option-pricing model, which utilizes several key assumptions which are disclosed in the following table: Year Ended December 31 2021 2020 2019 Option Plan Shares Risk-free interest rates (1) 1.26% - 1.47% 2.54% - 2.59% Expected term (in years) (1) 6.15 6.28 Expected volatility (1) 65.67% - 65.71% 64.95% - 64.99% Dividend yield (1) 0% 0% _________________________________ (1) The Company did not grant stock options under its 2010 Omnibus Long-Term Incentive Plan or 2019 Omnibus Long-Term Incentive Plan during the period. A summary of stock option activity under the Stock Plans is as follows: Options Shares Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) (Aggregate intrinsic value in thousands) Outstanding, January 1, 2021 2,231,059 $ 39.67 6.0 Granted — — Assumed through acquisition 1,393,748 5.51 Exercised (1,295,400) 11.17 Forfeited (45,131) 56.66 Outstanding, December 31, 2021 2,284,276 $ 34.65 5.5 $ 107,586 Vested and expected to vest, December 31, 2021 2,284,276 $ 34.65 5.5 $ 107,586 Exercisable, December 31, 2021 1,780,838 $ 25.59 4.8 $ 96,789 _________________________________ (1) The weighted average grant date fair value of options granted during the years ended December 31, 2020 and 2019 was $58.57 and $57.11, respectively. (2) The total intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019 was $155.8 million, $40.6 million, and $52.0 million, respectively, determined as of the date of exercise. The Company received approximately $14.4 million, $27.1 million, and $8.8 million from stock option exercises during the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock and Restricted Stock Units The fair value of restricted stock and restricted stock units is determined on the date of grant using the closing stock price on that day. A summary of restricted stock and restricted stock unit activity is as follows: Restricted Shares Weighted Average Grant Date Fair Value (2) Outstanding, January 1, 2021 3,968,214 $ 79.38 Granted 2,333,213 129.16 Assumed through acquisition 242,123 127.79 Released (1) (1,697,643) 73.18 Forfeited (524,997) 101.20 Outstanding, December 31, 2021 4,320,910 $ 108.84 _________________________________ (1) The fair value of restricted stock units vested and converted to shares of the Company's common stock was $219.4 million, $152.4 million, and $173.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. (2) The weighted average grant date fair value of the restricted stock units granted during the years ended December 31, 2020 and 2019 was $92.55 and $93.20, respectively. Performance Share Units The Company has issued performance-based equity awards to certain employees which vest upon the achievement of certain performance goals, including financial performance targets and operational milestones. In June 2020 and December 2020, the Company modified certain of the operational milestones and financial performance targets, respectively, within the outstanding performance-based equity awards, which were not deemed to have an impact on vesting and no incremental stock-based compensation expense was recorded for the year ended December 31, 2021. This modification impacted awards held by 36 employees. A summary of performance share unit activity is as follows: Performance Share Units (2) Weighted Average Grant Date Fair Value (3) Outstanding, January 1, 2021 618,515 $ 93.22 Granted 270,665 138.09 Released (1) — — Forfeited (11,066) 83.15 Outstanding, December 31, 2021 878,114 $ 107.18 _________________________________ (1) The fair value of performance share units vested and converted to shares of the Company's common stock was $183.8 million for the year ended December 31, 2019. There were no performance share units vested and converted to shares of the Company's common stock during the years ended December 31, 2021 and 2020. (2) The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of December 31, 2021 was 45,312. (3) The weighted average grant date fair value of the performance share units granted during the years ended December 31, 2020 and 2019 was $90.17 and $93.40, respectively. Employee Stock Purchase Plan ("ESPP") A summary of ESPP activity is as follows: Year Ended December 31, (in thousands, except share and per share amounts) 2021 2020 2019 Shares issued under the 2010 Purchase Plan 331,769 301,064 176,458 Cash received under the 2010 Purchase Plan $ 23,070 $ 18,355 $ 8,396 Weighted average fair value per share of stock purchase rights granted during the period $ 34.93 $ 32.57 $ 29.21 The 331,769 shares issued during the year ended December 31, 2021 were as follows: Offering period ended Number of Shares Weighted Average price per Share April 30, 2021 173,717 $ 69.31 November 1, 2021 158,052 $ 69.71 The fair value of ESPP shares is based on the assumptions in the following table: Year Ended December 31, 2021 2020 2019 ESPP Shares Risk-free interest rates 0.04% - 0.16% 0.11% - 0.20% 1.60% - 2.40% Expected term (in years) 0.5 - 2 0.5 - 2 0.4 - 2 Expected volatility 43.00% - 68.51% 61.59% - 89.00% 43.20% - 57.60% Dividend yield 0% 0% 0% Shares Reserved for Issuance The Company has reserved shares of its authorized common stock for issuance pursuant to its employee stock purchase and equity plans, including all outstanding stock option grants noted above at December 31, 2021, as follows: Shares reserved for issuance 2019 Stock Plan 8,491,176 2010 Purchase Plan 427,246 8,918,422 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The components of lease expense were as follows: Year Ended December 31, (In thousands) 2021 2020 2019 Finance lease cost Amortization of right-of-use assets $ 5,731 $ 1,935 $ 27 Interest on lease liabilities 1,018 383 2 Operating lease cost 31,730 22,551 9,200 Short-term lease cost 628 356 219 Variable lease cost 5,212 2,703 896 Total lease Cost $ 44,319 $ 27,928 $ 10,344 Supplemental disclosure of cash flow information related to the Company's cash and non-cash activities with its leases are as follows: Year Ended December 31, (In thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27,461 $ 17,531 $ 9,641 Operating cash flows from finance leases 938 381 1 Finance cash flows from finance leases 5,290 1,756 15 Non-cash investing and financing activities: Right-of-use assets obtained in exchange for new operating lease liabilities (1) 74,369 13,261 51,030 Right-of-use assets obtained in exchange for new finance lease liabilities 5,460 20,349 237 Weighted-average remaining lease term - operating leases (in years) 8.33 8.75 9.80 Weighted-average remaining lease term - finance leases (in years) 2.95 3.68 1.20 Weighted-average discount rate - operating leases 6.11 % 6.80 % 6.80 % Weighted-average discount rate - finance leases 5.36 % 5.67 % 5.60 % _________________________________ (1) For the year ended December 31, 2021, this includes right-of-use assets acquired as part of the business combinations described in Note 19 of $39.6 million. For the year ended December 31, 2019, this includes right-of-use assets obtained from the initial adoption of ASC 842 of $17.9 million. As of December 31, 2021 and 2020, the Company’s right-of-use assets from operating leases are $174.2 million and $125.9 million, respectively, which are reported in operating lease right-of-use assets in the Company’s consolidated balance sheet. As of December 31, 2021, the Company has outstanding operating lease obligations of $201.9 million, of which $19.7 million is reported in operating lease liabilities, current portion and $182.2 million is reported in operating lease liabilities, less current portion in the Company’s consolidated balance sheet. As of December 31, 2020, the Company had outstanding operating lease obligations of $132.6 million, of which $11.5 million is reported in operating lease liabilities, current portion and $121.1 million is reported in operating lease liabilities, less current portion in the Company’s consolidated balance sheet. As of December 31, 2021 and 2020, the Company’s right-of-use assets from finance leases are $18.2 million and $18.6 million, respectively, which are reported in other long-term assets other current liabilities other long-term liabilities Maturities of operating lease liabilities on an annual basis as of December 31, 2021 were as follows: (In thousands) 2022 $ 30,706 2023 31,793 2024 32,209 2025 30,446 2026 29,890 Thereafter 106,967 Total minimum lease payments 262,011 Imputed interest (60,135) Total $ 201,876 Maturities of finance lease liabilities on an annual basis as of December 31, 2021 were as follows (amounts in thousands): (In thousands) 2022 $ 7,040 2023 6,930 2024 5,253 2025 911 2026 51 Thereafter — Total minimum lease payments 20,185 Imputed interest (1,449) Total $ 18,736 Legal Matters The Company records reserves and accrues costs for certain legal proceedings and regulatory matters to the extent that it determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. While such reserves and accrued costs reflect the Company’s best estimate of the probable loss for such matters, the recorded amounts may differ materially from the actual amount of any such losses. In some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal and regulatory proceedings, which may be exacerbated by various factors, including but not limited to, they may involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; involve a large number of parties, claimants or regulatory bodies; are in the early stages of the proceedings; involve a number of separate proceedings and/or a wide range of potential outcomes; or result in a change of business practices. As of the date of this Annual Report on Form 10-K, amounts accrued for legal proceedings and regulatory matters were not material except for the amounts accrued related to the Medicare Date of Service Rule Investigation (the “DOS Rule Investigation”) discussed below. However, it is possible that in a particular quarter or annual period the Company’s financial condition, results of operations, cash flow and/or liquidity could be materially adversely affected by an ultimate unfavorable resolution of, or development in, legal and/or regulatory proceedings, including as described below. Except for the proceedings discussed below, the Company believes that the ultimate outcome of any of the regulatory and legal proceedings that are currently pending against it should not have a material adverse effect on financial condition, results of operations, cash flow or liquidity. The Company is currently responding to civil investigative demands and administrative subpoenas issued pursuant to the Health Insurance Portability and Accountability Act of 1996 by the United States Department of Justice (“DOJ”) concerning Genomic Health’s compliance with the Medicare Date of Service billing regulations. The Company has been cooperating with these inquiries and has produced documents in response thereto. During the second quarter of 2021, as part of ongoing discussions between the DOJ and the Company regarding the DOS Rule Investigation, the DOJ presented an estimate of civil damages in the amount of $48.2 million relating to alleged non-compliance with the Medicare Date of Service billing regulations from 2007 to 2020. The civil damages estimate does not include potential treble damages, civil or criminal penalties or other remedies that the DOJ could seek against the Company. Based on the Company’s review and analysis of the DOJ presentation, ongoing discussions held with the DOJ, the civil damages estimate, and range of potential exposure, the Company recorded an accrual of approximately $10 million for the year ended December 31, 2021. As noted above, litigation outcomes are difficult to predict, and the estimation of probable losses requires an analysis of multiple possible outcomes that often depend on judgments about potential actions by third parties. Accordingly, the recorded accrual of approximately $10 million for the year ended December 31, 2021 is based on several factors, considerations, and judgments, and the ultimate resolution of this matter could result in a loss in excess of the recorded accrual. On June 24, 2019, Niles Rosen M.D. filed a sealed ex parte qui tam lawsuit against the Company in the United States District Court for the Middle District of Florida, that alleged a violation of the Federal Anti-Kickback Statute and False Claims Act for offering gift cards to patients in exchange for returning the Cologuard screening test (the “Qui Tam Suit”). Dr. Rosen seeks on behalf of the U.S. government and himself an award of civil penalties, treble damages and fees and costs. On February 25, 2020, the Company received a civil investigative demand by the DOJ related to the Company’s gift card program. The Company produced documents in response thereto. On March 25, 2021, the DOJ filed a notice of its election to decline intervention in the Qui Tam Suit. This election does not prevent Dr. Rosen from continuing the Qui Tam Suit. On April 12, 2021, Dr. Rosen filed an amended complaint against the Company, alleging violations of the Federal Anti-Kickback Statute and False Claims Act. The Company first learned of the Qui Tam Suit and the DOJ’s election to decline intervention in July 2021. The Company intends to vigorously defend itself against Dr. Rosen's claims and seek, among other things, the Company’s attorneys' fees and costs incurred in defending this action. Although the Company denies Dr. Rosen's allegations and believes that it has meritorious defenses to his False Claims Act claims, neither the outcome of the litigation nor can a reasonable estimate or an estimated range of loss associated with the litigation be determined at this time. Adverse outcomes from the DOS Rule Investigation and the Qui Tam Suit could include the Company being required to pay treble damages, incur civil and criminal penalties, paying attorneys’ fees, entering into a corporate integrity agreement, being excluded from participation in government healthcare programs, including Medicare and Medicaid, and other adverse actions that could materially affect the Company’s business, financial condition, and results of operation. In connection with the Company's combination with Genomic Health, on June 22, 2020, Suzanne Flannery, a purported former stockholder of Genomic Health, filed a Verified Individual and Class Action Complaint in the Delaware Court of Chancery, captioned Flannery v. Genomic Health, Inc., et al., C.A. No. 2020-0492. Flannery amended her complaint on November 23, 2020. The amended complaint asserted individual and class action claims, including: (i) a violation of 8 Del. C. § 203 by Genomic Health, Exact Sciences and a purported controlling group of former Genomic Health stockholders; (ii) conversion by Genomic Health, Exact Sciences and Spring Acquisition Corp.; (iii) breach of fiduciary duty by Genomic Health's former directors; (iv) breach of fiduciary duty by the purported controlling group; and (v) aiding and abetting breach of fiduciary duty against Exact Sciences, Spring Acquisition and Goldman Sachs & Co. LLC, Genomic Health's financial advisor in the combination. The amended complaint sought, among other things, declaratory relief, unspecified monetary damages and attorneys' fees and costs. All defendants moved to dismiss the amended complaint. Oral argument on defendants’ motions to dismiss the amended complaint occurred in May 2021, and in September 2021 the case was officially dismissed by the court. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLAN The Company maintains a qualified 401(k) retirement savings plan for Exact Sciences employees (the "401(k) Plan"). The Company also maintains additional retirement savings plans that are acquired as a result of business combinations. These plans are maintained for a period of time before being merged into the 401(k) Plan. Under the terms of the 401(k) Plan, participants may elect to defer a portion of their compensation into the 401(k) Plan, subject to certain limitations. Company matching contributions may be made at the discretion of the Board of Directors. The Company’s Board of Directors approved 401(k) Plan matching contributions for the years ended December 31, 2021, 2020 and 2019 in the form of Company common stock equal to 100% up to 6% of the participant’s eligible compensation for that year. The Company recorded compensation expense of approximately $30.0 million, $22.8 million, and $12.5 million, respectively, in the statements of operations for the years ended December 31, 2021, 2020 and 2019. |
NEW MARKET TAX CREDIT
NEW MARKET TAX CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
NEW MARKET TAX CREDIT | |
NEW MARKET TAX CREDIT | NEW MARKET TAX CREDIT During the fourth quarter of 2014, the Company received approximately $2.4 million in net proceeds from financing agreements related to working capital and capital improvements at one of its Madison, Wisconsin facilities. This financing arrangement was structured with an unrelated third-party financial institution (the “Investor”), an investment fund, and its majority owned community development entity in connection with the Company’s participation in transactions qualified under the federal New Markets Tax Credit (“NMTC”) program, pursuant to Section 45D of the Internal Revenue Code of 1986, as amended. Through its participation in this program, the Company has secured low interest financing and the potential for future debt forgiveness related to certain of the Company's Madison, Wisconsin facilities. The Company was required to be in compliance through December 2021 with various regulations and contractual provisions that apply to the NMTC arrangement. Noncompliance with applicable requirements could have resulted in the Investor’s projected tax benefits not being realized and, therefore, require the Company to indemnify the Investor for any loss or recapture of NMTC related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Investor and its majority owned community development entity were considered Variable Interest Entities (“VIEs”) and the Company was the primary beneficiary of the VIEs. This conclusion was reached based on the following: • the ongoing activities of the VIEs—collecting and remitting interest and fees and NMTC compliance—were all considered in the initial design and are not expected to significantly affect performance throughout the life of the VIE; • contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investor and community development entity; • the Investor lacks a material interest in the underlying economics of the project; and • the Company is obligated to absorb losses of the VIEs. |
WISCONSIN ECONOMIC DEVELOPMENT
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS | 12 Months Ended |
Dec. 31, 2021 | |
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS. | |
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS | WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITSDuring February 2015, the Company entered into an agreement with the WEDC (“Original WEDC Agreement”) to earn $9.0 million in refundable tax credits on the condition that the Company expends $26.3 million in capital investments and establishes and maintains 758 full-time positions over a seven-year period. During December 2021, the Company amended its agreement with the WEDC (“Amended WEDC Agreement”) to earn an additional $18.5 million in refundable tax credits on the condition that the Company expends $350.0 million in capital investments and establishes and maintains 1,300 additional full-time positions over a five-year period. The capital investment credits are earned at a rate of 10% of eligible capital investments up to a maximum of $7.0 million, while the jobs creation credits are earned annually pursuant to the agreement. The tax credits earned are first applied against the tax liability otherwise due, and if there is no such liability present, the claim for tax credits will be reimbursed in cash to the Company. The maximum amount of the refundable tax credit to be earned for each year is fixed, and the Company earns the credits by meeting certain capital investment and job creation thresholds over the term of the agreement. Should the Company earn and receive the job creation tax credits but not maintain those full-time positions through the end of the agreement, the Company may be required to pay those credits back to the WEDC. Under the Original WEDC Agreement, the Company recorded the earned tax credits as job creation and capital investments occurred. The tax credits earned from capital investment are being recognized as an offset to depreciation expense over the expected life of the acquired capital assets. The tax credits earned related to job creation were recognized as an offset to operational expenses through December 31, 2020. As of December 31, 2021, the Company has earned all $9.0 million of the refundable tax credits and has received payment of $7.5 million from the WEDC under the Original WEDC Agreement. The unpaid portion is $1.5 million, which is reported in prepaid expenses and other current assets, reflecting when collection of the refundable tax benefits is expected to occur. During the years ended December 31, 2020 and 2019, the Company recognized $2.2 million and $2.4 million, respectively, of the tax credits earned as a reduction of operating expenses. Under the Amended WEDC Agreement, the Company records the earned tax credits as job creation and capital investments occurs. The tax credits earned from capital investment are recognized as a reduction to capital expenditures at the time the costs are incurred, and then as an offset to depreciation expense over the expected life of the acquired capital assets. The tax credits earned related to job creation are recognized as an offset to operational expenses in the period in which the credits are earned. The credits recognized will be required to be repaid if the Company does not maintain minimum cumulative job requirements. As of December 31, 2021, the Company has earned $8.0 million of the refundable tax credits under the Amended WEDC Agreement. The unpaid portion is $8.0 million as of December 31, 2021, of which $1.7 million is reported in prepaid expenses and other current assets and $6.3 million is reported in other long-term assets, reflecting when collection of the refundable tax credits is expected to occur. During the year ended December 31, 2021, the Company recorded $7.0 million as a reduction to capital expenditures and $1.0 million as a reduction to operational expenses for the credits earned for capital investments and job creation, respectively. |
BUSINESS COMBINATIONS AND ASSET
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | BUSINESS COMBINATIONS AND ASSET ACQUISITIONS Business Combinations PreventionGenetics LLC On December 31, 2021, the Company completed the acquisition (the “PreventionGenetics Acquisition”) of all of the outstanding equity interests of PreventionGenetics, LLC. The PreventionGenetics Acquisition provided the Company a Clinical Laboratory Improvement Amendments (“CLIA”) certified and College of American Pathologist (“CAP”) accredited sequencing lab based in Marshfield, Wisconsin. PreventionGenetics provides more than 5,000 predefined genetic tests for nearly all clinically relevant genes, additional custom panels, and comprehensive germline, whole exome (“PGxome®”), and whole genome (“PGnome®”) sequencing tests. The Company has included the financial results of PreventionGenetics in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for PreventionGenetics was approximately $185.5 million, which consisted of the following: (In thousands) Cash $ 101,255 Common stock issued 84,252 Total purchase price $ 185,507 The fair value of the 1,070,410 common shares issued as part of consideration transferred was determined on the basis of the average of the high and low market price of the Company's shares on the acquisition date, which was $78.71. Of the total $101.3 million of consideration to be settled through the payment of cash, $85.8 million was paid as of December 31, 2021. The remaining $15.5 million represents withheld cash consideration that will be used to cover working capital adjustments or seller claims, if any, that arise following the completion of the acquisition. The withheld cash consideration will be held by the Company until settlement and was recorded in other current liabilities in the consolidated balance sheet. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 1,574 Accounts receivable 6,261 Inventory 1,697 Prepaid expenses and other current assets 30 Property, plant and equipment 12,793 Developed technology 65,000 Customer relationships 4,000 Trade name 4,000 Total identifiable assets acquired 95,355 Accounts payable (1,493) Accrued liabilities (992) Total liabilities assumed (2,485) Net identifiable assets acquired 92,870 Goodwill 92,637 Net assets acquired $ 185,507 Developed technology represents purchased technology that had reached technological feasibility and for which PreventionGenetics had substantially completed development as of the date of combination. The developed technology is associated with PreventionGenetics’ ability to perform next-generation sequencing and use its developed software solutions and infrastructure to report on the sequencing process. The fair value of the developed technology has been determined using the income approach multi-period excess earnings method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, obsolescence factor, and discount rate. The developed technology intangible is amortized on a straight-line basis over its estimated useful life of 13 years. Customer relationships represent agreements and relationships with existing PreventionGenetics customers. The fair value of customer relationships has been determined using the excess earnings distributor model, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, attrition rate, and discount rate. The customer relationship intangible is amortized on a straight-line basis over its estimated useful life of 9 years. Trade names represent the value associated with the PreventionGenetics trade name in the market. The fair value of trade names has been determined using the relief-from-royalty method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, royalty rate, and discount rate. The trade name intangible is amortized on a straight-line basis over its estimated useful life of 4 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the acquired workforce’s genetic sequencing, informatics, and counseling expertise, as well as expected sales force synergies. The total goodwill related to this combination is deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the intangible assets. Pro forma impact and results of operations disclosures have not been included due to immateriality. During 2021, the Company incurred $2.7 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. Ashion Analytics, LLC On April 14, 2021, the Company completed the acquisition (“Ashion Acquisition”) of all of the outstanding equity interests of Ashion Analytics, LLC from PMed Management, LLC (“PMed”), which is a subsidiary of TGen. The Ashion Acquisition provided the Company a CLIA-certified and CAP-accredited sequencing lab based in Phoenix, Arizona. Ashion developed GEM ExTra®, a comprehensive genomic cancer test, and provides access to whole exome, matched germline, and transcriptome sequencing capabilities. The Company has included the financial results of Ashion in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Ashion was approximately $110.0 million, which consisted of the following: (In thousands) Cash $ 74,775 Common stock issued 16,224 Contingent consideration 19,000 Total purchase price $ 109,999 The fair value of the 125,444 common shares issued as part of consideration transferred was determined on the basis of the average of the high and low market price of the Company's shares on the acquisition date, which was $129.33. The contingent consideration arrangement requires the Company to pay $20.0 million of additional cash consideration to PMed upon the Company’s commercial launch, on or before the tenth anniversary of the Ashion Acquisition, of a test for minimal residual disease (“MRD”) detection and/or treatment (the “Commercial Launch Milestone”). The fair value of the Commercial Launch Milestone at the acquisition date was $19.0 million. The contingent consideration arrangement also requires the Company to pay $30.0 million of additional cash upon the Company’s achievement, on or before the fifth anniversary of the Ashion Acquisition, of cumulative revenues from MRD products of $500.0 million (the “MRD Product Revenue Milestone”). No value was ascribed to the MRD Product Revenue Milestone based on probability assessments as of the acquisition date. The fair value of the Commercial Launch Milestone and MRD Product Revenue Milestone was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 2,474 Accounts receivable 2,349 Inventory 1,811 Prepaid expenses and other current assets 425 Property, plant and equipment 9,947 Operating lease right-of-use assets 548 Developed technology 39,000 Total identifiable assets acquired 56,554 Accounts payable (1,477) Accrued liabilities (1,190) Operating lease liabilities, current portion (343) Other current liabilities (98) Operating lease liabilities, less current portion (205) Total liabilities assumed (3,313) Net identifiable assets acquired 53,241 Goodwill 56,758 Net assets acquired $ 109,999 The Company recorded $39.0 million of identifiable intangible assets related to the developed technology associated with GEM ExTra. Developed technology represents purchased technology that had reached technological feasibility and for which Ashion had substantially completed development as of the date of combination. The fair value of the developed technology has been determined using the income approach multi-period excess earnings method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, and required rate of return and tax rate. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 13 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the acquired workforce expertise, the capabilities in the advancement of creating and launching new products, including an MRD product, and expected sales force synergies related to the developed technology. The total goodwill related to this combination is deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the developed technology intangible asset. Pro forma impact and results of operations disclosures have not been included due to immateriality. During the year ended December 31, 2021, the Company incurred $1.6 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. Thrive Earlier Detection Corporation On January 5, 2021, the Company completed the acquisition (“Thrive Merger”) of all of the outstanding capital stock of Thrive Earlier Detection Corporation. Thrive, headquartered in Cambridge, Massachusetts, is a healthcare company dedicated to incorporating earlier cancer detection into routine medical care. The Company expects that combining Thrive's early-stage multi-cancer early detection test with the Company’s scientific platform, clinical organization, and commercial infrastructure will bring an accurate blood-based, multi-cancer early detection test to patients faster. The Company has included the financial results of Thrive in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 The Company issued 9,323,266 common shares that had a fair value of $1.19 billion based on the average of the high and low market price of the Company's shares on the acquisition date, which was $127.79. Of the total consideration for common stock issued, $1.18 billion was allocated to the purchase consideration and $16.0 million was recorded as compensation within general and administrative expenses in the consolidated statement of operations on the acquisition date due to accelerated vesting of legacy Thrive restricted stock awards (“RSA”) and RSU awards in connection with the acquisition. The Company paid $590.2 million in cash on the acquisition date. Of the total consideration for cash, $585.0 million was allocated to the purchase consideration and $5.2 million was recorded as compensation within general and administrative expenses on the acquisition date due to accelerated vesting of legacy Thrive RSU and restricted stock awards (“RSA”) that were cash-settled in connection with the acquisition. The contingent consideration arrangement requires the Company to pay up to $450.0 million of additional cash consideration to Thrive’s former shareholders upon the achievement of two discrete events, U.S. Food and Drug Administration (“FDA”) approval and CMS coverage, for $150.0 million and up to $300.0 million, respectively. The fair value of the contingent consideration arrangement at the acquisition date was $352.0 million. The fair value of the contingent consideration was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. Of the total fair value of the contingent consideration, $331.3 million was allocated to the consideration transferred, $6.4 million was allocated to the Company’s previous ownership interest in Thrive, and $14.3 million was deemed compensatory as participation is dependent on replaced unvested equity awards vesting which requires future service. Compensation expense related to the milestones could be up to $18.2 million undiscounted and will be recognized in the future once probable and payable. The Company replaced unvested stock options, RSUs, and RSAs and vested stock options with a combination-date fair value of $197.0 million. Of the total consideration for replaced equity awards, $52.2 million was allocated to the consideration transferred and $144.8 million was deemed compensatory as it was attributable to post acquisition vesting. Of the total compensation related to replaced awards, $65.0 million was expensed on the acquisition date due to accelerated vesting of stock options in connection with the acquisition and $79.8 million relates to future services and will be expensed over the remaining service periods of the unvested stock options, RSUs, and RSAs on a straight-line basis. Including expense recognized for accelerated vesting of RSUs and RSAs described above, total expected stock-based compensation expense is $166.0 million, of which $86.2 million was recognized immediately to general and administrative expenses in the consolidated statement of operations due to accelerated vesting. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The fair value of the RSA and RSUs assumed by the Company was determined based on the average of the high and low market price of the Company's shares on the acquisition date. The share conversion ratio of 0.06216 was applied to convert Thrive’s outstanding equity awards for Thrive’s common stock into equity awards for shares of the Company’s common stock. The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield 0% Weighted average fair value per share of options assumed $109.74 - $124.89 The Company previously held a preferred stock investment of $12.5 million in Thrive and recognized a gain of approximately $30.5 million on the transaction within investment income (expense), net on the Company’s consolidated statement of operations, which represented the adjustment of the Company’s historical investment to the acquisition date fair value. The fair value of the Company’s previous ownership in Thrive was determined based on the pro-rata share payout applied to the Company’s interest combined with the fair value of the Company’s share of the contingent consideration arrangement, as discussed above. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 241,748 $ — $ 241,748 Prepaid expenses and other current assets 3,939 — 3,939 Property, plant and equipment 29,977 — 29,977 Operating lease right-of-use assets 39,027 — 39,027 Other long-term assets 67 — 67 In-process research and development (IPR&D) 1,250,000 — 1,250,000 Total identifiable assets acquired 1,564,758 — 1,564,758 Accounts payable (3,222) — (3,222) Accrued liabilities (6,218) (1,862) (8,080) Operating lease liabilities, current portion (2,980) — (2,980) Operating lease liabilities, less current portion (38,622) — (38,622) Deferred tax liability (272,905) — (272,905) Total liabilities assumed (323,947) (1,862) (325,809) Net identifiable assets acquired 1,240,811 (1,862) 1,238,949 Goodwill 946,243 1,862 948,105 Net assets acquired $ 2,187,054 $ — $ 2,187,054 IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product and expected commercial release. The amounts capitalized are accounted for as indefinite-lived intangible assets, subject to impairment testing, until completion or abandonment of the research and development efforts associated with the projects. The Company recorded $1.25 billion of IPR&D related to a project associated with the development of an FDA approved blood-based, multi-cancer early detection test. The IPR&D asset was valued using the multiple-period excess earnings method approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include inputs such as projected revenues, gross margin, required rate of return, tax rate, probability of commercial success, and obsolescence factor. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the research and development workforce expertise, next generation sequencing capabilities, and expected synergies. The total goodwill related to this combination is not deductible for tax purposes. The net loss before tax of Thrive included in the Company’s consolidated statement of operations from the combination date of January 5, 2021 to December 31, 2021 was $255.0 million. The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Year Ended December 31, (In thousands) 2021 2020 Total revenues $ 1,767,087 $ 1,491,391 Net loss before tax $ (761,337) $ (1,014,352) The unaudited pro forma financial information for all periods presented above has been calculated after adjusting the results of Thrive to reflect the business combination accounting effects resulting from this combination. The Company incurred $86.2 million of stock-based compensation expense related to accelerated vesting in connection with the acquisition, $13.5 million of stock-based compensation expense related to accelerated vesting for employees with qualifying termination events, and $10.3 million of transaction costs incurred to execute the acquisition during the first quarter of 2021. These expenses are included in general and administrative expenses on the consolidated statement of operations for the year ended December 31, 2021 and are reflected in pro forma earnings for the year ended December 31, 2020 in the table above. The Company recorded a realized gain of $30.5 million during the first quarter of 2021 in investment income (expense), net on the Company’s consolidated statement of operations relating to the Company’s pre-acquisition investment in Thrive. This gain has been reduced to $7.6 million due to the Company’s smaller ownership interest in Thrive on January 1, 2020, and is reflected in pro forma earnings for the year ended December 31, 2020 in the table above. The Company recorded a remeasurement of contingent consideration of $7.2 million related to Thrive in general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2021. This expense is reflected in the year ended December 31, 2020 in the table above. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2020. During the year ended December 31, 2021, the Company incurred $10.3 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. In connection with acquisition-related severances, the Company recorded $19.0 million of expense related to vesting of previously unvested equity awards and $3.9 million of additional benefit charges for the year ended December 31, 2021. Paradigm Diagnostics, Inc. and Viomics, Inc. On March 3, 2020, the Company acquired all of the outstanding capital stock of Paradigm Diagnostics, Inc. and Viomics, Inc., two related party companies of one another headquartered in Phoenix, Arizona, in transactions that are deemed to be a single business combination in accordance with ASC 805, Business Combinations, (“the Paradigm Acquisition”). Paradigm provides comprehensive genomic-based profiling tests that assist in the diagnosis and therapy recommendations for late-stage cancer. Viomics provides a platform for identification of biomarkers. The Company entered into this acquisition to enhance its product portfolio in cancer diagnostics and to enhance its capabilities for biomarker identification. The acquisition date fair value of the consideration to be transferred for Paradigm and Viomics was $40.4 million, which consists of $32.2 million payable in shares of the Company’s common stock and $8.2 million which was settled through a cash payment. Of the $32.2 million to be settled through the issuance of common stock, $28.8 million was issued as of December 31, 2021 and December 31, 2020, and the remaining $3.4 million, which was withheld and may become payable as additional merger consideration, is included in other current liabilities in the consolidated balance sheet as of December 31, 2021. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 The fair value of identifiable intangible assets has been determined using the income approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, weighted average cost of capital and tax rate. Developed technology represents purchased technology that had reached technological feasibility and for which development had been completed as of the acquisition date. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 15 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the assembled workforce and expected synergies. The total goodwill related to this acquisition is not deductible for tax purposes. The Company agreed to issue to the previous investors in Viomics equity interests with an acquisition-date fair value of up to $8.4 million in Viomics, vesting over 4 years based on certain retention arrangements. Payment is contingent upon continued employment with the Company over the four Genomic Health, Inc. On November 8, 2019, the Company acquired all of the outstanding capital stock of Genomic Health, Inc. Genomic Health, headquartered in Redwood City, California, provides genomic-based diagnostic tests that address both the overtreatment and optimal treatment of early and late stage cancer. The Company entered into this combination to create a leading global cancer diagnostics company and provide a robust platform for continued growth. The Company has included the financial results of Genomic Health in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Genomic Health was approximately $2.47 billion, which consisted of the following: (In thousands) Cash $ 1,061,489 Common stock issued 1,389,266 Fair value of replacement stock options and restricted stock awards 17,813 Total purchase price $ 2,468,568 The fair value of the common stock issued as part of consideration was determined on the basis of the closing market price of the Company's shares at the acquisition date. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.76534 was applied to convert Genomic Health’s outstanding equity awards for Genomic Health’s common stock into equity awards for shares of the Company’s common stock. Th e fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.88% - 2.90% Expected term (in years) 3.28 - 6.73 Expected volatility 63.54% - 69.09% Dividend yield 0% Weighted average fair value per share of options assumed $45.75 - $57.44 During 2019, the Company incurred $22.5 million of acquisition-related costs recorded in general and administrative expense. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the combination. In connection with the combination, the Company decided to terminate certain Genomic Health executives in the fourth quarter of 2019 and recorded $32.1 million in severance benefits charges. The amounts of revenue and net loss before tax of Genomic Health included in the Company’s consolidated statement of operations from the combination date of November 8, 2019 to December 31, 2019. (In thousands) 2019 Total revenues $ 66,174 Net loss before tax $ (40,446) The following unaudited pro forma financial information summarized the combined results of operations for the Company and Genomic Health, as though the companies were combined as of January 1, 2018. (In thousands) 2019 Total revenues $ 1,266,591 Net loss before tax $ (389,795) The unaudited pro forma financial information for the period presented above has been calculated after adjusting the results of Genomic Health to reflect the business combination accounting effects resulting from this combination, including the amortization expense from acquired intangible assets and the stock-based compensation expense for unvested stock options and restricted stock awards assumed as though the combination occurred as of January 1, 2018. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2018. As described in Note 15, the Company identified a pre-acquisition contingency relating to the DOJ investigation. The Company assigned a fair value estimate of zero to this pre-acquisition contingency. Subsequent to the Company's final determination of the pre-acquisition contingency’s estimated value, changes to this estimate could have a material impact on the Company's results of operations and financial position. As of December 31, 2021, the Company has accrued approximately $10 million related to this investigation. Asset Acquisitions PFS Genomics Inc. On May 3, 2021, the Company acquired 90% of the outstanding capital stock of PFS Genomics Inc. (“PFS”). On June 23, 2021, the Company completed the acquisition of the remaining 10% interest in PFS. The Company paid cash of $33.6 million for 100% of the outstanding capital stock in PFS. PFS is a healthcare company focused on personalizing treatment for breast cancer patients to improve outcomes and reduce unnecessary treatment. The Company expects this acquisition to expand its ability to help guide early-stage breast cancer treatment through individualized radiotherapy treatment decisions. The transaction was treated as an asset acquisition under GAAP because substantially all of the fair value of the gross assets acquired were deemed to be associated with the acquired technology. The assets acquired and liabilities assumed were substantially comprised of the IPR&D asset as shown in the table below. The IPR&D asset acquired was recorded to research and development expense in the consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of the closing date. Acquisition related costs were not material in this asset acquisition. The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed: (In thousands) Consideration Cash paid for acquisition of PFS Genomics outstanding shares $ 33,569 Assets acquired and liabilities assumed Cash 496 IPR&D asset 33,074 Other assets and liabilities (1) Net assets acquired $ 33,569 TARDIS License Agreement On January 11, 2021, the Company entered into a worldwide exclusive license to the proprietary TARDIS technology from TGen, an affiliate of City of Hope. Under the agreement, the Company acquired a royalty-free, worldwide exclusive license to proprietary TARDIS patents and know-how. The Company intends to develop and commercialize the TARDIS technology as a minimal residual disease test. The Company accounted for this transaction as an asset acquisition. In connection with the asset acquisition, the Company paid upfront fair value consideration of $52.3 million comprised of $25.0 million in cash and issuance of 0.2 million shares of common stock valued at $27.3 million based on the average of the high and low market price of the Company’s shares on the acquisition date. In addition, the Company is obligated to make milestone payments to TGen of $10.0 million and $35.0 million upon achieving cumulative product revenue related to MRD detection and/or treatment totaling $100.0 million and $250.0 million, respectively. These payments are contingent upon achievement of these cumulative revenues on or before December 31, 2030. The upfront consideration was recorded to research and development expense in the consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company will record the sales milestones once achievement is deemed probable. |
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | BUSINESS COMBINATIONS AND ASSET ACQUISITIONS Business Combinations PreventionGenetics LLC On December 31, 2021, the Company completed the acquisition (the “PreventionGenetics Acquisition”) of all of the outstanding equity interests of PreventionGenetics, LLC. The PreventionGenetics Acquisition provided the Company a Clinical Laboratory Improvement Amendments (“CLIA”) certified and College of American Pathologist (“CAP”) accredited sequencing lab based in Marshfield, Wisconsin. PreventionGenetics provides more than 5,000 predefined genetic tests for nearly all clinically relevant genes, additional custom panels, and comprehensive germline, whole exome (“PGxome®”), and whole genome (“PGnome®”) sequencing tests. The Company has included the financial results of PreventionGenetics in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for PreventionGenetics was approximately $185.5 million, which consisted of the following: (In thousands) Cash $ 101,255 Common stock issued 84,252 Total purchase price $ 185,507 The fair value of the 1,070,410 common shares issued as part of consideration transferred was determined on the basis of the average of the high and low market price of the Company's shares on the acquisition date, which was $78.71. Of the total $101.3 million of consideration to be settled through the payment of cash, $85.8 million was paid as of December 31, 2021. The remaining $15.5 million represents withheld cash consideration that will be used to cover working capital adjustments or seller claims, if any, that arise following the completion of the acquisition. The withheld cash consideration will be held by the Company until settlement and was recorded in other current liabilities in the consolidated balance sheet. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 1,574 Accounts receivable 6,261 Inventory 1,697 Prepaid expenses and other current assets 30 Property, plant and equipment 12,793 Developed technology 65,000 Customer relationships 4,000 Trade name 4,000 Total identifiable assets acquired 95,355 Accounts payable (1,493) Accrued liabilities (992) Total liabilities assumed (2,485) Net identifiable assets acquired 92,870 Goodwill 92,637 Net assets acquired $ 185,507 Developed technology represents purchased technology that had reached technological feasibility and for which PreventionGenetics had substantially completed development as of the date of combination. The developed technology is associated with PreventionGenetics’ ability to perform next-generation sequencing and use its developed software solutions and infrastructure to report on the sequencing process. The fair value of the developed technology has been determined using the income approach multi-period excess earnings method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, obsolescence factor, and discount rate. The developed technology intangible is amortized on a straight-line basis over its estimated useful life of 13 years. Customer relationships represent agreements and relationships with existing PreventionGenetics customers. The fair value of customer relationships has been determined using the excess earnings distributor model, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, attrition rate, and discount rate. The customer relationship intangible is amortized on a straight-line basis over its estimated useful life of 9 years. Trade names represent the value associated with the PreventionGenetics trade name in the market. The fair value of trade names has been determined using the relief-from-royalty method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, royalty rate, and discount rate. The trade name intangible is amortized on a straight-line basis over its estimated useful life of 4 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the acquired workforce’s genetic sequencing, informatics, and counseling expertise, as well as expected sales force synergies. The total goodwill related to this combination is deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the intangible assets. Pro forma impact and results of operations disclosures have not been included due to immateriality. During 2021, the Company incurred $2.7 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. Ashion Analytics, LLC On April 14, 2021, the Company completed the acquisition (“Ashion Acquisition”) of all of the outstanding equity interests of Ashion Analytics, LLC from PMed Management, LLC (“PMed”), which is a subsidiary of TGen. The Ashion Acquisition provided the Company a CLIA-certified and CAP-accredited sequencing lab based in Phoenix, Arizona. Ashion developed GEM ExTra®, a comprehensive genomic cancer test, and provides access to whole exome, matched germline, and transcriptome sequencing capabilities. The Company has included the financial results of Ashion in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Ashion was approximately $110.0 million, which consisted of the following: (In thousands) Cash $ 74,775 Common stock issued 16,224 Contingent consideration 19,000 Total purchase price $ 109,999 The fair value of the 125,444 common shares issued as part of consideration transferred was determined on the basis of the average of the high and low market price of the Company's shares on the acquisition date, which was $129.33. The contingent consideration arrangement requires the Company to pay $20.0 million of additional cash consideration to PMed upon the Company’s commercial launch, on or before the tenth anniversary of the Ashion Acquisition, of a test for minimal residual disease (“MRD”) detection and/or treatment (the “Commercial Launch Milestone”). The fair value of the Commercial Launch Milestone at the acquisition date was $19.0 million. The contingent consideration arrangement also requires the Company to pay $30.0 million of additional cash upon the Company’s achievement, on or before the fifth anniversary of the Ashion Acquisition, of cumulative revenues from MRD products of $500.0 million (the “MRD Product Revenue Milestone”). No value was ascribed to the MRD Product Revenue Milestone based on probability assessments as of the acquisition date. The fair value of the Commercial Launch Milestone and MRD Product Revenue Milestone was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 2,474 Accounts receivable 2,349 Inventory 1,811 Prepaid expenses and other current assets 425 Property, plant and equipment 9,947 Operating lease right-of-use assets 548 Developed technology 39,000 Total identifiable assets acquired 56,554 Accounts payable (1,477) Accrued liabilities (1,190) Operating lease liabilities, current portion (343) Other current liabilities (98) Operating lease liabilities, less current portion (205) Total liabilities assumed (3,313) Net identifiable assets acquired 53,241 Goodwill 56,758 Net assets acquired $ 109,999 The Company recorded $39.0 million of identifiable intangible assets related to the developed technology associated with GEM ExTra. Developed technology represents purchased technology that had reached technological feasibility and for which Ashion had substantially completed development as of the date of combination. The fair value of the developed technology has been determined using the income approach multi-period excess earnings method, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, and required rate of return and tax rate. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 13 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the acquired workforce expertise, the capabilities in the advancement of creating and launching new products, including an MRD product, and expected sales force synergies related to the developed technology. The total goodwill related to this combination is deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the developed technology intangible asset. Pro forma impact and results of operations disclosures have not been included due to immateriality. During the year ended December 31, 2021, the Company incurred $1.6 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. Thrive Earlier Detection Corporation On January 5, 2021, the Company completed the acquisition (“Thrive Merger”) of all of the outstanding capital stock of Thrive Earlier Detection Corporation. Thrive, headquartered in Cambridge, Massachusetts, is a healthcare company dedicated to incorporating earlier cancer detection into routine medical care. The Company expects that combining Thrive's early-stage multi-cancer early detection test with the Company’s scientific platform, clinical organization, and commercial infrastructure will bring an accurate blood-based, multi-cancer early detection test to patients faster. The Company has included the financial results of Thrive in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 The Company issued 9,323,266 common shares that had a fair value of $1.19 billion based on the average of the high and low market price of the Company's shares on the acquisition date, which was $127.79. Of the total consideration for common stock issued, $1.18 billion was allocated to the purchase consideration and $16.0 million was recorded as compensation within general and administrative expenses in the consolidated statement of operations on the acquisition date due to accelerated vesting of legacy Thrive restricted stock awards (“RSA”) and RSU awards in connection with the acquisition. The Company paid $590.2 million in cash on the acquisition date. Of the total consideration for cash, $585.0 million was allocated to the purchase consideration and $5.2 million was recorded as compensation within general and administrative expenses on the acquisition date due to accelerated vesting of legacy Thrive RSU and restricted stock awards (“RSA”) that were cash-settled in connection with the acquisition. The contingent consideration arrangement requires the Company to pay up to $450.0 million of additional cash consideration to Thrive’s former shareholders upon the achievement of two discrete events, U.S. Food and Drug Administration (“FDA”) approval and CMS coverage, for $150.0 million and up to $300.0 million, respectively. The fair value of the contingent consideration arrangement at the acquisition date was $352.0 million. The fair value of the contingent consideration was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. Of the total fair value of the contingent consideration, $331.3 million was allocated to the consideration transferred, $6.4 million was allocated to the Company’s previous ownership interest in Thrive, and $14.3 million was deemed compensatory as participation is dependent on replaced unvested equity awards vesting which requires future service. Compensation expense related to the milestones could be up to $18.2 million undiscounted and will be recognized in the future once probable and payable. The Company replaced unvested stock options, RSUs, and RSAs and vested stock options with a combination-date fair value of $197.0 million. Of the total consideration for replaced equity awards, $52.2 million was allocated to the consideration transferred and $144.8 million was deemed compensatory as it was attributable to post acquisition vesting. Of the total compensation related to replaced awards, $65.0 million was expensed on the acquisition date due to accelerated vesting of stock options in connection with the acquisition and $79.8 million relates to future services and will be expensed over the remaining service periods of the unvested stock options, RSUs, and RSAs on a straight-line basis. Including expense recognized for accelerated vesting of RSUs and RSAs described above, total expected stock-based compensation expense is $166.0 million, of which $86.2 million was recognized immediately to general and administrative expenses in the consolidated statement of operations due to accelerated vesting. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The fair value of the RSA and RSUs assumed by the Company was determined based on the average of the high and low market price of the Company's shares on the acquisition date. The share conversion ratio of 0.06216 was applied to convert Thrive’s outstanding equity awards for Thrive’s common stock into equity awards for shares of the Company’s common stock. The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield 0% Weighted average fair value per share of options assumed $109.74 - $124.89 The Company previously held a preferred stock investment of $12.5 million in Thrive and recognized a gain of approximately $30.5 million on the transaction within investment income (expense), net on the Company’s consolidated statement of operations, which represented the adjustment of the Company’s historical investment to the acquisition date fair value. The fair value of the Company’s previous ownership in Thrive was determined based on the pro-rata share payout applied to the Company’s interest combined with the fair value of the Company’s share of the contingent consideration arrangement, as discussed above. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 241,748 $ — $ 241,748 Prepaid expenses and other current assets 3,939 — 3,939 Property, plant and equipment 29,977 — 29,977 Operating lease right-of-use assets 39,027 — 39,027 Other long-term assets 67 — 67 In-process research and development (IPR&D) 1,250,000 — 1,250,000 Total identifiable assets acquired 1,564,758 — 1,564,758 Accounts payable (3,222) — (3,222) Accrued liabilities (6,218) (1,862) (8,080) Operating lease liabilities, current portion (2,980) — (2,980) Operating lease liabilities, less current portion (38,622) — (38,622) Deferred tax liability (272,905) — (272,905) Total liabilities assumed (323,947) (1,862) (325,809) Net identifiable assets acquired 1,240,811 (1,862) 1,238,949 Goodwill 946,243 1,862 948,105 Net assets acquired $ 2,187,054 $ — $ 2,187,054 IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product and expected commercial release. The amounts capitalized are accounted for as indefinite-lived intangible assets, subject to impairment testing, until completion or abandonment of the research and development efforts associated with the projects. The Company recorded $1.25 billion of IPR&D related to a project associated with the development of an FDA approved blood-based, multi-cancer early detection test. The IPR&D asset was valued using the multiple-period excess earnings method approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include inputs such as projected revenues, gross margin, required rate of return, tax rate, probability of commercial success, and obsolescence factor. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the research and development workforce expertise, next generation sequencing capabilities, and expected synergies. The total goodwill related to this combination is not deductible for tax purposes. The net loss before tax of Thrive included in the Company’s consolidated statement of operations from the combination date of January 5, 2021 to December 31, 2021 was $255.0 million. The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Year Ended December 31, (In thousands) 2021 2020 Total revenues $ 1,767,087 $ 1,491,391 Net loss before tax $ (761,337) $ (1,014,352) The unaudited pro forma financial information for all periods presented above has been calculated after adjusting the results of Thrive to reflect the business combination accounting effects resulting from this combination. The Company incurred $86.2 million of stock-based compensation expense related to accelerated vesting in connection with the acquisition, $13.5 million of stock-based compensation expense related to accelerated vesting for employees with qualifying termination events, and $10.3 million of transaction costs incurred to execute the acquisition during the first quarter of 2021. These expenses are included in general and administrative expenses on the consolidated statement of operations for the year ended December 31, 2021 and are reflected in pro forma earnings for the year ended December 31, 2020 in the table above. The Company recorded a realized gain of $30.5 million during the first quarter of 2021 in investment income (expense), net on the Company’s consolidated statement of operations relating to the Company’s pre-acquisition investment in Thrive. This gain has been reduced to $7.6 million due to the Company’s smaller ownership interest in Thrive on January 1, 2020, and is reflected in pro forma earnings for the year ended December 31, 2020 in the table above. The Company recorded a remeasurement of contingent consideration of $7.2 million related to Thrive in general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2021. This expense is reflected in the year ended December 31, 2020 in the table above. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2020. During the year ended December 31, 2021, the Company incurred $10.3 million of acquisition-related costs recorded in general and administrative expenses in the consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. In connection with acquisition-related severances, the Company recorded $19.0 million of expense related to vesting of previously unvested equity awards and $3.9 million of additional benefit charges for the year ended December 31, 2021. Paradigm Diagnostics, Inc. and Viomics, Inc. On March 3, 2020, the Company acquired all of the outstanding capital stock of Paradigm Diagnostics, Inc. and Viomics, Inc., two related party companies of one another headquartered in Phoenix, Arizona, in transactions that are deemed to be a single business combination in accordance with ASC 805, Business Combinations, (“the Paradigm Acquisition”). Paradigm provides comprehensive genomic-based profiling tests that assist in the diagnosis and therapy recommendations for late-stage cancer. Viomics provides a platform for identification of biomarkers. The Company entered into this acquisition to enhance its product portfolio in cancer diagnostics and to enhance its capabilities for biomarker identification. The acquisition date fair value of the consideration to be transferred for Paradigm and Viomics was $40.4 million, which consists of $32.2 million payable in shares of the Company’s common stock and $8.2 million which was settled through a cash payment. Of the $32.2 million to be settled through the issuance of common stock, $28.8 million was issued as of December 31, 2021 and December 31, 2020, and the remaining $3.4 million, which was withheld and may become payable as additional merger consideration, is included in other current liabilities in the consolidated balance sheet as of December 31, 2021. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 The fair value of identifiable intangible assets has been determined using the income approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, weighted average cost of capital and tax rate. Developed technology represents purchased technology that had reached technological feasibility and for which development had been completed as of the acquisition date. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 15 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the assembled workforce and expected synergies. The total goodwill related to this acquisition is not deductible for tax purposes. The Company agreed to issue to the previous investors in Viomics equity interests with an acquisition-date fair value of up to $8.4 million in Viomics, vesting over 4 years based on certain retention arrangements. Payment is contingent upon continued employment with the Company over the four Genomic Health, Inc. On November 8, 2019, the Company acquired all of the outstanding capital stock of Genomic Health, Inc. Genomic Health, headquartered in Redwood City, California, provides genomic-based diagnostic tests that address both the overtreatment and optimal treatment of early and late stage cancer. The Company entered into this combination to create a leading global cancer diagnostics company and provide a robust platform for continued growth. The Company has included the financial results of Genomic Health in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Genomic Health was approximately $2.47 billion, which consisted of the following: (In thousands) Cash $ 1,061,489 Common stock issued 1,389,266 Fair value of replacement stock options and restricted stock awards 17,813 Total purchase price $ 2,468,568 The fair value of the common stock issued as part of consideration was determined on the basis of the closing market price of the Company's shares at the acquisition date. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.76534 was applied to convert Genomic Health’s outstanding equity awards for Genomic Health’s common stock into equity awards for shares of the Company’s common stock. Th e fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.88% - 2.90% Expected term (in years) 3.28 - 6.73 Expected volatility 63.54% - 69.09% Dividend yield 0% Weighted average fair value per share of options assumed $45.75 - $57.44 During 2019, the Company incurred $22.5 million of acquisition-related costs recorded in general and administrative expense. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the combination. In connection with the combination, the Company decided to terminate certain Genomic Health executives in the fourth quarter of 2019 and recorded $32.1 million in severance benefits charges. The amounts of revenue and net loss before tax of Genomic Health included in the Company’s consolidated statement of operations from the combination date of November 8, 2019 to December 31, 2019. (In thousands) 2019 Total revenues $ 66,174 Net loss before tax $ (40,446) The following unaudited pro forma financial information summarized the combined results of operations for the Company and Genomic Health, as though the companies were combined as of January 1, 2018. (In thousands) 2019 Total revenues $ 1,266,591 Net loss before tax $ (389,795) The unaudited pro forma financial information for the period presented above has been calculated after adjusting the results of Genomic Health to reflect the business combination accounting effects resulting from this combination, including the amortization expense from acquired intangible assets and the stock-based compensation expense for unvested stock options and restricted stock awards assumed as though the combination occurred as of January 1, 2018. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2018. As described in Note 15, the Company identified a pre-acquisition contingency relating to the DOJ investigation. The Company assigned a fair value estimate of zero to this pre-acquisition contingency. Subsequent to the Company's final determination of the pre-acquisition contingency’s estimated value, changes to this estimate could have a material impact on the Company's results of operations and financial position. As of December 31, 2021, the Company has accrued approximately $10 million related to this investigation. Asset Acquisitions PFS Genomics Inc. On May 3, 2021, the Company acquired 90% of the outstanding capital stock of PFS Genomics Inc. (“PFS”). On June 23, 2021, the Company completed the acquisition of the remaining 10% interest in PFS. The Company paid cash of $33.6 million for 100% of the outstanding capital stock in PFS. PFS is a healthcare company focused on personalizing treatment for breast cancer patients to improve outcomes and reduce unnecessary treatment. The Company expects this acquisition to expand its ability to help guide early-stage breast cancer treatment through individualized radiotherapy treatment decisions. The transaction was treated as an asset acquisition under GAAP because substantially all of the fair value of the gross assets acquired were deemed to be associated with the acquired technology. The assets acquired and liabilities assumed were substantially comprised of the IPR&D asset as shown in the table below. The IPR&D asset acquired was recorded to research and development expense in the consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company accounted for the acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the total purchase price was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of the closing date. Acquisition related costs were not material in this asset acquisition. The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed: (In thousands) Consideration Cash paid for acquisition of PFS Genomics outstanding shares $ 33,569 Assets acquired and liabilities assumed Cash 496 IPR&D asset 33,074 Other assets and liabilities (1) Net assets acquired $ 33,569 TARDIS License Agreement On January 11, 2021, the Company entered into a worldwide exclusive license to the proprietary TARDIS technology from TGen, an affiliate of City of Hope. Under the agreement, the Company acquired a royalty-free, worldwide exclusive license to proprietary TARDIS patents and know-how. The Company intends to develop and commercialize the TARDIS technology as a minimal residual disease test. The Company accounted for this transaction as an asset acquisition. In connection with the asset acquisition, the Company paid upfront fair value consideration of $52.3 million comprised of $25.0 million in cash and issuance of 0.2 million shares of common stock valued at $27.3 million based on the average of the high and low market price of the Company’s shares on the acquisition date. In addition, the Company is obligated to make milestone payments to TGen of $10.0 million and $35.0 million upon achieving cumulative product revenue related to MRD detection and/or treatment totaling $100.0 million and $250.0 million, respectively. These payments are contingent upon achievement of these cumulative revenues on or before December 31, 2030. The upfront consideration was recorded to research and development expense in the consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company will record the sales milestones once achievement is deemed probable. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Management determined that the Company functions as a single operating segment, and thus reports as a single reportable segment. This operating segment is focused on the development and global commercialization of clinical laboratory services allowing healthcare providers and patients to make individualized treatment decisions. Management assessed the discrete financial information routinely reviewed by the Company's Chief Operating Decision Maker, its President and Chief Executive Officer, to monitor the Company's operating performance and support decisions regarding allocation of resources to its operations. Performance is continuously monitored at the consolidated level to timely identify deviations from expected results. The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location. Year Ended December 31, (In thousands) 2021 2020 2019 United States $ 1,657,174 $ 1,413,907 $ 864,849 Outside of United States 109,913 77,484 11,444 Total revenues $ 1,767,087 $ 1,491,391 $ 876,293 Long-lived assets located in countries outside of the United States are not significant. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESUnder financial accounting standards, deferred tax assets or liabilities are computed based on the differences between the financial statement and income tax bases of assets and liabilities using the enacted tax rates. Deferred income tax expense or benefit represents the change in the deferred tax assets or liabilities from period to period. At December 31, 2021, the Company had federal net operating loss, state net operating loss, and foreign net operating loss carryforwards of approximately $2.15 billion, $1.04 billion, and $15.9 million, respectively for financial reporting purposes, which may be used to offset future taxable income. The Tax Cuts and Jobs Act (H.R. 1) of 2017 limits the deduction for net operating losses to 80% of current year taxable income and provides for an indefinite carryover period for federal net operating losses. Both provisions are applicable for losses arising in tax years beginning after December 31, 2017. As of December 31, 2021 the Company has $1.32 billion of federal net operating loss carryovers incurred after December 31, 2017 with an unlimited carryover period and $835.6 million of federal net operating loss carryovers expiring at various dates through 2041. State and foreign net operating loss carryovers expire at various dates through 2041. All net operating loss carryforwards are subject to review and possible adjustment by federal, state and foreign taxing jurisdictions. The Company also had federal and state research tax credit carryforwards of $63.0 million and $39.8 million, respectively which may be used to offset future income tax liability. The federal credit carryforwards expire at various dates through 2041 and are subject to review and possible adjustment by the Internal Revenue Service. The state credit carryforwards expire at various dates through 2036 with the exception of $23.5 million of California research and development tax credits that have an indefinite carryforward period. All state tax credits are subject to review and possible adjustment by local tax jurisdictions. In the event of a change of ownership, the federal and state net operating loss and research and development tax credit carryforwards may be subject to annual limitations provided by the Internal Revenue Code and similar state provisions. Income (loss) before provision for taxes consisted of the following: Year Ended December 31, (In thousands) 2021 2020 2019 Income (loss) before income taxes: Domestic $ (801,536) $ (423,025) $ (405,425) Foreign (40,970) (406,038) (1,019) Total income (loss) before income taxes $ (842,506) $ (829,063) $ (406,444) The expense (benefit) for income taxes consists of: Year Ended December 31, (In thousands) 2021 2020 2019 Current expense (benefit): Federal $ — $ (3) $ — State 1,388 802 314 Foreign 4,898 933 (63) Deferred tax expense (benefit): Federal (222,693) (3,050) (173,521) State (30,528) (4,260) (20,099) Foreign 54 120 15 Total income tax expense (benefit) $ (246,881) $ (5,458) $ (193,354) The Company recorded an income tax benefit for the year ended December 31, 2021 of $246.9 million primarily as a result of the change in the deferred tax asset valuation allowance resulting from the Thrive Merger. The components of the net deferred tax asset with the approximate income tax effect of each type of carryforward, credit and temporary differences are as follows: December 31, (In thousands) 2021 2020 Deferred tax assets: Operating loss carryforwards $ 516,344 $ 369,642 Tax credit carryforwards 72,959 64,760 Compensation related differences 74,127 48,349 Lease liabilities 48,201 31,938 Capitalized research and development 23,035 — Other temporary differences 20,087 6,136 Tax assets before valuation allowance 754,753 520,825 Less - Valuation allowance (262,238) (293,397) Total deferred tax assets 492,515 227,428 Deferred tax liabilities Amortization $ (464,748) $ (197,847) Property, plant and equipment (4,756) (4,580) Lease assets (45,781) (30,312) Other temporary differences (6,012) (3,995) Total deferred tax liabilities (521,297) (236,734) Net deferred tax liabilities $ (28,782) $ (9,306) A valuation allowance to reduce the deferred tax assets is reported if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has incurred significant losses since its inception and due to the uncertainty of the amount and timing of future taxable income and the realization of deferred tax liabilities, management has determined that a valuation allowance of $262.2 million and $293.4 million at December 31, 2021 and 2020, respectively, is necessary to reduce the tax assets to the amount that is more likely than not to be realized. Given the future limitations on and expiration of certain federal and state deferred tax assets, the recording of a valuation allowance resulted in a deferred tax liability of approximately $28.8 million remaining at the end of 2021, which is included in other long-term liabilities on the Company's consolidated balance sheet. The overall change in valuation allowance for December 31, 2021 and 2020 was a decrease of $31.2 million and an increase of $98.0 million, respectively. Activity associated with the Company's valuation allowance is as follows: December 31, (In thousands) 2021 2020 2019 Balance as of January 1, $ (293,397) $ (195,401) $ (265,587) Valuation allowances established (206,574) (94,589) (113,522) Changes to existing valuation allowances (1,500) 2,151 (22) Acquisition and purchase accounting 239,233 (5,558) 183,730 Balance as of December 31, $ (262,238) $ (293,397) $ (195,401) During the year ended December 31, 2021, the Company recorded an increase to the valuation allowance of $206.6 million primarily related to losses from continuing operations. Offsetting the increase, the Company recorded a decrease to the valuation allowance of $239.2 million related to the Thrive Merger offset against goodwill. During the year ended December 31, 2020, the Company recorded an increase to the valuation allowance of $94.6 million primarily related to losses from continuing operations. Additionally, the Company recorded an increase to the valuation allowance of $5.6 million related to the Genomic Health combination offset against goodwill. During the year ended December 31, 2019, the Company recorded an increase to the valuation allowance of $113.5 million primarily related to losses from continuing operations. Additionally, the Company recorded a decrease to the valuation allowance of $183.7 million related to the Genomic Health combination offset against goodwill. The effective tax rate differs from the statutory tax rate due to the following: December 31, 2021 2020 2019 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes 3.6 1.7 3.4 Federal and state tax rate changes (0.3) — 0.1 Foreign tax rate differential (0.6) (1.0) 0.4 Acquired IPR&D asset expense (0.8) (9.4) — Research and development tax credits 0.7 1.6 0.7 Stock-based compensation expense 1.1 1.1 14.6 Non-deductible executive compensation (0.2) (0.8) (2.7) Transaction costs (0.1) (0.1) (0.5) Loss on extinguishment - convertible notes — — (9.2) Other adjustments 1.2 (2.2) (0.5) Valuation allowance 3.7 (11.3) 20.2 Effective tax rate 29.3 % 0.6 % 47.5 % For the year ended December 31, 2021, the Company recognized an income tax benefit, representing an effective tax rate of 29.3%. The difference between the expected statutory federal tax rate of 21.0% and the effective tax rate of 29.3% for the year ended December 31, 2021, was primarily attributable to an income tax benefit of $239.2 million recorded as a result of a change in the deferred tax asset valuation allowance resulting from the Thrive Merger. For the year ended December 31, 2020, the Company recognized an income tax benefit, representing an effective tax rate of 0.6%. The difference between the expected statutory federal tax rate of 21.0% and the effective tax rate of 0.6% for the year ended December 31, 2020, was primarily attributable to the valuation allowance established against the Company's current period losses generated and the non-deductible IPR&D expense related to the Base Genomics acquisition. For the year ended December 31, 2019, the Company recognized an income tax benefit, representing an effective tax rate of 47.5%. The difference between the expected statutory federal tax rate of 21.0% and the effective tax rate of 47.5% for the year ended December 31, 2019, was primarily attributable to an income tax benefit of $193.6 million recorded as a result of a change in the deferred tax asset valuation allowance resulting from the Genomic Health combination, as well as excess tax benefits on vested stock-based compensation awards. The Company had unrecognized tax benefits related to federal and state research and development tax credits of $21.8 million, $16.6 million, and $10.3 million as of December 31, 2021, 2020, and 2019, respectively. These amounts have been recorded as a reduction to the Company's deferred tax asset, if recognized they would not have an impact on the effective tax rate due to the existing valuation allowance. Certain of the Company's unrecognized tax benefits could change due to activities of various tax authorities, including possible settlement of audits, or through normal expiration of various statutes of limitations. The Company does not expect a material change in unrecognized tax benefits in the next twelve months. The following is a tabular reconciliation of the amounts of unrecognized tax benefits: December 31, (In thousands) 2021 2020 2019 January 1, $ 16,629 $ 10,276 $ 1,926 Increase due to current year tax positions 5,363 3,600 2,142 Increase due to prior year tax positions — 2,753 6,208 Decrease due to prior year tax positions (212) — — Settlements — — — December 31, $ 21,780 $ 16,629 $ 10,276 As of December 31, 2021, due to the carryforward of unutilized net operating losses and research and development credits, the Company is subject to U.S. federal income tax examinations for the tax years 2002 through 2021, and to state income tax examinations for the tax years 2002 through 2021. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2021, 2020 and 2019. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth unaudited quarterly statements of operations data for each of the eight quarters ended December 31, 2021 and 2020. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and contains all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement of the unaudited quarterly results for the periods presented. The quarterly data should be read in conjunction with the Company’s audited consolidated financial statements and the notes to the consolidated financial statements appearing elsewhere in this Form 10-K. Quarter Ended March 31, June 30, September 30, December 31, (Amounts in thousands, except per share data) 2021 Revenue $ 402,077 $ 434,819 $ 456,379 $ 473,812 Cost of sales (exclusive of amortization of acquired intangible assets) 109,993 113,968 115,738 119,058 Amortization of acquired intangible assets (1) 20,555 21,188 21,214 21,216 Gross profit 271,529 299,663 319,427 333,538 Operating expenses, net (2) 572,070 471,327 481,450 554,988 Interest income and interest expense 26,572 (1,223) (8,773) (3,404) Income tax benefit (expense) 242,805 (4,025) 3,858 4,243 Net loss $ (31,164) $ (176,912) $ (166,938) $ (220,611) Net loss per share—basic and diluted $ (0.18) $ (1.03) $ (0.97) $ (1.28) Weighted average common shares outstanding—basic and diluted 169,434 171,494 171,978 172,446 2020 Revenue $ 347,821 $ 268,868 $ 408,363 $ 466,339 Cost of sales (exclusive of amortization of acquired intangible assets) 81,606 77,892 95,061 99,765 Amortization of acquired intangible assets (1) 20,464 20,555 20,555 20,553 Gross profit 245,751 170,421 292,747 346,021 Operating expenses (2) 328,124 237,430 496,082 761,000 Interest income and interest expense (3) (54,507) (1,388) (1,955) (3,517) Income tax benefit (3) 2,237 305 2,752 164 Net loss $ (134,643) $ (68,092) $ (202,538) $ (418,332) Net loss per share—basic and diluted $ (0.91) $ (0.45) $ (1.35) $ (2.67) Weighted average common shares outstanding—basic and diluted 148,151 149,727 150,155 156,470 _________________________________ (1) Includes only amortization of acquired intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of sales. (2) Consists of research and development, sales and marketing, general and administrative, and amortization of acquired intangible assets excluding acquired developed technology, which is included in the gross profit calculation above. This also includes intangible asset impairment charges and funding received as part of the CARES Act in the second quarter of 2020. Refer to Note 6 for further discussion on the intangible asset impairment charges recorded in the third quarters of 2020 and 2021. Refer to Note 1 for further discussion on the funding received as part of the CARES Act in the second quarter of 2020. (3) As a result of the adoption of ASU 2020-06, Debt - Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Business | Business Exact Sciences Corporation (together with its subsidiaries, “Exact,” or the “Company”) was incorporated in February 1995. Exact is a leading global cancer diagnostics company. It has developed some of the most impactful tests in cancer screening and diagnostics, including Cologuard ® and Oncotype DX ® |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Exact Sciences Corporation and those of its wholly-owned subsidiaries and variable interest entities. All intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company's financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021 and through the date of the filing of this Annual Report on Form 10-K. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, marketable and non-marketable investments, software, and the carrying value of the goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. The pandemic and related precautionary measures began to materially disrupt the Company's operations in March 2020 and may continue to disrupt the business for an unknown period of time. As a result, the pandemic had a significant impact on the Company's revenues and operating results. The ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers cash on hand, demand deposits in a bank, money market funds, and all highly liquid investments with an original maturity of 90 days or less to be cash and cash equivalents. |
Marketable Securities | Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities carried at amortized cost are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value. The unrealized gains and losses, net of tax, on the Company's debt securities are reported in other comprehensive income. Marketable equity securities are measured at fair value and the unrealized gains and losses, net of tax, are recognized in other income (expense) in the consolidated statements of operations. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest rate method. Such amortization is included in investment income, net. Realized gains and losses and declines in value as a result of credit losses on available-for-sale securities are included in the consolidated statements of operations as investment income, net. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in the consolidated statements of operations as investment income, net. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment grade credit ratings and places restrictions on maturities and concentration by type and issuer. Investments in which the Company has the ability and intent, if necessary, to liquidate in order to support its current operations (including those with a contractual term greater than one year from the date of purchase) are classified as current. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company estimates an allowance for doubtful accounts against accounts receivable using historical collection trends, aging of accounts, current and future implications surrounding the ability to collect such as economic conditions, and regulatory changes. The allowance for doubtful accounts is evaluated on a regular basis and adjusted when trends, significant events, or other substantive evidence indicate that expected collections will be less than applicable accrual rates. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first out method (“FIFO”). The Company estimates the recoverability of inventory by reference to internal estimates of future demands and product life cycles, including expiration. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale, no longer meet quality specifications, or has a cost basis in excess of its estimated realizable value and records a charge to cost of sales for such inventory as appropriate. Direct and indirect manufacturing costs incurred during process validation with probable future economic benefit are capitalized. Validation costs incurred for other research and development activities, which are not permitted to be sold, have been expensed to research and development in the Company’s consolidated statements of operations. |
Property, Plant and Equipment | Property, Plant and EquipmentProperty, plant and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Land is stated at cost and does not depreciate. Additions and improvements are capitalized, including direct and indirect costs incurred to validate equipment and bring to working conditions. Revalidation costs, including maintenance and repairs are expensed when incurred. |
Software Development Costs | Software Development Costs Costs related to internal use software, including hosted arrangements, are incurred in three stages: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs incurred during the application development stage that meet the criteria for capitalization are capitalized and amortized, when the software is ready for its intended use, using the straight‑line basis over the estimated useful life of the software, or the duration of the hosting agreement. |
Investments in Privately Held Companies | Investments in Privately Held Companies The Company determines whether its investments in privately held companies are debt or equity based on their characteristics, in accordance with the applicable accounting guidance for such investments. The Company also evaluates the investee to determine if the entity is a variable interest entity (“VIE”) and, if so, whether the Company is the primary beneficiary of the VIE, in order to determine whether consolidation of the VIE is required. If consolidation is not required and the Company does not have voting control of the entity, the investment is evaluated to determine if the equity method of accounting should be applied. The equity method applies to investments in common stock or in substance common stock where the Company exercises significant influence over the investee. Investments in privately held companies determined to be equity securities are accounted for as non-marketable securities. The Company adjusts the carrying value of its non-marketable equity securities for changes from observable transactions for identical or similar investments of the same issuer, less impairment. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in investment income, net in the consolidated statements of operations. Investments in privately held companies determined to be debt securities are accounted for as available-for-sale or held-to-maturity securities, in accordance with the applicable accounting guidance for such investments. |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company hedges a portion of its foreign currency exposures related to outstanding monetary assets and liabilities using foreign currency forward contracts. The foreign currency forward contracts are included in prepaid expenses and other current assets or in accrued liabilities in the consolidated balance sheets, depending on the contracts’ net position. These contracts are not designated as hedges, and as a result, changes in their fair value are recorded in other income (expense) in the consolidated statements of operations. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset AcquisitionsBusiness Combinations are accounted for under the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The acquisition method requires identifiable assets acquired and liabilities assumed and any non-controlling interest in the business acquired be recognized and measured at fair value on the acquisition date, which is the date that the acquirer obtains control of the acquired business. The amount by which the fair value of consideration transferred as the purchase price exceeds the net fair value of assets acquired and liabilities assumed is recorded as goodwill. Acquisitions that do not meet the definition of a business combination under ASC 805 are accounted for as asset acquisitions. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Goodwill is not recognized in an asset acquisition with any consideration in excess of net assets acquired allocated to acquired assets on a relative fair value basis. Transaction costs are expensed in a business combination and are considered a component of the cost of the acquisition in an asset acquisition. |
Intangible Assets | Intangible Assets Purchased intangible assets are recorded at fair value. The Company uses a discounted cash flow model to value intangible assets. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital, terminal values and market participants. Patent costs are capitalized as incurred, only if the Company determines that there is some probable future economic benefit derived from the transaction. A capitalized patent is amortized over its estimated useful life, beginning when such patent is approved. Capitalized patent costs are expensed upon disapproval, upon a decision by the Company to no longer pursue the patent or when the related intellectual property is either sold or deemed to be no longer of value to the Company. The Company determined that all patent costs incurred during the years ended December 31, 2021, 2020 and 2019 should be expensed and not capitalized as the future economic benefit derived from the patent costs incurred cannot be determined. |
Acquired In-process Research and Development (IPR&D) | Acquired In-process Research and Development ("IPR&D") Acquired IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The value assigned to acquired IPR&D is determined by estimating the costs to develop the acquired technology into commercially viable products, estimating the resulting revenues from the projects and discounting the net cash flows to present value. The revenues and cost projections used to value acquired IPR&D are, as applicable, reduced based on the probability of success. IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related research and development ("R&D") efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. There are often major risks and uncertainties associated with IPR&D projects as the Company is required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate the products effectiveness. Consequently, the eventual realized value of the IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. |
Contingent Consideration | Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain regulatory and product development milestones being achieved. The Company records contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The fair value of contingent consideration is measured using projected probabilities of success, projected payment dates, present value-factors, and projected revenues (for revenue-based considerations). Changes in probabilities of success, present-value factors, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within general and administrative expenses on the Company’s consolidated statements of operations. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. |
Goodwill | GoodwillThe Company evaluates goodwill for possible impairment in accordance with ASC 350 on an annual basis during the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant events and factors affecting the Company's business. Based on the qualitative assessment, if it is determined that the fair value of goodwill is more likely than not to be less than its carrying amount, the fair value of a reporting unit will be calculated and compared with its carrying amount and an impairment charge will be recognized for the amount that the carrying value exceeds the fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsThe Company evaluates the fair value of long-lived assets, which include property, plant and equipment, finite-lived intangible assets, and investments in privately held companies, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company requires all share-based payments to employees, including grants of employee stock options, restricted stock, restricted stock units, shares purchased under an employee stock purchase plan (if certain parameters are not met), and performance share units to be recognized in the financial statements based on their grant date fair values. Forfeitures of any share-based awards are recognized as they occur. The fair values and recognition of the Company's share-based payment awards are determined as follows: The fair value of each service-based option award is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes pricing model utilizes the following assumptions: Expected Term —Expected life of an option award is the average length of time over which the Company expects employees will exercise their options, which is based on historical experience with similar grants. Expected Volatility —Expected volatility is based on the Company’s historical stock volatility data over the expected term of the awards. Risk-Free Interest Rate —The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent expected term. The estimated fair value of these awards is recognized to expense using the straight-line method over the expected term. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. These expenses include the costs of the Company's proprietary research and development efforts, as well as costs of IPR&D projects acquired as part of an asset acquisition that have no alternative future use. Upfront and milestone payments due to third parties in connection with research and development collaborations prior to regulatory approval are expensed as incurred. Milestone payments due to third parties upon, or subsequent to, regulatory approval are capitalized and amortized into research and development costs over the shorter of the remaining license or product patent life, when there are no corresponding revenues related to the license or product. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received, rather than when the payment is made. The Company incurred research and development expenses of $385.6 million, $554.1 million, and $139.7 million during the years ended December 31, 2021, 2020, and 2019, respectively, including IPR&D of $85.3 million and $412.6 million that was acquired in asset acquisitions that had no alternative future use during the years ended December 31, 2021 and 2020, respectively. The value of the acquired IPR&D that was expensed was determined by identifying those acquired specific IPR&D projects that would be continued and which (a) were incomplete and (b) had no alternative future use. Acquired IPR&D assets that are acquired in an asset acquisition and which have no alternative future use are classified as an investing cash outflow in the consolidated statements of cash flows. |
Advertising Costs | Advertising Costs The Company expenses the costs of media advertising at the time the advertising takes place. The Company expensed approximately $144.0 million, $97.6 million, and $90.5 million of media advertising during the years ended December 31, 2021, 2020, and 2019, respectively, which is recorded in sales and marketing expenses on the Company's consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance that requires fair value to be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under that standard, fair value measurements are separately disclosed by level within the fair value hierarchy. The fair value hierarchy establishes and prioritizes the inputs used to measure fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. |
Leases | Leases The Company acts as lessee in its lease agreements, which include operating leases for corporate offices, laboratory space, warehouse space, vehicles and certain laboratory and office equipment, and finance leases for certain equipment and vehicles. The Company determines whether an arrangement is, or contains, a lease at inception. At the beginning of fiscal year 2019, the company adopted ASC 842. The Company records the present value of lease payments as right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments based on the present value of lease payments over the lease term. Classification of lease liabilities as either current or non-current is based on the expected timing of payments due under the Company’s obligations. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term and at an amount equal to the lease payments in a similar economic environment. The Company calculates its incremental borrowing rates for specific lease terms, used to discount future lease payments, as a function of the US. Treasury rate and an indicative Moody's rating for operating leases or finance leases. The ROU asset also consists of any lease incentives received. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. “Reasonably certain” is assessed internally based on economic, industry, company, strategic and contractual factors. The leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the lease for up to 10 years, and some of which include options to terminate the lease within 1 year. Operating lease expense and amortization of finance lease ROU assets are recognized on a straight-line basis over the lease term as an operating expense. Finance lease interest expense is recorded as interest expense on the Company’s consolidated statements of operations. The Company accounts for leases acquired in business combinations by measuring the lease liability at the present value of the remaining lease payments as if the acquired lease were a new lease for the Company. This measurement includes recognition of a lease intangible for any below-market terms present in the leases acquired. The below-market lease intangible is included in the ROU asset on the consolidated balance sheets and are amortized over the remaining lease term. The Company has not acquired any leases with above-market terms. |
Revenue Recognition | Revenue Recognition Revenues are recognized when the satisfaction of the performance obligation occurs, in an amount that reflects the consideration the Company expects to collect in exchange for those services. The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard, Oncotype DX, and COVID-19 tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The key aspects considered by the Company include the following: Contracts —The Company’s customer is primarily the patient, but the Company does not enter into a formal reimbursement contract with a patient. The Company establishes a contract with a patient in accordance with other customary business practices, which is the point in time an order is received from a provider and a patient specimen has been returned to the laboratory for testing. Payment terms are a function of a patient’s existing insurance benefits, including the impact of coverage decisions with Center for Medicare & Medicaid Services (“CMS”) and applicable reimbursement contracts established between the Company and payers. However, when a patient is considered self-pay, the Company requires payment from the patient prior to the commencement of the Company’s performance obligations. The Company’s consideration can be deemed variable or fixed depending on the structure of specific payer contracts, and the Company considers collection of such consideration to be probable to the extent that it is unconstrained. Under the Company’s Laboratory Service Agreements (“LSA”) and Laboratory Reference Agreements (“LRA”) the Company contracts with a direct bill payer who is the customer for an agreed upon amount of laboratory testing services for a specified amount of time at a fixed reimbursement rate, and certain of the Company’s agreements obligate the customer to pay for testing services prior to result. Performance obligations —A performance obligation is a promise in a contract to transfer a distinct good or service (or a bundle of goods or services) to the customer. The Company’s contracts have a single performance obligation, which is satisfied upon rendering of services, which culminates in the release of a patient’s test result to the ordering healthcare provider. Or, in the context of some of the Company’s agreements, the satisfaction of the performance obligation occurs when a specimen sample is not returned to the laboratory for processing before the end of the allotted testing window. The Company elects the practical expedient related to the disclosure of unsatisfied performance obligations, as the duration of time between providing testing supplies, the receipt of a sample, and the release of a test result to the ordering healthcare provider is far less than one year. Transaction price —The transaction price is the amount of consideration that the Company expects to collect in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration expected to be collected from a contract with a customer may include fixed amounts, variable amounts, or both. Fixed consideration is derived from the Company’s LSA, LRA, and direct bill payer contracts that exist between the Company and the direct bill payers. The contracted reimbursement rate is deemed to be fixed as the Company expects to fully collect all amounts billed under these relationships. Variable consideration is primarily derived from payer and patient billing and can result due to several factors such as the amount of contractual adjustments, any patient co-payments, deductibles or patient adherence incentives, the existence of secondary payers, and claim denials. The Company estimates the amount of variable consideration using the expected value method, which represents the sum of probability-weighted amounts in a range of possible consideration amounts. When estimating the amount of variable consideration, the Company considers several factors, such as historical collections experience, patient insurance eligibility and payer reimbursement contracts. The Company limits the amount of variable consideration included in the transaction price to the unconstrained portion of such consideration. In other words, the Company recognizes revenue up to the amount of variable consideration that is not subject to a significant reversal until additional information is obtained or the uncertainty associated with the additional payments or refunds is subsequently resolved. Differences between original estimates and subsequent revisions, including final settlements, represent changes in the estimate of variable consideration and are included in the period in which such revisions are made. The Company monitors its estimates of transaction price to depict conditions that exist at each reporting date. If the Company subsequently determines that it will collect more or less consideration than it originally estimated for a contract with a patient, it will account for the change as an increase or decrease in the estimate of the transaction price (i.e., an upward or downward revenue adjustment) in the period identified. When the Company does not have significant historical experience or that experience has limited predictive value, the constraint over estimates of variable consideration may result in no revenue being recognized upon completion of the performance obligations associated with the Company's tests, with recognition, generally occurring at the date of cash receipt. Allocate transaction price —The transaction price is allocated entirely to the performance obligation contained within the contract with a customer. Point in time recognition —The Company’s single performance obligation is satisfied at a point in time. That point in time is defined as the date the Company releases a result to the ordering healthcare provider, or, in the context of some of the Company's agreements, that point in time could be the date the allotted testing window ends if a specimen sample is not returned to the laboratory for processing. The point in time in which revenue is recognized by the Company signifies fulfillment of the performance obligation to the patient or direct bill payer. Contract Balances —The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the consolidated balance sheets. Generally, billing occurs subsequent to the release of a patient’s test result to the ordering healthcare provider, resulting in an account receivable. However, the Company sometimes receives advance payment from a patient or a direct bill payer before a test result is completed, resulting in deferred revenue. The deferred revenue recorded is recognized as revenue at the point in time results are released to the patient’s healthcare provider. Or, in the context of some of the Company’s agreements, the satisfaction of the performance obligation occurs when a specimen sample is not returned to the laboratory for processing before the end of the allotted testing window. Practical Expedients —The Company does not adjust the transaction price for the effects of a significant financing component, as at contract inception, the Company expects the collection cycle to be one year or less. The Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses in the Company’s consolidated statements of operations. The Company incurs certain other costs that are incurred regardless of whether a contract is obtained. Such costs are primarily related to legal services and patient communications (e.g. adherence reminder letters). These costs are expensed as incurred and recorded within general and administrative expenses in the Company’s consolidated statements of operations. |
Foreign Currency Transactions | Foreign Currency Transactions The functional currency for most of the Company’s international subsidiaries is the U.S. dollar. In these instances where the functional currency differs from the local currency, monetary assets and liabilities are remeasured at the current period-end exchange rate, while non-monetary assets and liabilities are remeasured at the historical rate. The gains and losses as a result of exchange rate adjustments of these subsidiaries are recognized in the consolidated statements of operations. Net foreign currency transaction gains or losses were not material to the consolidated statements of operations for the periods presented. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to credit risk consist of cash, cash equivalents and marketable securities. As of December 31, 2021, the Company had cash and cash equivalents deposited in financial institutions in which the balances exceed the federal government agency insured limit of $250,000 by approximately $234.9 million. The Company has not experienced any losses in such accounts and management believes it is not exposed to any significant credit risk. |
Tax Positions | Tax Positions A valuation allowance to reduce the deferred tax assets is reported if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has incurred significant losses since its inception and due to the uncertainty of the amount and timing of future taxable income, the Company has determined that a $262.2 million and $293.4 million valuation allowance at December 31, 2021 and 2020 is necessary to reduce the tax assets to the amount that is more likely than not to be realized. The change in valuation allowance as of December 31, 2021 and 2020 was a decrease of $31.2 million and an increase of $98.0 million, respectively. An income tax benefit of $246.9 million was recorded primarily as a result of the change in the deferred tax asset valuation allowance resulting from the acquisition of Thrive Earlier Detection Corporation (“Thrive”). Due to the existence of the valuation allowance, future changes in the Company's unrecognized tax benefits will not impact the Company's effective tax rate. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2020, The FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) . This update simplifies the accounting for convertible debt instruments by removing the beneficial conversion and cash conversion separation models for convertible instruments. Under the update, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums accounted for as paid-in capital. The update also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will no longer be available. This standard may be adopted through either a modified retrospective method of transition or a full retrospective method of transition. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted the standard on January 1, 2021 through application of the full retrospective method of transition. This method of adoption was applied to enhance comparability between the periods presented in the Company’s financial statements. The Company applied the standard to convertible notes outstanding as of the date of the first offering of the Company’s outstanding convertible notes as discussed in Note 10. The Company’s convertible debt instruments are now accounted for as a single liability measured at its amortized cost. The notes are no longer bifurcated between debt and equity, rather accounted for entirely as debt at face value net of any discount or premium and issuance costs. Interest expense is comprised of (1) cash interest payments, (2) amortization of any debt discounts or premiums based on the original offering, and (3) amortization of any debt issuance costs. Gain or loss on extinguishment of convertible notes is calculated as the difference between the (i) fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of repurchase. As of January 1, 2019, the cumulative effect of adoption resulted in an increase in the net carrying amount of convertible notes, net, of $233.7 million, a decrease in additional-paid-in-capital of $260.2 million, a decrease in accumulated deficit of $26.6 million, and an increase to net deferred tax assets of $55.7 million offset by a corresponding increase of $55.7 million in the valuation allowance. For the year ended December 31, 2019, interest expense in the consolidated statement of operations increased by $137.7 million as a result of a decrease in amortization of debt discounts, premiums, and issuance costs of $39.5 million, which was offset by an increase in loss on extinguishment of $177.1 million in connection with the extinguishment of $493.4 million face value of the 2025 Notes. Income tax benefit increased by $8.5 million and net loss per share, basic and diluted, increased by $0.98 per share. For the year ended December 31, 2020, interest expense in the condensed consolidated statement of operations decreased by $28.1 million as a result of a decrease in amortization of debt discounts, premiums, and issuance costs of $70.9 million, which was offset by an increase in loss on extinguishment of $42.8 million in connection with the extinguishment of $100.0 million face value of the 2025 Notes. Income tax benefit decreased by $3.1 million and net loss per share, basic and diluted, decreased by $0.17 per share. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) . This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution model by analogy. The amendments in this update are effective for fiscal years beginning after December 15, 2021. Early application of the amendments is permitted. The Company early adopted these disclosure requirements and applied them to its disclosure of the WEDC tax credits earned during fiscal year 2021 and the funding received as part of the CARES Act in 2020. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, The FASB issued ASU No. 2021-08, Business Combinations (Topic 805) |
Guarantees and Indemnifications | Guarantees and Indemnifications The Company, as permitted under Delaware law and in accordance with its bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a directors and officers insurance policy that limits its exposure and may enable it to recover a portion of any future amounts paid. The Company believes the fair value of these indemnification agreements is minimal. Accordingly, the Company has not recorded any liabilities for these agreements as of December 31, 2021 and 2020. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in the consolidated financial statements and accompanying notes to the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: December 31, (In thousands) 2021 2020 2019 Shares issuable in connection with acquisitions 45 157 — Shares issuable upon exercise of stock options 2,284 2,231 2,700 Shares issuable upon the release of restricted stock awards 4,321 3,968 3,801 Shares issuable upon the release of performance share units 878 619 583 Shares issuable upon conversion of convertible notes 20,309 20,309 12,196 27,837 27,284 19,280 |
Schedules of concentration of risk | The following is a breakdown of revenue and accounts receivable from major payers: % Revenue for the years ended December 31, % Accounts Receivable at December 31, Major Payer 2021 2020 2019 2021 2020 2019 Centers for Medicare and Medicaid Services 20% 21% 29% 11% 14% 19% UnitedHealthcare 11% 10% 13% 8% 7% 7% State of Wisconsin 8% 12% —% 9% 22% —% |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation by revenue source | The following table presents the Company's revenues disaggregated by revenue source: Year Ended December 31, (In thousands) 2021 2020 2019 Screening Medicare Parts B & C $ 438,646 $ 365,471 $ 404,331 Commercial 569,944 409,671 368,006 Other 53,718 39,925 37,783 Total Screening 1,062,308 815,067 810,120 Precision Oncology Medicare Parts B & C $ 195,069 $ 157,166 $ 24,325 Commercial 189,198 186,043 29,976 International 109,913 77,484 11,444 Other 67,496 19,800 428 Total Precision Oncology 561,676 440,493 66,173 COVID-19 Testing $ 143,103 $ 235,831 $ — Total $ 1,767,087 $ 1,491,391 $ 876,293 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at December 31, 2021 and 2020: December 31, (In thousands) 2021 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 247,335 $ 901,294 Cash equivalents 68,136 589,994 Restricted cash (1) 297 306 Total cash, cash equivalents and restricted cash 315,768 1,491,594 Marketable securities Available-for-sale debt securities $ 711,669 $ 347,178 Equity securities 3,336 1,521 Total marketable securities 715,005 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,030,773 $ 1,840,293 _________________________________ |
Schedule of restricted cash and cash equivalents | The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at December 31, 2021 and 2020: December 31, (In thousands) 2021 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 247,335 $ 901,294 Cash equivalents 68,136 589,994 Restricted cash (1) 297 306 Total cash, cash equivalents and restricted cash 315,768 1,491,594 Marketable securities Available-for-sale debt securities $ 711,669 $ 347,178 Equity securities 3,336 1,521 Total marketable securities 715,005 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,030,773 $ 1,840,293 _________________________________ |
Schedule of available-for-sale securities | Available-for-sale debt securities at December 31, 2021 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) (1) Losses in Accumulated Other Comprehensive Income (Loss) (1) Estimated Fair Value Cash equivalents U.S. government agency securities $ 3,543 $ — $ — $ 3,543 Commercial paper 64,593 — — 64,593 Total cash equivalents 68,136 — — 68,136 Marketable securities Corporate bonds $ 313,634 $ 13 $ (493) $ 313,154 U.S. government agency securities 250,793 — (873) 249,920 Asset backed securities 94,565 2 (107) 94,460 Certificates of deposit 47,147 2 (10) 47,139 Commercial paper 6,996 — — 6,996 Total marketable securities 713,135 17 (1,483) 711,669 Total available-for-sale debt securities $ 781,271 $ 17 $ (1,483) $ 779,805 _________________________________ (1) Gains and losses in accumulated other comprehensive income (loss) ("AOCI") are reported before tax impact. Available-for-sale debt securities at December 31, 2020 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) (1) Losses in Accumulated Other Comprehensive Income (Loss) (1) Estimated Fair Value Cash equivalents U.S. government agency securities $ 589,986 $ 8 $ — $ 589,994 Total cash equivalents 589,986 8 — 589,994 Marketable securities Corporate bonds $ 132,301 $ 612 $ — $ 132,913 U.S. government agency securities 207,119 52 — 207,171 Asset backed securities 7,070 24 — 7,094 Total marketable securities 346,490 688 — 347,178 Total available-for-sale debt securities $ 936,476 $ 696 $ — $ 937,172 _________________________________ (1) Gains and losses in AOCI are reported before tax impact. |
Schedule of contractual maturities of available-for-sale investments | The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at December 31, 2021: Due one year or less Due after one year through five years (In thousands) Cost Fair Value Cost Fair Value Cash equivalents Commercial paper $ 64,593 $ 64,593 $ — $ — U.S. government agency securities 3,543 3,543 — — Total cash equivalents 68,136 68,136 — — Marketable securities U.S. government agency securities $ 48,113 $ 48,046 $ 202,680 $ 201,874 Corporate bonds 180,114 180,008 133,520 133,146 Asset backed securities — — 94,565 94,460 Certificates of deposit 47,147 47,139 — — Commercial paper 6,996 6,996 — — Total marketable securities 282,370 282,189 430,765 429,480 Total available-for-sale securities $ 350,506 $ 350,325 $ 430,765 $ 429,480 |
Schedule of gross unrealized losses and fair values of investments in an unrealized loss position | The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of December 31, 2021, aggregated by investment category and length of time those individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Marketable securities Corporate bonds $ 299,448 $ (493) $ — $ — $ 299,448 $ (493) U.S. government agency securities 249,921 (873) — — 249,921 (873) Asset backed securities 89,990 (107) — — 89,990 (107) Certificates of deposit 24,137 (10) — — 24,137 (10) Total available-for-sale securities $ 663,496 $ (1,483) $ — $ — $ 663,496 $ (1,483) |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: December 31, (In thousands) 2021 2020 Raw materials $ 51,321 $ 43,083 Semi-finished and finished goods 53,673 49,182 Total inventory $ 104,994 $ 92,265 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | The carrying value and estimated useful lives of property, plant and equipment are as follows: December 31, (In thousands) Estimated Useful Life 2021 2020 Property, plant and equipment Land n/a $ 4,716 $ 4,466 Leasehold and building improvements (1) 147,083 117,865 Land improvements 15 years 5,206 4,864 Buildings 30 - 40 years 210,560 200,980 Computer equipment and computer software 3 years 109,119 75,519 Laboratory equipment 3 - 10 years 189,748 142,110 Furniture and fixtures 3 - 10 years 28,293 24,968 Assets under construction n/a 100,339 18,751 Property, plant and equipment, at cost 795,064 589,523 Accumulated depreciation (214,816) (137,537) Property, plant and equipment, net $ 580,248 $ 451,986 _________________________________ (1) Lesser of remaining lease term, building life, or estimated useful life. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of net-book value and estimated remaining life and finite lived intangible assets | The following table summarizes the net-book-value and estimated remaining life of the Company's intangible assets as of December 31, 2021: (In thousands) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Balance at December 31, 2021 Finite-lived intangible assets Trade name 13.4 $ 104,700 $ (13,554) $ 91,146 Customer relationships 9.6 6,700 (1,577) 5,123 Patents and licenses 3.6 10,942 (6,763) 4,178 Supply agreement 5.4 2,295 (101) 2,194 Acquired developed technology 8.6 918,171 (176,402) 741,769 Total finite-lived intangible assets 1,042,808 (198,397) 844,411 In-process research and development n/a 1,250,000 — 1,250,000 Total intangible assets $ 2,292,808 $ (198,397) $ 2,094,411 The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2020: (In thousands) Weighted Average Remaining Life (Years) Cost Accumulated Amortization Net Balance at December 31, 2020 Finite-lived intangible assets Trade name 14.9 $ 100,700 $ (7,258) $ 93,442 Customer relationships 12.8 2,700 (404) 2,296 Patents 3.7 10,441 (5,422) 5,019 Supply agreement 6.5 30,000 (4,527) 25,473 Acquired developed technology 9.0 814,171 (93,278) 720,893 Total intangible assets $ 958,012 $ (110,889) $ 847,123 |
Schedule of estimated future amortization expense, intangible assets | As of December 31, 2021, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: (In thousands) 2022 $ 98,614 2023 98,611 2024 98,277 2025 97,230 2026 96,169 Thereafter 355,510 $ 844,411 |
Schedule of carrying amount of goodwill | The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 is as follows: (In thousands) Balance, January 1, 2020 (1) $ 1,203,197 Paradigm & Viomics acquisition 30,431 Genomic Health acquisition adjustment (2) 4,044 Balance, December 31, 2020 1,237,672 Thrive acquisition 948,105 Ashion acquisition 56,758 PreventionGenetics acquisition 92,637 Balance, December 31, 2021 $ 2,335,172 _________________________________ (1) The beginning balance represents the goodwill acquired from the acquisitions of Sampleminded, Inc., Biomatrica, Inc., and Genomic Health between 2017 and 2019 totaling $2.0 million, $15.3 million, and $1.19 billion, respectively. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements along with the level within the fair value hierarchy in which the fair value measurements fall | The following table presents the Company’s fair value measurements as of December 31, 2021 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair value at December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash, cash equivalents, and restricted cash Cash and money market $ 247,335 $ 247,335 $ — $ — Commercial paper 64,593 — 64,593 — U.S. government agency securities 3,543 — 3,543 — Restricted cash 297 297 — — Marketable securities Corporate bonds $ 313,154 $ — $ 313,154 $ — U.S. government agency securities 249,920 — 249,920 — Asset backed securities 94,460 — 94,460 — Certificates of deposit 47,139 — 47,139 — Commercial paper 6,996 — 6,996 — Equity securities 3,336 3,336 — — Non-marketable securities $ 3,090 $ — $ — $ 3,090 Liabilities Contingent consideration $ (359,021) $ — $ — $ (359,021) Total $ 674,842 $ 250,968 $ 779,805 $ (355,931) The following table presents the Company’s fair value measurements as of December 31, 2020 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents Cash and money market $ 901,294 $ 901,294 $ — $ — U.S. government agency securities 589,994 — 589,994 — Restricted cash 306 306 — — Marketable securities Corporate bonds $ 132,913 $ — $ 132,913 $ — Asset backed securities 7,094 — 7,094 — U.S. government agency securities 207,171 — 207,171 — Equity securities 1,521 1,521 — — Liabilities Contingent consideration $ (2,477) $ — $ — $ (2,477) Total $ 1,837,816 $ 903,121 $ 937,172 $ (2,477) |
Schedule of fair value of contingent consideration | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: (In thousands) Contingent consideration Balance, January 1, 2020 (1) $ (2,879) Changes in fair value 325 Payments 77 Balance, December 31, 2020 (2,477) Purchase price contingent consideration (2) (350,348) Changes in fair value (6,359) Payments 163 Balance, December 31, 2021 $ (359,021) _________________________________ (1) The change in fair value of the contingent consideration liability during the year ended December 31, 2019 was not material to the consolidated financial statements. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued liabilities at December 31, 2021 and 2020 consisted of the following: December 31, (In thousands) 2021 2020 Compensation $ 183,517 $ 124,654 Pfizer Promotion Agreement related costs 91,436 46,937 Professional fees 50,077 36,203 Other 32,116 13,064 Assets under construction 22,611 2,118 Research and trial related expenses 15,534 6,111 Licenses 3,265 4,517 $ 398,556 $ 233,604 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE DEBT | |
Schedule of debt, net of discounts and deferred financing costs | Convertible note obligations included in the consolidated balance sheet consisted of the following as of December 31, 2021: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (18,826) $ 1,131,174 $ 1,139,650 2 2027 Convertible notes - 0.375% 747,500 (11,691) 735,809 771,794 2 2025 Convertible notes - 1.000% (1) 315,005 (1,756) 313,249 415,473 2 Convertible note obligations included in the consolidated balance sheet consisted of the following as of December 31, 2020: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,879) $ 1,128,121 $ 1,526,625 2 2027 Convertible notes - 0.375% 747,500 (13,937) 733,563 992,306 2 2025 Convertible notes - 1.000% (1) 315,049 (2,333) 312,716 601,744 2 ____________________________ (1) Based on the Company's share price on the trading days leading up to December 31, 2020 and through the third quarter of 2021, holders of the 2025 Convertible Notes had the right to convert their debentures beginning on January 1, 2021 and ending on December 31, 2021. As a result, the 2025 Convertible Notes were included within convertible notes, net, current portion on the consolidated balance sheet as of December 31, 2020. Some holders did convert their debentures, resulting in a decrease of the principal amount of the 2025 Convertible Notes. As of December 31, 2021, the 2025 Convertible Notes are not convertible and included within long-term convertible notes, net on the consolidated balance sheet. |
Schedule of Allocation of Transaction Costs Related to Convertible Debt | The following table summarizes the original issuance costs at the time of issuance for each set of Notes: (In thousands) January 2025 Notes $ 10,284 June 2025 Notes 7,362 2027 Notes 14,285 2028 Notes 24,453 |
Schedule of Interest Expense | Interest expense includes the following: Year Ended December 31, (In thousands) 2021 2020 2019 Debt issuance costs amortization $ 5,727 $ 5,303 $ 2,891 Debt discount amortization 147 131 (131) Loss on settlement of convertible notes — 50,819 187,698 Coupon interest expense 10,266 9,631 6,611 Total interest expense on convertible notes 16,140 65,884 197,069 Other interest expense 2,466 2,057 2,123 Total interest expense $ 18,606 $ 67,941 $ 199,192 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of amounts recognized in accumulated other comprehensive income (loss) (AOCI) | The amount recognized in AOCI for the years ended December 31, 2021, 2020 and 2019 were as follows: (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Securities Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ (25) $ (1,397) $ (1,422) Other comprehensive income (loss) before reclassifications — 681 681 Amounts reclassified from accumulated other comprehensive income (loss) — 641 641 Net current period change in accumulated other comprehensive income (loss) (1) — 1,322 1,322 Balance at December 31, 2019 $ (25) $ (75) $ (100) Other comprehensive income (loss) before reclassifications — 771 771 Amounts reclassified from accumulated other comprehensive income (loss) 25 — 25 Net current period change in accumulated other comprehensive income (loss) 25 771 796 Income tax expense related to items of other comprehensive income (loss) — (170) (170) Balance at December 31, 2020 $ — $ 526 $ 526 Other comprehensive income (loss) before reclassifications 23 (1,648) (1,625) Amounts reclassified from accumulated other comprehensive income (loss) — (514) (514) Net current period change in accumulated other comprehensive income (loss) 23 (2,162) (2,139) Income tax expense related to items of other comprehensive income (loss) — 170 170 Balance at December 31, 2021 $ 23 $ (1,466) $ (1,443) _________________________________ (1) There was no tax impact from the amounts recognized in AOCI for the year ended December 31, 2019. |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) | Amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, Details about AOCI Components (In thousands) Affected Line Item in the 2021 2020 2019 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income $ (514) $ — $ 641 Foreign currency adjustment General and administrative — 25 — Total reclassifications $ (514) $ 25 $ 641 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of non-cash stock-based compensation expense by department | A summary of non-cash stock-based compensation expense by expense category included in the Company's consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019 is as follows: Year Ended December 31, (In thousands) 2021 2020 2019 Cost of sales $ 16,835 $ 12,852 $ 5,799 Research and development 49,723 19,976 17,196 General and administrative 216,952 75,999 64,222 Sales and marketing 55,716 44,079 21,266 Total stock-based compensation $ 339,226 $ 152,906 $ 108,483 |
Schedule of valuation assumptions | The Company determines the fair value of each service-based option award on the date of grant using the Black-Scholes option-pricing model, which utilizes several key assumptions which are disclosed in the following table: Year Ended December 31 2021 2020 2019 Option Plan Shares Risk-free interest rates (1) 1.26% - 1.47% 2.54% - 2.59% Expected term (in years) (1) 6.15 6.28 Expected volatility (1) 65.67% - 65.71% 64.95% - 64.99% Dividend yield (1) 0% 0% _________________________________ (1) The Company did not grant stock options under its 2010 Omnibus Long-Term Incentive Plan or 2019 Omnibus Long-Term Incentive Plan during the period. The fair value of ESPP shares is based on the assumptions in the following table: Year Ended December 31, 2021 2020 2019 ESPP Shares Risk-free interest rates 0.04% - 0.16% 0.11% - 0.20% 1.60% - 2.40% Expected term (in years) 0.5 - 2 0.5 - 2 0.4 - 2 Expected volatility 43.00% - 68.51% 61.59% - 89.00% 43.20% - 57.60% Dividend yield 0% 0% 0% |
Summary of stock option activity under the Stock Plans | A summary of stock option activity under the Stock Plans is as follows: Options Shares Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) (Aggregate intrinsic value in thousands) Outstanding, January 1, 2021 2,231,059 $ 39.67 6.0 Granted — — Assumed through acquisition 1,393,748 5.51 Exercised (1,295,400) 11.17 Forfeited (45,131) 56.66 Outstanding, December 31, 2021 2,284,276 $ 34.65 5.5 $ 107,586 Vested and expected to vest, December 31, 2021 2,284,276 $ 34.65 5.5 $ 107,586 Exercisable, December 31, 2021 1,780,838 $ 25.59 4.8 $ 96,789 _________________________________ (1) The weighted average grant date fair value of options granted during the years ended December 31, 2020 and 2019 was $58.57 and $57.11, respectively. (2) The total intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019 was $155.8 million, $40.6 million, and $52.0 million, respectively, determined as of the date of exercise. |
Summary of restricted stock and restricted stock unit activity under the Stock Plans | A summary of restricted stock and restricted stock unit activity is as follows: Restricted Shares Weighted Average Grant Date Fair Value (2) Outstanding, January 1, 2021 3,968,214 $ 79.38 Granted 2,333,213 129.16 Assumed through acquisition 242,123 127.79 Released (1) (1,697,643) 73.18 Forfeited (524,997) 101.20 Outstanding, December 31, 2021 4,320,910 $ 108.84 _________________________________ (1) The fair value of restricted stock units vested and converted to shares of the Company's common stock was $219.4 million, $152.4 million, and $173.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. (2) The weighted average grant date fair value of the restricted stock units granted during the years ended December 31, 2020 and 2019 was $92.55 and $93.20, respectively. |
Share-based Payment Arrangement, Performance Shares, Activity | A summary of performance share unit activity is as follows: Performance Share Units (2) Weighted Average Grant Date Fair Value (3) Outstanding, January 1, 2021 618,515 $ 93.22 Granted 270,665 138.09 Released (1) — — Forfeited (11,066) 83.15 Outstanding, December 31, 2021 878,114 $ 107.18 _________________________________ (1) The fair value of performance share units vested and converted to shares of the Company's common stock was $183.8 million for the year ended December 31, 2019. There were no performance share units vested and converted to shares of the Company's common stock during the years ended December 31, 2021 and 2020. (2) The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of December 31, 2021 was 45,312. |
Schedule of shares of common stock issued | A summary of ESPP activity is as follows: Year Ended December 31, (in thousands, except share and per share amounts) 2021 2020 2019 Shares issued under the 2010 Purchase Plan 331,769 301,064 176,458 Cash received under the 2010 Purchase Plan $ 23,070 $ 18,355 $ 8,396 Weighted average fair value per share of stock purchase rights granted during the period $ 34.93 $ 32.57 $ 29.21 |
Schedule of Common Stock Issued | The 331,769 shares issued during the year ended December 31, 2021 were as follows: Offering period ended Number of Shares Weighted Average price per Share April 30, 2021 173,717 $ 69.31 November 1, 2021 158,052 $ 69.71 |
Summary of shares of authorized common stock reserved for issuance | The Company has reserved shares of its authorized common stock for issuance pursuant to its employee stock purchase and equity plans, including all outstanding stock option grants noted above at December 31, 2021, as follows: Shares reserved for issuance 2019 Stock Plan 8,491,176 2010 Purchase Plan 427,246 8,918,422 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Year Ended December 31, (In thousands) 2021 2020 2019 Finance lease cost Amortization of right-of-use assets $ 5,731 $ 1,935 $ 27 Interest on lease liabilities 1,018 383 2 Operating lease cost 31,730 22,551 9,200 Short-term lease cost 628 356 219 Variable lease cost 5,212 2,703 896 Total lease Cost $ 44,319 $ 27,928 $ 10,344 Year Ended December 31, (In thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27,461 $ 17,531 $ 9,641 Operating cash flows from finance leases 938 381 1 Finance cash flows from finance leases 5,290 1,756 15 Non-cash investing and financing activities: Right-of-use assets obtained in exchange for new operating lease liabilities (1) 74,369 13,261 51,030 Right-of-use assets obtained in exchange for new finance lease liabilities 5,460 20,349 237 Weighted-average remaining lease term - operating leases (in years) 8.33 8.75 9.80 Weighted-average remaining lease term - finance leases (in years) 2.95 3.68 1.20 Weighted-average discount rate - operating leases 6.11 % 6.80 % 6.80 % Weighted-average discount rate - finance leases 5.36 % 5.67 % 5.60 % _________________________________ (1) For the year ended December 31, 2021, this includes right-of-use assets acquired as part of the business combinations described in Note 19 of $39.6 million. For the year ended December 31, 2019, this includes right-of-use assets obtained from the initial adoption of ASC 842 of $17.9 million. |
Operating lease maturity | Maturities of operating lease liabilities on an annual basis as of December 31, 2021 were as follows: (In thousands) 2022 $ 30,706 2023 31,793 2024 32,209 2025 30,446 2026 29,890 Thereafter 106,967 Total minimum lease payments 262,011 Imputed interest (60,135) Total $ 201,876 |
Finance lease maturity | Maturities of finance lease liabilities on an annual basis as of December 31, 2021 were as follows (amounts in thousands): (In thousands) 2022 $ 7,040 2023 6,930 2024 5,253 2025 911 2026 51 Thereafter — Total minimum lease payments 20,185 Imputed interest (1,449) Total $ 18,736 |
BUSINESS COMBINATIONS AND ASS_2
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of business acquisitions, by acquisition | The combination date fair value of the consideration transferred for PreventionGenetics was approximately $185.5 million, which consisted of the following: (In thousands) Cash $ 101,255 Common stock issued 84,252 Total purchase price $ 185,507 The combination date fair value of the consideration transferred for Ashion was approximately $110.0 million, which consisted of the following: (In thousands) Cash $ 74,775 Common stock issued 16,224 Contingent consideration 19,000 Total purchase price $ 109,999 The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 |
Schedule of allocated to the underlying assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 1,574 Accounts receivable 6,261 Inventory 1,697 Prepaid expenses and other current assets 30 Property, plant and equipment 12,793 Developed technology 65,000 Customer relationships 4,000 Trade name 4,000 Total identifiable assets acquired 95,355 Accounts payable (1,493) Accrued liabilities (992) Total liabilities assumed (2,485) Net identifiable assets acquired 92,870 Goodwill 92,637 Net assets acquired $ 185,507 The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 2,474 Accounts receivable 2,349 Inventory 1,811 Prepaid expenses and other current assets 425 Property, plant and equipment 9,947 Operating lease right-of-use assets 548 Developed technology 39,000 Total identifiable assets acquired 56,554 Accounts payable (1,477) Accrued liabilities (1,190) Operating lease liabilities, current portion (343) Other current liabilities (98) Operating lease liabilities, less current portion (205) Total liabilities assumed (3,313) Net identifiable assets acquired 53,241 Goodwill 56,758 Net assets acquired $ 109,999 The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 241,748 $ — $ 241,748 Prepaid expenses and other current assets 3,939 — 3,939 Property, plant and equipment 29,977 — 29,977 Operating lease right-of-use assets 39,027 — 39,027 Other long-term assets 67 — 67 In-process research and development (IPR&D) 1,250,000 — 1,250,000 Total identifiable assets acquired 1,564,758 — 1,564,758 Accounts payable (3,222) — (3,222) Accrued liabilities (6,218) (1,862) (8,080) Operating lease liabilities, current portion (2,980) — (2,980) Operating lease liabilities, less current portion (38,622) — (38,622) Deferred tax liability (272,905) — (272,905) Total liabilities assumed (323,947) (1,862) (325,809) Net identifiable assets acquired 1,240,811 (1,862) 1,238,949 Goodwill 946,243 1,862 948,105 Net assets acquired $ 2,187,054 $ — $ 2,187,054 (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 The combination date fair value of the consideration transferred for Genomic Health was approximately $2.47 billion, which consisted of the following: (In thousands) Cash $ 1,061,489 Common stock issued 1,389,266 Fair value of replacement stock options and restricted stock awards 17,813 Total purchase price $ 2,468,568 The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed: (In thousands) Consideration Cash paid for acquisition of PFS Genomics outstanding shares $ 33,569 Assets acquired and liabilities assumed Cash 496 IPR&D asset 33,074 Other assets and liabilities (1) Net assets acquired $ 33,569 The following table summarizes the total consideration for the acquisition and the value of assets acquired and liabilities assumed as of October 26, 2020, the Merger closing date. These values are based on internal Company and independent external third-party valuations: (In thousands) Consideration Cash paid for acquisition of Base Genomics outstanding shares $ 416,525 Transaction costs 4,600 Total consideration 421,125 Assets acquired and liabilities assumed Cash 9,704 IPR&D asset 412,568 Other assets and liabilities (1,147) Net assets acquired $ 421,125 |
Schedule of share-based payment award, stock options, valuation assumptions | The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield 0% Weighted average fair value per share of options assumed $109.74 - $124.89 Th e fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.88% - 2.90% Expected term (in years) 3.28 - 6.73 Expected volatility 63.54% - 69.09% Dividend yield 0% Weighted average fair value per share of options assumed $45.75 - $57.44 |
Business combination, pro forma information | The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Year Ended December 31, (In thousands) 2021 2020 Total revenues $ 1,767,087 $ 1,491,391 Net loss before tax $ (761,337) $ (1,014,352) The amounts of revenue and net loss before tax of Genomic Health included in the Company’s consolidated statement of operations from the combination date of November 8, 2019 to December 31, 2019. (In thousands) 2019 Total revenues $ 66,174 Net loss before tax $ (40,446) The following unaudited pro forma financial information summarized the combined results of operations for the Company and Genomic Health, as though the companies were combined as of January 1, 2018. (In thousands) 2019 Total revenues $ 1,266,591 Net loss before tax $ (389,795) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from external customers by geographic areas | The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location. Year Ended December 31, (In thousands) 2021 2020 2019 United States $ 1,657,174 $ 1,413,907 $ 864,849 Outside of United States 109,913 77,484 11,444 Total revenues $ 1,767,087 $ 1,491,391 $ 876,293 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | Income (loss) before provision for taxes consisted of the following: Year Ended December 31, (In thousands) 2021 2020 2019 Income (loss) before income taxes: Domestic $ (801,536) $ (423,025) $ (405,425) Foreign (40,970) (406,038) (1,019) Total income (loss) before income taxes $ (842,506) $ (829,063) $ (406,444) |
Schedule of expense (benefit) for income taxes | The expense (benefit) for income taxes consists of: Year Ended December 31, (In thousands) 2021 2020 2019 Current expense (benefit): Federal $ — $ (3) $ — State 1,388 802 314 Foreign 4,898 933 (63) Deferred tax expense (benefit): Federal (222,693) (3,050) (173,521) State (30,528) (4,260) (20,099) Foreign 54 120 15 Total income tax expense (benefit) $ (246,881) $ (5,458) $ (193,354) |
Schedule of components of the net deferred tax asset | The components of the net deferred tax asset with the approximate income tax effect of each type of carryforward, credit and temporary differences are as follows: December 31, (In thousands) 2021 2020 Deferred tax assets: Operating loss carryforwards $ 516,344 $ 369,642 Tax credit carryforwards 72,959 64,760 Compensation related differences 74,127 48,349 Lease liabilities 48,201 31,938 Capitalized research and development 23,035 — Other temporary differences 20,087 6,136 Tax assets before valuation allowance 754,753 520,825 Less - Valuation allowance (262,238) (293,397) Total deferred tax assets 492,515 227,428 Deferred tax liabilities Amortization $ (464,748) $ (197,847) Property, plant and equipment (4,756) (4,580) Lease assets (45,781) (30,312) Other temporary differences (6,012) (3,995) Total deferred tax liabilities (521,297) (236,734) Net deferred tax liabilities $ (28,782) $ (9,306) |
Summary of valuation allowance | Activity associated with the Company's valuation allowance is as follows: December 31, (In thousands) 2021 2020 2019 Balance as of January 1, $ (293,397) $ (195,401) $ (265,587) Valuation allowances established (206,574) (94,589) (113,522) Changes to existing valuation allowances (1,500) 2,151 (22) Acquisition and purchase accounting 239,233 (5,558) 183,730 Balance as of December 31, $ (262,238) $ (293,397) $ (195,401) |
Schedule of differences between the effective income tax rate and the statutory tax rate | The effective tax rate differs from the statutory tax rate due to the following: December 31, 2021 2020 2019 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes 3.6 1.7 3.4 Federal and state tax rate changes (0.3) — 0.1 Foreign tax rate differential (0.6) (1.0) 0.4 Acquired IPR&D asset expense (0.8) (9.4) — Research and development tax credits 0.7 1.6 0.7 Stock-based compensation expense 1.1 1.1 14.6 Non-deductible executive compensation (0.2) (0.8) (2.7) Transaction costs (0.1) (0.1) (0.5) Loss on extinguishment - convertible notes — — (9.2) Other adjustments 1.2 (2.2) (0.5) Valuation allowance 3.7 (11.3) 20.2 Effective tax rate 29.3 % 0.6 % 47.5 % |
Schedule of unrecognized tax benefits | The following is a tabular reconciliation of the amounts of unrecognized tax benefits: December 31, (In thousands) 2021 2020 2019 January 1, $ 16,629 $ 10,276 $ 1,926 Increase due to current year tax positions 5,363 3,600 2,142 Increase due to prior year tax positions — 2,753 6,208 Decrease due to prior year tax positions (212) — — Settlements — — — December 31, $ 21,780 $ 16,629 $ 10,276 |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly statement of operations | The following table sets forth unaudited quarterly statements of operations data for each of the eight quarters ended December 31, 2021 and 2020. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and contains all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement of the unaudited quarterly results for the periods presented. The quarterly data should be read in conjunction with the Company’s audited consolidated financial statements and the notes to the consolidated financial statements appearing elsewhere in this Form 10-K. Quarter Ended March 31, June 30, September 30, December 31, (Amounts in thousands, except per share data) 2021 Revenue $ 402,077 $ 434,819 $ 456,379 $ 473,812 Cost of sales (exclusive of amortization of acquired intangible assets) 109,993 113,968 115,738 119,058 Amortization of acquired intangible assets (1) 20,555 21,188 21,214 21,216 Gross profit 271,529 299,663 319,427 333,538 Operating expenses, net (2) 572,070 471,327 481,450 554,988 Interest income and interest expense 26,572 (1,223) (8,773) (3,404) Income tax benefit (expense) 242,805 (4,025) 3,858 4,243 Net loss $ (31,164) $ (176,912) $ (166,938) $ (220,611) Net loss per share—basic and diluted $ (0.18) $ (1.03) $ (0.97) $ (1.28) Weighted average common shares outstanding—basic and diluted 169,434 171,494 171,978 172,446 2020 Revenue $ 347,821 $ 268,868 $ 408,363 $ 466,339 Cost of sales (exclusive of amortization of acquired intangible assets) 81,606 77,892 95,061 99,765 Amortization of acquired intangible assets (1) 20,464 20,555 20,555 20,553 Gross profit 245,751 170,421 292,747 346,021 Operating expenses (2) 328,124 237,430 496,082 761,000 Interest income and interest expense (3) (54,507) (1,388) (1,955) (3,517) Income tax benefit (3) 2,237 305 2,752 164 Net loss $ (134,643) $ (68,092) $ (202,538) $ (418,332) Net loss per share—basic and diluted $ (0.91) $ (0.45) $ (1.35) $ (2.67) Weighted average common shares outstanding—basic and diluted 148,151 149,727 150,155 156,470 _________________________________ (1) Includes only amortization of acquired intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of sales. (2) Consists of research and development, sales and marketing, general and administrative, and amortization of acquired intangible assets excluding acquired developed technology, which is included in the gross profit calculation above. This also includes intangible asset impairment charges and funding received as part of the CARES Act in the second quarter of 2020. Refer to Note 6 for further discussion on the intangible asset impairment charges recorded in the third quarters of 2020 and 2021. Refer to Note 1 for further discussion on the funding received as part of the CARES Act in the second quarter of 2020. (3) As a result of the adoption of ASU 2020-06, Debt - Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Use of Estimates (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
CARES Act, grant payment received | $ 23.7 | $ 23.7 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 27,837 | 27,284 | 19,280 |
Shares issuable in connection with acquisitions | |||
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 45 | 157 | 0 |
Shares issuable upon exercise of stock options | |||
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 2,284 | 2,231 | 2,700 |
Shares issuable upon the release of restricted stock awards | |||
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 4,321 | 3,968 | 3,801 |
Shares issuable upon the release of performance share units | |||
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 878 | 619 | 583 |
Shares issuable upon conversion of convertible notes | |||
Common shares not included in the computation of diluted net loss per share | |||
Antidilutive shares (in shares) | 20,309 | 20,309 | 12,196 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Research and development | $ 385,646 | $ 554,052 | $ 139,694 |
Asset acquisition IPR&D expense | $ 85,337 | $ 412,568 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 144 | $ 97.6 | $ 90.5 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term extension | 10 years |
Operating lease, termination period | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease term | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration of Credit Risk | |||
Cash, uninsured amount | $ 234.9 | ||
Revenue | Customer Concentration Risk | Centers for Medicare and Medicaid Services | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 20.00% | 21.00% | 29.00% |
Revenue | Customer Concentration Risk | UnitedHealthcare | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 11.00% | 10.00% | 13.00% |
Revenue | Customer Concentration Risk | State of Wisconsin | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 8.00% | 12.00% | 0.00% |
Accounts Receivable | Customer Concentration Risk | Centers for Medicare and Medicaid Services | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 11.00% | 14.00% | 19.00% |
Accounts Receivable | Customer Concentration Risk | UnitedHealthcare | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 8.00% | 7.00% | 7.00% |
Accounts Receivable | Customer Concentration Risk | State of Wisconsin | |||
Concentration of Credit Risk | |||
Concentration risk (as a percent) | 9.00% | 22.00% | 0.00% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Tax Positions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||||||||
Deferred tax asset valuation allowance | $ 262,238 | $ 293,397 | $ 262,238 | $ 293,397 | |||||||
Increase (decrease) in valuation allowance | (31,200) | 98,000 | |||||||||
Income tax benefit | $ 4,243 | $ 3,858 | $ (4,025) | $ 242,805 | $ 164 | $ 2,752 | $ 305 | $ 2,237 | $ 246,881 | $ 5,458 | $ 193,354 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 29, 2020 | Mar. 31, 2019 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | $ 3,387,636 | $ 2,235,553 | $ 3,387,636 | $ 2,235,553 | $ 1,957,639 | $ 447,258 | ||||||||
Deferred tax asset valuation allowance | 262,238 | 293,397 | 262,238 | 293,397 | ||||||||||
Decrease in amortization debt discount | (6,683) | (1,546) | 1,758 | |||||||||||
Loss on extinguishment of debt | $ 50,800 | 0 | 50,819 | 187,698 | ||||||||||
Tax expense (benefit) | $ (4,243) | $ (3,858) | $ 4,025 | $ (242,805) | $ (164) | $ (2,752) | $ (305) | $ (2,237) | $ (246,881) | $ (5,458) | $ (193,354) | |||
Increase (decrease) in net loss per share (in usd per share) | $ (1.28) | $ (0.97) | $ (1.03) | $ (0.18) | $ (2.67) | $ (1.35) | $ (0.45) | $ (0.91) | $ (3.48) | $ (5.45) | $ (1.62) | |||
Increase (decrease) in net loss per share (in usd per share) | $ (1.28) | $ (0.97) | $ (1.03) | $ (0.18) | $ (2.67) | $ (1.35) | $ (0.45) | $ (0.91) | $ (3.48) | $ (5.45) | $ (1.62) | |||
2025 Convertible notes | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Loss on extinguishment of debt | $ 187,700 | |||||||||||||
Repayments of debt | $ 493,400 | |||||||||||||
Additional Paid In Capital | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | $ 6,028,861 | $ 4,279,327 | $ 6,028,861 | $ 4,279,327 | $ 3,178,552 | 1,456,648 | ||||||||
Accumulated Deficit | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | (2,641,520) | (2,045,895) | (2,641,520) | (2,045,895) | (1,222,290) | (1,009,200) | ||||||||
2025 Convertible notes | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Convertible notes | $ 313,249 | $ 312,716 | $ 313,249 | 312,716 | ||||||||||
Loss on extinguishment of debt | 42,800 | 177,100 | ||||||||||||
Extinguishment of debt, amount | 100,000 | |||||||||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Convertible notes | 233,700 | |||||||||||||
Deferred tax assets, net | 55,700 | |||||||||||||
Deferred tax asset valuation allowance | 55,700 | |||||||||||||
Interest income (expense) | 28,100 | 137,700 | ||||||||||||
Decrease in amortization debt discount | 70,900 | 39,500 | ||||||||||||
Tax expense (benefit) | $ (3,100) | $ 8,500 | ||||||||||||
Increase (decrease) in net loss per share (in usd per share) | $ (0.17) | $ 0.98 | ||||||||||||
Increase (decrease) in net loss per share (in usd per share) | $ (0.17) | $ 0.98 | ||||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid In Capital | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | (260,200) | |||||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Stockholders' equity | $ 26,600 |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 1,767,087 | $ 1,491,391 | $ 876,293 |
Screening | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 1,062,308 | 815,067 | 810,120 |
Screening | Medicare Parts B & C | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 438,646 | 365,471 | 404,331 |
Screening | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 569,944 | 409,671 | 368,006 |
Screening | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 53,718 | 39,925 | 37,783 |
Precision Oncology | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 561,676 | 440,493 | 66,173 |
Precision Oncology | Medicare Parts B & C | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 195,069 | 157,166 | 24,325 |
Precision Oncology | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 189,198 | 186,043 | 29,976 |
Precision Oncology | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 67,496 | 19,800 | 428 |
Precision Oncology | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | 109,913 | 77,484 | 11,444 |
COVID-19 Testing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 143,103 | $ 235,831 | $ 0 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 1 | $ 25 | |
Deferred revenue, revenue recognized during period | 24.6 | 0.2 | |
COVID-19 | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 24.2 | ||
Deferred revenue, revenue recognized during period | 24.2 | ||
Variable consideration | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized from changes in transaction price | $ 11.8 | $ 9.6 | $ 9.9 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | $ 315,768 | $ 1,491,594 |
Available-for-sale debt securities | 779,805 | 937,172 |
Equity securities | 3,336 | 1,521 |
Total marketable securities | 715,005 | 348,699 |
Total cash and cash equivalents, restricted cash and marketable securities | 1,030,773 | 1,840,293 |
Cash equivalents | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | 68,136 | 589,994 |
Available-for-sale debt securities | 68,136 | 589,994 |
Marketable securities | ||
Marketable Securities [Line Items] | ||
Available-for-sale debt securities | 711,669 | 347,178 |
Cash and money market | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | 247,335 | 901,294 |
Restricted cash | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | $ 297 | $ 306 |
MARKETABLE SECURITIES - Sched_2
MARKETABLE SECURITIES - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities | ||
Amortized Cost | $ 781,271 | $ 936,476 |
Gains in Accumulated Other Comprehensive Income (Loss) | 17 | 696 |
Losses in Accumulated Other Comprehensive Income (Loss) | (1,483) | 0 |
Estimated Fair Value | 779,805 | 937,172 |
Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 68,136 | 589,986 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 8 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 68,136 | 589,994 |
Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 713,135 | 346,490 |
Gains in Accumulated Other Comprehensive Income (Loss) | 17 | 688 |
Losses in Accumulated Other Comprehensive Income (Loss) | (1,483) | 0 |
Estimated Fair Value | 711,669 | 347,178 |
U.S. government agency securities | Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 3,543 | 589,986 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 8 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 3,543 | 589,994 |
U.S. government agency securities | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 250,793 | 207,119 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 52 |
Losses in Accumulated Other Comprehensive Income (Loss) | (873) | 0 |
Estimated Fair Value | 249,920 | 207,171 |
Commercial paper | Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 64,593 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | |
Estimated Fair Value | 64,593 | |
Corporate bonds | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 313,634 | 132,301 |
Gains in Accumulated Other Comprehensive Income (Loss) | 13 | 612 |
Losses in Accumulated Other Comprehensive Income (Loss) | (493) | 0 |
Estimated Fair Value | 313,154 | 132,913 |
Asset backed securities | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 94,565 | 7,070 |
Gains in Accumulated Other Comprehensive Income (Loss) | 2 | 24 |
Losses in Accumulated Other Comprehensive Income (Loss) | (107) | 0 |
Estimated Fair Value | 94,460 | $ 7,094 |
Certificates of deposit | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 47,147 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 2 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (10) | |
Estimated Fair Value | 47,139 | |
Commercial paper, not included with cash equivalents | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 6,996 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | |
Estimated Fair Value | $ 6,996 |
MARKETABLE SECURITIES - Sched_3
MARKETABLE SECURITIES - Schedule of Underlying Maturities of AFS Securities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Available-for-sale securities | |
Due in one year or less, Cost | $ 350,506 |
Due in one year or less, Fair Value | 350,325 |
Due after one year through four years, Cost | 430,765 |
Due after one year through four years, Fair Value | 429,480 |
Cash equivalents | |
Available-for-sale securities | |
Due in one year or less, Cost | 68,136 |
Due in one year or less, Fair Value | 68,136 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Cash equivalents | Commercial paper | |
Available-for-sale securities | |
Due in one year or less, Cost | 64,593 |
Due in one year or less, Fair Value | 64,593 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Cash equivalents | U.S. government agency securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 3,543 |
Due in one year or less, Fair Value | 3,543 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Marketable securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 282,370 |
Due in one year or less, Fair Value | 282,189 |
Due after one year through four years, Cost | 430,765 |
Due after one year through four years, Fair Value | 429,480 |
Marketable securities | Commercial paper | |
Available-for-sale securities | |
Due in one year or less, Cost | 6,996 |
Due in one year or less, Fair Value | 6,996 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Marketable securities | U.S. government agency securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 48,113 |
Due in one year or less, Fair Value | 48,046 |
Due after one year through four years, Cost | 202,680 |
Due after one year through four years, Fair Value | 201,874 |
Marketable securities | Corporate bonds | |
Available-for-sale securities | |
Due in one year or less, Cost | 180,114 |
Due in one year or less, Fair Value | 180,008 |
Due after one year through four years, Cost | 133,520 |
Due after one year through four years, Fair Value | 133,146 |
Marketable securities | Asset backed securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 0 |
Due in one year or less, Fair Value | 0 |
Due after one year through four years, Cost | 94,565 |
Due after one year through four years, Fair Value | 94,460 |
Marketable securities | Certificates of deposit | |
Available-for-sale securities | |
Due in one year or less, Cost | 47,147 |
Due in one year or less, Fair Value | 47,139 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | $ 0 |
MARKETABLE SECURITIES - Sched_4
MARKETABLE SECURITIES - Schedule of Gross Unrealized Losses And Fair Value of Available For Sale Securities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | $ 663,496 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (1,483) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 663,496 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (1,483) |
Marketable securities | Corporate bonds | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 299,448 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (493) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 299,448 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (493) |
Marketable securities | U.S. government agency securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 249,921 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (873) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 249,921 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (873) |
Marketable securities | Asset backed securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 89,990 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (107) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 89,990 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (107) |
Marketable securities | Certificates of deposit | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 24,137 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (10) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or greater, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 24,137 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | $ (10) |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 51,321 | $ 43,083 |
Semi-finished and finished goods | 53,673 | 49,182 |
Inventory | $ 104,994 | $ 92,265 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Estimated Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 795,064 | $ 589,523 |
Accumulated depreciation | (214,816) | (137,537) |
Property, plant and equipment, net | 580,248 | 451,986 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 4,716 | 4,466 |
Leasehold and building improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 147,083 | 117,865 |
Land improvements | ||
Property, plant and equipment | ||
Estimated Useful Life | 15 years | |
Property, plant and equipment, at cost | $ 5,206 | 4,864 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 210,560 | 200,980 |
Buildings | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 30 years | |
Buildings | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 40 years | |
Computer equipment and computer software | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Property, plant and equipment, at cost | $ 109,119 | 75,519 |
Laboratory equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 189,748 | 142,110 |
Laboratory equipment | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Laboratory equipment | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 10 years | |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 28,293 | 24,968 |
Furniture and fixtures | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Furniture and fixtures | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 10 years | |
Assets under construction | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 100,339 | $ 18,751 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | |||
Depreciation | $ 85,300 | $ 70,000 | $ 34,200 |
Property, plant and equipment, gross | 795,064 | 589,523 | |
Assets under construction | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 100,339 | 18,751 | |
Buildings under construction | |||
Property, plant and equipment | |||
Assets under construction | 41,500 | ||
Leasehold improvements | |||
Property, plant and equipment | |||
Assets under construction | 27,600 | ||
Laboratory equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 189,748 | 142,110 | |
Assets under construction | 19,800 | ||
Software projects | |||
Property, plant and equipment | |||
Assets under construction | 10,600 | ||
Land improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 5,206 | 4,864 | |
Assets under construction | 600 | ||
Furniture and fixtures | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 28,293 | $ 24,968 | |
Assets under construction | $ 200 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite Lived Intangible Assets Net Balances and Weighted Average Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,042,808 | $ 958,012 |
Less: Accumulated amortization | (198,397) | (110,889) |
Finite-lived intangible assets, net | 844,411 | 847,123 |
Indefinite-lived intangible assets | 1,250,000 | |
Finite-lived and indefinite-lived intangible assets, gross | 2,292,808 | |
Finite-lived and indefinite-lived intangible assets, net | $ 2,094,411 | $ 847,123 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (Years) | 13 years 4 months 24 days | 14 years 10 months 24 days |
Finite-lived intangible assets, gross | $ 104,700 | $ 100,700 |
Less: Accumulated amortization | (13,554) | (7,258) |
Finite-lived intangible assets, net | $ 91,146 | $ 93,442 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (Years) | 9 years 7 months 6 days | 12 years 9 months 18 days |
Finite-lived intangible assets, gross | $ 6,700 | $ 2,700 |
Less: Accumulated amortization | (1,577) | (404) |
Finite-lived intangible assets, net | $ 5,123 | $ 2,296 |
Patents and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (Years) | 3 years 7 months 6 days | 3 years 8 months 12 days |
Finite-lived intangible assets, gross | $ 10,942 | $ 10,441 |
Less: Accumulated amortization | (6,763) | (5,422) |
Finite-lived intangible assets, net | $ 4,178 | $ 5,019 |
Supply agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (Years) | 5 years 4 months 24 days | 6 years 6 months |
Finite-lived intangible assets, gross | $ 2,295 | $ 30,000 |
Less: Accumulated amortization | (101) | (4,527) |
Finite-lived intangible assets, net | $ 2,194 | $ 25,473 |
Acquired developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (Years) | 8 years 7 months 6 days | 9 years |
Finite-lived intangible assets, gross | $ 918,171 | $ 814,171 |
Less: Accumulated amortization | (176,402) | (93,278) |
Finite-lived intangible assets, net | $ 741,769 | $ 720,893 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 98,614 | |
2023 | 98,611 | |
2024 | 98,277 | |
2025 | 97,230 | |
2026 | 96,169 | |
Thereafter | 355,510 | |
Finite-lived intangible assets, net | $ 844,411 | $ 847,123 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset impairment charge | $ 0 | ||||
Finite-lived intangible assets, gross | $ 1,042,808,000 | $ 958,012,000 | |||
Finite-lived intangible assets, accumulated amortization | 198,397,000 | 110,889,000 | |||
Goodwill, impairment loss | $ 0 | 0 | $ 0 | ||
In Process Research and Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset impairment charge | $ 20,200,000 | ||||
In Process Research and Development [Member] | Armune Biosciences Agreement | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset impairment charge | $ 9,700,000 | ||||
Finite-lived intangible assets, gross | $ 12,200,000 | ||||
Finite-lived intangible assets, accumulated amortization | 2,500,000 | ||||
In Process Research and Development [Member] | Biocartis Agreement | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset impairment charge | $ 200,000,000 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Apr. 14, 2021 | Jan. 05, 2021 | Mar. 03, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Carrying amount of goodwill | |||||||
Beginning of the period | $ 1,237,672 | $ 1,203,197 | |||||
Ending of the period | 2,335,172 | 1,237,672 | |||||
Goodwill | 2,335,172 | 1,237,672 | |||||
Paradigm & Viomics | |||||||
Carrying amount of goodwill | |||||||
Acquisition | 30,431 | ||||||
Ending of the period | 30,431 | ||||||
Goodwill | 30,431 | $ 29,695 | |||||
Genomic Health Inc | |||||||
Carrying amount of goodwill | |||||||
Beginning of the period | 1,190,000 | ||||||
Genomic Health acquisition adjustment | $ 4,044 | ||||||
Goodwill | |||||||
Thrive | |||||||
Carrying amount of goodwill | |||||||
Acquisition | 948,105 | ||||||
Ending of the period | 948,105 | ||||||
Goodwill | 948,105 | $ 946,243 | |||||
Ashion Analytics | |||||||
Carrying amount of goodwill | |||||||
Acquisition | 56,758 | ||||||
Goodwill | $ 56,758 | ||||||
Sampleminded Inc | |||||||
Carrying amount of goodwill | |||||||
Goodwill | $ 2,000 | ||||||
Biomatrica, Inc | |||||||
Carrying amount of goodwill | |||||||
Goodwill | $ 15,300 | ||||||
PreventionGenetics | |||||||
Carrying amount of goodwill | |||||||
Acquisition | 92,637 | ||||||
Ending of the period | 92,637 | ||||||
Goodwill | $ 92,637 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | $ 315,768 | $ 1,491,594 |
Estimated Fair Value | 779,805 | 937,172 |
Equity securities | 3,336 | 1,521 |
Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 297 | 306 |
Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 3,336 | 1,521 |
Non-marketable securities | 3,090 | |
Contingent consideration | (359,021) | (2,477) |
Total | 674,842 | 1,837,816 |
Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 313,154 | 132,913 |
Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 249,920 | 207,171 |
Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 94,460 | 7,094 |
Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 47,139 | |
Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 6,996 | |
Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 247,335 | 901,294 |
Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 64,593 | |
Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 3,543 | 589,994 |
Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 297 | 306 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 3,336 | 1,521 |
Non-marketable securities | 0 | |
Contingent consideration | 0 | 0 |
Total | 250,968 | 903,121 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 247,335 | 901,294 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 297 | 306 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 0 | 0 |
Non-marketable securities | 0 | |
Contingent consideration | 0 | 0 |
Total | 779,805 | 937,172 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 313,154 | 132,913 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 249,920 | 207,171 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 94,460 | 7,094 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 47,139 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 6,996 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 64,593 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 3,543 | 589,994 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 0 | 0 |
Non-marketable securities | 3,090 | |
Contingent consideration | (359,021) | (2,477) |
Total | (355,931) | (2,477) |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration, liability | $ 359,021 | $ 2,477 | $ 2,879 |
Venture Capital Investment Fund | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment owned, fair value | 1,500 | 800 | |
Committed capital | 17,500 | ||
Committed capital callable | $ 16,000 | ||
Weighted Average | Product Development and Other Milestone-based Payments | Measurement Input, Probability of Success | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration liability, measurement input | 0.905 | ||
Weighted Average | Product Development and Other Milestone-based Payments | Measurement Input, Present-value Factor | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration liability, measurement input | 0.023 | ||
Foreign Exchange Forward | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative, notional amount | $ 46,700 | 22,400 | |
Fair Value, Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment owned, fair value | 25,300 | $ 28,300 | |
Thrive and Ashion | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration, liability | 357,800 | ||
Biomatrica, Inc | Revenue and Other Performance-based Payments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration, liability | $ 1,200 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Contingent Consideration (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $ (2,477,000) | $ (2,879,000) | |
Changes in fair value | (6,359,000) | 325,000 | $ 0 |
Payments | 163,000 | 77,000 | |
Purchase price contingent consideration | (350,348,000) | 0 | 0 |
Ending balance | $ (359,021,000) | $ (2,477,000) | $ (2,879,000) |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Compensation | $ 183,517 | $ 124,654 |
Pfizer Promotion Agreement related costs | 91,436 | 46,937 |
Professional fees | 50,077 | 36,203 |
Other | 32,116 | 13,064 |
Assets under construction | 22,611 | 2,118 |
Research and trial related expenses | 15,534 | 6,111 |
Licenses | 3,265 | 4,517 |
Accrued liabilities | $ 398,556 | $ 233,604 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)position | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | |
Long-term debt | |||||||
Time frame when amount will be repaid through property taxes | 2 years | ||||||
Construction Loans | |||||||
Long-term debt | |||||||
Face amount | $ 25,600,000 | ||||||
Amortization period | 20 years | ||||||
Initial investment | $ 16,400,000 | $ 16,400,000 | |||||
Long-term construction loan | $ 23,800,000 | ||||||
Interest costs incurred | 700,000 | ||||||
Interest costs capitalized | $ 700,000 | ||||||
Debt issuance costs | $ 200,000 | ||||||
Construction Loans | 1-month LIBOR | |||||||
Long-term debt | |||||||
Variable rate | 2.25% | ||||||
Interest-only payment, period | 24 months | ||||||
Construction Loans | City Letter of Credit | |||||||
Long-term debt | |||||||
Borrowing capacity | $ 600,000 | ||||||
Tax Increment Financing Loan Agreements | |||||||
Long-term debt | |||||||
Face amount | 4,600,000 | $ 4,600,000 | $ 4,600,000 | ||||
Number of jobs required to create and maintain | position | 500 | ||||||
Term | 5 years | ||||||
Line of Credit | City Letter of Credit | Revolver | |||||||
Long-term debt | |||||||
Proceeds from lines of credit | 2,900,000 | ||||||
Line of Credit | Revolving Credit Facility | Revolver | |||||||
Long-term debt | |||||||
Borrowing capacity | $ 150,000,000 | ||||||
Debt instrument, covenant, collateral minimum market value | 150,000,000 | ||||||
Debt instrument, covenant, maximum outstanding cash advances threshold | $ 20,000,000 | ||||||
Remaining borrowing capacity | $ 147,100,000 | $ 147,100,000 | |||||
Line of Credit | Revolving Credit Facility | Daily Bloomberg Short-Term Bank Yield Index Rate | Revolver | |||||||
Long-term debt | |||||||
Variable rate | 0.60% |
CONVERTIBLE NOTES - Schedule of
CONVERTIBLE NOTES - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | Mar. 31, 2019 | Jun. 30, 2018 |
2028 Convertible notes | |||||
Long-term debt | |||||
Coupon interest rate | 0.375% | 0.375% | 0.375% | ||
Principal Amount | $ 1,150,000 | $ 1,150,000 | |||
Unamortized Debt Discount and Issuance Costs | (18,826) | (21,879) | |||
Net Carrying Amount | 1,131,174 | 1,128,121 | |||
2028 Convertible notes | Significant Other Observable Inputs (Level 2) | Fair Value | |||||
Long-term debt | |||||
Amount | $ 1,139,650 | $ 1,526,625 | |||
2027 Convertible notes | |||||
Long-term debt | |||||
Coupon interest rate | 0.375% | 0.375% | 0.375% | ||
Principal Amount | $ 747,500 | $ 747,500 | |||
Unamortized Debt Discount and Issuance Costs | (11,691) | (13,937) | |||
Net Carrying Amount | 735,809 | 733,563 | |||
2027 Convertible notes | Significant Other Observable Inputs (Level 2) | Fair Value | |||||
Long-term debt | |||||
Amount | $ 771,794 | $ 992,306 | |||
2025 Convertible notes | |||||
Long-term debt | |||||
Coupon interest rate | 1.00% | 1.00% | 1.00% | ||
Principal Amount | $ 315,005 | $ 315,049 | |||
Unamortized Debt Discount and Issuance Costs | (1,756) | (2,333) | |||
Net Carrying Amount | 313,249 | 312,716 | |||
2025 Convertible notes | Significant Other Observable Inputs (Level 2) | Fair Value | |||||
Long-term debt | |||||
Amount | $ 415,473 | $ 601,744 |
CONVERTIBLE NOTES - Issuances a
CONVERTIBLE NOTES - Issuances and Settlements (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | |||||
Feb. 29, 2020 | Mar. 31, 2019 | Jun. 30, 2018 | Jan. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Net proceeds from issuance | $ 0 | $ 1,125,547,000 | $ 729,477,000 | ||||
Value of stock after conversion of convertible notes | 182,435,000 | ||||||
Loss on extinguishment of debt | $ 50,800,000 | $ 0 | $ 50,819,000 | 187,698,000 | |||
2025 Convertible notes | |||||||
Debt Instrument [Line Items] | |||||||
Stock issued in conversion of convertible notes (in shares) | 2.2 | ||||||
Value of stock after conversion of convertible notes | $ 182,400,000 | ||||||
Repayments of convertible debt in cash and by issuance of shares | 676,500,000 | ||||||
Repayments of debt | 493,400,000 | ||||||
Accrued interest on notes | 700,000 | ||||||
Loss on extinguishment of debt | 187,700,000 | ||||||
2025 Convertible notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 218,500,000 | $ 690,000,000 | |||||
Interest rate (as a percent) | 1.00% | 1.00% | 1.00% | ||||
Net proceeds from issuance | $ 225,300,000 | $ 671,100,000 | |||||
Repayments of convertible debt | 150,100,000 | ||||||
Accrued interest on notes | 100,000 | ||||||
Loss on extinguishment of debt | $ 42,800,000 | $ 177,100,000 | |||||
Amount settled | 100,000,000 | ||||||
2027 Convertible notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 747,500,000 | ||||||
Interest rate (as a percent) | 0.375% | 0.375% | 0.375% | ||||
Net proceeds from issuance | $ 729,500,000 | ||||||
2027 Convertible notes | 2025 Convertible notes | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of convertible debt | $ 494,100,000 | ||||||
2028 Convertible notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 1,150,000,000 | ||||||
Interest rate (as a percent) | 0.375% | 0.375% | 0.375% | ||||
Net proceeds from issuance | $ 1,130,000,000 |
CONVERTIBLE NOTES - Summary of
CONVERTIBLE NOTES - Summary of Conversion Features (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares$ / shares | |
Debt Instrument [Line Items] | |
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100 |
Shares issued, price per share (in usd per share) | $ 77.83 |
2025 Convertible notes | |
Debt Instrument [Line Items] | |
Conversion rate, number of shares to be issued per $1,000 of principal amount | 13.26 |
Conversion price per share of common stock (in usd per share) | $ 75.43 |
Convertible debt, if converted (in shares) | shares | 4.2 |
If-converted value in excess of principal | $ | $ 10 |
2027 Convertible notes | |
Debt Instrument [Line Items] | |
Conversion rate, number of shares to be issued per $1,000 of principal amount | 8.96 |
Conversion price per share of common stock (in usd per share) | $ 111.66 |
Convertible debt, if converted (in shares) | shares | 6.7 |
2028 Convertible notes | |
Debt Instrument [Line Items] | |
Conversion rate, number of shares to be issued per $1,000 of principal amount | 8.21 |
Conversion price per share of common stock (in usd per share) | $ 121.84 |
Convertible debt, if converted (in shares) | shares | 9.4 |
CONVERTIBLE NOTES - Ranking of
CONVERTIBLE NOTES - Ranking of Convertible Notes (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
January 2025 Notes | |
Debt Instrument [Line Items] | |
Total transaction costs | $ 10,284 |
June 2025 Notes | |
Debt Instrument [Line Items] | |
Total transaction costs | 7,362 |
2027 Convertible notes | |
Debt Instrument [Line Items] | |
Total transaction costs | 14,285 |
2028 Convertible notes | |
Debt Instrument [Line Items] | |
Total transaction costs | $ 24,453 |
CONVERTIBLE NOTES - Schedule _2
CONVERTIBLE NOTES - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs amortization | $ 5,727 | $ 5,303 | $ 2,891 | |
Debt discount amortization | 147 | 131 | (131) | |
Loss on settlement of convertible notes | $ 50,800 | 0 | 50,819 | 187,698 |
Coupon interest expense | 10,266 | 9,631 | 6,611 | |
Total interest expense on convertible notes | 16,140 | 65,884 | 197,069 | |
Other interest expense | 2,466 | 2,057 | 2,123 | |
Total interest expense | $ 18,606 | 67,941 | 199,192 | |
2025 Convertible notes | ||||
Debt Instrument [Line Items] | ||||
Loss on settlement of convertible notes | $ 42,800 | $ 177,100 | ||
Effective interest rate | 1.18% | 1.20% | 1.27% | |
Convertible debt, remaining discount amortization period | 3 years 14 days | |||
2027 Convertible notes | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 0.68% | 0.68% | 0.55% | |
Convertible debt, remaining discount amortization period | 5 years 2 months 15 days | |||
2028 Convertible notes | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 0.64% | 0.54% | ||
Convertible debt, remaining discount amortization period | 6 years 2 months 1 day |
LICENSE AND COLLABORATION AGR_2
LICENSE AND COLLABORATION AGREEMENTS - Mayo (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017USD ($)installment | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Research and development | $ 385,646 | $ 554,052 | $ 139,694 | |
Licensing Agreements | Mayo | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
License fees payable in five annual installments | $ 6,300 | |||
Number of annual installments in which license fees are payable | installment | 5 | |||
Time period after the last licensed patent expires that the license agreement will remain in effect | 5 years | |||
Licensing Agreements | Mayo | Sales Milestone Range One | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Amount agreed to be paid upon reaching the specified amount of net sales | $ 200 | |||
Net sales of a licensed product | 5,000 | |||
Licensing Agreements | Mayo | Sales Milestone Range Two | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Amount agreed to be paid upon reaching the specified amount of net sales | 800 | |||
Net sales of a licensed product | 20,000 | |||
Licensing Agreements | Mayo | Sales Milestone Range Three | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Amount agreed to be paid upon reaching the specified amount of net sales | 2,000 | |||
Net sales of a licensed product | $ 50,000 | |||
Licensing Agreements | Mayo | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Research and development | $ 5,000 | $ 3,900 | $ 4,800 |
LICENSE AND COLLABORATION AGR_3
LICENSE AND COLLABORATION AGREEMENTS - Biocartis (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2020USD ($) | |
Biocartis N.V. | Licensing Agreements | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Early contract termination payment | $ 12 |
LICENSE AND COLLABORATION AGR_4
LICENSE AND COLLABORATION AGREEMENTS - Johns Hopkins University (Details) - Thrive - Licensing Agreements - USD ($) $ in Millions | Jan. 05, 2021 | Dec. 31, 2021 |
Sales Milestone Range One | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Payments contingent on milestones | $ 10 | |
Net sales of a licensed product | $ 500 | |
Sales Milestone Range Three | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Payments contingent on milestones | 20 | |
Net sales of a licensed product | 1,500 | |
Sales Milestone Range Two | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Payments contingent on milestones | $ 15 | |
Net sales of a licensed product | $ 1,000 |
PFIZER PROMOTION AGREEMENT (Det
PFIZER PROMOTION AGREEMENT (Details) - Manufactured Product, Other - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2021 | |
Pfizer Inc | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Contract termination fee | $ 35.9 | |||
Pfizer Inc | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Service fee based on incremental gross profits over specified baselines and royalties | $ 81.3 | $ 51.2 | $ 68.5 | |
Charges for promotion, sales and marketing | $ 121 | $ 85.3 | $ 68.9 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Apr. 14, 2021 | Jan. 11, 2021 | Jan. 05, 2021 | Dec. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2020 | Jun. 30, 2020 |
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 200,000,000 | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 8,600,000 | |||||||||||||
Sale of stock, price per share (in usd per share) | $ 101 | |||||||||||||
Sale of stock, consideration received on transaction | $ 861,700 | |||||||||||||
Underwriting discount and other stock issuance costs | $ 7,500 | |||||||||||||
Stock issued during period, value, acquisitions | $ 1,355,170 | $ 28,847 | $ 1,407,080 | |||||||||||
Issuance of common stock to fund business combinations (in shares) | 400,000 | 10,581,429 | 386,293 | 17,046,159 | ||||||||||
TARDIS Technology | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Payments to acquire productive assets (in shares) | 200,000 | |||||||||||||
Stock issued to acquire productive assets, value | $ 27,300 | |||||||||||||
PreventionGenetics | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Equity issued to acquire business (in shares) | 1,070,410 | |||||||||||||
Fair value of stock issued in acquisition | $ 84,200 | $ 84,200 | $ 84,200 | |||||||||||
Business combination, consideration transferred | 185,507 | |||||||||||||
Common stock issued | 84,252 | |||||||||||||
Ashion Analytics | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Equity issued to acquire business (in shares) | 125,444 | 100,000 | ||||||||||||
Fair value of stock issued in acquisition | $ 16,200 | |||||||||||||
Business combination, consideration transferred | $ 109,999 | |||||||||||||
Common stock issued | $ 16,224 | |||||||||||||
Thrive | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Equity issued to acquire business (in shares) | 9,323,266 | 9,300,000 | ||||||||||||
Fair value of stock issued in acquisition | $ 1,190,000 | $ 1,190,000 | ||||||||||||
Business combination, consideration transferred | 2,187,054 | |||||||||||||
Common stock issued | $ 1,175,431 | |||||||||||||
Paradigm & Viomics | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Business combination, consideration transferred | $ 40,400 | |||||||||||||
Stock issued during period, value, acquisitions | $ 32,200 | |||||||||||||
Common stock issued | $ 28,800 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,235,553 | $ 1,957,639 | $ 447,258 |
Other comprehensive income (loss) before reclassifications | (1,625) | 771 | 681 |
Amounts reclassified from accumulated other comprehensive income (loss) | (514) | 25 | 641 |
Net current period change in accumulated other comprehensive income (loss) | (2,139) | 796 | 1,322 |
Income tax expense related to items of other comprehensive income (loss) | 170 | (170) | |
Ending balance | 3,387,636 | 2,235,553 | 1,957,639 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 526 | (100) | (1,422) |
Ending balance | (1,443) | 526 | (100) |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (25) | (25) |
Other comprehensive income (loss) before reclassifications | 23 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 25 | 0 |
Net current period change in accumulated other comprehensive income (loss) | 23 | 25 | 0 |
Income tax expense related to items of other comprehensive income (loss) | 0 | 0 | |
Ending balance | 23 | 0 | (25) |
Unrealized Gain (Loss) on Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 526 | (75) | (1,397) |
Other comprehensive income (loss) before reclassifications | (1,648) | 771 | 681 |
Amounts reclassified from accumulated other comprehensive income (loss) | (514) | 0 | 641 |
Net current period change in accumulated other comprehensive income (loss) | (2,162) | 771 | 1,322 |
Income tax expense related to items of other comprehensive income (loss) | 170 | (170) | |
Ending balance | $ (1,466) | $ 526 | $ (75) |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of amounts reclassified from AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) | |||
General and administrative | $ (801,262) | $ (481,393) | $ (352,453) |
Total reclassifications | (514) | 25 | 641 |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Securities | |||
Changes in Accumulated Other Comprehensive Income (Loss) | |||
Investment income, net | (514) | 0 | 641 |
Reclassification Out Of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment | |||
Changes in Accumulated Other Comprehensive Income (Loss) | |||
General and administrative | $ 0 | $ 25 | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Plans (Details) | Jul. 28, 2016shares | Jul. 24, 2014shares | Dec. 31, 2021USD ($)itemshares | Dec. 31, 2021shares | Dec. 31, 2020shares |
Stock-based compensation | |||||
Period by which all options to purchase common stock will accelerate upon an acquisition of the company | 1 year | ||||
Shares outstanding (in shares) | 2,284,276 | 2,284,276 | 2,231,059 | ||
Shares available for future grant (in shares) | 8,918,422 | 8,918,422 | |||
Omnibus Long Term Incentive Plan 2019 | |||||
Stock-based compensation | |||||
Further grants or awards after termination of plan (in shares) | 0 | ||||
Shares available for future grant (in shares) | 8,491,176 | 8,491,176 | |||
Omnibus Long Term Incentive Plan 2019 | Minimum | |||||
Stock-based compensation | |||||
Vesting period | 3 years | ||||
Omnibus Long Term Incentive Plan 2019 | Maximum | |||||
Stock-based compensation | |||||
Vesting period | 4 years | ||||
Omnibus Long Term Incentive Plan 2019 | Stock Options | |||||
Stock-based compensation | |||||
Expiration period from the date of grant | 10 years | ||||
Shares outstanding (in shares) | 395,584 | 395,584 | |||
Omnibus Long Term Incentive Plan 2019 | Restricted Stock | |||||
Stock-based compensation | |||||
Shares outstanding (in shares) | 3,573,014 | 3,573,014 | |||
Omnibus Long Term Incentive Plan 2010 | |||||
Stock-based compensation | |||||
Further grants or awards after termination of plan (in shares) | 0 | ||||
Shares available for future grant (in shares) | 0 | 0 | |||
Omnibus Long Term Incentive Plan 2010 | Minimum | |||||
Stock-based compensation | |||||
Vesting period | 3 years | ||||
Omnibus Long Term Incentive Plan 2010 | Maximum | |||||
Stock-based compensation | |||||
Vesting period | 4 years | ||||
Omnibus Long Term Incentive Plan 2010 | Stock Options | |||||
Stock-based compensation | |||||
Expiration period from the date of grant | 10 years | ||||
Shares outstanding (in shares) | 1,474,505 | 1,474,505 | |||
Omnibus Long Term Incentive Plan 2010 | Restricted Stock | |||||
Stock-based compensation | |||||
Shares outstanding (in shares) | 1,230,807 | 1,230,807 | |||
2016 Inducement Award Plan | |||||
Stock-based compensation | |||||
Further grants or awards after termination of plan (in shares) | 0 | ||||
Expiration period from the date of grant | 10 years | ||||
Shares available for future grant (in shares) | 0 | 0 | |||
2016 Inducement Award Plan | Minimum | |||||
Stock-based compensation | |||||
Vesting period | 3 years | ||||
2016 Inducement Award Plan | Maximum | |||||
Stock-based compensation | |||||
Vesting period | 4 years | ||||
2016 Inducement Award Plan | Restricted Stock | |||||
Stock-based compensation | |||||
Shares outstanding (in shares) | 0 | 0 | |||
Employee Stock Purchase Plan 2010 | |||||
Stock-based compensation | |||||
Shares available for future grant (in shares) | 427,246 | 427,246 | |||
Increase in number of shares reserved for issuance (in shares) | 2,000,000 | 500,000 | |||
Option exercise price, expressed as a percentage of fair market value | 85.00% | ||||
Maximum value of shares that an employee is permitted to purchase | $ | $ 25,000 | ||||
Number of shares (in shares) | 331,769 | 2,372,754 | |||
Employee Stock Purchase Plan 2010 | Minimum | |||||
Stock-based compensation | |||||
Number of hours per week of customary employment required to participate in the plan | item | 20 | ||||
Number of months of customary employment required to participate in the plan | 5 months | ||||
Percentage of employee's compensation to be deducted from the employee's pay | 1.00% | ||||
Employee Stock Purchase Plan 2010 | Maximum | |||||
Stock-based compensation | |||||
Percentage of employee's compensation to be deducted from the employee's pay | 15.00% |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation expense | |||
Stock-based compensation expense | $ 339,226 | $ 152,906 | $ 108,483 |
Cost of sales | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 16,835 | 12,852 | 5,799 |
Research and development | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 49,723 | 19,976 | 17,196 |
General and administrative | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 216,952 | 75,999 | 64,222 |
Sales and marketing | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $ 55,716 | $ 44,079 | $ 21,266 |
STOCK-BASED COMPENSATION - St_3
STOCK-BASED COMPENSATION - Stock-Based Compensation Additional Information (Details) - USD ($) $ in Thousands | Jan. 05, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stock-based compensation | |||||
Unrecognized compensation cost | $ 368,500 | ||||
Weighted average period for recognition of unrecognized compensation cost | 2 years 4 months 24 days | ||||
Stock-based compensation | $ 253,063 | $ 152,906 | $ 108,483 | ||
Thrive | |||||
Stock-based compensation | |||||
Stock-based compensation | 19,000 | ||||
Non-cash stock-based compensation expense | $ 65,000 | ||||
Thrive | General and administrative | |||||
Stock-based compensation | |||||
Non-cash stock-based compensation expense | $ 86,200 | $ 86,200 | |||
Stock Options | Thrive | |||||
Stock-based compensation | |||||
Accelerated vesting (in shares) | 139,096 | ||||
Stock Options | Genomic Health Inc | |||||
Stock-based compensation | |||||
Accelerated vesting (in shares) | 83,593 | 364,281 | |||
Restricted Shares and RSUs | Thrive | |||||
Stock-based compensation | |||||
Accelerated vesting (in shares) | 58,171 | ||||
Restricted Shares and RSUs | Genomic Health Inc | |||||
Stock-based compensation | |||||
Accelerated vesting (in shares) | 93,770 | 70,138 | |||
Non-cash stock-based compensation expense | $ 9,700 | $ 21,600 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Fair Value of Options and ESPP (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation assumptions | |||
Granted (in shares) | 0 | ||
Stock Options | |||
Valuation assumptions | |||
Risk-free interest rates, minimum | 1.26% | 2.54% | |
Risk-free interest rates, maximum | 1.47% | 2.59% | |
Expected term (in years) | 6 years 1 month 24 days | 6 years 3 months 10 days | |
Expected volatility, minimum (as a percent) | 65.67% | 64.95% | |
Expected volatility, maximum (as a percent) | 65.71% | 64.99% | |
Dividend yield | 0.00% | 0.00% | |
Employee Stock | |||
Valuation assumptions | |||
Risk-free interest rates, minimum | 0.04% | 0.11% | 1.60% |
Risk-free interest rates, maximum | 0.16% | 0.20% | 2.40% |
Expected volatility, minimum (as a percent) | 43.00% | 61.59% | 43.20% |
Expected volatility, maximum (as a percent) | 68.51% | 89.00% | 57.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | Employee Stock | |||
Valuation assumptions | |||
Expected term (in years) | 6 months | 6 months | 4 months 24 days |
Maximum | Employee Stock | |||
Valuation assumptions | |||
Expected term (in years) | 2 years | 2 years | 2 years |
STOCK-BASED COMPENSATION - St_4
STOCK-BASED COMPENSATION - Stock Option, Restricted Stock, and Performance Shares (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)employees$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Shares | |||
Outstanding at the beginning of the period (in shares) | shares | 2,231,059 | ||
Granted (in shares) | shares | 0 | ||
Assumed through acquisition (in shares) | shares | 1,393,748 | ||
Exercised (in shares) | shares | (1,295,400) | ||
Forfeited (in shares) | shares | (45,131) | ||
Outstanding at the end of the period (in shares) | shares | 2,284,276 | 2,231,059 | |
Vested and expected to vest (in shares) | shares | 2,284,276 | ||
Exercisable at the end of the period (in shares) | shares | 1,780,838 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 39.67 | ||
Granted (in dollars per share) | $ / shares | 0 | ||
Assumed through acquisition (in dollars per share) | $ / shares | 5.51 | ||
Exercised (in dollars per share) | $ / shares | 11.17 | ||
Forfeited (in dollars per share) | $ / shares | 56.66 | ||
Outstanding at the end of the period (in dollars per share) | $ / shares | 34.65 | $ 39.67 | |
Vested and expected to vest (in dollars per share) | $ / shares | 34.65 | ||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 25.59 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the end of the period | 5 years 6 months | 6 years | |
Vested and expected to vest at end of period | 5 years 6 months | ||
Exercisable at the end of the period | 4 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ | $ 107,586,000 | ||
Vested and expected to vest at the end of the period | $ | 107,586,000 | ||
Exercisable at the end of the period | $ | 96,789,000 | ||
Additional disclosures | |||
Total intrinsic value of options exercised | $ | 155,800,000 | $ 40,600,000 | $ 52,000,000 |
Proceeds from stock option exercises | $ | $ 14,400,000 | $ 27,100,000 | $ 8,800,000 |
Weighted Average Grant Date Fair Value | |||
Number of employees impacted by change in operational milestones | employees | 36 | ||
Restricted Shares and RSUs | |||
Restricted Shares and Performance Shares | |||
Outstanding at the beginning of the period (in shares) | shares | 3,968,214 | ||
Granted (in shares) | shares | 2,333,213 | ||
Assumed through acquisition (in shares) | shares | 242,123 | ||
Released (in shares) | shares | (1,697,643) | ||
Forfeited (in shares) | shares | (524,997) | ||
Outstanding at the end of the period (in shares) | shares | 4,320,910 | 3,968,214 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 79.38 | ||
Granted (in dollars per share) | $ / shares | 129.16 | $ 92.55 | $ 93.20 |
Assumed through acquisition (in dollars per share) | $ / shares | 127.79 | ||
Released (in dollars per share) | $ / shares | 73.18 | ||
Forfeited (in dollars per share) | $ / shares | 101.20 | ||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 108.84 | $ 79.38 | |
Fair value of equity instruments other than options | $ | $ 219,400,000 | $ 152,400,000 | $ 173,800,000 |
Performance Shares | |||
Restricted Shares and Performance Shares | |||
Outstanding at the beginning of the period (in shares) | shares | 618,515 | ||
Granted (in shares) | shares | 270,665 | ||
Released (in shares) | shares | 0 | ||
Forfeited (in shares) | shares | (11,066) | ||
Outstanding at the end of the period (in shares) | shares | 878,114 | 618,515 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 93.22 | ||
Granted (in dollars per share) | $ / shares | 138.09 | $ 90.17 | $ 93.40 |
Released (in dollars per share) | $ / shares | 0 | ||
Forfeited (in dollars per share) | $ / shares | 83.15 | ||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 107.18 | $ 93.22 | |
Fair value of equity instruments other than options | $ | $ 0 | $ 0 | $ 183,800,000 |
Number of outstanding performance share units (in shares) | shares | 45,312 | ||
Stock Options | |||
Additional disclosures | |||
Weighted average fair value per share of options granted during the period (in dollars per share) | $ / shares | $ 58.57 | $ 57.11 |
STOCK-BASED COMPENSATION - Issu
STOCK-BASED COMPENSATION - Issuance of Stock Under ESPP (Details) - Employee Stock Purchase Plan 2010 - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 138 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Stock-based compensation | ||||
Stock issued under the Company's stock purchase plan (in shares) | 331,769 | 2,372,754 | ||
Employee Stock | ||||
Stock-based compensation | ||||
Stock issued under the Company's stock purchase plan (in shares) | 331,769 | 301,064 | 176,458 | |
Cash received under the 2010 Purchase Plan | $ 23,070 | $ 18,355 | $ 8,396 | |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 34.93 | $ 32.57 | $ 29.21 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Share Issued During Period (Details) - Employee Stock Purchase Plan 2010 - $ / shares | Nov. 01, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2021 |
Stock-based compensation | ||||
Stock issued under the Company's stock purchase plan (in shares) | 331,769 | 2,372,754 | ||
Offering Period End Date One | ||||
Stock-based compensation | ||||
Stock issued under the Company's stock purchase plan (in shares) | 173,717 | |||
Weighted average price per share (in dollars per share) | $ 69.31 | |||
Offering Period End Date Two | ||||
Stock-based compensation | ||||
Stock issued under the Company's stock purchase plan (in shares) | 158,052 | |||
Weighted average price per share (in dollars per share) | $ 69.71 |
STOCK-BASED COMPENSATION - Shar
STOCK-BASED COMPENSATION - Shares Reserved for Issuance (Details) | Dec. 31, 2021shares |
Shares reserved for issuance | |
Shares reserved for issuance (in shares) | 8,918,422 |
Employee Stock Purchase Plan 2019 | |
Shares reserved for issuance | |
Shares reserved for issuance (in shares) | 8,491,176 |
Employee Stock Purchase Plan 2010 | |
Shares reserved for issuance | |
Shares reserved for issuance (in shares) | 427,246 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost | |||
Amortization of right-of-use assets | $ 5,731 | $ 1,935 | $ 27 |
Interest on lease liabilities | 1,018 | 383 | 2 |
Operating lease cost | 31,730 | 22,551 | 9,200 |
Short-term lease cost | 628 | 356 | 219 |
Variable lease cost | 5,212 | 2,703 | 896 |
Total lease Cost | $ 44,319 | $ 27,928 | $ 10,344 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 27,461 | $ 17,531 | $ 9,641 |
Operating cash flows from finance leases | 938 | 381 | 1 |
Finance cash flows from finance leases | 5,290 | 1,756 | 15 |
Non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 74,369 | 13,261 | 51,030 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 5,460 | $ 20,349 | $ 237 |
Weighted-average remaining lease term - operating leases (in years) | 8 years 3 months 29 days | 8 years 9 months | 9 years 9 months 18 days |
Weighted-average remaining lease term - finance leases (in years) | 2 years 11 months 12 days | 3 years 8 months 4 days | 1 year 2 months 12 days |
Weighted-average discount rate - operating leases | 6.11% | 6.80% | 6.80% |
Weighted-average discount rate - finance leases | 5.36% | 5.67% | 5.60% |
ASU 2016-02 | |||
Non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 39,600 | $ 17,900 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Recognition of ROU assets | $ 174,225 | $ 125,947 |
Recognition of lease liabilities | 201,876 | 132,600 |
Operating lease liability, current | 19,710 | 11,483 |
Operating lease liability, noncurrent | 182,166 | 121,075 |
Finance lease, right-of-use asset | $ 18,200 | $ 18,600 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets, net | Other long-term assets, net |
Finance lease obligations | $ 18,736 | $ 18,700 |
Finance lease liability, current | $ 6,200 | $ 4,700 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance lease liability, noncurrent | $ 12,500 | $ 14,000 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Schedule of Maturities on Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2022 | $ 30,706 | |
2023 | 31,793 | |
2024 | 32,209 | |
2025 | 30,446 | |
2026 | 29,890 | |
Thereafter | 106,967 | |
Total minimum lease payments | 262,011 | |
Imputed interest | (60,135) | |
Total | $ 201,876 | $ 132,600 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Schedule of Maturities on Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2022 | $ 7,040 | |
2023 | 6,930 | |
2024 | 5,253 | |
2025 | 911 | |
2026 | 51 | |
Thereafter | 0 | |
Total minimum lease payments | 20,185 | |
Imputed interest | (1,449) | |
Total | $ 18,736 | $ 18,700 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Legal Matters (Details) - DOS Rule Investigation - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 |
Lessee, Lease, Description [Line Items] | ||
Estimated litigation liability | $ 48.2 | |
Loss contingency accrual | $ 10 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Matching contribution by employer | 100.00% | 100.00% | 100.00% |
Percentage of participant's salary matched by employer | 6.00% | 6.00% | 6.00% |
Compensation expense in connection with the 401 (k) Plan | $ 30 | $ 22.8 | $ 12.5 |
NEW MARKET TAX CREDIT (Details)
NEW MARKET TAX CREDIT (Details) - New Market Tax Credit Program $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014USD ($)facility | Dec. 31, 2021 | |
Disclosures related to New Market Tax Credit | ||
Net proceeds received from financing arrangements | $ | $ 2.4 | |
Number of facilities receiving working capital and capital improvements from financing agreements | facility | 1 | |
Financing Arrangement, Compliance Period | 7 years |
WISCONSIN ECONOMIC DEVELOPMEN_2
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)position | Feb. 28, 2015USD ($)position | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Wisconsin Economic Development Tax Credit Agreement | |||||
Agreements | |||||
Refundable tax credits earned | $ 9 | $ 9 | |||
Capital investment expenditures over specified period, requirement to earn the refundable tax credits | $ 26.3 | ||||
Full-time positions that must be created over a specified time period to earn the refundable tax credits | position | 758 | ||||
Period over which the capital investment expenditures must be incurred and the creation of full-time positions must be completed | 7 years | ||||
Refundable tax credit received | 7.5 | ||||
Refundable tax credit receivable | $ 1.5 | 1.5 | |||
Amortization of tax credits | $ 2.2 | $ 2.4 | |||
Amended Wisconsin Economic Development Tax Credit Agreement | |||||
Agreements | |||||
Refundable tax credits earned | 18.5 | 8 | |||
Capital investment expenditures over specified period, requirement to earn the refundable tax credits | $ 350 | 350 | |||
Full-time positions that must be created over a specified time period to earn the refundable tax credits | position | 1,300 | ||||
Period over which the capital investment expenditures must be incurred and the creation of full-time positions must be completed | 5 years | ||||
Credit earning rate | 10.00% | ||||
Maximum credits to earn | $ 7 | ||||
Refundable tax credit receivable | 8 | 8 | |||
Amended Wisconsin Economic Development Tax Credit Agreement | Capital Expenditures | |||||
Agreements | |||||
Amortization of tax credits | 7 | ||||
Amended Wisconsin Economic Development Tax Credit Agreement | Operating Expense | |||||
Agreements | |||||
Amortization of tax credits | 1 | ||||
Amended Wisconsin Economic Development Tax Credit Agreement | Prepaid expenses and other current assets | |||||
Agreements | |||||
Refundable tax credit receivable | 1.7 | 1.7 | |||
Amended Wisconsin Economic Development Tax Credit Agreement | Other long-term assets | |||||
Agreements | |||||
Refundable tax credit receivable | $ 6.3 | $ 6.3 |
BUSINESS COMBINATIONS AND ASS_3
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Business Combinations Textual (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2021USD ($)test$ / shares | Apr. 14, 2021USD ($)$ / sharesshares | Jan. 05, 2021USD ($)$ / sharesshares | Mar. 03, 2020USD ($) | Nov. 08, 2019USD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Apr. 30, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Acquisition | ||||||||||||||||
Shares issued, price per share (in usd per share) | $ / shares | $ 77.83 | $ 77.83 | $ 77.83 | $ 77.83 | ||||||||||||
Contingent consideration, liability | $ 359,021 | $ 359,021 | $ 2,879 | $ 2,879 | $ 359,021 | $ 359,021 | $ 2,477 | $ 2,879 | ||||||||
Stock-based compensation expense | 339,226 | 152,906 | 108,483 | |||||||||||||
Business combination, equity interest in acquiree, remeasurement gain | 30,500 | 0 | 0 | |||||||||||||
Remeasurement of contingent consideration | 6,360 | (323) | 0 | |||||||||||||
Stock-based compensation | 253,063 | 152,906 | 108,483 | |||||||||||||
Stock issued during period, value, acquisitions | 1,355,170 | 28,847 | 1,407,080 | |||||||||||||
Consideration transferred, net of cash acquired | $ 499,730 | $ 6,658 | 973,861 | |||||||||||||
Equity interests issued or issuable to previous investors | $ 8,400 | |||||||||||||||
Acquired developed technology | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted Average Remaining Life (Years) | 8 years 7 months 6 days | 9 years | ||||||||||||||
Customer relationships | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted Average Remaining Life (Years) | 9 years 7 months 6 days | 12 years 9 months 18 days | ||||||||||||||
Trade name | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted Average Remaining Life (Years) | 13 years 4 months 24 days | 14 years 10 months 24 days | ||||||||||||||
Thrive | ||||||||||||||||
Acquisition | ||||||||||||||||
Investment owned, fair value | $ 12,500 | |||||||||||||||
Business combination, equity interest in acquiree, remeasurement gain | $ 7,600 | |||||||||||||||
Remeasurement of contingent consideration | $ 7,200 | |||||||||||||||
General and administrative | ||||||||||||||||
Acquisition | ||||||||||||||||
Stock-based compensation expense | $ 216,952 | $ 75,999 | 64,222 | |||||||||||||
Investment Income | Thrive | ||||||||||||||||
Acquisition | ||||||||||||||||
Business combination, equity interest in acquiree, remeasurement gain | 30,500 | |||||||||||||||
PreventionGenetics | ||||||||||||||||
Acquisition | ||||||||||||||||
Number of tests provided | test | 5,000 | |||||||||||||||
Business combination, consideration transferred | $ 185,507 | |||||||||||||||
Equity issued to acquire business (in shares) | shares | 1,070,410 | |||||||||||||||
Shares issued, price per share (in usd per share) | $ / shares | $ 78.71 | $ 78.71 | $ 78.71 | $ 78.71 | ||||||||||||
Cash | $ 101,255 | |||||||||||||||
Business combination, cash withheld | 15,500 | $ 15,500 | $ 15,500 | $ 15,500 | ||||||||||||
Acquisition related costs | 2,700 | |||||||||||||||
Fair value of stock issued in acquisition | 84,200 | 84,200 | 84,200 | 84,200 | ||||||||||||
Common stock issued | 84,252 | |||||||||||||||
PreventionGenetics | Payment 1 | ||||||||||||||||
Acquisition | ||||||||||||||||
Cash | $ 85,800 | |||||||||||||||
PreventionGenetics | Acquired developed technology | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 13 years | |||||||||||||||
Intangible assets | $ 65,000 | 65,000 | 65,000 | 65,000 | ||||||||||||
PreventionGenetics | Customer relationships | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 9 years | |||||||||||||||
Intangible assets | $ 4,000 | 4,000 | 4,000 | 4,000 | ||||||||||||
PreventionGenetics | Trade name | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 4 years | |||||||||||||||
Intangible assets | $ 4,000 | 4,000 | 4,000 | 4,000 | ||||||||||||
Ashion Analytics | ||||||||||||||||
Acquisition | ||||||||||||||||
Business combination, consideration transferred | $ 109,999 | |||||||||||||||
Equity issued to acquire business (in shares) | shares | 125,444 | 100,000 | ||||||||||||||
Shares issued, price per share (in usd per share) | $ / shares | $ 129.33 | |||||||||||||||
Cash | $ 74,775 | |||||||||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 13 years | |||||||||||||||
Acquisition related costs | $ 1,600 | |||||||||||||||
Intangible assets | 39,000 | |||||||||||||||
Fair value of stock issued in acquisition | $ 16,200 | |||||||||||||||
Common stock issued | 16,224 | |||||||||||||||
Ashion Analytics | Commercial Launch Milestone | ||||||||||||||||
Acquisition | ||||||||||||||||
Additional cash consideration to be paid | 20,000 | |||||||||||||||
Contingent consideration, liability | 19,000 | |||||||||||||||
Ashion Analytics | MRD Product Revenue Milestone | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 30,000 | |||||||||||||||
Revenue milestone | $ 500,000 | |||||||||||||||
Thrive | ||||||||||||||||
Acquisition | ||||||||||||||||
Business combination, consideration transferred | $ 2,187,054 | |||||||||||||||
Equity issued to acquire business (in shares) | shares | 9,323,266 | 9,300,000 | ||||||||||||||
Shares issued, price per share (in usd per share) | $ / shares | $ 127.79 | |||||||||||||||
Cash | $ 584,996 | |||||||||||||||
Acquisition related costs | 10,300 | 10,300 | ||||||||||||||
Contingent consideration, liability | 450,000 | |||||||||||||||
Fair value of stock issued in acquisition | 1,190,000 | $ 1,190,000 | ||||||||||||||
Common stock issued | 1,175,431 | |||||||||||||||
Payments to acquire businesses and accelerated vesting of awards | 590,200 | |||||||||||||||
Stock-based compensation expense | 166,000 | |||||||||||||||
Compensation consideration assumed | 197,000 | |||||||||||||||
Compensation consideration assumed and allocated to consideration transferred | 52,200 | |||||||||||||||
Compensation consideration assumed and deemed compensatory | 144,800 | |||||||||||||||
Non-cash stock-based compensation expense | 65,000 | |||||||||||||||
Share based compensation, costs not yet recognized | $ 79,800 | |||||||||||||||
Share conversion ratio | 0.06216 | |||||||||||||||
Business combination, pro forma loss | 255,000 | |||||||||||||||
Stock-based compensation | 19,000 | |||||||||||||||
Additional benefit charges | 3,900 | |||||||||||||||
Thrive | Employees with Qualifying Termination Events | ||||||||||||||||
Acquisition | ||||||||||||||||
Non-cash stock-based compensation expense | 13,500 | |||||||||||||||
Thrive | Fair Value | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | $ 352,000 | |||||||||||||||
Thrive | General and administrative | ||||||||||||||||
Acquisition | ||||||||||||||||
Incremental share based compensation expense | 16,000 | |||||||||||||||
Stock-based compensation expense | 5,200 | |||||||||||||||
Non-cash stock-based compensation expense | $ 86,200 | 86,200 | ||||||||||||||
Thrive | FDA Approval | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 150,000 | |||||||||||||||
Thrive | CSM Coverage | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 300,000 | |||||||||||||||
Thrive | Allocated to Consideration Transferred | Fair Value | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 331,300 | |||||||||||||||
Thrive | Allocated to Previous Ownership Interest | Fair Value | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 6,400 | |||||||||||||||
Thrive | Allocated to Compensation | Fair Value | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent consideration, liability | 14,300 | |||||||||||||||
Thrive | Compensation Expense | ||||||||||||||||
Acquisition | ||||||||||||||||
Contingent payment obligations | $ 18,200 | |||||||||||||||
Paradigm & Viomics | ||||||||||||||||
Acquisition | ||||||||||||||||
Business combination, consideration transferred | $ 40,400 | |||||||||||||||
Intangible assets | 7,800 | $ 7,800 | 7,800 | 7,800 | 7,800 | |||||||||||
Common stock issued | 28,800 | |||||||||||||||
Stock issued during period, value, acquisitions | 32,200 | |||||||||||||||
Consideration transferred, net of cash acquired | $ 8,200 | |||||||||||||||
Amount of shares held for future issuance | $ 3,400 | $ 3,400 | $ 3,400 | $ 3,400 | ||||||||||||
Equity interests issued or issuable to previous investors, vesting period | 4 years | |||||||||||||||
Paradigm & Viomics | Acquired developed technology | ||||||||||||||||
Acquisition | ||||||||||||||||
Weighted Average Remaining Life (Years) | 15 years | |||||||||||||||
Genomic Health Inc | ||||||||||||||||
Acquisition | ||||||||||||||||
Business combination, consideration transferred | $ 2,468,568 | |||||||||||||||
Cash | 1,061,489 | |||||||||||||||
Acquisition related costs | $ 22,500 | |||||||||||||||
Common stock issued | $ 1,389,266 | |||||||||||||||
Share conversion ratio | 0.76534 | |||||||||||||||
Business combination, pro forma loss | $ 40,446 | |||||||||||||||
Severance benefits expense | $ 32,100 |
BUSINESS COMBINATIONS AND ASS_4
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Consideration Transferred for PreventionGenetics LLC (Details) - PreventionGenetics $ in Thousands | Dec. 31, 2021USD ($) |
Acquisition | |
Cash | $ 101,255 |
Common stock issued | 84,252 |
Total purchase price | $ 185,507 |
BUSINESS COMBINATIONS AND ASS_5
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed, PreventionGenetics LLC (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Acquisition | |||
Goodwill | $ 2,335,172 | $ 1,237,672 | $ 1,203,197 |
PreventionGenetics | |||
Acquisition | |||
Cash and cash equivalents | 1,574 | ||
Accounts receivable | 6,261 | ||
Inventory | 1,697 | ||
Prepaid expenses and other current assets | 30 | ||
Property, plant and equipment | 12,793 | ||
Net operating assets | 95,355 | ||
Accounts payable | (1,493) | ||
Accrued liabilities | (992) | ||
Net operating liabilities | (2,485) | ||
Net assets acquired | 92,870 | ||
Goodwill | 92,637 | ||
Net assets acquired | 185,507 | ||
PreventionGenetics | Acquired developed technology | |||
Acquisition | |||
Intangible assets | 65,000 | ||
PreventionGenetics | Customer relationships | |||
Acquisition | |||
Intangible assets | 4,000 | ||
PreventionGenetics | Trade name | |||
Acquisition | |||
Intangible assets | $ 4,000 |
BUSINESS COMBINATIONS AND ASS_6
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Consideration Transferred for Ashion Analytics (Details) - Ashion Analytics $ in Thousands | Apr. 14, 2021USD ($) |
Acquisition | |
Cash | $ 74,775 |
Common stock issued | 16,224 |
Contingent consideration | 19,000 |
Total purchase price | $ 109,999 |
BUSINESS COMBINATIONS AND ASS_7
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed, Ashion Analytics (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Apr. 14, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Acquisition | ||||
Goodwill | $ 2,335,172 | $ 1,237,672 | $ 1,203,197 | |
Ashion Analytics | ||||
Acquisition | ||||
Cash and cash equivalents | $ 2,474 | |||
Accounts receivable | 2,349 | |||
Inventory | 1,811 | |||
Prepaid expenses and other current assets | 425 | |||
Property, plant and equipment | 9,947 | |||
Operating lease right-of-use assets | 548 | |||
Developed technology | 39,000 | |||
Total identifiable assets acquired | 56,554 | |||
Accounts payable | (1,477) | |||
Accrued liabilities | (1,190) | |||
Operating lease liabilities, current portion | (343) | |||
Other current liabilities | (98) | |||
Operating lease liabilities, less current portion | (205) | |||
Total liabilities assumed | (3,313) | |||
Net assets acquired | 53,241 | |||
Goodwill | 56,758 | |||
Net assets acquired | $ 109,999 |
BUSINESS COMBINATIONS AND ASS_8
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Consideration Transferred, Thrive (Details) - Thrive $ in Thousands | Jan. 05, 2021USD ($) |
Acquisition | |
Common stock issued | $ 1,175,431 |
Cash | 584,996 |
Liabilities incurred | 331,348 |
Fair value of replaced equity awards | 52,245 |
Previously held equity investment fair value | 43,034 |
Total purchase price | $ 2,187,054 |
BUSINESS COMBINATIONS AND ASS_9
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Assumptions on Fair Value of Options Assumed (Details) - Options - $ / shares | Jan. 05, 2021 | Nov. 08, 2019 |
Thrive | ||
Acquisition | ||
Risk-free interest rates, minimum | 0.11% | |
Risk-free interest rates, maximum | 0.12% | |
Expected volatility, minimum (as a percent) | 65.54% | |
Expected volatility, maximum (as a percent) | 71.00% | |
Dividend yield | 0.00% | |
Genomic Health Inc | ||
Acquisition | ||
Risk-free interest rates, minimum | 0.88% | |
Risk-free interest rates, maximum | 2.90% | |
Expected volatility, minimum (as a percent) | 63.54% | |
Expected volatility, maximum (as a percent) | 69.09% | |
Dividend yield | 0.00% | |
Minimum | Thrive | ||
Acquisition | ||
Expected term (in years) | 1 year 3 months 3 days | |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 109.74 | |
Minimum | Genomic Health Inc | ||
Acquisition | ||
Expected term (in years) | 3 years 3 months 10 days | |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 45.75 | |
Maximum | Thrive | ||
Acquisition | ||
Expected term (in years) | 1 year 6 months 25 days | |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 124.89 | |
Maximum | Genomic Health Inc | ||
Acquisition | ||
Expected term (in years) | 6 years 8 months 23 days | |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 57.44 |
BUSINESS COMBINATIONS AND AS_10
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed, Thrive (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Jan. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquisition | ||||
Goodwill | $ 2,335,172 | $ 1,237,672 | $ 1,203,197 | |
Thrive | ||||
Acquisition | ||||
Cash and cash equivalents | 241,748 | $ 241,748 | ||
Prepaid expenses and other current assets | 3,939 | 3,939 | ||
Property, plant and equipment | 29,977 | 29,977 | ||
Operating lease right-of-use assets | 39,027 | 39,027 | ||
Other long-term assets | 67 | 67 | ||
In-process research and development (IPR&D) | 1,250,000 | 1,250,000 | ||
Total identifiable assets acquired | 1,564,758 | 1,564,758 | ||
Accounts payable | (3,222) | (3,222) | ||
Accrued liabilities | (8,080) | (6,218) | ||
Operating lease liabilities, current portion | (2,980) | (2,980) | ||
Operating lease liabilities, less current portion | (38,622) | (38,622) | ||
Deferred tax liability | (272,905) | (272,905) | ||
Total liabilities assumed | (325,809) | (323,947) | ||
Net assets acquired | 1,238,949 | 1,240,811 | ||
Goodwill | 948,105 | 946,243 | ||
Net assets acquired | 2,187,054 | $ 2,187,054 | ||
Measurement Period Adjustments | ||||
Cash and cash equivalents | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Property, plant and equipment | 0 | |||
Operating lease right-of-use assets | 0 | |||
Other long-term assets | 0 | |||
In-process research and development (IPR&D) | 0 | |||
Total identifiable assets acquired | 0 | |||
Accounts payable | 0 | |||
Accrued liabilities | (1,862) | |||
Operating lease liabilities, current portion | 0 | |||
Operating lease liabilities, less current portion | 0 | |||
Deferred tax liability | 0 | |||
Net operating liabilities | (1,862) | |||
Net identifiable assets acquired | (1,862) | |||
Goodwill | 1,862 | |||
Net assets acquired | $ 0 |
BUSINESS COMBINATIONS AND AS_11
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Pro Forma Thrive Information (Details) - Thrive - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisition | ||
Total revenues | $ 1,767,087 | $ 1,491,391 |
Net loss before tax | $ (761,337) | $ (1,014,352) |
BUSINESS COMBINATIONS AND AS_12
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed From Paradigm Diagnostics Acquisition (Details) - USD ($) $ in Thousands | 10 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2021 | Mar. 03, 2020 | Dec. 31, 2019 | |
Acquisition | ||||
Goodwill | $ 1,237,672 | $ 2,335,172 | $ 1,203,197 | |
Paradigm & Viomics | ||||
Acquisition | ||||
Net operating assets | 5,373 | $ 6,133 | ||
Goodwill | 30,431 | 29,695 | ||
Developed technology | 7,800 | 7,800 | ||
Net operating liabilities | (3,203) | (3,123) | ||
Net assets acquired | $ 40,401 | $ 40,505 | ||
Measurement Period Adjustments | ||||
Net operating assets | (760) | |||
Goodwill | 736 | |||
Developed technology | 0 | |||
Net operating liabilities | (80) | |||
Total purchase price | $ (104) |
BUSINESS COMBINATIONS AND AS_13
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Consideration Transferred for Genomic Health, Inc (Details) - Genomic Health Inc $ in Thousands | Nov. 08, 2019USD ($) |
Acquisition | |
Cash | $ 1,061,489 |
Common stock issued | 1,389,266 |
Fair value of replaced equity awards | 17,813 |
Total purchase price | $ 2,468,568 |
BUSINESS COMBINATIONS AND AS_14
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Pro Forma Genomic Health Inc Information (Details) - Genomic Health Inc - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Acquisition | ||
Total revenues | $ 66,174 | |
Net loss before tax | $ (40,446) | |
Total revenues | $ 1,266,591 | |
Net loss before tax | $ (389,795) |
BUSINESS COMBINATIONS AND AS_15
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Asset Acquisitions Textual (Details) - USD ($) $ in Thousands, shares in Millions | Jun. 23, 2021 | Jan. 11, 2021 | Jan. 31, 2021 | May 03, 2021 |
PFS Genomics | ||||
Acquisition | ||||
Percent of equity acquired | 10.00% | 90.00% | ||
Business combination, consideration transferred | $ 33,569 | |||
Equity interest in acquiree after subsequent acquisition | 100.00% | |||
TARDIS Technology | ||||
Acquisition | ||||
Asset acquisition, consideration transferred | $ 52,300 | |||
Payments to acquire productive assets | $ 25,000 | |||
Payments to acquire productive assets (in shares) | 0.2 | |||
Stock issued to acquire productive assets, value | $ 27,300 | |||
Sales Milestone Range One | TARDIS Technology | ||||
Acquisition | ||||
Payments contingent on milestones | 10,000 | |||
Net sales of a licensed product | $ 100,000 | |||
Sales Milestone Range Two | TARDIS Technology | ||||
Acquisition | ||||
Payments contingent on milestones | $ 35,000 | |||
Net sales of a licensed product | $ 250,000 |
BUSINESS COMBINATIONS AND AS_16
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed, PFS Genomics (Details) - PFS Genomics $ in Thousands | Jun. 23, 2021USD ($) |
Acquisition | |
Cash paid for acquisition of PFS Genomics outstanding shares | $ 33,569 |
Cash | 496 |
Intangible assets | 33,074 |
Other assets and liabilities | (1) |
Net assets acquired | $ 33,569 |
BUSINESS COMBINATIONS AND AS_17
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed Base Genomics (Details) - USD ($) $ in Thousands | Oct. 26, 2020 | Dec. 31, 2020 |
Business Combination and Asset Acquisition [Abstract] | ||
Cash paid for acquisition of Base Genomics outstanding shares | $ 416,525 | |
Transaction costs | 4,600 | $ 4,600 |
Total consideration | 421,125 | |
Cash | 9,704 | |
IPR&D asset | 412,568 | |
Other assets and liabilities | (1,147) | |
Net assets acquired | $ 421,125 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 473,812 | $ 456,379 | $ 434,819 | $ 402,077 | $ 466,339 | $ 408,363 | $ 268,868 | $ 347,821 | $ 1,767,087 | $ 1,491,391 | $ 876,293 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,657,174 | 1,413,907 | 864,849 | ||||||||
Outside of United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 109,913 | $ 77,484 | $ 11,444 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax benefit | $ 4,243,000 | $ 3,858,000 | $ (4,025,000) | $ 242,805,000 | $ 164,000 | $ 2,752,000 | $ 305,000 | $ 2,237,000 | $ 246,881,000 | $ 5,458,000 | $ 193,354,000 |
Deferred tax asset valuation allowance | 262,238,000 | 293,397,000 | 262,238,000 | 293,397,000 | |||||||
Deferred tax liability | 28,782,000 | 9,306,000 | 28,782,000 | 9,306,000 | |||||||
Increase (decrease) in valuation allowance | $ (31,200,000) | $ 98,000,000 | |||||||||
Effective tax rate | 29.30% | 0.60% | 47.50% | ||||||||
Unrecognized tax benefit that would impact effective tax rate | 21,800,000 | 16,600,000 | $ 21,800,000 | $ 16,600,000 | $ 10,300,000 | ||||||
Accrued interest or penalties | 0 | $ 0 | 0 | 0 | 0 | ||||||
Recognized interest or penalties | 0 | 0 | 0 | ||||||||
Genomic Health Inc | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax benefit | (193,600,000) | ||||||||||
Deferred tax asset | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Valuation allowances established | 206,574,000 | 94,589,000 | 113,522,000 | ||||||||
Acquisition and purchase accounting | 239,233,000 | (5,558,000) | 183,730,000 | ||||||||
Deferred tax asset | Thrive | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Acquisition and purchase accounting | 239,200,000 | ||||||||||
Deferred tax asset | Genomic Health Inc | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Acquisition and purchase accounting | $ (5,600,000) | $ 183,700,000 | |||||||||
Federal | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 2,150,000,000 | 2,150,000,000 | |||||||||
Operating loss carryforwards with no expiration date | 1,320,000,000 | 1,320,000,000 | |||||||||
Operating loss carryforwards with expiration date | 835,600,000 | 835,600,000 | |||||||||
Federal | Research | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforwards | 63,000,000 | 63,000,000 | |||||||||
State | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 1,040,000,000 | 1,040,000,000 | |||||||||
State | Research | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforwards | 39,800,000 | 39,800,000 | |||||||||
State | Research | California | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforwards | 23,500,000 | 23,500,000 | |||||||||
Foreign | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | $ 15,900,000 | $ 15,900,000 |
INCOME TAXES - Income (Loss) Be
INCOME TAXES - Income (Loss) Before Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (801,536) | $ (423,025) | $ (405,425) |
Foreign | (40,970) | (406,038) | (1,019) |
Net loss before tax | $ (842,506) | $ (829,063) | $ (406,444) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expense (benefit) for income taxes | |||||||||||
Total income tax expense (benefit) | $ (4,243) | $ (3,858) | $ 4,025 | $ (242,805) | $ (164) | $ (2,752) | $ (305) | $ (2,237) | $ (246,881) | $ (5,458) | $ (193,354) |
Deferred tax assets: | |||||||||||
Operating loss carryforwards | 516,344 | 369,642 | 516,344 | 369,642 | |||||||
Tax credit carryforwards | 72,959 | 64,760 | 72,959 | 64,760 | |||||||
Compensation related differences | 74,127 | 48,349 | 74,127 | 48,349 | |||||||
Lease liabilities | 48,201 | 31,938 | 48,201 | 31,938 | |||||||
Capitalized research and development | 23,035 | 0 | 23,035 | 0 | |||||||
Other temporary differences | 20,087 | 6,136 | 20,087 | 6,136 | |||||||
Tax assets before valuation allowance | 754,753 | 520,825 | 754,753 | 520,825 | |||||||
Less - Valuation allowance | (262,238) | (293,397) | (262,238) | (293,397) | |||||||
Total deferred tax assets | 492,515 | 227,428 | 492,515 | 227,428 | |||||||
Deferred tax liabilities | |||||||||||
Amortization | (464,748) | (197,847) | (464,748) | (197,847) | |||||||
Property, plant and equipment | (4,756) | (4,580) | (4,756) | (4,580) | |||||||
Lease assets | (45,781) | (30,312) | (45,781) | (30,312) | |||||||
Other temporary differences | (6,012) | (3,995) | (6,012) | (3,995) | |||||||
Total deferred tax liabilities | (521,297) | (236,734) | (521,297) | (236,734) | |||||||
Net deferred tax liabilities | (28,782) | (9,306) | $ (28,782) | $ (9,306) | |||||||
Differences between the effective income tax rate and the statutory tax rate | |||||||||||
U.S. Federal statutory rate | 21.00% | 21.00% | 21.00% | ||||||||
State taxes | 3.60% | 1.70% | 3.40% | ||||||||
Federal and state tax rate changes | (0.30%) | 0.00% | 0.10% | ||||||||
Foreign tax rate differential | (0.60%) | (1.00%) | 0.40% | ||||||||
Acquired IPR&D asset expense | (0.80%) | (9.40%) | 0.00% | ||||||||
Research and development tax credits | 0.70% | 1.60% | 0.70% | ||||||||
Stock-based compensation expense | 1.10% | 1.10% | 14.60% | ||||||||
Non-deductible executive compensation | (0.20%) | (0.80%) | (2.70%) | ||||||||
Transaction costs | (0.10%) | (0.10%) | (0.50%) | ||||||||
Loss on extinguishment - convertible notes | 0.00% | 0.00% | (9.20%) | ||||||||
Other adjustments | 1.20% | (2.20%) | (0.50%) | ||||||||
Valuation allowance | 3.70% | (11.30%) | 20.20% | ||||||||
Effective tax rate | 29.30% | 0.60% | 47.50% | ||||||||
Reconciliation of the amounts of unrecognized tax benefits | |||||||||||
Beginning of the period | $ 16,629 | $ 10,276 | $ 16,629 | $ 10,276 | $ 1,926 | ||||||
Increase due to current year tax positions | 5,363 | 3,600 | 2,142 | ||||||||
Increase due to prior year tax positions | 0 | 2,753 | 6,208 | ||||||||
Decrease due to prior year tax positions | (212) | 0 | 0 | ||||||||
Settlements | 0 | 0 | 0 | ||||||||
Ending of the period | $ 21,780 | $ 16,629 | 21,780 | 16,629 | 10,276 | ||||||
Federal | |||||||||||
Expense (benefit) for income taxes | |||||||||||
Current expense (benefit): | 0 | (3) | 0 | ||||||||
Deferred tax expense (benefit): | (222,693) | (3,050) | (173,521) | ||||||||
State | |||||||||||
Expense (benefit) for income taxes | |||||||||||
Current expense (benefit): | 1,388 | 802 | 314 | ||||||||
Deferred tax expense (benefit): | (30,528) | (4,260) | (20,099) | ||||||||
Foreign | |||||||||||
Expense (benefit) for income taxes | |||||||||||
Current expense (benefit): | 4,898 | 933 | (63) | ||||||||
Deferred tax expense (benefit): | $ 54 | $ 120 | $ 15 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Asset, Valuation Allowance RollForward (Details) - Deferred tax asset - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $ (293,397) | $ (195,401) | $ (265,587) |
Valuation allowances established | (206,574) | (94,589) | (113,522) |
Changes to existing valuation allowances | (1,500) | 2,151 | (22) |
Acquisition and purchase accounting | 239,233 | (5,558) | 183,730 |
Ending balance | $ (262,238) | $ (293,397) | $ (195,401) |
QUARTERLY RESULTS OF OPERATIO_3
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 473,812 | $ 456,379 | $ 434,819 | $ 402,077 | $ 466,339 | $ 408,363 | $ 268,868 | $ 347,821 | $ 1,767,087 | $ 1,491,391 | $ 876,293 |
Cost of sales (exclusive of amortization of acquired intangible assets) | 119,058 | 115,738 | 113,968 | 109,993 | 99,765 | 95,061 | 77,892 | 81,606 | 458,757 | 354,324 | 216,717 |
Amortization of acquired intangible assets | 21,216 | 21,214 | 21,188 | 20,555 | 20,553 | 20,555 | 20,555 | 20,464 | |||
Gross profit | 333,538 | 319,427 | 299,663 | 271,529 | 346,021 | 292,747 | 170,421 | 245,751 | |||
Operating expenses | 554,988 | 481,450 | 471,327 | 572,070 | 761,000 | 496,082 | 237,430 | 328,124 | |||
Interest income and interest expense | (3,404) | (8,773) | (1,223) | 26,572 | (3,517) | (1,955) | (1,388) | (54,507) | 13,172 | (61,367) | (172,662) |
Income tax benefit | 4,243 | 3,858 | (4,025) | 242,805 | 164 | 2,752 | 305 | 2,237 | 246,881 | 5,458 | 193,354 |
Net loss | $ (220,611) | $ (166,938) | $ (176,912) | $ (31,164) | $ (418,332) | $ (202,538) | $ (68,092) | $ (134,643) | $ (595,625) | $ (823,605) | $ (213,090) |
Net loss per share - basic (in dollars per share) | $ (1.28) | $ (0.97) | $ (1.03) | $ (0.18) | $ (2.67) | $ (1.35) | $ (0.45) | $ (0.91) | $ (3.48) | $ (5.45) | $ (1.62) |
Net loss per share - diluted (in dollars per share) | $ (1.28) | $ (0.97) | $ (1.03) | $ (0.18) | $ (2.67) | $ (1.35) | $ (0.45) | $ (0.91) | $ (3.48) | $ (5.45) | $ (1.62) |
Weighted average common shares outstanding - basic (in shares) | 172,446 | 171,978 | 171,494 | 169,434 | 156,470 | 150,155 | 149,727 | 148,151 | 171,348 | 151,137 | 131,257 |
Weighted average common shares outstanding - diluted (in shares) | 172,446 | 171,978 | 171,494 | 169,434 | 156,470 | 150,155 | 149,727 | 148,151 | 171,348 | 151,137 | 131,257 |