Genomic Health (GHDX) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information
Entity Registrant Name	GENOMIC HEALTH INC
Entity Central Index Key	1,131,324
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,346,969
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 40,660	$ 32,533
Short-term marketable securities	52,894	62,410
Accounts receivable (net of allowance for doubtful accounts; 2016—$4,113, 2015—$3,988)	33,611	37,164
Prepaid expenses and other current assets	11,852	10,843
Total current assets	139,017	142,950
Property and equipment, net	39,052	39,746
Other assets	2,020	1,921
Total assets	180,089	184,617
Current liabilities:
Accounts payable	4,796	8,585
Accrued compensation and employee benefits	20,514	22,239
Accrued license fees	2,334	2,287
Accrued expenses and other current liabilities	11,140	8,922
Deferred revenues	235	431
Other current liabilities	208	208
Total current liabilities	39,227	42,672
Other liabilities	2,306	2,410
Commitments and contingencies
Stockholders' equity:
Common stock	3	3
Additional paid- in capital	408,516	395,059
Accumulated other comprehensive income	767	2,752
Accumulated deficit	(240,620)	(228,169)
Treasury stock, at cost	(30,110)	(30,110)
Total stockholders' equity	138,556	139,535
Total liabilities and stockholders' equity	$ 180,089	$ 184,617

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 4,113	$ 3,988

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Product revenues	$ 81,886	$ 70,619	$ 162,780	$ 138,771
Contract revenues	88		88
Total revenues	81,974	70,619	162,868	138,771
Operating expenses:
Cost of product revenues	15,221	13,033	31,021	25,795
Research and development	15,325	14,595	31,288	33,713
Selling and marketing	37,989	37,243	77,489	72,595
General and administrative	18,537	16,580	36,975	32,169
Total operating expenses	87,072	81,451	176,773	164,272
Loss from operations	(5,098)	(10,832)	(13,905)	(25,501)
Interest income	87	55	165	109
Gain on sales of equity securities	676		2,009
Other income (expense), net	(150)	325	(63)	(49)
Loss before income taxes	(4,485)	(10,452)	(11,794)	(25,441)
Income tax expense (benefit)	1,615	(1,215)	657	(6,711)
Net loss	$ (6,100)	$ (9,237)	$ (12,451)	$ (18,730)
Basic and diluted net loss per share (in dollars per share)	$ (0.18)	$ (0.29)	$ (0.38)	$ (0.58)
Shares used in computing basic and diluted net loss per share (in shares)	33,130	32,324	33,015	32,191

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net loss	$ (6,100)	$ (9,237)	$ (12,451)	$ (18,730)
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale marketable securities, net of tax expense (benefit) of $1,257 and $0 for the three and six months ended June 30, 2016, respectively, and $(1,344) and $(6,970) for the three and six months ended June 30, 2015, respectively	(3,589)	(5,487)	(1,198)	12,043
Reclassification adjustment for net gain on sale of equity securities included in net loss	(345)		(787)
Comprehensive loss	$ (10,034)	$ (14,724)	$ (14,436)	$ (6,687)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss)
Unrealized gain on available-for-sale marketable securities, tax (benefit)	$ 1,257	$ (1,344)	$ 0	$ (6,970)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net loss	$ (12,451)	$ (18,730)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	4,365	3,402
Employee stock-based compensation	9,389	8,127
Write-off of previously capitalized software costs		577
Impairment of assets held for sale and long-lived assets	56
Gain on disposal of property and equipment		(19)
Outside director restricted stock awarded in lieu of fees	100	100
Gain on sale of equity securities	(2,009)
Deferred tax benefit from unrealized gain on available-for-sale marketable securities		(6,970)
Changes in assets and liabilities:
Accounts receivable	3,553	2,016
Prepaid expenses and other assets	(1,186)	148
Accounts payable	(2,368)	(730)
Accrued compensation and employee benefits	(1,725)	290
Accrued expenses and other liabilities	4,318	919
Deferred revenues	(197)	189
Net cash provided by (used in) operating activities	1,845	(10,681)
Investing activities
Purchases of property and equipment	(6,879)	(9,508)
Purchases of marketable securities	(35,932)	(43,348)
Maturities of marketable securities	40,007	54,240
Proceeds from sales of marketable securities	5,117
Net cash provided by investing activities	2,313	1,384
Financing activities
Net proceeds from issuance of common stock under stock plans	7,072	6,894
Withholding taxes related to restricted stock units net share settlement	(3,103)	(3,572)
Net cash provided by financing activities	3,969	3,322
Net increase (decrease) in cash and cash equivalents	8,127	(5,975)
Cash and cash equivalents at the beginning of the period	32,533	29,726
Cash and cash equivalents at the end of the period	40,660	23,751
Non-cash investing and financing activities
Accrued purchase of property and equipment	605	2,870
Change in fair value of equity investment	$ (1,404)	$ 18,995

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	Note 1. Organization and Summary of Significant Accounting Policies The Company Genomic Health, Inc. (the “Company”) is a global healthcare company that provides clinically-actionable genomic information to personalize cancer treatment. 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 is translating significant amounts of genomic data that will be useful for treatment planning throughout the cancer patient’s journey, from diagnosis to treatment selection and monitoring. 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. In June 2016, the Company announced the commercial launch of Onco type SEQ Liquid Select, our first Onco type SEQ product, for the management and monitoring of multiple cancer types. Principles of Consolidation The accompanying condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. The Company had two wholly-owned subsidiaries at June 30, 2016: 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 interim period condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated balance sheet as of June 30, 2016, condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015, and condensed consolidated statements of cash flows for the six months ended June 30, 2016 and 2015 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2015 has been derived from audited financial statements, but it does not include certain information and notes required by GAAP for complete consolidated financial statements. 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 condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The accompanying interim period condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 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 sales 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 either 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 $447,000 and $609,000 at June 30, 2016 and December 31, 2015, respectively, and are included in accrued expenses and other current liabilities. 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. 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 condensed 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 June 30, 2016 and December 31, 2015 was $4.1 million and $4.0 million , respectively . Write-offs for doubtful accounts of $1.8 million and $4.2 million were recorded against the allowance during the three and six months ended June 30, 2016 and write-offs of $1.3 million and $2.3 million were recorded against the allowance during the three and six months ended June 30, 2015, respectively. Bad debt expense was $2.2 million and $4.5 million for the three and six months ended June 30, 2016, respectively, and $1.6 million and $2.7 million for the three and six months ended June 30, 2015, respectively. Marketable Securities The Company invests in marketable securities, primarily money market funds, obligations of U.S. Government agencies and government sponsored entities, corporate bonds, commercial paper and equity securities. 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. During the six months ended June 30, 2016, the Company sold 495,188 shares of the common stock of Invitae Corporation for net proceeds of $5.1 million based on a cost of $6.28 per share, resulting in a realized gain of $2.0 million. The fair value of the remaining investment was $12.7 million at June 30, 2016. This investment, which is accounted for under the cost method, was valued at $10.7 million at June 30, 2016. 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. During the six months ended June 30, 2016, $787,000 of unrealized gain, net of tax of $448,000 , related to the shares sold was reclassified out of accumulated other comprehensive income into earnings. These securities are subject to the resale limitations of Rule 144 under the Securities Act of 1933. As of June 30, 2016 and December 31, 2015, respectively, all investments in marketable securities were classified as available for sale. 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 accumulated other comprehensive income on a specific identification basis and recorded in earnings for the period. The cost of securities sold is determined using specific identification. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” to provide guidance on revenue recognition. This ASU 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. In March and April 2016, the FASB issued final amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. The Company is continuing to evaluate its method of adoption and the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01,"Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU changes accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, it clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will become effective for the Company beginning in the first quarter of 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures . In February 2016, the FASB issued ASU No. 2016-2, “Leases.” This ASU 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. This ASU 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 this ASU will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting, ” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing how the adoption of this standard will impact its consolidated financial statements and related disclosures.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
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 597,000 and 627,000 shares of the Company’s common stock were outstanding during the three and six months ended June 30, 2016, respectively, and 81,000 and 110,000 RSUs were outstanding during the three and six months ended June 30, 2016, respectively, but were not included in the computation of diluted net loss per share because their effect is anti-dilutive. Options to purchase 832,000 and 962,000 shares of the Company’s common stock were outstanding during the three and six months ended June 30, 2015, respectively, and 67,000 and 121,000 RSUs were outstanding during the three and six months ended June 30, 2015, respectively, 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	6 Months Ended
	Jun. 30, 2016
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; and 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 either June 30, 2016 or December 31, 2015. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 by level within the fair value hierarchy: Actively Quoted Significant Markets for Other Significant Identical Observable Unobservable Balance at Assets Inputs Inputs June 30, Level 1 Level 2 Level 3 2016 (In thousands) As of June 30, 2016: 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 2015 (In thousands) As of December 31, 2015: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Corporate equity 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. All of the Company’s marketable securities are classified as available-for-sale. The following tables illustrate the Company’s available-for-sale marketable securities as of the dates indicated: June 30, 2016 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, 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 $ $ $ $ The Company reali zed g ains of $676,000 and $2.0 million on available-for-sale marketable securities for the three and six months ended June 30, 2016, respectively. The Company had no realized gains or losses on available-for-sale marketable securities for the three and six months ended June 30, 2015, respectively. All of the Company’s available-for-sale marketable securities had contractual maturities of one year or less as of June 30, 2016 and December 31, 2015.

Collaboration and Commercial Te

Collaboration and Commercial Technology Licensing Agreements	6 Months Ended
	Jun. 30, 2016
Collaboration and Commercial Technology Licensing Agreements
Collaboration and Commercial Technology Licensing Agreements	Note 4. 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 $1.6 million and $2.5 million for the three and six months ended June 30, 2016, respectively, and $2.3 million and $9.4 million for the three and six months ended June 30, 2015, respectively, relating to services provided in connection with these agreements. In addition to these expenses, some of the agreements contain provisions for royalties from inventions resulting from the collaborations. The $ 9.4 million of collaboration expense for the six months ended June 30, 2015 includes a one-time $5.5 million expense for the wind-down of a license agreement and development program as described below. The Company has specified options and rights relating to joint inventions arising out of the collaborations. 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 have annual minimum or maximum amounts. The Company recognized costs recorded under these agreements totaling $2.5 million and $5.1 million for the three and six months ended June 30, 2016, respectively, and $2.3 million and $4.5 million for the three and six months ended June 30, 2015, respectively, which were included in cost of product revenues. 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. In June 2016, the Company entered into a collaboration agreement with Epic Sciences, Inc. (“Epic”), under which the Company has been granted exclusive distribution rights to commercialize Epic’s AR-V7 liquid biopsy test in the United States. The Company has primary responsibility for marketing and promoting the test, order fulfillment, billing and collections of receivables, customer support, and providing order management systems for the test. Epic is responsible for performing analysis for all tests, performing studies including analytic and clinical validation studies, and seeking Medicare coverage and a Medicare payment rate from the Centers for Medicare and Medicaid Services (“CMS”) for the test. Future revenues generated from the test will be shared by the Company and Epic in accordance with the terms of the agreement. Additional terms of the agreement include the Company’s obligation to pay Epic $4.0 million upon achievement of certain milestones. Also, the Company has agreed, subject to certain conditions, to invest up to an aggregate amount of $7.5 million in subordinated convertible promissory notes of Epic that will convert into preferred stock of Epic upon the satisfaction of certain conditions and, upon achievement of one of the milestones, to invest an additional $2.5 million in Epic preferred stock. The agreement has a term of 10 years, unless terminated earlier under certain circumstances. The Company is required to make a series of fixed annual payments under a collaboration agreement beginning with the one year anniversary of achieving a key milestone for the Company’s DCIS clinical study in June 2014. As of June 30, 2016, future annual payments include payments of $604,000 , and $504,000 in 2016 and 2017, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Commitments	Note 5. Commitments and Contingencies Lease Obligations The Company has entered into non-cancellable operating leases for laboratory and office facilities. Rental expense under operating lease agreements was $1.3 million and $2.5 million for the three and six months ended June 30, 2016, respectively, and $949,000 and $1.9 million for the three and six months ended June 30, 2015, respectively. Future non ‑cancelable commitments under these operating leases at June 30, 2016 were as follows: Annual Payments (In thousands) Years Ending December 31, 2016 (remainder of year) $ 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.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation
Stock-Based Compensation	Note 6. Stock-Based Compensation 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. On June 9, 2016, 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. Stock Options A summary of the stock option activity under the 2005 Plan for the six months ended June 30, 2016 is as follows: Outstanding Options Number of Weighted-Average Shares Exercise Price (In thousands) Balance at December 31, 2015 $ Options granted $ Options exercised $ Options forfeited $ Options expired $ Balance at June 30, 2016 $ Exercisable at June 30, 2016 $ Vested and expected to vest at June 30, 2016 $ Performance-Based Vesting Stock Options In April 2016, the Company granted performance-based vesting stock options (“PV stock options”) to purchase 75,531 shares of common stock with an exercise price of $31.12 . The number of shares potentially issuable under PV stock options are subject to the attainment of pre-established, objective performance goals over a specified period. In addition, the awards have a service vesting criteria following the achievement of performance criteria through February 2019. A summary of the PV stock option activity under the 2005 Plan for the six months ended June 30, 2016 is as follows: Outstanding PV Stock Options Number of Weighted-Average Shares Exercise Price (In thousands) Balance at December 31, 2015 — $ — PV stock options granted $ PV stock options exercised — $ — PV stock options forfeited — $ — PV stock options expired — $ — Balance at June 30, 2016 $ Exercisable at June 30, 2016 — $ — Vested and expected to vest at June 30, 2016 $ Restricted Stock Units A summary of the RSU activity under the 2005 Plan for the six months ended June 30, 2016 is as follows: Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2015 $ RSUs granted $ RSUs vested $ RSUs cancelled $ Balance at June 30, 2016 $ Performance-Based Vesting Restricted Stock Units In April 2016, the Company awarded 11,720 performance-based restricted stock units (“PVRSU”) with a grant-date fair value of $329,000 , or $28.09 per share. The amount potentially available under the PVRSU is subject to the attainment of a pre-established, objective performance goal over a specified period. In addition, the awards have a service vesting criteria following the achievement of performance criteria through February 2018. A summary of the PVRSU activity under the 2005 Plan for the six months ended June 30, 2016 is as follows: Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2015 $ PVRSUs granted $ PVRSUs vested $ PVRSUs cancelled — $ — Balance at June 30, 2016 $ 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 six months ended June 30, 2016, the Company issued 3,380 shares of restricted stock to outside directors, with a grant date fair value of $100,000 and a weighted-average grant date fair value of $29.56 per share. Employee Stock Purchase Plan A total of 1,250,000 shares of common stock have been reserved for issuance under the Employee Stock Purchase Plan (“ESPP”), of which 436,624 shares were available for issuance as of June 30, 2016. Shares are issued twice yearly at the end of each offering period. During the six months ended June 30, 2016, 119,272 shares of common stock were issued under the ESPP. As of June 30, 2016, there was $660,000 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 Share-based compensation expense recognized and included in the condensed consolidated statements of operations and comprehensive income (loss) was allocated as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) (In thousands) Cost of product revenues $ $ $ $ Research and development Selling and marketing General and administrative Total $ $ $ $

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Information
Segment Information	Note 7. 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. As of June 30, 2016, the majority of the Company’s product revenues have been derived from sales of one product, the Onco type DX breast cancer test. The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location. Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) (In thousands) United States $ $ $ $ Outside of the United States Total revenues $ $ $ $

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	Note 8. Income Taxes The Company recognized income tax expense of $1.6 million and $ 657,000 for the three and six months ended June 30, 2016, respectively, which was computed using the “discrete” (or “cut-off”) method. The income tax expense for the three months ended June 30, 2016 is principally comprised of deferred tax expense generated by the unrealized losses recognized during the quarter on available-for-sale marketable securities and foreign income tax expense. The income tax expense for the six months ended June 30, 2016 is principally comprised of deferred tax expense on the sale of available-for-sale marketable securities and foreign income tax expense. The intraperiod tax allocation rules limit the amount of benefit recognized to the lesser of year-to-date pre-tax loss or year-to-date unrealized gain recognized on available-for-sale marketable securities included in other comprehensive income. Therefore, the tax benefit or expense will change accordingly in subsequent periods. Income tax benefit for the three and six months ended June 30, 2015 was $1.2 million and $6.7 million, respectively, which was computed using the same method and was principally comprised of a deferred tax benefit generated by the unrealized gain recognized during the period on available-for-sale marketable securities, which is included in other comprehensive income. The deferred tax benefit for the three and six months ended June 30, 2015 was partially offset by miscellaneous state income tax and foreign tax expense on earnings of the Company’s foreign subsidiaries. Based on all available objective evidence, the Company believes that it is still more likely than not that its net deferred tax assets will not be fully realized. Accordingly, the Company maintains a valuation allowance against all of its net deferred tax assets as of both June 30, 2016 and December 31, 2015. The Company will continue to maintain a full valuation allowance until there is sufficient evidence to support recoverability of its deferred tax assets. The Company had $3.0 million and $2.8 million of unrecognized tax benefits at June 30, 2016 and December 31, 2015, respectively. The Company does not anticipate a material change to its unrecognized tax benefits over the next 12 months that would affect its effective tax rate. Unrecognized tax benefits may change during the next 12 months for items that arise in the ordinary course of business. Accrued interest and penalties related to unrecognized tax benefits are recognized as part of the Company’s income tax provision in its condensed consolidated statements of operations. The statute of limitations remain open for the years 2001 through 2016 in U.S. federal and state jurisdictions, and for the years 2010 through 2016 in foreign jurisdictions.

Organization and Summary of S16

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Organization and Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. The Company had two wholly-owned subsidiaries at June 30, 2016: 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 interim period condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated balance sheet as of June 30, 2016, condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015, and condensed consolidated statements of cash flows for the six months ended June 30, 2016 and 2015 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2015 has been derived from audited financial statements, but it does not include certain information and notes required by GAAP for complete consolidated financial statements. 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 condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The accompanying interim period condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
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 sales 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 either 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 $447,000 and $609,000 at June 30, 2016 and December 31, 2015, respectively, and are included in accrued expenses and other current liabilities. 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.
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 condensed 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 June 30, 2016 and December 31, 2015 was $4.1 million and $4.0 million , respectively . Write-offs for doubtful accounts of $1.8 million and $4.2 million were recorded against the allowance during the three and six months ended June 30, 2016 and write-offs of $1.3 million and $2.3 million were recorded against the allowance during the three and six months ended June 30, 2015, respectively. Bad debt expense was $2.2 million and $4.5 million for the three and six months ended June 30, 2016, respectively, and $1.6 million and $2.7 million for the three and six months ended June 30, 2015, respectively.
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, commercial paper and equity securities. 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. During the six months ended June 30, 2016, the Company sold 495,188 shares of the common stock of Invitae Corporation for net proceeds of $5.1 million based on a cost of $6.28 per share, resulting in a realized gain of $2.0 million. The fair value of the remaining investment was $12.7 million at June 30, 2016. This investment, which is accounted for under the cost method, was valued at $10.7 million at June 30, 2016. 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. During the six months ended June 30, 2016, $787,000 of unrealized gain, net of tax of $448,000 , related to the shares sold was reclassified out of accumulated other comprehensive income into earnings. These securities are subject to the resale limitations of Rule 144 under the Securities Act of 1933. As of June 30, 2016 and December 31, 2015, respectively, all investments in marketable securities were classified as available for sale. 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 accumulated other comprehensive income on a specific identification basis and recorded in earnings for the period. The cost of securities sold is determined using specific identification.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” to provide guidance on revenue recognition. This ASU 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. In March and April 2016, the FASB issued final amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. The Company is continuing to evaluate its method of adoption and the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01,"Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU changes accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, it clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will become effective for the Company beginning in the first quarter of 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures . In February 2016, the FASB issued ASU No. 2016-2, “Leases.” This ASU 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. This ASU 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 this ASU will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting, ” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing how the adoption of this standard will impact its consolidated financial statements and related disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
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 June 30, Level 1 Level 2 Level 3 2016 (In thousands) As of June 30, 2016: 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 2015 (In thousands) As of December 31, 2015: Assets Money market deposits $ $ — $ — $ Commercial paper — — Corporate debt securities — — Corporate equity securities — — Total $ $ $ — $
Summary of available-for-sale marketable securities	June 30, 2016 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, 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 $ $ $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Schedule of future non-cancelable commitments under operating leases	Annual Payments (In thousands) Years Ending December 31, 2016 (remainder of year) $ 2017 2018 2019 2020 2021 and thereafter Total minimum payments $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of share-based compensation expense	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) (In thousands) Cost of product revenues $ $ $ $ Research and development Selling and marketing General and administrative Total $ $ $ $
Stock Options
Summary of option activity	Outstanding Options Number of Weighted-Average Shares Exercise Price (In thousands) Balance at December 31, 2015 $ Options granted $ Options exercised $ Options forfeited $ Options expired $ Balance at June 30, 2016 $ Exercisable at June 30, 2016 $ Vested and expected to vest at June 30, 2016 $
Stock Options | Performance-Based Vesting
Summary of option activity	Outstanding PV Stock Options Number of Weighted-Average Shares Exercise Price (In thousands) Balance at December 31, 2015 — $ — PV stock options granted $ PV stock options exercised — $ — PV stock options forfeited — $ — PV stock options expired — $ — Balance at June 30, 2016 $ Exercisable at June 30, 2016 — $ — Vested and expected to vest at June 30, 2016 $
RSUs
Summary of RSU activity	Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2015 $ RSUs granted $ RSUs vested $ RSUs cancelled $ Balance at June 30, 2016 $
RSUs | Performance-Based Vesting
Summary of RSU activity	Weighted-Average Number of Grant Date Fair Shares Value (In thousands) Balance at December 31, 2015 $ PVRSUs granted $ PVRSUs vested $ PVRSUs cancelled — $ — Balance at June 30, 2016 $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Information
Summary of total revenue from customers by geographic region	Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) (In thousands) United States $ $ $ $ Outside of the United States Total revenues $ $ $ $

Organization and Summary of S21

Organization and Summary of Significant Accounting Policies (Principles of Consolidation) (Details)	6 Months Ended
	Jun. 30, 2016subsidiary
Principles of Consolidation
Number of wholly-owned subsidiaries	2
Genomic Health International Holdings, LLC
Principles of Consolidation
Number of wholly-owned subsidiaries	10

Organization and Summary of S22

Organization and Summary of Significant Accounting Policies (Condensed) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Testcountry$ / sharesshares	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
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	$ 447,000		$ 447,000		$ 609,000
Allowance for Doubtful Accounts
Allowance for doubtful accounts	4,113,000		4,113,000		$ 3,988,000
Write-offs for doubtful accounts recorded against allowance	1,800,000	$ 1,300,000	4,200,000	$ 2,300,000
Bad debt expense	2,200,000	$ 1,600,000	4,500,000	$ 2,700,000
Marketable Securities
Proceeds from sales of marketable securities			5,117,000
Realized gains on available-for-sale marketable securities	676,000		2,009,000
Amount reclassified out of accumulated other comprehensive income	345,000		$ 787,000
Common Stock | Sale | Invitae
Marketable Securities
Number of shares of cost method investment sold by entity | shares			495,188
Proceeds from sales of marketable securities			$ 5,100,000
Cost per share (in dollars per share) | $ / shares			$ 6.28
Realized gains on available-for-sale marketable securities			$ 2,000,000
Fair value	12,700,000		12,700,000
Carry value	$ 10,700,000		10,700,000
Amount reclassified out of accumulated other comprehensive income			787,000
Amount reclassified out of accumulated other comprehensive income, tax portion			$ 448,000

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Options
Net Loss Per Share
Awards outstanding but not included in the computation of diluted net income (loss) per share (in shares)	597,000	832,000	627,000	962,000
RSUs
Net Loss Per Share
Awards outstanding but not included in the computation of diluted net income (loss) per share (in shares)	81,000	67,000	110,000	121,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets measured at fair value on a recurring basis:
Total assets at fair value	$ 66,911	$ 83,637
Money market deposits
Assets measured at fair value on a recurring basis:
Total assets at fair value	14,017	13,928
Commercial paper
Assets measured at fair value on a recurring basis:
Total assets at fair value	27,224	29,224
Corporate debt securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	13,014	22,359
Corporate equity securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	12,656	18,126
Actively Quoted Markets for Identical Assets Level 1
Assets measured at fair value on a recurring basis:
Total assets at fair value	14,017	13,928
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	14,017	13,928
Significant Other Observable Inputs Level 2
Assets measured at fair value on a recurring basis:
Total assets at fair value	52,894	69,709
Significant Other Observable Inputs Level 2 | Commercial paper
Assets measured at fair value on a recurring basis:
Total assets at fair value	27,224	29,224
Significant Other Observable Inputs Level 2 | Corporate debt securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	13,014	22,359
Significant Other Observable Inputs Level 2 | Corporate equity securities
Assets measured at fair value on a recurring basis:
Total assets at fair value	$ 12,656	$ 18,126

Fair Value Measurements (Availa

Fair Value Measurements (Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Marketable securities classified as available-for-sale
Cost or Amortized Cost	$ 50,927	$ 50,927	$ 58,110
Gross Unrealized Gains	1,970	1,970	4,310
Gross Unrealized Losses	(3)	(3)	(10)
Total Estimated Fair Value	52,894	52,894	$ 62,410
Realized gains on available-for-sale marketable securities	676	$ 2,009
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	27,164	$ 27,164	$ 23,684
Gross Unrealized Gains	60	60	41
Total Estimated Fair Value	27,224	27,224	23,725
Corporate debt securities
Marketable securities classified as available-for-sale
Cost or Amortized Cost	13,014	13,014	20,569
Gross Unrealized Gains	3	3
Gross Unrealized Losses	(3)	(3)	(10)
Total Estimated Fair Value	13,014	13,014	20,559
Corporate equity securities
Marketable securities classified as available-for-sale
Cost or Amortized Cost	10,749	10,749	13,857
Gross Unrealized Gains	1,907	1,907	4,269
Total Estimated Fair Value	$ 12,656	$ 12,656	$ 18,126

Collaboration and Commercial 26

Collaboration and Commercial Technology Licensing Agreements (Details)	1 Months Ended	3 Months Ended				6 Months Ended
	Jun. 30, 2016USD ($)item	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2013USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)
Specimen transfer agreements
Collaboration payments and costs
Collaboration expense		$ 1,600,000	$ 2,300,000			$ 2,500,000		$ 9,400,000
Technology license agreements
Collaboration payments and costs
Costs recorded under collaborative arrangements		2,500,000	$ 2,300,000			5,100,000	$ 4,500,000
Exclusive license agreement
Collaboration payments and costs
Collaboration expense								$ 5,500,000
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
Milestone payment				$ 5,500,000
Oncotype DX DCIS clinical study
Collaboration payments and costs
Period from achieving key milestone entity required to make fixed annual payments						1 year
Fixed annual payments
2,016	$ 604,000	604,000				$ 604,000
2,017	504,000	504,000				504,000
Exclusive distribution rights Epic's AR-V7 liquid biopsy test in United States
Collaboration payments and costs
Obligation upon achievement of certain milestones	4,000,000	4,000,000				4,000,000
Investment in subordinated convertible promissory notes per agreement	$ 7,500,000	7,500,000				7,500,000
Number of milestones needed to be achieved for conversion into preferred stock | item	1
Investment in preferred stock per collaboration agreement	$ 2,500,000	$ 2,500,000				$ 2,500,000
Term of agreement	10 years

Commitments and Contingencies27

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies
Rent expense	$ 1,300,000	$ 949,000	$ 2,500,000	$ 1,900,000
Non-cancelable commitments under operating leases
2016 (remainder of year)	2,546,000		2,546,000
2,017	5,221,000		5,221,000
2,018	5,960,000		5,960,000
2,019	6,748,000		6,748,000
2,020	7,077,000		7,077,000
2021 and thereafter	9,940,000		9,940,000
Total minimum payments	$ 37,492,000		$ 37,492,000

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - 2005 Stock Incentive Plan - shares	Jun. 09, 2016	Jun. 11, 2015	Jun. 08, 2009	Sep. 08, 2005
Stock awards other than options
Shares of common stock reserved for issuance				5,000,000
Increase in shares reserved for issuance	1,500,000	1,500,000	3,980,000

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options - $ / shares	1 Months Ended	6 Months Ended
	Apr. 30, 2016	Jun. 30, 2016
Number of Shares
Options outstanding at the beginning of the period (in shares)		3,630,000
Options granted (in shares)		675,000
Options exercised (in shares)		(235,000)
Options forfeited (in shares)		(11,000)
Options expired (in shares)		(41,000)
Options outstanding at the end of the period (in shares)		4,018,000
Exercisable at the end of the period (in shares)		2,868,000
Vested and expected to vest at the end of the period (in shares)		3,909,000
Weighted-Average Exercise Price
Options outstanding at the beginning of the period (in dollars per share)		$ 23.80
Options granted (in dollars per share)		26.91
Options exercised (in dollars per share)		18.52
Options forfeited (in dollars per share)		29.94
Options expired (in dollars per share)		28.70
Options outstanding at the end of the period (in dollars per share)		24.57
Exercisable at the end of the period (in dollars per share)		22.98
Vested and expected to vest at the end of the period (in dollars per share)		$ 24.47
Performance-Based Vesting
Number of Shares
Options granted (in shares)	75,531	76,000
Options outstanding at the end of the period (in shares)		76,000
Vested and expected to vest at the end of the period (in shares)		71,000
Weighted-Average Exercise Price
Options granted (in dollars per share)	$ 31.12	$ 31.12
Options outstanding at the end of the period (in dollars per share)		31.12
Vested and expected to vest at the end of the period (in dollars per share)		$ 31.12

Stock-Based Compensation (RSU A

Stock-Based Compensation (RSU Activity) (Details) - USD ($)	1 Months Ended	6 Months Ended
	Apr. 30, 2016	Jun. 30, 2016
RSUs
Number of Shares
Balance at the beginning of the period (in shares)		682,000
Granted (in shares)		555,000
Vested (in shares)		(283,000)
Cancelled (in shares)		(40,000)
Balance at the end of the period (in shares)		914,000
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)		$ 30.18
Granted (in dollars per share)		27.46
Vested (in dollars per share)		30.24
Cancelled (in dollars per share)		29.52
Balance at the end of the period (in dollars per share)		$ 28.54
RSUs | Performance-Based Vesting
Number of Shares
Balance at the beginning of the period (in shares)		6,000
Granted (in shares)	11,720	12,000
Vested (in shares)		(6,000)
Balance at the end of the period (in shares)		12,000
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)		$ 27.21
Granted (in dollars per share)	$ 28.09	28.09
Vested (in dollars per share)		27.21
Balance at the end of the period (in dollars per share)		$ 28.09
Additional Disclosure
Grant-date fair value (in dollars)	$ 329,000
Restricted Stock | Outside directors
Number of Shares
Granted (in shares)		3,380
Weighted-Average Grant Date Fair Value
Granted (in dollars per share)		$ 29.56
Additional Disclosure
Grant-date fair value (in dollars)		$ 100,000

Stock-Based Compensation (Emplo

Stock-Based Compensation (Employee Stock Purchase Plan) (Details) - Employee Stock Purchase Plan	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)shares	Jun. 30, 2016USD ($)shares
Employee Stock Purchase Plan
Shares of common stock reserved for issuance	1,250,000	1,250,000
Shares of common stock available for future grant	436,624	436,624
Number of shares issued	119,272	119,272
Unrecognized compensation expense (in dollars) | $	$ 660,000	$ 660,000
Weighted-average period of recognition of unrecognized stock-based compensation expense		5 months

Stock-Based Compensation (Emp32

Stock-Based Compensation (Employee Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 4,847	$ 3,951	$ 9,389	$ 8,127
Cost of product revenues
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	152	137	312	272
Research and development expense.
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	1,269	1,113	2,522	2,153
Selling and marketing
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	1,437	1,192	2,875	2,274
General and administrative
Employee Stock Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 1,989	$ 1,509	$ 3,680	$ 3,428

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)product	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)segmentproduct	Jun. 30, 2015USD ($)
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	$ 81,974	$ 70,619	$ 162,868	$ 138,771
United States
Segment information
Total revenues	69,644	60,692	140,139	118,409
Outside of the United States
Segment information
Total revenues	$ 12,330	$ 9,927	$ 22,729	$ 20,362

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes
Income tax expense (benefit)	$ 1,615	$ (1,215)	$ 657	$ (6,711)
Unrecognized tax benefits	$ 3,000		$ 3,000		$ 2,800