Genomic Health (GHDX) 10-K 9 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	GENOMIC HEALTH INC
Entity Central Index Key	1,131,324
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 503
Entity Common Stock, Shares Outstanding		32,980,933
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 32,533	$ 29,726
Short-term marketable securities	62,410	73,934
Accounts receivable (net of allowance for doubtful accounts; 2015—$3,988, 2014—$3,628)	37,164	34,916
Prepaid expenses and other current assets	10,843	9,944
Total current assets	142,950	148,520
Property and equipment, net	39,746	21,860
Other assets	1,921	15,541
Total assets	184,617	185,921
Current liabilities:
Accounts payable	8,585	6,987
Accrued compensation and employee benefits	22,239	17,708
Accrued license fees	2,287	2,656
Accrued expenses and other current liabilities	8,922	10,444
Deferred revenues	431	335
Other current liabilities	208	208
Total current liabilities	42,672	38,338
Other liabilities	$ 2,410	$ 2,070
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0001 par value; 100,000,000 shares authorized, 33,861,759 and 32,969,232 shares issued and 32,800,428 and 31,911,901 shares outstanding at December 31, 2015 and 2014, respectively	$ 3	$ 3
Additional paid- in capital	395,059	370,496
Accumulated other comprehensive income (loss), net	2,752	(15)
Accumulated deficit	(228,169)	(194,861)
Treasury stock, at cost, 1,061,331 shares at December 31, 2015 and 2014	(30,110)	(30,110)
Total stockholders' equity	139,535	145,513
Total liabilities and stockholders' equity	$ 184,617	$ 185,921

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 3,988	$ 3,628
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,861,759	32,969,232
Common stock, shares outstanding	32,800,428	31,911,901

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Product revenues	$ 287,458	$ 275,706	$ 259,192
Contract revenues			2,403
Total revenues	287,458	275,706	261,595
Operating expenses:
Cost of product revenues	53,782	48,742	42,100
Research and development	59,798	53,076	64,177
Selling and marketing	143,557	137,846	112,758
General and administrative	64,348	59,669	54,392
Total operating expenses	321,485	299,333	273,427
Loss from operations	(34,027)	(23,627)	(11,832)
Impairment of investments			(643)
Interest income	221	192	222
Other income (expense), net	(498)	(764)	(158)
Loss before income taxes	(34,304)	(24,199)	(12,411)
Income tax (benefit) expense	(996)	393	346
Net loss	$ (33,308)	$ (24,592)	$ (12,757)
Basic and diluted net loss per share (in dollars per share)	$ (1.03)	$ (0.78)	$ (0.42)
Shares used in computing basic and diluted net loss per share (in shares)	32,382	31,453	30,512

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income (Loss)
Net loss	$ (33,308)	$ (24,592)	$ (12,757)
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale marketable securities, net of tax of $1,548, $0 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively	2,767	(27)	(3)
Comprehensive loss	$ (30,541)	$ (24,619)	$ (12,760)

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Loss) (Parenthtical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income (Loss)
Unrealized gain (loss) on available-for-sale marketable securities, tax	$ 1,548	$ 0	$ 0

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Treasury Stock at Cost	Total
Balance at Dec. 31, 2012	$ 3	$ 313,915	$ 15	$ (157,512)	$ (30,095)	$ 126,326
Balance (in shares) at Dec. 31, 2012	29,954,000
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units		9,725				9,725
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units (in shares)	926,000
Issuance of common stock upon settlement of employee stock purchase plan		4,018				4,018
Issuance of common stock upon settlement of employee stock purchase plan (in shares)	153,000
Issuance of restricted stock to directors in lieu of fees		230				230
Issuance of restricted stock to directors in lieu of fees (in shares)	8,000
Stock-based compensation expense related to employee stock options, restricted stock units and employee stock purchase plan		17,457				17,457
Repurchase of common stock					(15)	(15)
Repurchase of common stock (in shares)	(77,000)
Net loss				(12,757)		(12,757)
Unrealized gain (loss) on investments, net of tax			(3)			(3)
Balance at Dec. 31, 2013	$ 3	345,345	12	(170,269)	(30,110)	144,981
Balance (in shares) at Dec. 31, 2013	30,964,000
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units		4,156				4,156
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units (in shares)	748,000
Issuance of common stock upon settlement of employee stock purchase plan		4,227				4,227
Issuance of common stock upon settlement of employee stock purchase plan (in shares)	191,000
Issuance of restricted stock to directors in lieu of fees		230				230
Issuance of restricted stock to directors in lieu of fees (in shares)	8,000
Stock-based compensation expense related to employee stock options, restricted stock units and employee stock purchase plan		16,410				16,410
Stock-based compensation expense related to consultant restricted stock units		128				128
Net loss				(24,592)		(24,592)
Unrealized gain (loss) on investments, net of tax			(27)			(27)
Balance at Dec. 31, 2014	$ 3	370,496	(15)	(194,861)	(30,110)	$ 145,513
Balance (in shares) at Dec. 31, 2014	31,911,000					31,911,901
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units		3,664				$ 3,664
Issuance of common stock upon exercise of stock options for cash and vesting of restricted stock units (in shares)	678,000
Issuance of common stock upon settlement of employee stock purchase plan		4,694				4,694
Issuance of common stock upon settlement of employee stock purchase plan (in shares)	204,000
Issuance of restricted stock to directors in lieu of fees		200				200
Issuance of restricted stock to directors in lieu of fees (in shares)	7,000
Stock-based compensation expense related to employee stock options, restricted stock units and employee stock purchase plan		16,005				16,005
Net loss				(33,308)		(33,308)
Unrealized gain (loss) on investments, net of tax			2,767			2,767
Balance at Dec. 31, 2015	$ 3	$ 395,059	$ 2,752	$ (228,169)	$ (30,110)	$ 139,535
Balance (in shares) at Dec. 31, 2015	32,800,000					32,800,428

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities
Net loss	$ (33,308,000)	$ (24,592,000)	$ (12,757,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	7,069,000	6,870,000	6,324,000
Employee stock-based compensation	16,005,000	16,538,000	17,457,000
Write-off of previously capitalized software costs	635,000		663,000
Impairment of assets held for sale and other long-lived assets	123,000	375,000
Outside director restricted stock awarded in lieu of fees	200,000	230,000	230,000
Gain on disposal of property and equipment	(80,000)	(51,000)
Deferred tax benefit from unrealized gain on available-for-sale marketable securities	(1,548,000)
Impairment of investments			643,000
Changes in assets and liabilities:
Accounts receivable	(2,248,000)	(5,470,000)	(7,193,000)
Prepaid expenses and other assets	(1,292,000)	741,000	(1,448,000)
Accounts payable	949,000	985,000	1,238,000
Accrued compensation and employee benefits	4,531,000	3,824,000	1,886,000
Accrued expenses and other liabilities	(2,963,000)	3,088,000	1,297,000
Deferred revenues	96,000	(251,000)	212,000
Net cash (used in) provided by operating activities	(11,831,000)	2,287,000	8,552,000
Investing activities
Purchases of property and equipment	(23,483,000)	(10,455,000)	(11,008,000)
Proceeds from sale of property and equipment	70,000	122,000	16,000
Purchases of marketable securities	(76,743,000)	(96,800,000)	(107,183,000)
Maturities of marketable securities	106,439,000	94,910,000	116,169,000
Purchase of other investments		(2,000,000)	(5,000,000)
Net cash provided by (used in) investing activities	6,283,000	(14,223,000)	(7,006,000)
Financing activities
Net proceeds from issuance of common stock under stock plans	12,197,000	12,030,000	16,588,000
Withholding taxes related to restricted stock units net share settlement	(3,842,000)	(3,647,000)	(2,845,000)
Repurchase of common stock			(15,000)
Net cash provided by financing activities	8,355,000	8,383,000	13,728,000
Net increase (decrease) in cash and cash equivalents	2,807,000	(3,553,000)	15,274,000
Cash and cash equivalents at the beginning of the period	29,726,000	33,279,000	18,005,000
Cash and cash equivalents at the end of the period	32,533,000	29,726,000	33,279,000
Supplemental disclosure of cash flow information
Cash paid for income taxes	459,000	432,000	336,000
Non-cash investing and financing activities
Accrued purchase of property and equipment	3,847,000	$ 1,809,000	$ 1,138,000
Change in fair value of equity investment	$ 4,269,000

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	Not e 1. Organization and Summary of Significant Accounting Policies The Company Genomic Health, Inc. (the “Company”) is a global healthcare company that provides actionable genomic information to personalize cancer treatment decisions. The Company develops and globally commercializes genomic ‑based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. The Company was incorporated in Delaware in August 2000. The Company’s first product, the Onco type DX invasive breast cancer test, was launched in 2004 and is used for early stage invasive breast cancer patients to predict the likelihood of breast cancer recurrence and the likelihood of chemotherapy benefit. In January 2010, the Company launched its second product, the Onco type DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease. In December 2011, the Company made Onco type DX available for patients with ductal carcinoma in situ (“DCIS”), a pre ‑invasive form of breast cancer. This test provides a DCIS score that is used to predict the likelihood of local recurrence. In June 2012, the Company began offering the Onco type DX colon cancer test for use in patients with stage III disease treated with oxaliplatin ‑containing adjuvant therapy. In May 2013, the Company launched the Onco type DX prostate cancer test. The test provides a Genomic Prostate Score, or GPS, to predict disease aggressiveness in men with low risk disease. This test is used to improve treatment decisions for prostate cancer patients, in conjunction with the Gleason score, or tumor grading. Principles of Consolidation These consolidated financial statements include all the accounts of the Company and its wholly ‑owned subsidiaries. The Company had two wholly-owned subsidiaries at December 31, 2015: Genomic Health International Holdings, LLC, which was established in Delaware in 2010 and supports the Company’s international sales and marketing efforts; and Oncotype Laboratories, Inc., which was established in 2012, and is inactive. Genomic Health International Holdings, LLC has 10 wholly-owned subsidiaries. The functional currency for the Company’s wholly-owned subsidiaries incorporated outside the United States is the U.S. dollar. All significant intercompany balances and transactions have been eliminated. Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. For the years ended December 31, 2014 and 2013, a reclassification of certain expenses from research and development to selling and marketing was made in the accompanying consolidated statements of operations to conform to the current-year presentation. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Marketable Securities The Company invests in marketable securities, primarily money market funds, obligations of U.S. Government agencies and government ‑sponsored entities, corporate bonds and commercial paper. The Company considers all investments with a maturity date of less than one year as of the balance sheet date to be short ‑term investments. Those investments with a maturity date greater than one year as of the balance sheet date are considered to be long ‑term investments. As of December 31, 2015 and 2014, respectively, all investments in marketable securities were classified as available for sale. The Company does not intend to sell these securities and management believes it is not more likely than not that the Company will be required to sell these securities prior to the recovery of their amortized cost basis. These securities are carried at estimated fair value with unrealized gains and losses included in stockholders’ equity. Realized gains and losses and declines in value, if any, judged to be other than temporary on available ‑for ‑sale securities are reported in other income or expense. When securities are sold, any associated unrealized gain or loss initially recorded as a separate component of stockholders’ equity is reclassified out of stockholders’ equity on a specific ‑identification basis and recorded in earnings for the period. The cost of securities sold is determined using specific identification. Investments in Equity Securities Beginning in 2011, the Company made investments in various tranches of the preferred stock of Invitae Corporation (“Invitae”), which at the time was a privately-held company, such that the carrying value of this investment was $13.9 million at December 31, 2014. On February 18, 2015, Invitae completed an initial public offering of its common stock and the Company’s preferred stock investment automatically converted into 2,207,793 shares of Invitae common stock. This investment is accounted for as an available-for-sale marketable security and valued at $18.1 million at December 31, 2015. Unrealized gains or losses resulting from changes in the fair value of this investment will be recorded in other comprehensive income until the securities are sold. These securities were subject to a lock-up agreement that expired in August 2015 and continue to be subject to the resale limitations of Rule 144 under the Securities Act of 1933. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, marketable securities, trade receivables and accounts payable. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximate fair value due to their short maturities. See Note 3, “ Fair Value Measurements ” for further information on the fair value of the Company’s financial instruments. Concentration of Risk Cash equivalents, marketable securities and trade accounts receivable are financial instruments which potentially subject the Company to concentrations of credit risk. Through December 31, 2015, no material losses had been incurred. The Company is subject to credit risk from its portfolio of cash equivalents and marketable securities. The Company invests in money market funds through a major U.S. bank and is exposed to credit risk in the event of default by the financial institution to the extent of amounts recorded on the consolidated balance sheets. The Company invests in short ‑term, investment ‑grade debt instruments and by policy limits the amount in any one type of investment, except for securities issued or guaranteed by the U.S. government. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are as follows: safety and preservation of principal and diversification of risk; liquidity of investments sufficient to meet cash flow requirements; and a competitive after ‑tax rate of return. The Company is also subject to credit risk from its accounts receivable related to its product sales. The Company performs evaluations of customers’ financial condition and generally does not require collateral. The majority of the Company’s accounts receivable arises from product sales in the United States. As of December 31, 2015, the substantial majority of the Company’s product revenues have been derived from sales of one product, the Onco type DX breast cancer test. The majority of the Company’s tests to date have been delivered to physicians in the United States. All Onco type DX tests are processed in the Company’s clinical reference laboratory facility in Redwood City, California. Medicare accounted for 20% , 20% and 21% of the Company’s product revenues for the years ended December 31, 2015, 2014 and 2013, respectively, and represented 14% and 27% of the Company’s total accounts receivable balance as of December 31, 2015 and 2014, respectively. No other third ‑party payor represented more than 10% of the Company’s product revenues or accounts receivable balances for these periods. Allowance for Doubtful Accounts The Company accrues an allowance for doubtful accounts against its accounts receivable based on estimates consistent with historical payment experience. Bad debt expense is included in general and administrative expense on the Company’s consolidated statements of operations. Accounts receivable are written off against the allowance when the appeals process is exhausted, when an unfavorable coverage decision is received or when there is other substantive evidence that the account will not be paid. The Company’s allowance for doubtful accounts as of December 31, 2015 and 2014 was $4.0 million and $3.6 million , respectively. Write ‑offs for doubtful accounts of $5.2 million and $5.4 million were recorded against the allowance during the years ended December 31, 2015 and 2014, respectively. Bad debt expense was $6.0 million, $6.7 million, and $6.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Property and Equipment Property and equipment, including purchased software, are stated at cost. Depreciation is calculated using the straight ‑line method over the estimated useful lives of the assets, which generally range from three to seven years. Leasehold improvements are amortized using the straight ‑line method over the estimated useful lives of the assets or the remaining term of the lease, whichever is shorter. Internal-use Software Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Costs related to maintenance of internal-use software are expensed as incurred. For the years ended December 31, 2015 and 2014, the Company capitalized $15.1 million (including $5.9 million of personnel-related expenses) and $2.9 million (including $1.0 million of personnel-related expenses), respectively, of costs associated with internal-use software development. No internal-use software development costs were capitalized for the year ended December 31, 2013. Amortization of previously capitalized amounts was $380,000 , $0 , and $0 for the years ended December 31, 2015, 2014, and 2013, respectively. Intangible Assets Intangible assets with finite useful lives are recorded at cost, less accumulated amortization. Amortization is recognized over the estimated useful lives of the assets. The Company’s intangible assets with finite lives, which are related to patent licenses, are not material and are included in non ‑current other assets on the Company’s consolidated balance sheets. 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 accounting guidance for 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 in accordance with accounting guidance for consolidations. If consolidation is not required and the Company owns less than 50.1% of the voting interest 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, typically represented by ownership of 20% or more of the voting interests of an entity. If the equity method does not apply, investments in privately held companies determined to be equity securities are accounted for using the cost method. 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 accounting guidance for investments. In December 2010, the Company invested $500,000 in the preferred stock of a private company representing 21% of the entity’s outstanding voting shares. The Company determined that is was not the primary beneficiary of this VIE and, accordingly, applied the equity method of accounting. In June 2012, the Company invested an additional $400,000 in the preferred stock of this company as part of a new equity financing, reducing the Company’s holdings to approximately 16% . As of June 30, 2012, as a result of the Company’s ownership falling below 20% and not having the ability to exercise influence over the investee entity, the Company changed its method of accounting for this investment to the cost method. Each of the Company’s equity investments is reviewed at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. At December 31, 2013, the Company concluded that the indicators of impairment of its investment in this privately held company were other than temporary and wrote off the remaining asset balance of $643,000 . Therefore, the net carrying value of this investment was $0 at December 31, 2015 and 2014. The Company’s investments in privately held companies were $0 and $13.9 million at December 31, 2015 and 2014, respectively, and were included in other assets on the Company’s consolidated balance sheets. The investments in privately held companies at December 31, 2014 include the Company’s investment in Invitae, which was reclassified from other assets to short-term marketable securities on the Company’s consolidated balance sheets upon completion of Invitae’s initial public offering in early 2015. Impairment of Long ‑lived Assets The Company reviews long ‑lived assets, which include property and equipment, intangible assets and investments in privately held companies, for impairment whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. For property and equipment and intangible assets, an impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using undiscounted cash flows. For investments in non ‑marketable equity securities, evidence of impairment might include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. The Company’s assessment as to whether any impairment is other than temporary is based on its ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. If the fair value of the investment is determined to be less than the carrying value and the decline in value is considered to be other than temporary, the asset is written down to its fair value. The Company wrote off $635,000 of previously capitalized software costs and recorded impairment losses of $123,000 for equipment classified as held for sale for the year ended December 31, 2015. The Company recorded impairment losses of $265,000 for equipment classified as held for sale and $110,000 for equipment disposed prior to placing it in service for the year ended December 31, 2014. For the year ended December 31, 2013, the Company recorded impairment losses of $663,000 related to a write off of previously capitalized software costs in addition to a $643,000 write off of an investment in a privately held company, as discussed above. Income Taxes The Company uses the liability method for income taxes, whereby deferred income taxes are provided on items recognized for financial reporting purposes over different periods than for income tax purposes. Valuation allowances are provided when the expected realization of tax assets does not meet a more ‑likely ‑than ‑not criterion. The Company accounts for uncertain income tax positions using a benefit recognition model with a two ‑step approach, a more ‑likely ‑than ‑not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement, in accordance with the accounting guidance for uncertain tax positions. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit is recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense when and if incurred. See Note 11, “Income Taxes” for additional information regarding unrecognized tax benefits. Revenue Recognition The Company derives its revenues from product sales. The majority of the Company’s historical product revenues have been derived from the sale of the Onco type DX breast cancer test. The Company generally bills third ‑party payors upon generation and delivery of a patient report to the physician. As such, the Company takes assignment of benefits and the risk of collection with the third ‑party payor. The Company generally bills the patient directly for amounts owed after multiple requests for payment have been denied or only partially paid by the insurance carrier. The Company pursues case ‑by ‑case reimbursement where medical policies are not in place or payment history has not been established. The Company’s product revenues for tests performed are recognized when the following revenue recognition criteria are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Criterion (1) is satisfied when the Company has an arrangement to pay or a contract with the payor in place addressing reimbursement for the Onco type DX test. In the absence of such arrangements, the Company considers that criterion (1) is satisfied when a third ‑party payor pays the Company for the test performed. Criterion (2) is satisfied when the Company performs the test and generates and delivers to the physician, or makes available on its web portal, a patient report. When evaluating whether the fee is fixed or determinable and collectible, the Company considers whether it has sufficient history to reliably estimate the total fee that will be received from a payor and a payor’s individual payment patterns. Determination of criteria (3) and (4) are based on management’s judgments regarding whether the fee charged for products or services delivered is fixed or determinable, and the collectability of those fees under any contract or arrangement. Based upon at least several months of payment history, the Company reviews the number of tests paid against the number of tests billed and the payor’s outstanding balance for unpaid tests to determine whether payments are being made at a consistently high percentage of tests billed and at appropriate amounts given the arrangement or contracted payment amount. The estimated accrual amounts per test, recorded upon delivery of a patient report, are calculated for each accrual payor and are based on the arrangement or contracted price adjusted for individual payment patterns resulting from co-payment amounts and excluded services in healthcare plans. The Company also reduces revenue for an estimate of amounts that qualify as patient assistance and related deductions that do not qualify for revenue recognition. When a payment received for an individual test is higher or lower than the estimated accrual amount, the Company recognizes the difference as either cash revenue, in the case of higher payments, or in the case of lower payments, a charge against either the patient assistance program and related deductions reserve or the allowance for doubtful accounts, as applicable. To the extent all criteria set forth above are not met when test results are delivered, product revenues are recognized when cash is received from the payor. The Company has exclusive distribution agreements for one or more of its Onco type DX tests with distributors covering more than 90 countries outside of the United States. The distributor generally provides certain marketing and administrative services to the Company within its territory. As a condition of these agreements, the distributor generally pays the Company an agreed upon fee per test and the Company processes the tests. The same revenue recognition criteria described above generally apply to tests received through distributors. To the extent all criteria set forth above are not met when test results are delivered, product revenues are generally recognized when cash is received from the distributor. From time to time, the Company receives requests for refunds of payments, generally due to overpayments made by third party ‑payors. Upon becoming aware of a refund request, the Company establishes an accrued liability for tests covered by the refund request until such time as the Company determines whether or not a refund is due. Accrued refunds were $609,000 and $944,000 at December 31, 2015 and 2014, respectively. Contract revenues are generally derived from studies conducted with biopharmaceutical and pharmaceutical companies. The specific methodology for revenue recognition is determined on a case ‑by ‑case basis according to the facts and circumstances applicable to a given contract. Under certain contracts, the Company’s input, measured in terms of full ‑time equivalent level of effort or running a set of assays through its clinical reference laboratory under a contractual protocol, triggers payment obligations, and revenues are recognized as costs are incurred or assays are processed. Certain contracts have payments that are triggered as milestones are completed, such as completion of a successful set of experiments. Milestones are assessed on an individual basis and revenue is recognized when these milestones are achieved, as evidenced by acknowledgment from collaborators, provided that (1) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (2) the milestone payment is non ‑refundable. Where separate milestones do not meet these criteria, the Company typically defaults to a performance ‑based model, such as revenue recognition following delivery of effort as compared to an estimate of total expected effort. Advance payments received in excess of revenues recognized are classified as deferred revenue until such time as the revenue recognition criteria have been met. Cost of Product Revenues Cost of product revenues includes the cost of materials, direct labor, equipment and infrastructure expenses associated with processing tissue samples (including sample accessioning, histopathology, anatomical pathology, paraffin extraction, reverse transcription polymerase chain reaction (“RT ‑PCR”), quality control analyses and shipping charges to transport tissue samples) and license fees. Infrastructure expenses include allocated facility occupancy and information technology costs. Costs associated with performing the Company’s tests are recorded as tests are processed. Costs recorded for tissue sample processing and shipping charges represent the cost of all the tests processed during the period regardless of whether revenue was recognized with respect to that test. Royalties for licensed technology calculated as a percentage of product revenues and fixed annual payments relating to the launch and commercialization of the Company’s tests are recorded as license fees in cost of product revenues at the time product revenues are recognized or in accordance with other contractual obligations. Research and Development Expenses Research and development expenses are comprised of costs incurred to develop technology and carry out clinical studies and include salaries and benefits, reagents and supplies used in research and development laboratory work, infrastructure expenses, including allocated facility occupancy and information technology costs, contract services, and other outside costs. Research and development expenses also include costs related to activities performed under contracts with biopharmaceutical and pharmaceutical companies. Research and development costs are expensed as incurred. The Company enters into collaboration and clinical trial agreements with clinical collaborators and records these costs as research and development expenses. The Company records accruals for estimated study costs comprised of work performed by its collaborators under contract terms. Advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized and recognized as expense as the goods are delivered or the related services are performed. Stock ‑based Compensation The Company uses the Black ‑Scholes option valuation model, single ‑option approach, which requires the use of estimates such as stock price volatility and expected option lives, as well as expected option forfeiture rates, to value employee stock ‑based compensation at the date of grant, and recognizes stock ‑ based compensation expense ratably over the requisite service period. Equity instruments granted to non ‑employees are also valued using the Black ‑Scholes option valuation model and are subject to periodic revaluation over their vesting terms. The Company did not grant any stock options to non ‑employee consultants during any of the years presented. 401(k) Plan Substantially all of the Company’s employees are eligible to participate in its defined contribution plan qualified under Section 401(k) of the Internal Revenue Code. The Company contributed dollar for dollar matching of employee contributions up to a maximum of $3,000 , $2,000 , and $1,000 for the years ended December 31, 2015, 2014 and 2013, respectively, for each employee per year based on a full calendar year of service. The match is funded concurrently with a participant’s semi ‑monthly contributions to the 401(k) Plan. The Company recorded expense for its contributions under the 401(k) Plan of $2.8 million , $1.9 million and $718,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Foreign Currency Transactions Net foreign currency transaction gains or losses are included in other income (expense), net on the Company’s consolidated statement of operations. Net foreign currency transaction losses totaled $551,000 , $790,000 and $158,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Comprehensive Gain or Loss Other comprehensive gain or loss consists of unrealized gains and losses on available ‑for ‑sale securities. Leases The Company enters into lease agreements for its laboratory and office facilities. These leases are classified as operating leases. Rent expense is recognized on a straight ‑line basis over the term of the lease. Incentives granted under the Company’s facilities leases, including allowances to fund leasehold improvements and rent holidays, are capitalized and are recognized as reductions to rental expense on a straight ‑line basis over the term of the lease. 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 director and officer 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, 2015 and 2014. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-2, Leases (“ASU 2016-2”). ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-2 will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for the Company in its first quarter of fiscal 2017, with early application permitted and, upon adoption, may be applied either prospectively or retrospectively. The Company early adopted ASU 2015-17 on a prospective basis in the fourth quarter of fiscal 2015. In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). This amendment provides guidance to help entities determine whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software or as a service contract. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. Upon adoption, an entity has the option to apply the provisions of ASU 2015-05 either prospectively to all arrangements entered into or materially modified, or retrospectively. The Company does not expect the impact of the adoption of ASU 2015-05 to be material to its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) to provide guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated

Net Income (Loss) Per Share

Net Income (Loss) Per Share	12 Months Ended
	Dec. 31, 2015
Net Loss Per Share
Net Loss Per Share	Note 2. Net Loss Per Share Basic net loss per share is calculated by dividing net loss for the period by the weighted-average number of common shares outstanding for the period without consideration of potential common shares. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding for the period and dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase common stock and restricted stock unit (“RSU”) awards are considered to be potential common shares and are not included in the calculation of diluted net loss per share because their effect is anti-dilutive. Options to purchase 811,000 shares of the Company’s common stock and 134,000 RSUs were outstanding at December 31, 2015, but were not included in the computation of diluted net loss per share because their effect is anti ‑dilutive. Options to purchase 1.1 million shares of the Company’s common stock and 150,000 RSUs were outstanding at December 31, 2014, but were not included in the computation of diluted net loss per share because their effect is anti ‑dilutive. Options to purchase 1.5 million shares of the Company’s common stock and 156,000 RSUs were outstanding at December 31, 2013, but were not included in the computation of diluted net loss per share because their effect is anti ‑dilutive.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Fair Value Measurements	Note 3. Fair Value Measurements The Company measures certain financial assets, including cash equivalents and marketable securities, at their fair value on a recurring basis. The fair value of these financial assets was determined based on a hierarchy of three levels of inputs, of which the first two are considered observable and the last unobservable, as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The Company did not have any non ‑financial assets or liabilities that were measured or disclosed at fair value on a recurring basis at December 31, 2015 and 2014, respectively. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis at December 31, 2015 and 2014 by level within the fair value hierarchy: Actively Quoted Significant Markets for Other Significant Identical Observable Unobservable Balance at Assets Inputs Inputs December 31, Level 1 Level 2 Level 3 2015 (In thousands) As of December 31, 2015: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Corporate equity securities — — Total $ $ $ — $ Actively Quoted Significant Markets for Other Significant Identical Observable Unobservable Balance at Assets Inputs Inputs December 31, Level 1 Level 2 Level 3 2014 (In thousands) As of December 31, 2014: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Total $ $ $ — $ The Company’s commercial paper and corporate bonds are classified as Level 2 as they are valued using multi-dimensional relational pricing models that use observable market inputs, including benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. Not all inputs listed are available for use in the evaluation process on any given day for each security evaluation. In addition, market indicators and industry and economic events are monitored and may serve as a trigger to acquire further corroborating market data. The Company’s corporate equity securities are classified as Level 2 while subject to certain restrictions on sale. The Company’s corporate equity securities at December 31, 2015 were previously recorded as investments in a privately held company and included in other assets as of December 31, 2014. There were no transfers between Level 1 and Level 2 categories during the years ended December 31, 2015 and 2014, respectively. All of the Company’s marketable securities are classified as available-for-sale. The following tables summarize the Company’s available ‑for ‑sale marketable securities as of the dates indicated: December 31, 2015 Cost or Gross Gross Total Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) Commercial paper $ $ $ — $ Corporate debt securities — Corporate equity securities — Total $ $ $ $ December 31, 2014 Cost or Gross Gross Total Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) Commercial paper $ $ $ — $ Corporate debt securities — Total $ $ $ $ The Company had no realized gains or losses on its available ‑for ‑sale marketable securities for the years ended December 31, 2015 , 2014 and 2013, respectively. The following table provides the breakdown of the available ‑for ‑sale marketable securities with unrealized losses as of the date indicated: In a Loss Position for Less Than 12 Months Gross Unrealized Estimated As of December 31, 2015: Losses Fair Value (In thousands) Corporate debt securities $ $ Total $ $ All of the Company’s available ‑for ‑sale marketable securities had contractual maturities of one year or less as of December 31, 2015 and 2014.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property and Equipment
Property and Equipment	Note 4. Property and Equipment The following table summarizes the Company’s property and equipment as of the dates indicated: December 31, 2015 2014 (In thousands) Laboratory equipment $ $ Computer equipment Computer software—internal use Furniture and fixtures Leasehold improvements Work in progress Less accumulated depreciation and amortization Total $ $ For the years ended December 31, 2015, 2014 and 2013, the Company recognized property and equipment depreciation and amortization expense of $6.9 million, $6.7 million and $6.1 million, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	12 Months Ended
	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 5. Accrued Expenses and Other Current Liabilities The following table summarizes the Company’s accrued expenses and other current liabilities as of the dates indicated: December 31, 2015 2014 (In thousands) Accrued expenses $ $ Accrued professional and other service fees Accrued refunds Accrued rebate Accrued collaboration expense Accrued taxes payable Other current liabilities Total $ $ Accrued professional and other service fees include third ‑party billing and collections costs, legal expenses, accounting and audit fees and investor relations expenses. Accrued refunds include overpayments due to third ‑party payors.

Collaboration and Commercial Te

Collaboration and Commercial Technology Licensing Agreements	12 Months Ended
	Dec. 31, 2015
Collaboration and Commercial Technology Licensing Agreements
Collaboration and Commercial Technology Licensing Agreements	Note 6. Collaboration and Commercial Technology Licensing Agreements The Company has entered into a variety of collaboration and specimen transfer agreements relating to its development efforts. The Company recorded collaboration expenses of $11.1 million, $6.4 million and $12.6 million for the years ended December 31, 2015, 2014 and 2013, respectively, relating to services provided by the collaborators in connection with these agreements. In addition to these expenses, some of these agreements contain provisions for royalties from inventions resulting from these collaborations. The Company has specified options and rights relating to joint inventions arising out of these collaborations. In August 2013, the Company entered into a collaboration agreement to conduct a clinical study to validate the relationship between the Onco type DX DCIS score and the likelihood of local recurrence in patients with DCIS. The agreement includes a study fee and milestone payments dependent on the completion of certain key milestones. As a result of the primary objective of the study being met, the Company is required to make a series of fixed future annual payments under the collaboration agreement. As of December 31, 2015, future annual payments include payments of $604,000 and $504,000 in 2016 and 2017, respectively. In January 2014, the Company entered into a collaboration agreement to conduct a prostate study with a goal to determine the association between the Genomic Prostate Score, or GPS, provided by the assay and the likelihood of experiencing disease progression while on active surveillance. In July 2014, the Company entered into a collaboration agreement to conduct a prostate observational study in men who choose active surveillance at one and two years after receiving the Onco type DX prostate cancer GPS. In August 2014, the Company entered into an agreement to provide support to conduct the main phase of a prospective study dealing with individualization of adjuvant decision-making in early-stage breast cancer. As of December 31, 2015, the estimated total remaining obligations for these agreements, including certain milestone payments, is approximately $3.0 million. All future milestone payments are contingent on certain accomplishments, and therefore the timing for any related payments cannot be estimated. In November 2013, the Company entered into an exclusive license agreement to develop and commercialize a test to predict benefit from DNA damage-based chemotherapy drugs, such as anthracycline-based regimens, in high risk breast cancer. The Company made an up ‑front payment of $9.0 million, which was recognized in research and development expense in the fourth quarter of 2013, and milestone payments would have been required if certain clinical and commercial endpoints were achieved in the future. With successful commercialization of a test, the Company would have been obligated to pay royalties. During the quarter ended March 31, 2015, the Company accrued $5.5 million in anticipation of the wind-down of this license agreement and development program, which was recognized as research and development expense in the accompanying condensed consolidated statements of operations. The license agreement was terminated in May 2015 and, as a result, the Company has no future obligations under this agreement. The Company is a party to various agreements under which it licenses technology on a non ‑exclusive basis in the field of human diagnostics. Access to these licenses enables the Company to process its Onco type DX tests. While certain agreements contain provisions for fixed annual payments, license fees are generally calculated as a percentage of product revenues, with rates that vary by agreement and may be tiered, and payments that may be capped at annual minimum or maximum amounts. The Company recognized costs recorded under these agreements totaling $9.2 million, $9.5 million and $8.9 million for the years ended December 31, 2015, 2014 and 2013, respectively, which were included in cost of product revenues. Contract Research Arrangements In November 2007, the Company entered into a Collaborative Diagnostic Development Agreement with Pfizer Inc. to provide research and development services for the development of a diagnostic product for renal cell cancer. The Company received an initial payment of $1.5 million and was initially eligible to receive a payment of $2.2 million upon joint agreement on a gene identification plan, $5.0 million in additional payments upon the earlier of Pfizer’s election to initiate the next phase of development or a specified number of months from the date the Company received the sample set and related clinical data necessary to conduct the first phase of development, and a final payment of $1.5 million upon completion of clinical validation. Completion of clinical validation represents a substantive milestone and the Company recognized the $1.5 million payment upon completion in December 2013. All other payments were not considered substantive milestones as they are not based solely on the Company’s past performance. Such payments were recognized using a performance ‑based model and revenue is recognized following delivery of effort as compared to an estimate of total expected effort. The Company did not recognize any revenue related to substantive milestones under this arrangement during the years ended December 31, 2015, 2014 or 2013.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies
Commitments	Note 7. Commitments and Contingencies Lease Obligations In September 2005, the Company entered into a non ‑cancelable lease for 47,900 square feet of laboratory and office space that the Company currently occupies in Redwood City, California. In November 2015, the Company executed an amendment to extend the term of the lease through March 2023, with an option to extend the term of the lease for an additional five years thereafter. The amendment provides for an allowance of $479,000 for certain tenant improvements, which, to the extent utilized by November 2018, will offset base rent expense on a straight ‑line basis over the life of the lease. In January 2007, the Company entered into a non ‑cancelable lease for an additional 47,200 square feet of laboratory and office space in a nearby location. In November 2015, the Company executed an amendment to extend the term of the lease through March 2021, with an option to extend the lease for an additional five years thereafter. The amendment provides for an allowance of $472,000 for certain tenant improvements, which, to the extent utilized by November 2018, will offset base rent expense on a straight ‑line basis over the life of the lease. In October 2009, the Company entered into a non ‑cancelable agreement to lease an additional 30,500 square feet of office space near the locations the Company occupied. The agreement includes lease incentive obligations of $307,000 that are being amortized on a straight ‑line basis over the life of the lease. In November 2015, the Company executed an amendment to extend the term of the lease through March 2021, with an option to extend the term of the lease for an additional five years thereafter. The amendment provides for an allowance of $305,000 for certain tenant improvements, which, to the extent utilized by November 2018, will offset base rent expense on a straight ‑line basis over the life of the lease. In August 2013, the Company entered into a non ‑cancelable agreement to lease an additional 18,400 square feet of laboratory and office space near the locations the Company currently occupies. In July 2014, the Company leased an additional 5,500 square feet in the same location on the same terms. The agreements included an allowance of $358,000 for certain tenant improvements which are being amortized on a straight line basis over the life of the lease. In November 2015, the Company executed an amendment to extend the term of the lease through March 2023, with an option to extend the term of the lease for an additional five years thereafter. The amendment provides for an allowance of $239,000 for certain tenant improvements, which, to the extent utilized by November 2018, will offset base rent expense on a straight ‑line basis over the life of the lease. In November 2015, the Company entered into a non ‑cancelable agreement to lease an additional 31,200 square feet of laboratory and office space near the locations the Company currently occupies commencing on July 2016 when the Company will take possession of the facility. The lease expires in March 2023, with an option to extend the term of the lease for an additional five years thereafter. The agreement provides for an allowance of $157,000 for certain tenant improvements, which, to the extent utilized by June 2017, will offset base rent expense on a straight ‑line basis over the life of the lease. In May 2010, the Company’s European subsidiary entered into a non ‑cancelable lease for approximately 2,500 square feet of office space in Geneva, Switzerland. In May 2014, the Company executed an amendment to extend the terms of the lease and executed a new lease for approximately 5,000 square feet of additional space in the same location. Both lease agreements expire in May 2021. Rent expense under operating leases amounted to $4.1 million, $3.7 million and $3.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future non ‑cancelable commitments under these operating leases at December 31, 2015 were as follows: Annual Payments (In thousands) Years Ending December 31, 2016 $ 2017 2018 2019 2020 2021 and thereafter Total minimum payments $ Contingencies From time to time, the Company may be subject to various legal proceedings and claims arising in the ordinary course of business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Capital Stock

Capital Stock	12 Months Ended
	Dec. 31, 2015
Capital Stock
Capital Stock	Note 8. Capital Stock Common Stock As of December 31, 2015, the Company had 32,800,428 shares of common stock outstanding. Shares of common stock reserved for future issuance as of December 31, 2015 were as follows: Number of Shares (In thousands) Shares to be issued upon exercise of outstanding stock options and vesting of RSUs Shares available for future stock option and RSU grants, settlement of employee stock purchase plan (ESPP) and restricted stock to be issued to outside directors in lieu of director fees Shares of common stock reserved for future issuance Treasury Stock In December 2012 , the Company entered into an accelerated share repurchase agreement with a financial institution to repurchase $30.0 million of its common stock on an accelerated basis. Under the terms of this accelerated share repurchase agreement, the Company paid $30.0 million to the financial institution to settle the initial purchase transaction and received 984,074 shares of its common stock, representing the minimum number of shares deliverable under the agreement. In February 2013, upon termination of the agreement and in accordance with the share delivery provisions of the agreement, the Company received an additional 77,257 shares of its common stock based on the average of the daily volume weighted ‑average prices of its common stock during a specified period less a predetermined discount per share. As a result, the average purchase price of the Company’s common stock from the accelerated share repurchase program was $28.27 per share. The Company accounted for the accelerated share repurchase as two separate transactions: (a) as shares of common stock acquired in a treasury stock transaction recorded on the transaction date and (b) as a forward contract indexed to the Company’s common stock. As such, the 984,074 shares repurchased were accounted for as a repurchase of common stock. The 77,257 additional shares that the Company received upon termination of the contract in February 2013 were also recorded in stockholders’ equity. The Company determined that the forward contract indexed to the Company’s common stock met all of the applicable criteria for equity classification, and therefore, the contract was not accounted for as a derivative.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2015
Stock-Based Compensation
Stock-Based Compensation	Note 9. Stock ‑based Compensation 2005 Stock Incentive Plan On September 8, 2005, the Board of Directors approved the 2005 Stock Incentive Plan (the “2005 Plan”), which was later approved by the Company’s stockholders. Pursuant to the 2005 Plan, stock options, restricted shares, stock units, including RSUs, and stock appreciation rights may be granted to employees, consultants, and outside directors of the Company. Options granted may be either incentive stock options or nonstatutory stock options. The Company initially reserved 5,000,000 shares of the Company’s common stock for issuance under the 2005 Plan, effective upon the closing of the Company’s initial public offering on October 4, 2005. On June 8, 2009, the Company’s stockholders approved an amendment to the 2005 Plan to increase the shares reserved for issuance under the 2005 Plan by 3,980,000 shares. The amended and restated plan also extends the term under which awards may be granted under the 2005 Plan until January 27, 2019. On June 11, 2015, the Company’s stockholders approved an amendment to the amended and restated 2005 Plan to increase the shares reserved for issuance under the 2005 Plan by 1,500,000 shares. As of December 31, 2015, options to purchase 2,000,000 shares of common stock were available for future grant under the 2005 Plan. Stock Option Activity Stock options are governed by stock option agreements between the Company and recipients of stock options. Incentive stock options may be granted under the 2005 Plan at an exercise price of not less than 100% of the fair market value of the common stock on the date of grant, determined by the Compensation Committee of the Board of Directors. Nonstatutory stock options may be granted under the 2005 Plan at an exercise price of not less than 80% of the fair market value of the common stock on the date of grant, determined by the Compensation Committee of the Board of Directors. Options become exercisable and expire as determined by the Compensation Committee, provided that the term of incentive stock options may not exceed 10 years from the date of grant. Stock option agreements may provide for accelerated exercisability in the event of an optionee’s death, disability, or retirement or other events. Under the 2005 Plan, each outside director who joins the board after the effective date of the 2005 Plan will receive an automatic nonstatutory stock option grant that vests at a rate of 25% at the end of the first year, with the remaining balance vesting monthly over the next three years. On the first business day following the annual meeting of the Company’s stockholders, each outside director who is continuing board service and who was not initially elected to the board at the annual meeting will receive an additional nonstatutory stock option grant, which will vest in full on the first anniversary of the date of grant or, if earlier, immediately prior to the next annual meeting of the Company’s stockholders. Nonstatutory stock options granted to outside directors must have an exercise price equal to 100% of the fair market value of the common stock on the date of grant. Nonstatutory stock options terminate on the earlier of the day before the tenth anniversary of the date of grant or the date twelve months after termination of the outside director’s service as a member of the Board of Directors. The following table summarizes option activity for the year ended December 31, 2015: Weighted-Average Outstanding Options Remaining Aggregate Number of Weighted-Average Contractual Intrinsic Shares Exercise Price Life Value (In thousands) (In years) (In thousands) Balance at December 31, 2014 $ Options granted $ Options exercised $ Options forfeited $ Options expired $ Balance at December 31, 2015 $ 5.1 $ Exercisable at December 31, 2015 $ 4.1 $ Vested and expected to vest at December 31, 2015 $ 5.0 $ The total intrinsic value of stock options exercised during the years ended December 31, 2015, 2014 and 2013 was $6.6 million, $8.2 million and $13.5 million, respectively. The total fair value of stock options vested during the years ended December 31, 2015, 2014 and 2013 was $4.2 million, $6.0 million and $7.3 million, respectively. Performance-Based Vesting Stock Options In February 2015, the Company granted performance-based vesting stock options (“PV stock options”) to purchase 148,100 shares of common stock with weighted-average exercise price of $31.12 . There were no PV stock options granted prior to 2015. The number of shares potentially issuable under PV stock options were subject to the attainment of pre-established, objective performance goals over a specified period. In addition, the awards had a service vesting criteria following the achievement of performance criteria through February 2019. As of December 31, 2015, the achievement of the performance criteria was estimated to be remote and all the PV stock options were cancelled. The Company recognizes the fair value of these awards to the extent the achievement of the related performance criteria is estimated to be probable. If a performance criterion is subsequently determined to not be probable of achievement, any related expense is reversed in the period such determination is made. Conversely, if a performance criterion is not currently expected to be achieved but is later determined to be probable of achievement, a “catch-up” entry is recorded in the period such determination is made for the expense that would have been recognized had the performance criterion been probable of achievement since the grant of the award. Restricted Stock Unit Activity In 2011, the Compensation Committee of the Board of Directors revised the Company’s equity incentive guidelines. Under the revised guidelines, most employees receive grants of RSUs in lieu of stock options. Employees with titles of vice president and above are eligible to receive stock options and RSUs. The target percentages of equity grant value for employees with titles of vice president and above other than executive officers are 50% stock options and 50% RSUs, and the target percentages for executive officers are 75% stock options and 25% RSUs. The RSUs generally vest in three equal annual installments. As of April 2011, outside directors were given the option to elect to receive some or all of their retainers (other than retainers for serving as committee chair) in the form of fully ‑vested restricted stock. Restricted shares, stock units and stock appreciation rights granted under the 2005 Plan are governed by agreements between the Company and recipients of the awards. Terms of the agreements are determined by the Compensation Committee. A following table summarizes RSU activity for the year ended December 31, 2015: Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2014 $ RSUs granted $ RSUs vested $ RSUs cancelled $ Balance at December 31, 2015 $ The weighted-average per share grant date fair values of RSUs granted were $30.65 , $29.05 and $30.56 during the years ended December 31, 2015, 2014 and 2013, respectively . The fair value of RSUs vested were $9.4 million, $9.1 million $6.9 million for the year ended December 31, 2015, 2014 and 2013, respectively. Performance-Based Restricted Stock Unit Activity Under the 2005 Plan, the Company grants performance-based restricted stock units (“PVRSUs”) which vest upon achievement of specified performance goals. The fair value of each PVRSU is estimated at the date of grant or when performance objectives are defined for the grants. In March 2014, the Company approved awards of PVRSUs for certain senior officers under the 2005 Plan, as amended and restated by the Board of Directors on March 24, 2014. The awards were subject to approval of the amended and restated plan by the Company’s stockholders, which was approved at the June 2014 Annual Meeting. In order for the senior officers to be eligible to earn any of the PVRSUs, the Company must achieve certain corporate-level objectives. The amount potentially available under a PVRSU was subject to the attainment of pre-established, objective performance goals over a specified period. The PVRSUs vest based on achievement of three performance milestones, not to exceed 100% in the aggregate: a revenue milestone, weighted from 0% to 100%; a tests delivered milestone, weighted from 0% to 100%; and a reimbursement-related milestone, weighted from 0% to 33 1/3% . In addition, the awards also have a service vesting criteria following the achievement of performance criteria through February 2016. As of December 31, 2014, there were 13,533 PVRSUs outstanding with a grant date fair value of $368,000 . In February 2015, the Company awarded 22,980 PVRSUs with a grant-date fair value of $715,000 , or $31.12 per share . The amount potentially available under the PVRSU was subject to the attainment of a pre-established, objective performance goal over a specified period. In addition, the award had a service vesting criteria following the achievement of performance criteria through February 2018. As of December 31, 2015, the achievement of the performance criteria was estimated to be remote and the award was cancelled. The Company recognizes the fair value of these awards to the extent the achievement of the related performance criteria is estimated to be probable. If a performance criteria is subsequently determined to not be probable of achievement, any related expense is reversed in the period such determination is made. Conversely, if a performance criteria is not currently expected to be achieved but is later determined to be probable of achievement, a “catch-up” entry is recorded in the period such determination is made for the expense that would have been recognized had the performance criteria been probable of achievement since the grant of the award. A following table summarizes PVRSU activity for the year ended December 31, 2015: Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2014 $ PVRSUs granted $ PVRSUs vested $ PVRSUs cancelled $ Balance at December 31, 2015 $ The weighted-average per share grant date fair values of PVRSUs granted were $31.12 and $27.21 during the years ended December 31, 2015 and 2014, respectively . The fair value of PVRSUs vested was $211,000 for the year ended December 31, 2015. There were no PVRSUs vested during 2014 and no PVRSUs granted prior to 2014. Restricted Stock in Lieu of Directors’ Fees Outside members of the Company’s Board of Directors may elect to receive fully ‑vested restricted stock in lieu of cash compensation for services as a director. During the years ended December 31, 2015, 2014 and 2013, the Company issued 7,365 , 8,209 , and 7,769 shares of restricted stock, respectively, to outside directors, with vesting date fair values of $200,000 , $230,000 , and $230,000 , respectively, and a weighted ‑average grant date fair value of $27.10 , $27.97 , and $29.54 per share, respectively. Employee Stock Purchase Plan In June 2011, the Company’s stockholders approved the Company’s Employee Stock Purchase Plan (“ESPP”). The ESPP provides eligible employees with an opportunity to purchase common stock from the Company and to pay for their purchases through payroll deductions. The ESPP is implemented through a series of offerings of purchase rights to eligible employees beginning December 1, 2011. Under the ESPP, the Compensation Committee of the Company’s Board of Directors may specify offerings with a duration of not more than 27 months, and may specify shorter purchase periods within each offering. During each purchase period, payroll deductions accumulate without interest. On the last day of the purchase period, accumulated payroll deductions are used to purchase common stock for employees participating in the offering. The purchase price is specified pursuant to the offering, but cannot, under the terms of the ESPP, be less than 85% of the fair market value per share of the Company’s common stock on either the last trading day preceding the offering date or on the purchase date, whichever is less. The Company’s Board of Directors has determined that the purchase periods initially shall have a duration of six months and that the purchase price will be 85% of the fair market value per share of the Company’s common stock on either the last trading day preceding the offering date or the purchase date, whichever is less. The length of the purchase period applicable to U.S. employees and the purchase price may not be changed without the approval of the independent members of the Company’s Board of Directors. A total of 1,250,000 shares of common stock have been reserved for issuance under the ESPP, of which 555,896 shares were available for issuance as of December 31, 2015. During 2015, 2014 and 2013, 203,842 , 191,318 and 152,881 shares were issued under the ESPP, respectively. As of December 31, 2015, there was $736,000 of unrecognized compensation expense related to the ESPP, which is expected to be recognized over a period of five months. Employee Stock ‑Based Compensation Expense Stock-based compensation is recognized as expense over the requisite service periods in the consolidated statements of operations using the straight-line expense attribution approach for stock options and RSUs, and using a graded vesting expense attribution approach for PV stock options and PVRSUs. The Company recognized employee stock ‑based compensation expense of $16.0 million, $ 16.5 million and $ 17.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Employee stock ‑based compensation expense was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Employee stock ‑based compensation expense includes expense related to stock options granted to outside directors of the Company as well as stock purchased under the ESPP. The following table presents the impact of employee stock ‑based compensation expense on selected statement of operations line items for the periods indicated: Year Ended December 31, 2015 2014 2013 (In thousands) Cost of product revenues $ $ $ Research and development Selling and marketing General and administrative Total $ $ $ As of December 31, 2015, unrecognized compensation expense related to unvested stock options, RSUs and PVRSUs, net of estimated forfeitures, were $6.7 million, $12.3 million and $12,000 , respectively. The Company expects to recognize these expenses over a weighted ‑average period of 2.4 years, 1.9 years, and 0.1 year, respectively. There was no unrecognized compensation expense related to unvested PV stock options. Valuation Assumptions Fair values of awards granted under the 2005 Plan and ESPP were estimated at grant or purchase dates using a Black ‑Scholes option valuation model. Option valuation models require the input of highly subjective assumptions that can vary over time. The Company’s assumptions regarding expected volatility are based on the historical volatility of the Company’s common stock. The expected life of options granted is estimated based on historical option exercise data and assumptions related to unsettled options. The risk ‑free interest rate is estimated using published rates for U.S. Treasury securities with a remaining term approximating the expected life of the options granted. The Company uses a dividend yield of zero as it has never paid cash dividends and does not anticipate paying cash dividends in the foreseeable future. The weighted ‑average fair values and assumptions used in calculating such values during each fiscal year are as follows: Year Ended December 31, 2015 2014 2013 Expected volatility: Stock options % % % ESPP % % % Risk-free interest rate: Stock options % % % ESPP % % % Expected life in years: Stock options ESPP Weighted-average fair value: Stock options $ $ $ ESPP $ $ $

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Information
Segment Information	Note 10. Segment Information The Company operates in one business segment, which primarily focuses on the development and global commercialization of genomic ‑based clinical laboratory services that analyze the underlying biology of cancer, allowing physicians and patients to make individualized treatment decisions. The Company’s Onco type DX breast, colon and prostate cancer tests have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment. As of December 31, 2015, the majority of the Company’s product revenues have been derived from sales of one product, the Onco type DX breast cancer test. As of December 31, 2015, the majority of the Company’s tests have been delivered to physicians in the United States. All Onco type DX tests are processed in the Company’s clinical reference laboratory facility in Redwood City, California. The following table summarizes total revenues from customers, payors and collaboration partners by geographic region (in thousands). Product revenues are attributed to countries based on ship ‑to location. Contract revenues are attributed to countries based on the location of the collaboration partner. Year Ended December 31, 2015 2014 2013 (In thousands) United States $ $ $ Outside of the United States Total revenues $ $ $

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes
Income Taxes	Note 11. Income Taxes The components of the Company’s loss before income taxes were as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Domestic $ $ $ Foreign Total loss before income taxes $ $ $ The components of the Company’s income tax expense (benefit) were as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Current expense (benefit): Federal $ — $ — $ State Foreign Deferred tax expense (benefit): Federal — — State — — Foreign — — — Total income tax expense (benefit) $ $ $ The income tax expense (benefit) differs from the amount computed by applying the statutory federal income tax rate as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Federal tax at statutory rate $ $ $ Stock-based compensation Non-deductible meals and entertainment Net operating losses not used Tax benefit on available-for-sale securities — — State tax, net of federal benefit Other Total income tax expense (benefit) $ $ $ Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities are as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Net operating loss carryforwards $ $ Stock-based compensation Research tax credits Fixed assets Capitalized costs Other Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ — Based on all available objective evidence, the Company believes that it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company recorded a valuation allowance against all of its net deferred tax assets for the years ended December 31, 2015 and 2014, respectively. The Company will continue to maintain a full valuation allowance on its net deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of this allowance . The net valuation allowance increased by $10.1 million, $9.9 million and $7.2 million during the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, the Company had federal and state net operating loss carryforwards of approximately $148.5 million and $127.2 million, respectively, and federal and state research and development tax credit carryforwards of approximately $10.7 million and $9.0 million, respectively. The federal net operating loss and federal tax credit carryforwards will expire at various dates beginning in 2022. The state net operating loss carryforwards begin to expire in 2016 if not utilized. The state tax credit carryforwards have no expiration date. None of the net operating loss and tax credit carryforwards are subject to the limitations imposed by Sections 382 and 383 of the Internal Revenue Code . The Company tracks a portion of its deferred tax assets attributable to stock option benefits in a separate memorandum account. Therefore, these amounts are not included in the Company’s gross or net deferred tax assets. The benefit of these stock options will not be recorded in equity unless it reduces taxes payable. As of December 31, 2015, the portion of the federal and state net operating losses related to stock option benefits was approximately $30.7 million. The Company had $2.8 million, $1.6 million and $2.2 million of unrecognized tax benefits as of December 31, 2015, 2014 and 2013, respectively. The unrecognized tax benefits are primarily research tax credits for all years. The following table summarizes the activity related to unrecognized tax benefits : Year Ended December 31, 2015 2014 2013 (In thousands) Balance at January 1 $ $ $ Increase (decrease) related to prior year tax positions Increase related to current year tax positions Balance at December 31 $ $ $ Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. The Company does not anticipate a material change to its unrecognized tax benefits over the next twelve months that would affect the Company’s effective tax rate . Accrued interest and penalties related to unrecognized tax benefits are recognized as part of the Company’s income tax provision in its consolidated statements of operations. For the year ended December 31, 2015, 2014 and 2013, the Company recognized $7,200 , $6,400 and $5,700 in interest and penalties, respectively, related to unrecognized tax benefits. The Company files federal, state and foreign income tax returns in many jurisdictions in the United States and abroad. The statute of limitations remain open for fiscal 2001 through 2015 in U.S. federal and state jurisdictions, and for fiscal 2010 through 2015 in foreign jurisdictions. Fiscal years outside the normal statute of limitations remain open to audit by tax authorities due to tax attributes generated in early years which have been carried forward and may be audited in subsequent years when utilized .

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)	Note 12. Selected Quarterly Financial Data (Unaudited) The following table contains selected unaudited consolidated statement of operations information for each of the fiscal quarters in 2015 and 2014. The Company believes that the following information reflects all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share data) 2015: Total revenues $ $ $ $ Product revenues Cost of product revenues Net loss Basic and diluted net loss per common share $ $ $ $ 2014: Total revenues $ $ $ $ Product revenues Cost of product revenues Net income (loss) Basic and diluted net loss per common share $ $ $ $ The quarterly increases in product revenues during 2015 and 2014 were primarily attributable to increased adoption of the Onco type DX breast and colon cancer tests by physicians, international expansion, increased revenues recorded on an accrual basis, and increased reimbursement for these tests by third ‑party payors. The increase in cost of product revenues during 2015 and 2014 was primarily due to incremental costs related to test processing associated with the Onco type DX prostate cancer test. Per share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts may not add up to the annual amount because of differences in the weighted ‑average common shares outstanding during each period, due primarily to the effect of the Company’s issuing shares of its common stock during the year. For all of the quarters presented, basic and diluted net loss per common share were identical as potential common shares were excluded from the calculation because their effects were anti ‑dilutive.

SCHEDULE II VALUATION AND QUALI

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2015
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II GENOMIC HEALTH, INC. VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2015, 2014 and 2013 Balance at Balance at Beginning of End of Period Expenses Deductions Period (In thousands) Allowance for Doubtful Accounts: Year ended December 31, 2015 $ $ $ $ Year ended December 31, 2014 $ $ $ $ Year ended December 31, 2013 $ $ $ $

Organization and Summary of S22

Organization and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Organization and Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include all the accounts of the Company and its wholly ‑owned subsidiaries. The Company had two wholly-owned subsidiaries at December 31, 2015: Genomic Health International Holdings, LLC, which was established in Delaware in 2010 and supports the Company’s international sales and marketing efforts; and Oncotype Laboratories, Inc., which was established in 2012, and is inactive. Genomic Health International Holdings, LLC has 10 wholly-owned subsidiaries. The functional currency for the Company’s wholly-owned subsidiaries incorporated outside the United States is the U.S. dollar. All significant intercompany balances and transactions have been eliminated.
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. For the years ended December 31, 2014 and 2013, a reclassification of certain expenses from research and development to selling and marketing was made in the accompanying consolidated statements of operations to conform to the current-year presentation.
Cash Equivalents	Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents.
Marketable Securities	Marketable Securities The Company invests in marketable securities, primarily money market funds, obligations of U.S. Government agencies and government ‑sponsored entities, corporate bonds and commercial paper. The Company considers all investments with a maturity date of less than one year as of the balance sheet date to be short ‑term investments. Those investments with a maturity date greater than one year as of the balance sheet date are considered to be long ‑term investments. As of December 31, 2015 and 2014, respectively, all investments in marketable securities were classified as available for sale. The Company does not intend to sell these securities and management believes it is not more likely than not that the Company will be required to sell these securities prior to the recovery of their amortized cost basis. These securities are carried at estimated fair value with unrealized gains and losses included in stockholders’ equity. Realized gains and losses and declines in value, if any, judged to be other than temporary on available ‑for ‑sale securities are reported in other income or expense. When securities are sold, any associated unrealized gain or loss initially recorded as a separate component of stockholders’ equity is reclassified out of stockholders’ equity on a specific ‑identification basis and recorded in earnings for the period. The cost of securities sold is determined using specific identification.
Investments in Equity Securities	Investments in Equity Securities Beginning in 2011, the Company made investments in various tranches of the preferred stock of Invitae Corporation (“Invitae”), which at the time was a privately-held company, such that the carrying value of this investment was $13.9 million at December 31, 2014. On February 18, 2015, Invitae completed an initial public offering of its common stock and the Company’s preferred stock investment automatically converted into 2,207,793 shares of Invitae common stock. This investment is accounted for as an available-for-sale marketable security and valued at $18.1 million at December 31, 2015. Unrealized gains or losses resulting from changes in the fair value of this investment will be recorded in other comprehensive income until the securities are sold. These securities were subject to a lock-up agreement that expired in August 2015 and continue to be subject to the resale limitations of Rule 144 under the Securities Act of 1933.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, marketable securities, trade receivables and accounts payable. The carrying amounts of certain of these financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximate fair value due to their short maturities. See Note 3, “ Fair Value Measurements ” for further information on the fair value of the Company’s financial instruments.
Concentration of Risk	Concentration of Risk Cash equivalents, marketable securities and trade accounts receivable are financial instruments which potentially subject the Company to concentrations of credit risk. Through December 31, 2015, no material losses had been incurred. The Company is subject to credit risk from its portfolio of cash equivalents and marketable securities. The Company invests in money market funds through a major U.S. bank and is exposed to credit risk in the event of default by the financial institution to the extent of amounts recorded on the consolidated balance sheets. The Company invests in short ‑term, investment ‑grade debt instruments and by policy limits the amount in any one type of investment, except for securities issued or guaranteed by the U.S. government. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are as follows: safety and preservation of principal and diversification of risk; liquidity of investments sufficient to meet cash flow requirements; and a competitive after ‑tax rate of return. The Company is also subject to credit risk from its accounts receivable related to its product sales. The Company performs evaluations of customers’ financial condition and generally does not require collateral. The majority of the Company’s accounts receivable arises from product sales in the United States. As of December 31, 2015, the substantial majority of the Company’s product revenues have been derived from sales of one product, the Onco type DX breast cancer test. The majority of the Company’s tests to date have been delivered to physicians in the United States. All Onco type DX tests are processed in the Company’s clinical reference laboratory facility in Redwood City, California. Medicare accounted for 20% , 20% and 21% of the Company’s product revenues for the years ended December 31, 2015, 2014 and 2013, respectively, and represented 14% and 27% of the Company’s total accounts receivable balance as of December 31, 2015 and 2014, respectively. No other third ‑party payor represented more than 10% of the Company’s product revenues or accounts receivable balances for these periods.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company accrues an allowance for doubtful accounts against its accounts receivable based on estimates consistent with historical payment experience. Bad debt expense is included in general and administrative expense on the Company’s consolidated statements of operations. Accounts receivable are written off against the allowance when the appeals process is exhausted, when an unfavorable coverage decision is received or when there is other substantive evidence that the account will not be paid. The Company’s allowance for doubtful accounts as of December 31, 2015 and 2014 was $4.0 million and $3.6 million , respectively. Write ‑offs for doubtful accounts of $5.2 million and $5.4 million were recorded against the allowance during the years ended December 31, 2015 and 2014, respectively. Bad debt expense was $6.0 million, $6.7 million, and $6.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Property and Equipment	Property and Equipment Property and equipment, including purchased software, are stated at cost. Depreciation is calculated using the straight ‑line method over the estimated useful lives of the assets, which generally range from three to seven years. Leasehold improvements are amortized using the straight ‑line method over the estimated useful lives of the assets or the remaining term of the lease, whichever is shorter.
Internal-use Software	Internal-use Software Costs incurred to develop software for internal use are capitalized and amortized over the estimated useful life of the software. Costs related to maintenance of internal-use software are expensed as incurred. For the years ended December 31, 2015 and 2014, the Company capitalized $15.1 million (including $5.9 million of personnel-related expenses) and $2.9 million (including $1.0 million of personnel-related expenses), respectively, of costs associated with internal-use software development. No internal-use software development costs were capitalized for the year ended December 31, 2013. Amortization of previously capitalized amounts was $380,000 , $0 , and $0 for the years ended December 31, 2015, 2014, and 2013, respectively.
Intangible Assets	Intangible Assets Intangible assets with finite useful lives are recorded at cost, less accumulated amortization. Amortization is recognized over the estimated useful lives of the assets. The Company’s intangible assets with finite lives, which are related to patent licenses, are not material and are included in non ‑current other assets on the Company’s consolidated balance sheets.
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 accounting guidance for 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 in accordance with accounting guidance for consolidations. If consolidation is not required and the Company owns less than 50.1% of the voting interest 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, typically represented by ownership of 20% or more of the voting interests of an entity. If the equity method does not apply, investments in privately held companies determined to be equity securities are accounted for using the cost method. 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 accounting guidance for investments. In December 2010, the Company invested $500,000 in the preferred stock of a private company representing 21% of the entity’s outstanding voting shares. The Company determined that is was not the primary beneficiary of this VIE and, accordingly, applied the equity method of accounting. In June 2012, the Company invested an additional $400,000 in the preferred stock of this company as part of a new equity financing, reducing the Company’s holdings to approximately 16% . As of June 30, 2012, as a result of the Company’s ownership falling below 20% and not having the ability to exercise influence over the investee entity, the Company changed its method of accounting for this investment to the cost method. Each of the Company’s equity investments is reviewed at least annually for impairment or whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. At December 31, 2013, the Company concluded that the indicators of impairment of its investment in this privately held company were other than temporary and wrote off the remaining asset balance of $643,000 . Therefore, the net carrying value of this investment was $0 at December 31, 2015 and 2014. The Company’s investments in privately held companies were $0 and $13.9 million at December 31, 2015 and 2014, respectively, and were included in other assets on the Company’s consolidated balance sheets. The investments in privately held companies at December 31, 2014 include the Company’s investment in Invitae, which was reclassified from other assets to short-term marketable securities on the Company’s consolidated balance sheets upon completion of Invitae’s initial public offering in early 2015.
Impairment of Long-lived Assets	Impairment of Long ‑lived Assets The Company reviews long ‑lived assets, which include property and equipment, intangible assets and investments in privately held companies, for impairment whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. For property and equipment and intangible assets, an impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using undiscounted cash flows. For investments in non ‑marketable equity securities, evidence of impairment might include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. The Company’s assessment as to whether any impairment is other than temporary is based on its ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. If the fair value of the investment is determined to be less than the carrying value and the decline in value is considered to be other than temporary, the asset is written down to its fair value. The Company wrote off $635,000 of previously capitalized software costs and recorded impairment losses of $123,000 for equipment classified as held for sale for the year ended December 31, 2015. The Company recorded impairment losses of $265,000 for equipment classified as held for sale and $110,000 for equipment disposed prior to placing it in service for the year ended December 31, 2014. For the year ended December 31, 2013, the Company recorded impairment losses of $663,000 related to a write off of previously capitalized software costs in addition to a $643,000 write off of an investment in a privately held company, as discussed above.
Income Taxes	Income Taxes The Company uses the liability method for income taxes, whereby deferred income taxes are provided on items recognized for financial reporting purposes over different periods than for income tax purposes. Valuation allowances are provided when the expected realization of tax assets does not meet a more ‑likely ‑than ‑not criterion. The Company accounts for uncertain income tax positions using a benefit recognition model with a two ‑step approach, a more ‑likely ‑than ‑not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement, in accordance with the accounting guidance for uncertain tax positions. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit is recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense when and if incurred. See Note 11, “Income Taxes” for additional information regarding unrecognized tax benefits.
Revenue Recognition	Revenue Recognition The Company derives its revenues from product sales. The majority of the Company’s historical product revenues have been derived from the sale of the Onco type DX breast cancer test. The Company generally bills third ‑party payors upon generation and delivery of a patient report to the physician. As such, the Company takes assignment of benefits and the risk of collection with the third ‑party payor. The Company generally bills the patient directly for amounts owed after multiple requests for payment have been denied or only partially paid by the insurance carrier. The Company pursues case ‑by ‑case reimbursement where medical policies are not in place or payment history has not been established. The Company’s product revenues for tests performed are recognized when the following revenue recognition criteria are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Criterion (1) is satisfied when the Company has an arrangement to pay or a contract with the payor in place addressing reimbursement for the Onco type DX test. In the absence of such arrangements, the Company considers that criterion (1) is satisfied when a third ‑party payor pays the Company for the test performed. Criterion (2) is satisfied when the Company performs the test and generates and delivers to the physician, or makes available on its web portal, a patient report. When evaluating whether the fee is fixed or determinable and collectible, the Company considers whether it has sufficient history to reliably estimate the total fee that will be received from a payor and a payor’s individual payment patterns. Determination of criteria (3) and (4) are based on management’s judgments regarding whether the fee charged for products or services delivered is fixed or determinable, and the collectability of those fees under any contract or arrangement. Based upon at least several months of payment history, the Company reviews the number of tests paid against the number of tests billed and the payor’s outstanding balance for unpaid tests to determine whether payments are being made at a consistently high percentage of tests billed and at appropriate amounts given the arrangement or contracted payment amount. The estimated accrual amounts per test, recorded upon delivery of a patient report, are calculated for each accrual payor and are based on the arrangement or contracted price adjusted for individual payment patterns resulting from co-payment amounts and excluded services in healthcare plans. The Company also reduces revenue for an estimate of amounts that qualify as patient assistance and related deductions that do not qualify for revenue recognition. When a payment received for an individual test is higher or lower than the estimated accrual amount, the Company recognizes the difference as either cash revenue, in the case of higher payments, or in the case of lower payments, a charge against either the patient assistance program and related deductions reserve or the allowance for doubtful accounts, as applicable. To the extent all criteria set forth above are not met when test results are delivered, product revenues are recognized when cash is received from the payor. The Company has exclusive distribution agreements for one or more of its Onco type DX tests with distributors covering more than 90 countries outside of the United States. The distributor generally provides certain marketing and administrative services to the Company within its territory. As a condition of these agreements, the distributor generally pays the Company an agreed upon fee per test and the Company processes the tests. The same revenue recognition criteria described above generally apply to tests received through distributors. To the extent all criteria set forth above are not met when test results are delivered, product revenues are generally recognized when cash is received from the distributor. From time to time, the Company receives requests for refunds of payments, generally due to overpayments made by third party ‑payors. Upon becoming aware of a refund request, the Company establishes an accrued liability for tests covered by the refund request until such time as the Company determines whether or not a refund is due. Accrued refunds were $609,000 and $944,000 at December 31, 2015 and 2014, respectively. Contract revenues are generally derived from studies conducted with biopharmaceutical and pharmaceutical companies. The specific methodology for revenue recognition is determined on a case ‑by ‑case basis according to the facts and circumstances applicable to a given contract. Under certain contracts, the Company’s input, measured in terms of full ‑time equivalent level of effort or running a set of assays through its clinical reference laboratory under a contractual protocol, triggers payment obligations, and revenues are recognized as costs are incurred or assays are processed. Certain contracts have payments that are triggered as milestones are completed, such as completion of a successful set of experiments. Milestones are assessed on an individual basis and revenue is recognized when these milestones are achieved, as evidenced by acknowledgment from collaborators, provided that (1) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (2) the milestone payment is non ‑refundable. Where separate milestones do not meet these criteria, the Company typically defaults to a performance ‑based model, such as revenue recognition following delivery of effort as compared to an estimate of total expected effort. Advance payments received in excess of revenues recognized are classified as deferred revenue until such time as the revenue recognition criteria have been met.
Cost of Product Revenues	Cost of Product Revenues Cost of product revenues includes the cost of materials, direct labor, equipment and infrastructure expenses associated with processing tissue samples (including sample accessioning, histopathology, anatomical pathology, paraffin extraction, reverse transcription polymerase chain reaction (“RT ‑PCR”), quality control analyses and shipping charges to transport tissue samples) and license fees. Infrastructure expenses include allocated facility occupancy and information technology costs. Costs associated with performing the Company’s tests are recorded as tests are processed. Costs recorded for tissue sample processing and shipping charges represent the cost of all the tests processed during the period regardless of whether revenue was recognized with respect to that test. Royalties for licensed technology calculated as a percentage of product revenues and fixed annual payments relating to the launch and commercialization of the Company’s tests are recorded as license fees in cost of product revenues at the time product revenues are recognized or in accordance with other contractual obligations.
Research and Development Expenses	Research and Development Expenses Research and development expenses are comprised of costs incurred to develop technology and carry out clinical studies and include salaries and benefits, reagents and supplies used in research and development laboratory work, infrastructure expenses, including allocated facility occupancy and information technology costs, contract services, and other outside costs. Research and development expenses also include costs related to activities performed under contracts with biopharmaceutical and pharmaceutical companies. Research and development costs are expensed as incurred. The Company enters into collaboration and clinical trial agreements with clinical collaborators and records these costs as research and development expenses. The Company records accruals for estimated study costs comprised of work performed by its collaborators under contract terms. Advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized and recognized as expense as the goods are delivered or the related services are performed.
Stock-based Compensation	Stock ‑based Compensation The Company uses the Black ‑Scholes option valuation model, single ‑option approach, which requires the use of estimates such as stock price volatility and expected option lives, as well as expected option forfeiture rates, to value employee stock ‑based compensation at the date of grant, and recognizes stock ‑ based compensation expense ratably over the requisite service period. Equity instruments granted to non ‑employees are also valued using the Black ‑Scholes option valuation model and are subject to periodic revaluation over their vesting terms. The Company did not grant any stock options to non ‑employee consultants during any of the years presented.
401(k) Plan	401(k) Plan Substantially all of the Company’s employees are eligible to participate in its defined contribution plan qualified under Section 401(k) of the Internal Revenue Code. The Company contributed dollar for dollar matching of employee contributions up to a maximum of $3,000 , $2,000 , and $1,000 for the years ended December 31, 2015, 2014 and 2013, respectively, for each employee per year based on a full calendar year of service. The match is funded concurrently with a participant’s semi ‑monthly contributions to the 401(k) Plan. The Company recorded expense for its contributions under the 401(k) Plan of $2.8 million , $1.9 million and $718,000 for the years ended December 31, 2015, 2014 and 2013, respectively.
Foreign Currency Transactions	Foreign Currency Transactions Net foreign currency transaction gains or losses are included in other income (expense), net on the Company’s consolidated statement of operations. Net foreign currency transaction losses totaled $551,000 , $790,000 and $158,000 for the years ended December 31, 2015, 2014 and 2013, respectively.
Comprehensive Gain or Loss	Comprehensive Gain or Loss Other comprehensive gain or loss consists of unrealized gains and losses on available ‑for ‑sale securities.
Leases	Leases The Company enters into lease agreements for its laboratory and office facilities. These leases are classified as operating leases. Rent expense is recognized on a straight ‑line basis over the term of the lease. Incentives granted under the Company’s facilities leases, including allowances to fund leasehold improvements and rent holidays, are capitalized and are recognized as reductions to rental expense on a straight ‑line basis over the term of the lease.
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 director and officer 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, 2015 and 2014.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-2, Leases (“ASU 2016-2”). ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-2 will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for the Company in its first quarter of fiscal 2017, with early application permitted and, upon adoption, may be applied either prospectively or retrospectively. The Company early adopted ASU 2015-17 on a prospective basis in the fourth quarter of fiscal 2015. In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). This amendment provides guidance to help entities determine whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software or as a service contract. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. Upon adoption, an entity has the option to apply the provisions of ASU 2015-05 either prospectively to all arrangements entered into or materially modified, or retrospectively. The Company does not expect the impact of the adoption of ASU 2015-05 to be material to its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) to provide guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Schedule of financial instruments measured at fair value on recurring basis	Actively Quoted Significant Markets for Other Significant Identical Observable Unobservable Balance at Assets Inputs Inputs December 31, Level 1 Level 2 Level 3 2015 (In thousands) As of December 31, 2015: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Corporate equity securities — — Total $ $ $ — $ Actively Quoted Significant Markets for Other Significant Identical Observable Unobservable Balance at Assets Inputs Inputs December 31, Level 1 Level 2 Level 3 2014 (In thousands) As of December 31, 2014: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Total $ $ $ — $
Summary of available-for-sale marketable securities	December 31, 2015 Cost or Gross Gross Total Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) Commercial paper $ $ $ — $ Corporate debt securities — Corporate equity securities — Total $ $ $ $ December 31, 2014 Cost or Gross Gross Total Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) Commercial paper $ $ $ — $ Corporate debt securities — Total $ $ $ $
Schedule of the breakdown of available-for-sale marketable securities with unrealized losses	In a Loss Position for Less Than 12 Months Gross Unrealized Estimated As of December 31, 2015: Losses Fair Value (In thousands) Corporate debt securities $ $ Total $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment
Summary of the Company's property and equipment	December 31, 2015 2014 (In thousands) Laboratory equipment $ $ Computer equipment Computer software—internal use Furniture and fixtures Leasehold improvements Work in progress Less accumulated depreciation and amortization Total $ $

Accrued Expenses and Other Cu25

Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities
Summary of the Company's accrued expenses and other current liabilities	December 31, 2015 2014 (In thousands) Accrued expenses $ $ Accrued professional and other service fees Accrued refunds Accrued rebate Accrued collaboration expense Accrued taxes payable Other current liabilities Total $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies
Schedule of future non-cancelable commitments under operating leases	Annual Payments (In thousands) Years Ending December 31, 2016 $ 2017 2018 2019 2020 2021 and thereafter Total minimum payments $

Capital Stock (Tables)

Capital Stock (Tables)	12 Months Ended
	Dec. 31, 2015
Capital Stock
Schedule of shares of common stock reserved for future issuance	Number of Shares (In thousands) Shares to be issued upon exercise of outstanding stock options and vesting of RSUs Shares available for future stock option and RSU grants, settlement of employee stock purchase plan (ESPP) and restricted stock to be issued to outside directors in lieu of director fees Shares of common stock reserved for future issuance

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of option activity	Weighted-Average Outstanding Options Remaining Aggregate Number of Weighted-Average Contractual Intrinsic Shares Exercise Price Life Value (In thousands) (In years) (In thousands) Balance at December 31, 2014 $ Options granted $ Options exercised $ Options forfeited $ Options expired $ Balance at December 31, 2015 $ 5.1 $ Exercisable at December 31, 2015 $ 4.1 $ Vested and expected to vest at December 31, 2015 $ 5.0 $
Summary of RSU activity	Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2014 $ RSUs granted $ RSUs vested $ RSUs cancelled $ Balance at December 31, 2015 $
Schedule of the impact of employee stock-based compensation expense on selected statement of operations line items	Year Ended December 31, 2015 2014 2013 (In thousands) Cost of product revenues $ $ $ Research and development Selling and marketing General and administrative Total $ $ $
Schedule of weighted-average fair values and assumptions used in calculation of fair value of stock options and employee stock purchase plan	Year Ended December 31, 2015 2014 2013 Expected volatility: Stock options % % % ESPP % % % Risk-free interest rate: Stock options % % % ESPP % % % Expected life in years: Stock options ESPP Weighted-average fair value: Stock options $ $ $ ESPP $ $ $
Performance-Based Vesting
Summary of RSU activity	Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2014 $ PVRSUs granted $ PVRSUs vested $ PVRSUs cancelled $ Balance at December 31, 2015 $

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Information
Summary of total revenue from customers by geographic region	Year Ended December 31, 2015 2014 2013 (In thousands) United States $ $ $ Outside of the United States Total revenues $ $ $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of components of the Company's loss before income taxes	Year Ended December 31, 2015 2014 2013 (In thousands) Domestic $ $ $ Foreign Total loss before income taxes $ $ $
Schedule of components of the Company's income tax expense (benefit)	Year Ended December 31, 2015 2014 2013 (In thousands) Current expense (benefit): Federal $ — $ — $ State Foreign Deferred tax expense (benefit): Federal — — State — — Foreign — — — Total income tax expense (benefit) $ $ $
Schedule of reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate	Year Ended December 31, 2015 2014 2013 (In thousands) Federal tax at statutory rate $ $ $ Stock-based compensation Non-deductible meals and entertainment Net operating losses not used Tax benefit on available-for-sale securities — — State tax, net of federal benefit Other Total income tax expense (benefit) $ $ $
Schedule of significant components of deferred tax assets and liabilities	December 31, 2015 2014 (In thousands) Deferred tax assets: Net operating loss carryforwards $ $ Stock-based compensation Research tax credits Fixed assets Capitalized costs Other Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ —
Summary of the activity related to unrecognized tax benefits	Year Ended December 31, 2015 2014 2013 (In thousands) Balance at January 1 $ $ $ Increase (decrease) related to prior year tax positions Increase related to current year tax positions Balance at December 31 $ $ $

Selected Quarterly Financial 31

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Selected Quarterly Financial Data (Unaudited)
Schedule of selected quarterly unaudited consolidated statement of operations information	Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except per share data) 2015: Total revenues $ $ $ $ Product revenues Cost of product revenues Net loss Basic and diluted net loss per common share $ $ $ $ 2014: Total revenues $ $ $ $ Product revenues Cost of product revenues Net income (loss) Basic and diluted net loss per common share $ $ $ $

Organization and Summary of S32

Organization and Summary of Significant Accounting Policies Principles of Consolidation (Details) $ in Millions	Feb. 18, 2015shares	Dec. 31, 2015USD ($)subsidiary	Dec. 31, 2014USD ($)
Principles of Consolidation
Number of wholly-owned subsidiaries		2
Invitae
Investments in Equity Securities
Available-for-sale marketable security | $		$ 18.1	$ 13.9
Invitae | Common Stock
Investments in Equity Securities
Number of shares of common stock issued from conversion | shares	2,207,793
Genomic Health International Holdings, LLC
Principles of Consolidation
Number of wholly-owned subsidiaries		10

Organization and Summary of S33

Organization and Summary of Significant Accounting Policies Concentration of Risk (Details) - product	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Concentration of Risk
Number of products from which the majority of the entity's product revenues have been derived	1
Product revenues | Third-party payor
Concentration of Risk
Number of products from which the majority of the entity's product revenues have been derived	1
Product revenues | Third-party payor | Medicare
Concentration of Risk
Concentration risk percentage	20.00%	20.00%	21.00%
Net accounts receivable | Third-party payor | Medicare
Concentration of Risk
Concentration risk percentage	14.00%	27.00%

Organization and Summary of S34

Organization and Summary of Significant Accounting Policies Other (Details)	1 Months Ended	12 Months Ended
	Jun. 30, 2012USD ($)	Dec. 31, 2015USD ($)Testcountry	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2010USD ($)
Allowance for Doubtful Accounts
Allowance for doubtful accounts		$ 3,988,000	$ 3,628,000
Write-offs for doubtful accounts recorded against allowance		5,200,000	5,400,000
Bad debt expense		6,000,000	6,700,000	$ 6,200,000
Investments in Privately Held Companies
Available-for-sale marketable security		62,410,000	73,934,000
Impairment of Long-lived Assets
Write-off of previously capitalized software costs		$ 635,000		663,000
Revenue Recognition
Minimum number of Oncotype DX tests by exclusive distribution agreements | Test		1
Minimum number of countries covered for distribution agreements establishment | country		90
Accrued refunds		$ 609,000	944,000
401(k) Plan
Maximum amount of matching employer contribution for each employee per year		3,000	2,000	1,000
Contributions expensed		2,800,000	1,900,000	718,000
Foreign Currency Transactions
Net foreign currency transaction losses		551,000	790,000	158,000
Previously Capitalized Software
Impairment of Long-lived Assets
Write-off of previously capitalized software costs		635,000		663,000
Equipment
Impairment of Long-lived Assets
Impairment of assets held for sale and long-lived assets		123,000	265,000
Impairment losses equipment disposed prior to placing it in service			110,000
Corporate equity securities
Impairment of Long-lived Assets
Impairment of assets held for sale and long-lived assets				643,000
Private company 1, Cost Method Investment
Investments in Privately Held Companies
Amount invested in preferred stock of a private company					$ 500,000
Percentage of ownership interest in private company					21.00%
Additional investment made in preferred stock of a private company	$ 400,000
Percentage of ownership interest in private company accounted for under the cost method of accounting	16.00%
Impairment recognized				643,000
Carrying value of investments in privately held companies		0	0
Privately Held Companies | Other Assets
Investments in Privately Held Companies
Carrying value of investments in privately held companies		0	13,900,000
Computer software-internal use
Internal-use Software
Costs to develop internal-use software capitalized		15,100,000	2,900,000
Personnel-related expenses		5,900,000	1,000,000
Amortization		$ 380,000	$ 0	$ 0
Minimum | Property and equipment
Property and Equipment
Estimated useful lives of the assets		3 years
Maximum | Property and equipment
Property and Equipment
Estimated useful lives of the assets		7 years

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Options to purchase common stock
Net Loss Per Share
Awards outstanding but not included in the computation of diluted net income (loss) per share (in shares)	811,000	1,100,000	1,500,000
RSUs
Net Loss Per Share
Awards outstanding but not included in the computation of diluted net income (loss) per share (in shares)	134,000	150,000	156,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets measured at fair value on a recurring basis:
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of assets from level 2 to level 1	0	0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of liabilities from level 2 to level 1	0	0
Recurring basis
Assets measured at fair value on a recurring basis:
Total assets at fair value	83,637	88,581
Recurring basis | Money market deposits
Assets measured at fair value on a recurring basis:
Total assets at fair value	13,928	12,397
Recurring basis | Commercial paper
Assets measured at fair value on a recurring basis:
Total assets at fair value	29,224	29,749
Recurring basis | Corporate debt securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	22,359	46,435
Recurring basis | Corporate equity securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	18,126
Recurring basis | Actively Quoted Markets for Identical Assets Level 1
Assets measured at fair value on a recurring basis:
Total assets at fair value	13,928	12,397
Recurring basis | Actively Quoted Markets for Identical Assets Level 1 | Money market deposits
Assets measured at fair value on a recurring basis:
Total assets at fair value	13,928	12,397
Recurring basis | Significant Other Observable Inputs Level 2
Assets measured at fair value on a recurring basis:
Total assets at fair value	69,709	76,184
Recurring basis | Significant Other Observable Inputs Level 2 | Commercial paper
Assets measured at fair value on a recurring basis:
Total assets at fair value	29,224	29,749
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate debt securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	22,359	$ 46,435
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate equity securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	$ 18,126

Fair Value Measurements Availab

Fair Value Measurements Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Marketable securities classified as available-for-sale
Cost or Amortized Cost	$ 58,110	$ 73,949
Gross Unrealized Gains	4,310	19
Gross Unrealized Losses	(10)	(34)
Total Estimated Fair Value	62,410	73,934
Realized gains on available-for-sale marketable securities	$ 0	$ 0	$ 0
Maximum contractual maturities of Company's available-for-sale marketable securities	1 year	1 year
Commercial paper
Marketable securities classified as available-for-sale
Cost or Amortized Cost	$ 23,684	$ 29,730
Gross Unrealized Gains	41	19
Total Estimated Fair Value	23,725	29,749
Corporate debt securities
Marketable securities classified as available-for-sale
Cost or Amortized Cost	20,569	44,219
Gross Unrealized Losses	(10)	(34)
Total Estimated Fair Value	20,559	$ 44,185
Corporate equity securities
Marketable securities classified as available-for-sale
Cost or Amortized Cost	13,857
Gross Unrealized Gains	4,269
Total Estimated Fair Value	$ 18,126

Fair Value Measurements Avail38

Fair Value Measurements Available-For-Sale Marketable Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements
In a Loss Position for Less Than 12 Months, Gross Unrealized Losses	$ (10)
In a Loss Position for Less Than 12 Months, Estimated Fair Value	$ 20,559
Maximum contractual maturities of Company's available-for-sale marketable securities	1 year	1 year
Corporate debt securities
Fair Value Measurements
In a Loss Position for Less Than 12 Months, Gross Unrealized Losses	$ (10)
In a Loss Position for Less Than 12 Months, Estimated Fair Value	$ 20,559

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and Equipment
Property and equipment, gross	$ 91,281	$ 67,774
Less accumulated depreciation and amortization	(51,535)	(45,914)
Depreciation and amortization expense	6,900	6,700	$ 6,100
Total	39,746	21,860
Laboratory equipment
Property and Equipment
Property and equipment, gross	27,955	24,685
Computer equipment
Property and Equipment
Property and equipment, gross	10,142	9,198
Computer software-internal use
Property and Equipment
Property and equipment, gross	22,289	5,075
Furniture and fixtures
Property and Equipment
Property and equipment, gross	3,983	3,607
Leasehold improvements
Property and Equipment
Property and equipment, gross	20,673	17,902
Work in progress
Property and Equipment
Property and equipment, gross	$ 6,239	$ 7,307

Accrued Expenses and Other Cu40

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued Expenses and Other Current Liabilities
Accrued expenses	$ 2,503	$ 4,003
Accrued professional and other service fees	1,633	1,784
Accrued refunds	609	944
Accrued rebate	690	647
Accrued collaboration expense	2,873	2,862
Accrued taxes payable	372	194
Other current liabilities	242	10
Total	$ 8,922	$ 10,444

Collaboration and Commercial 41

Collaboration and Commercial Technology Licensing Agreements (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2015
Specimen transfer agreements
Collaboration payments and costs
Collaboration expense			$ 11,100,000	$ 6,400,000	$ 12,600,000
Oncotype DX DCIS score agreement
Fixed annual payments
2,016			604,000
2,017			504,000
Exclusive license agreement
Collaboration payments and costs
Estimated total remaining obligation, including milestone payments			0
Exclusive license agreement | Research and development expense.
Collaboration payments and costs
Up-front payment		$ 9,000,000
Agreement break-up fee maximum						$ 5,500,000
Technology license agreements | Cost of product revenues
Collaboration payments and costs
Costs recorded under collaborative arrangements			9,200,000	$ 9,500,000	$ 8,900,000
Oncotype DX Prostate Cancer GPS
Collaboration payments and costs
Estimated total remaining obligation, including milestone payments			$ 3,000,000
Oncotype DX Prostate Cancer GPS | Minimum
Collaboration payments and costs
Number of years of active surveillance	1 year
Oncotype DX Prostate Cancer GPS | Maximum
Collaboration payments and costs
Number of years of active surveillance	2 years

Collaboration and Commercial 42

Collaboration and Commercial Technology Licensing Agreements Contract Research Arrangements (Details) - Collaborative Diagnostic Development Agreement with Pfizer Inc. - USD ($) $ in Millions	1 Months Ended
	Dec. 31, 2013	Nov. 30, 2007
Contract research arrangements
Initial payment received upon joint agreement		$ 1.5
Payment receivable upon joint agreement on gene identification plan		2.2
Additional payments receivable to conduct next phase of development		5
Final payment receivable upon completion of clinical validation		$ 1.5
Amount recognized upon completion of milestone	$ 1.5

Commitments and Contingencies43

Commitments and Contingencies (Details)	1 Months Ended		12 Months Ended
	Nov. 30, 2015USD ($)ft²	Jul. 31, 2014USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	May. 31, 2014ft²	Aug. 31, 2013ft²	May. 31, 2010ft²	Oct. 31, 2009USD ($)ft²	Jan. 31, 2007ft²	Sep. 30, 2005ft²
Non-cancelable operating leases
Rent expense			$ 4,100,000	$ 3,700,000	$ 3,000,000
Non-cancelable commitments under operating leases
2,016			4,391,000
2,017			4,938,000
2,018			5,677,000
2,019			6,465,000
2,020			6,794,000
2021 and thereafter			9,822,000
Total minimum payments			$ 38,087,000
Leased laboratory and office space located in Redwood City, California
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²											47,900
Period of time for which entity has an option to extend lease term	5 years
Allowance for certain tenant improvements	$ 479,000
Leased laboratory and office space located near the leased facility in Redwood City, California
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²										47,200
Period of time for which entity has an option to extend lease term	5 years
Allowance for certain tenant improvements	$ 472,000
Leased office space located near the leased facility in Redwood City, California
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²									30,500
Period of time for which entity has an option to extend lease term	5 years
Allowance for certain tenant improvements	$ 305,000
Lease incentive obligations									$ 307,000
Second leased laboratory and office space located near the leased facility in Redwood City, California
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²							18,400
Period of time for which entity has an option to extend lease term	5 years
Allowance for certain tenant improvements	$ 239,000	$ 358,000
Additional area leased (in square feet) | ft²		5,500
Third leased laboratory and office space located near the leased facility in Redwood City, California
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²	31,200
Period of time for which entity has an option to extend lease term	5 years
Allowance for certain tenant improvements	$ 157,000
Leased office space located in Geneva, Switzerland | European subsidiary
Non-cancelable operating leases
Area leased under non-cancelable operating lease agreement (in square feet) | ft²								2,500
Additional area leased (in square feet) | ft²						5,000

Capital Stock (Details)

Capital Stock (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Feb. 28, 2013Transaction$ / sharesshares	Dec. 31, 2012USD ($)shares	Dec. 31, 2013USD ($)	Dec. 31, 2015shares	Dec. 31, 2014shares
Capital Stock
Common stock outstanding (in shares)				32,800,428	31,911,901
Shares of common stock reserved for future issuance				6,874,000
Treasury Stock
Amount of common stock to be repurchased on an accelerated basis under accelerated share repurchase agreement | $		$ 30,000
Amount paid to the financial institution to settle the initial purchase transaction | $		$ 30,000	$ 15
Number of common shares received under accelerated share repurchase agreement	77,257	984,074
Average purchase price of common stock from the accelerated share repurchase program (in dollars per share) | $ / shares	$ 28.27
Number of separate transactions | Transaction	2
Exercise of outstanding stock options and vesting of RSUs
Capital Stock
Shares of common stock reserved for future issuance				4,318,000
Stock option and restricted stock unit grants, settlement of employee stock purchase plan (ESPP) and restricted stock to be issued to outside directors in lieu of director fees
Capital Stock
Shares of common stock reserved for future issuance				2,556,000

Stock-Based Compensation Narrat

Stock-Based Compensation Narrative (Details) - 2005 Stock Incentive Plan - shares	Jun. 11, 2015	Jun. 08, 2009	Dec. 31, 2015	Sep. 08, 2005
Stock awards other than options
Shares of common stock reserved for issuance under the ESPP				5,000,000
Increase in shares reserved for issuance	1,500,000	3,980,000
Shares of common stock available for future grant			2,000,000

Stock-Based Compensation Stock

Stock-Based Compensation Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Options
Additional disclosure related to options
Intrinsic value (in dollars)		$ 6,600	$ 8,200	$ 13,500
Fair value of shares vested (in dollars)		$ 4,200	$ 6,000	$ 7,300
Number of Shares
Options outstanding at the beginning of the period (in shares)		3,777,000
Options granted (in shares)		450,000
Options exercised (in shares)		(489,000)
Options forfeited (in shares)		(47,000)
Options expired (in shares)		(61,000)
Options outstanding at the end of the period (in shares)		3,630,000	3,777,000
Exercisable at the end of the period (in shares)		2,872,000
Vested and expected to vest at the end of the period (in shares)		3,572,000
Weighted-Average Exercise Price
Options outstanding at the beginning of the period (in dollars per share)		$ 22.10
Options granted (in dollars per share)		30.38
Options exercised (in dollars per share)		15.34
Options forfeited (in dollars per share)		29.96
Options expired (in dollars per share)		29.73
Options outstanding at the end of the period (in dollars per share)		23.80	$ 22.10
Exercisable at the end of the period (in dollars per share)		22.06
Vested and expected to vest at the end of the period (in dollars per share)		$ 23.69
Weighted-Average Remaining Contractual Life
Options outstanding at the end of the period		5 years 1 month 6 days
Exercisable at the end of the period		4 years 1 month 6 days
Vested and expected to vest at the end of the period		5 years
Aggregate Intrinsic Value
Options outstanding at the end of the period (in dollars)		$ 41,402
Exercisable at the end of the period (in dollars)		37,776
Vested and expected to vest at the end of the period (in dollars)		$ 41,144
Stock Options | Performance-Based Vesting
Number of Shares
Options granted (in shares)	148,100
Weighted-Average Exercise Price
Options exercised (in dollars per share)	$ 31.12
Nonstatutory Stock Options | Outside directors
Additional disclosure related to options
Exercise price as a percentage of the fair market value of the company's stock		100.00%
Minimum | Incentive Stock Options
Additional disclosure related to options
Exercise price as a percentage of the fair market value of the company's stock		100.00%
Minimum | Nonstatutory Stock Options
Additional disclosure related to options
Exercise price as a percentage of the fair market value of the company's stock		80.00%
Maximum | Incentive Stock Options
Additional disclosure related to options
Term of incentive stock options from the date of grant		10 years
Maximum | Nonstatutory Stock Options | Outside directors
Additional disclosure related to options
Term of incentive stock options from the date of grant		10 years
Term of stock options after termination of the outside directors' service		12 months
End of first year | Nonstatutory Stock Options | Outside directors
Additional disclosure related to options
Vesting percentage		25.00%
Vesting period, after the first anniversary, in which the options vest monthly		3 years
End of first year | Nonstatutory Stock Options | Outside directors not initially elected at annual meeting
Additional disclosure related to options
Vesting period		1 year

Stock-Based Compensation RSU Ac

Stock-Based Compensation RSU Activity (Details)	1 Months Ended	12 Months Ended
	Feb. 28, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)iteminstallment$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares	Dec. 31, 2011
RSUs
Additional Disclosure
Number of equal annual installments | installment		3
Fair value (in dollars) | $		$ 9,400,000	$ 9,100,000	$ 6,900,000
Stock outstanding (in shares)		630,000	630,000
Number of Shares
Balance at the beginning of the period (in shares)		630,000
Granted (in shares)		443,000
Vested (in shares)		(308,000)
Cancelled (in shares)		(83,000)
Balance at the end of the period (in shares)		682,000	630,000
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares		$ 29.65
Granted (in dollars per share) | $ / shares		30.65	$ 29.05	$ 30.56
Vested (in dollars per share) | $ / shares		29.78
Cancelled (in dollars per share) | $ / shares		30.17
Balance at the end of the period (in dollars per share) | $ / shares		$ 30.18	$ 29.65
RSUs | Performance-Based Vesting
Additional Disclosure
Fair value (in dollars) | $		$ 211,000
Number of performance milestones on which vesting of awards is based | item		3
Stock outstanding (in shares)		13,533	13,533
Grant-date fair value (in dollars) | $	$ 715,000		$ 368,000
Number of Shares
Balance at the beginning of the period (in shares)		13,533
Granted (in shares)	22,980	23,000	0
Vested (in shares)		(7,000)	0
Cancelled (in shares)		(24,000)
Balance at the end of the period (in shares)		6,000	13,533
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares		$ 27.21
Granted (in dollars per share) | $ / shares	$ 31.12	31.12
Vested (in dollars per share) | $ / shares		27.21
Cancelled (in dollars per share) | $ / shares		31.02
Balance at the end of the period (in dollars per share) | $ / shares		$ 27.21	$ 27.21
RSUs | Performance-Based Vesting | Maximum
Additional Disclosure
Vesting percentage		100.00%
RSUs | Vesting on achievement of revenue milestone | Minimum
Additional Disclosure
Vesting percentage		0.00%
RSUs | Vesting on achievement of revenue milestone | Maximum
Additional Disclosure
Vesting percentage		100.00%
RSUs | Vesting on achievement of tests delivered milestone | Minimum
Additional Disclosure
Vesting percentage		0.00%
RSUs | Vesting on achievement of tests delivered milestone | Maximum
Additional Disclosure
Vesting percentage		100.00%
RSUs | Vesting on achievement of reimbursement-related milestone | Minimum
Additional Disclosure
Vesting percentage		0.00%
RSUs | Vesting on achievement of reimbursement-related milestone | Maximum
Additional Disclosure
Vesting percentage		33.33%
RSUs | Vice president and above ranking other than executive officers
Additional Disclosure
Target percentage of equity grant value					50.00%
RSUs | Executive officers
Additional Disclosure
Target percentage of equity grant value					25.00%
Restricted Stock | Outside directors
Additional Disclosure
Fair value (in dollars) | $		$ 200,000	$ 230,000	$ 230,000
Number of Shares
Granted (in shares)		7,365	8,209	7,769
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares		$ 27.10	$ 27.97	$ 29.54
Stock Options | Vice president and above ranking other than executive officers
Additional Disclosure
Target percentage of equity grant value					50.00%
Stock Options | Executive officers
Additional Disclosure
Target percentage of equity grant value					75.00%

Stock-Based Compensation Employ

Stock-Based Compensation Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Purchase Plan
Maximum period for offerings under ESPP	27 months
Exercise price as a percentage of the fair market value of the company's stock	85.00%
Length of purchase period under ESPP	6 months
Shares of common stock reserved for issuance under the ESPP	1,250,000
Shares of common stock available for future grant	555,896
Number of shares issued	203,842	191,318	152,881
Unrecognized compensation expense (in dollars)	$ 736,000
Weighted-average period of recognition of unrecognized stock-based compensation expense	5 months
Minimum
Employee Stock Purchase Plan
Exercise price as a percentage of the fair market value of the company's stock	85.00%

Stock-Based Compensation Empl49

Stock-Based Compensation Employee Stock-Based Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 16,005,000	$ 16,538,000	$ 17,457,000
Unvested Stock Options
Employee Stock Based Compensation Expense
Unrecognized compensation expense (in dollars)	$ 6,700,000
Weighted-average period of recognition of unrecognized stock-based compensation expense	2 years 4 months 24 days
RSUs
Employee Stock Based Compensation Expense
Unrecognized compensation expense (in dollars)	$ 12,300,000
Weighted-average period of recognition of unrecognized stock-based compensation expense	1 year 10 months 24 days
RSUs | Performance-Based Vesting
Employee Stock Based Compensation Expense
Unrecognized compensation expense (in dollars)	$ 12,000
Weighted-average period of recognition of unrecognized stock-based compensation expense	1 month 6 days
Cost of product revenues
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 525,000	497,000	483,000
Research and development expense.
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	4,228,000	4,143,000	4,486,000
Selling and marketing
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	4,526,000	4,822,000	4,756,000
General and administrative
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 6,726,000	$ 7,076,000	$ 7,732,000

Stock-Based Compensation Valuat

Stock-Based Compensation Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted-average fair values and assumptions used in calculation of fair value
Dividend yield (as a percent)	0.00%
Employee Stock Purchase Plan
Weighted-average fair values and assumptions used in calculation of fair value
Expected volatility (as a percent)	35.00%	37.00%	39.00%
Risk-free interest rate (as a percent)	0.10%	0.08%	0.11%
Expected life	6 months	6 months	6 months
Weighted-average fair value (in dollars per share)	$ 6.99	$ 7.24	$ 7.82
Stock Options
Weighted-average fair values and assumptions used in calculation of fair value
Expected volatility (as a percent)	44.00%	44.00%	46.00%
Risk-free interest rate (as a percent)	1.66%	1.97%	1.40%
Expected life	5 years 11 months 9 days	6 years 7 months 10 days	6 years 7 months 21 days
Weighted-average fair value (in dollars per share)	$ 13.37	$ 14.13	$ 14.11

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)product	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)segmentproduct	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Segment information
Number of business segments in which the entity operates | segment									1
Number of products from which the majority of the entity's product revenues have been derived | product	1								1
Total revenues	$ 75,133	$ 73,554	$ 70,619	$ 68,152	$ 69,126	$ 69,101	$ 70,477	$ 67,002	$ 287,458	$ 275,706	$ 261,595
United States
Segment information
Total revenues									246,008	230,657	223,662
Outside of the United States
Segment information
Total revenues									$ 41,450	$ 45,049	$ 37,933

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of income (loss) before income taxes
Domestic	$ (34,276)	$ (25,337)	$ (13,294)
Foreign	(28)	1,138	883
Loss before income taxes	(34,304)	(24,199)	(12,411)
Current expense (benefit):
Federal			(22)
State	(15)	40	57
Foreign	566	353	311
Deferred tax expense (benefit):
Federal	(1,494)
State	(53)
Total income tax expense (benefit)	(996)	393	346
Reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate
Federal tax at statutory rate	(12,006)	(8,470)	(4,344)
Stock-based compensation	782	789	1,149
Non-deductible meals and entertainment	558	531	507
Net operating losses not used (used)	10,499	7,478	2,999
Tax benefit on available-for-sale securities	(1,494)
State tax, net of federal benefit	(63)	26	37
Other	728	39	(2)
Total income tax expense (benefit)	(996)	393	346
Deferred tax assets:
Net operating loss carryforwards	43,870	35,060
Stock-based compensation	10,850	10,210
Research tax credits	15,220	12,500
Fixed assets	3,440	3,520
Capitalized costs	420	3,590
Other	8,080	6,890
Total deferred tax assets	81,880	71,770
Valuation allowance	(81,880)	(71,770)
Increase (decrease) in net valuation allowance	$ 10,100	$ 9,900	$ 7,200

Income Taxes Net Operating Loss

Income Taxes Net Operating Loss Carryforwards (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Net operating loss carryforwards
Net operating losses related to stock option benefits	$ 30.7
Federal
Net operating loss carryforwards
Net operating loss carryforwards	148.5
Federal | Research and development.
Net operating loss carryforwards
Research and development tax credit carryforwards	10.7
State
Net operating loss carryforwards
Net operating loss carryforwards	127.2
State | Research and development.
Net operating loss carryforwards
Research and development tax credit carryforwards	$ 9

Income Taxes Activity Related t

Income Taxes Activity Related to Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Activity related to unrecognized tax benefits
Balance at the beginning of the period	$ 1,600,000	$ 2,160,000	$ 875,000
Increase related to prior year tax positions	927,000		74,000
(Decrease) related to prior year tax positions		(907,000)
Increase related to current year tax positions	320,000	347,000	1,211,000
Balance at the end of the period	2,847,000	1,600,000	2,160,000
Unrecognized tax benefits
Interest and penalties	$ 7,200	$ 6,400	$ 5,700

Selected Quarterly Financial 55

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Selected Quarterly Financial Data (Unaudited)
Total revenues	$ 75,133	$ 73,554	$ 70,619	$ 68,152	$ 69,126	$ 69,101	$ 70,477	$ 67,002	$ 287,458	$ 275,706	$ 261,595
Product revenues	75,133	73,554	70,619	68,152	69,126	69,101	70,477	67,002	287,458	275,706	259,192
Cost of product revenues	14,269	13,718	13,033	12,762	12,501	11,979	12,207	12,055	53,782	48,742	42,100
Net loss	$ (2,735)	$ (11,843)	$ (9,237)	$ (9,493)	$ (6,267)	$ (6,262)	$ (4,618)	$ (7,445)	$ (33,308)	$ (24,592)	$ (12,757)
Basic and diluted net loss per share (in dollars per share)	$ (0.08)	$ (0.36)	$ (0.29)	$ (0.30)	$ (0.20)	$ (0.20)	$ (0.15)	$ (0.24)	$ (1.03)	$ (0.78)	$ (0.42)

SCHEDULE II VALUATION AND QUA56

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for Doubtful Accounts: - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in valuation and qualifying accounts
Balance at Beginning of Period	$ 3,628	$ 1,907	$ 1,133
Expenses	5,542	7,104	6,169
Deductions	5,182	5,383	5,395
Balance at End of Period	$ 3,988	$ 3,628	$ 1,907