Insulet (PODD) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	PODD
Entity Registrant Name	INSULET CORPORATION
Entity Central Index Key	1,145,197
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		58,997,012

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 136,246	$ 272,577
Short-term investments	163,546	167,479
Accounts receivable, net	49,676	53,373
Unbilled receivable	13,958	0
Inventories	40,808	33,793
Prepaid expenses and other current assets	17,559	9,949
Total current assets	421,793	537,171
Long-term investments	156,060	125,549
Property and equipment, net	197,564	107,864
Other intangible assets, net	5,747	4,351
Goodwill	39,731	39,840
Other assets	17,961	1,969
Total assets	838,856	816,744
Current Liabilities
Accounts payable	25,191	24,413
Accrued expenses and other current liabilities	48,580	59,256
Deferred revenue	2,338	2,356
Total current liabilities	76,109	86,025
Convertible debt, net of current portion	577,119	566,173
Other long-term liabilities	6,480	6,030
Total liabilities	659,708	658,228
Commitments and contingencies
Stockholders’ Equity
Authorized: 5,000,000 shares at June 30, 2018 and December 31, 2017. Issued and outstanding: zero shares at June 30, 2018 and December 31, 2017.	0	0
Authorized: 100,000,000 at June 30, 2018 and December 31, 2017. Issued and outstanding: 58,975,395 and 58,319,348 at June 30, 2018 and December 31, 2017, respectively.	59	58
Additional paid-in capital	876,641	866,206
Accumulated other comprehensive loss	(2,386)	(493)
Accumulated deficit	(695,166)	(707,255)
Total stockholders’ equity	179,148	158,516
Total liabilities and stockholders’ equity	$ 838,856	$ 816,744

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	58,975,395	58,319,348
Common stock, outstanding (in shares)	58,975,395	58,319,348

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 124,262	$ 109,756	$ 247,840	$ 211,469
Cost of revenue	42,190	45,117	89,953	87,432
Gross profit	82,072	64,639	157,887	124,037
Operating expenses:
Research and development	18,418	18,029	38,330	35,529
Sales and marketing	35,605	29,475	67,738	57,570
General and administrative	23,724	20,493	47,494	39,604
Total operating expenses	77,747	67,997	153,562	132,703
Operating income (loss)	4,325	(3,358)	4,325	(8,666)
Interest expense	7,290	4,796	15,208	9,803
Other income, net	1,686	488	3,368	922
Interest expense and other income, net	5,604	4,308	11,840	8,881
Loss before income taxes	(1,279)	(7,666)	(7,515)	(17,547)
Income tax expense	412	101	745	197
Net loss	$ (1,691)	$ (7,767)	$ (8,260)	$ (17,744)
Net loss per share basic and diluted:
Net loss from continuing operations per share basic and diluted (in dollars per share)	$ (0.03)	$ (0.13)	$ (0.14)	$ (0.31)
Weighted-average number of shares used in calculating net loss per share (in shares)	58,833	57,977	58,659	57,836

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,691)	$ (7,767)	$ (8,260)	$ (17,744)
Other comprehensive income, net of tax
Foreign currency translation adjustment, net of tax	(741)	186	(1,059)	264
Unrealized loss on available-for-sale debt securities, net of tax	(109)	(57)	(834)	(67)
Total other comprehensive (loss) income, net of tax	(850)	129	(1,893)	197
Total comprehensive loss	$ (2,541)	$ (7,638)	$ (10,153)	$ (17,547)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Cash flows from operating activities
Net loss		$ (1,691)	$ (7,767)	$ (8,260)	$ (17,744)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization				7,131	6,707
Non-cash interest expense		7,264	4,072	14,427	8,067
Stock-based compensation expense				15,117	14,655
Provision for bad debts				1,586	722
Other				(130)	374
Changes in operating assets and liabilities:
Accounts receivable and unbilled receivable				(7,217)	(9,630)
Inventories				(7,959)	1,527
Prepaid expenses and other assets				(4,823)	(1,662)
Accounts payable, accrued expenses and other current liabilities				(17,873)	(7,408)
Deferred revenue				(2,626)	44
Other long-term liabilities				232	477
Net cash used in operating activities				(10,395)	(3,871)
Cash flows from investing activities
Purchases of property, equipment and software	[1]			(89,937)	(39,068)
Purchases of investments				(117,940)	(93,383)
Receipts from the maturity or sale of investments				90,774	68,185
Net cash used in investing activities				(117,103)	(64,266)
Cash flows from financing activities
Principal payments of capital lease obligations				0	(269)
Repayment of convertible notes				(6,687)	0
Proceeds from exercise of stock options (2)	[2]			11,206	7,891
Payment of withholding taxes in connection with vesting of restricted stock units				(12,691)	(3,428)
Net cash (used in) provided by financing activities				(8,172)	4,194
Effect of exchange rate changes on cash				(661)	257
Net decrease in cash, cash equivalents and restricted cash				(136,331)	(63,686)
Cash, cash equivalents and restricted cash, beginning of period				272,577	137,174	$ 137,174
Cash, cash equivalents and restricted cash, end of period		$ 136,246	$ 73,488	136,246	$ 73,488	272,577
Purchases of property, equipment and software, previously recorded in accounts payable				$ 4,000		$ 12,300
Number of shares acquired (in shares)				9,733
Payments for repurchase of common stock				$ 800
[1]	Cash outflows from purchases of property, equipment and software for the six months ended June 30, 2018 includes $4.0 million of purchases made in prior periods that were included in accounts payable and accrued expenses as of December 31, 2017 and excludes $12.3 million of purchases made during the six months ended June 30, 2018 that were included in accounts payable and accrued expenses as of June 30, 2018.
[2]	During the period, the Company acquired 9,733 shares of its common stock with a value of $0.8 million in return for the exercise of stock options. The acquired shares were subsequently retired.

Nature of the Business

Nature of the Business	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the Business Insulet Corporation (the "Company") is primarily engaged in the development, manufacturing and sale of its proprietary Omnipod Insulin Management System (the “Omnipod System”), an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes. There are two primary types of insulin therapy practiced today: multiple daily injection (“MDI”) therapy using syringes or insulin pens; and pump therapy using insulin pumps. Insulin pumps are used to perform continuous subcutaneous insulin infusion, or insulin pump therapy, and typically use a programmable device and an infusion set to administer insulin into the person’s body. Insulin pump therapy has been shown to provide people with insulin-dependent diabetes with numerous advantages relative to MDI therapy. The Company estimates that approximately one-third of the Type 1 diabetes population in the United States use insulin pump therapy, and that less than 10% of the Type 2 diabetes population in the United States who are insulin-dependent use insulin pump therapy. The Omnipod System features a small, lightweight, self-adhesive disposable tubeless Omnipod device, which is worn on the body for approximately three days at a time, and its wireless companion, the handheld Personal Diabetes Manager ("PDM"). The Omnipod System, which features two discreet, easy-to-use devices that communicate wirelessly and provide for virtually pain-free automated cannula insertion and blood glucose meter integration, eliminates the need for traditional MDI therapy or the use of traditional pump and tubing. The Company believes that the Omnipod System’s unique proprietary design and features allow people with insulin-dependent diabetes to manage their diabetes with unprecedented freedom, comfort, convenience, and ease. Commercial sales of the Omnipod System began in the United States in 2005. The Company sells the Omnipod System in the United States through direct sales to customers or through its distribution partners. The Omnipod System is currently available in multiple countries in Europe, as well as in Canada and Israel. To lower manufacturing costs, increase supply redundancy, add capacity closer to its largest customer base and support growth, the Company is constructing a highly-automated manufacturing facility in Acton, Massachusetts, with planned production out of the facility beginning in early 2019. The facility will also serve as the Company's global headquarters. The Company assumed on July 1, 2018, all commercial activities (including, among other things, distribution, sales, marketing, training and support) of its Omnipod System across Europe following the expiration of its prior distribution agreement with Ypsomed Distribution AG ("Ypsomed" or the "European distributor") on June 30, 2018. The Company will be required to pay to the former European distributor a per unit fee for sales of the Company's Omnipod device over the twelve months following the expiration of the distribution agreement. The fee will be based on sales of the Omnipod device to identified customers (as that term is defined in the distribution agreement) of the former European distributor who had previously entered into an agreement with the former European distributor for the purchase of Omnipod devices. The Company expects to recognize a liability and an associated intangible asset for this fee as qualifying sales of its Omnipod device are made to these identified customers during the twelve-month period between July 1, 2018 and June 30, 2019. The intangible asset will be amortized over its estimated useful life. In addition to using the Omnipod System for insulin delivery, the Company also partners with global pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of subcutaneous drugs across multiple therapeutic areas.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The unaudited consolidated financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles (“U.S. GAAP” or "GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 , or for any other subsequent interim period. The unaudited consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of its significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. Actual results may differ from those estimates. See Note 3 related to the Company's adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, for a discussion of judgments associated with the recognition of revenue and deferral of cost to obtain a contract. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Translation For foreign operations, asset and liability accounts are translated at exchange rates as of the balance sheet date; income and expenses are translated using weighted average exchange rates for the reporting period. Resulting translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders' equity. Gains and losses arising from transactions and revaluation of period-end balances denominated in currencies other than the local entity's functional currency, primarily the Canadian dollar and the Euro, are included in other income, net, and were not material in the three and six months ended June 30, 2018 and 2017 . Cash and Cash Equivalents For the purpose of financial statement classification, the Company considers all highly-liquid investment instruments with original maturities of 90 days or less, when purchased, to be cash equivalents. Cash equivalents include money market mutual funds, corporate bonds, U.S. government and agency bonds, and certificates of deposit, and are carried at cost which approximates their fair value. Included in the Company's cash and cash equivalents are restricted cash amounts set aside for collateral on outstanding letters of credit and for European cash management and VAT filing collateral, totaling $2.0 million as of June 30, 2018 and $0.5 million as of December 31, 2017 . Investments in Marketable Securities Short-term and long-term investment securities consist of available-for-sale marketable debt securities and are carried at fair value with unrealized gains or losses included as a component of other comprehensive loss in stockholders' equity. Investments with a stated maturity date of one year or more from the balance sheet date and that are not expected to be used in current operations, are classified as long-term investments. Short-term and long-term investments include U.S. government and agency bonds, corporate bonds, and certificates of deposit. The Company reviews investments for other-than-temporary impairment when the fair value of an investment is less than its amortized cost. If an available-for-sale security is other than temporarily impaired, the loss is charged to earnings. Fair Value Measurements To measure fair value of assets and liabilities required to be measured or disclosed at fair value, the Company uses the following fair value hierarchy based on three levels of inputs of which the first two are considered observable and the last unobservable: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 — unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions Certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities are carried at cost, which approximates their fair value because of the short-term maturity of these financial instruments. Property and Equipment Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful life of the respective assets. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. Assets acquired under capital leases are amortized in accordance with the respective class of owned assets and the amortization is included within depreciation expense. Maintenance and repair costs are expensed as incurred. Property and equipment included $57.9 million and $51.6 million of accumulated depreciation as of June 30, 2018 and December 31, 2017 , respectively. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision-maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance of the segment. The Company has concluded that its Chief Executive Officer is the CODM as he is the ultimate decision maker for key operating decisions, determining the allocation of resources and assessing the financial performance of the Company. These decisions, allocations and assessments are performed by the CODM using consolidated financial information. The Company’s products are relatively consistent and manufacturing is centralized and consistent across product offerings. Based on these factors, key operating decisions and resource allocations are made by the CODM using consolidated financial data and as such the Company has concluded that it operates as one segment. Goodwill Goodwill represents the excess of the cost of acquired businesses over the fair value of identifiable net assets acquired. The Company follows the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 350-20, Intangibles - Goodwill and Other (“ASC 350-20”). The Company performs an assessment of its goodwill for impairment on at least an annual basis or whenever events or changes in circumstances indicate there might be impairment. The Company's annual impairment test date is October 1st. As the Company operates in one segment, the Company has considered whether that segment contains multiple components which represent separate reporting units. The Company has concluded that it has a single reporting unit. In reaching this conclusion, the Company considered how components of the business are managed, whether discrete financial information at the component level is reviewed on a regular basis by segment management and whether components may be aggregated based on economic similarity. In performing its annual goodwill test, the Company utilizes the two-step approach as currently prescribed by ASC 350-20. The first step compares the carrying value of the reporting unit to its fair value. If the reporting unit’s carrying value exceeds its fair value, the Company would perform the second step and record an impairment loss to the extent that the carrying value of the reporting unit's goodwill exceeds its implied fair value. There was no impairment of goodwill during the three and six months ended June 30, 2018 . Shipping and Handling Costs The Company does not typically charge its customers for shipping and handling costs associated with shipping its product to its customers unless non-standard shipping and handling services are requested. These shipping and handling costs are included in general and administrative expenses and were $1.4 million and $0.9 million for the three months ended June 30, 2018 and 2017 , respectively, and were $2.5 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively. Concentration of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, short-term and long-term investments in marketable debt securities and accounts receivable. The Company maintains the majority of its cash with one financial institution. Accounts are partially insured up to various amounts mandated by the Federal Deposit Insurance Corporation or by the foreign country where the account is held. The Company purchases Omnipod Systems from Flex Ltd., its single source contract manufacturer. As of each of June 30, 2018 and December 31, 2017 , liabilities to this vendor represented approximately 16% and 20% , respectively, of the combined balance of accounts payable, accrued expenses and other current liabilities. Revenue for customers comprising more than 10% of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Amgen, Inc. 14% 16 % 13% 16% Ypsomed * 20 % 17% 20% Cardinal Health Inc. and affiliates 13% 10 % 12% 10% * Represents less than 10% of consolidated revenue. Other Significant Policies: The following table identifies the Company's other significant accounting policies and the note and page where a detailed description of each policy can be found. Revenue Recognition Note 3 Page Convertible Debt, Net Note 6 Page Accounts Receivable and Allowance for Doubtful Accounts Note 8 Page Inventories Note 9 Page Other Intangible Assets Note 11 Page Accrued Product Warranty Costs Note 12 Page Commitments and Contingencies Note 13 Page Equity: Stock-Based Compensation Note 14 Page Income Taxes Note 15 Page Recently Adopted Accounting Standards: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 and its related amendments (collectively referred to as ASC 606) requires that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under this guidance, an entity makes additional estimates regarding performance conditions and the allocation of variable consideration and must evaluate whether revenue derived from a contract should be recognized at a point in time or over time. The Company adopted the standard as of the required effective date of January 1, 2018 using the modified retrospective method. Under this method, the new guidance was applied to contracts that were not yet completed as of January 1, 2018 with the cumulative effect of initially applying the guidance recognized through accumulated deficit as the date of initial application. See Note 3 "Revenue from Contracts with Customers". Effective January 1, 2018, the Company adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 changes the GAAP model for the accounting of equity investments, whereby equity investments with readily determinable fair value will be carried at fair value with changes reported in net income (loss) as opposed to other comprehensive income (loss). The Company adopted ASU 2016-01 as of the required effective date of January 1, 2018. There was no impact on the consolidated financial statements upon the adoption of ASU 2016-01 as of the effective date or as of and for the period ended June 30, 2018. Effective January 1, 2018, the Company retrospectively adopted ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. There was no impact on the consolidated statements of cash flows upon the adoption of ASU 2016-15. Effective January 1, 2018, the Company adopted ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . ("ASU 2017-09"). ASU 2017-09 specifies the types of changes to the terms or conditions of a share-based payment award that require an entity to apply modification accounting in accordance with Topic 718. The adoption of ASU 2017-09 did not have a material impact on the Company's consolidated financial statements. Effective January 1, 2018, the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires than an entity recognized the income tax effects of an intra-entity transfer of an asset, other than inventory, when the transfer occurs as opposed to when the asset is sold to a third party. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Accounting Standards Issued and Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 and its related amendments (collectively referred to as ASC 842) requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 also amends ASC 420, Exit or Disposal Cost Obligations , to exclude costs to terminate a lease from its scope. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. While the Company continues to evaluate the impact of ASU 2016-02, the Company plans to adopt this standard in the first quarter of 2019 and expects to record right-of-use assets and associated lease obligations on its balance sheet primarily related to its leased office and warehousing space. The Company is also evaluating whether its supplier agreements may contain embedded leases. The Company expects that the adoption of this standard will require updates to its processes and internal controls over financial reporting. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating "Step 2" from the goodwill impairment test, which requires an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge, and alternatively, requires an entity to measure the impairment of goodwill assigned to a reporting unit as the amount by which the carrying value of the assets and liabilities of the reporting unit, including goodwill, exceeds the reporting unit's fair value. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted for all entities. The Company is currently evaluating the impact of ASU 2017-04 but does not expect it to be material to the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities . ("ASU 2017-12"). ASU 2017-12 updates the current hedge accounting guidance with the objective of improving the financial reporting of hedging activities by better portraying the economic results of an entity's risk management activities in its financial statements. The new guidance is effective for the Company on January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-12 on its consolidated financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customers	Revenue from Contracts with Customers The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. Under this method, the new guidance was applied to contracts that were not yet completed as of January 1, 2018 with the cumulative effect of initially applying the guidance recognized through accumulated deficit as the date of initial application. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price, which did not have a material effect on the adjustment to accumulated deficit. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the guidance of ASC 605, Revenue Recognition (ASC 605), which is also referred to herein as the "previous guidance". The adoption of ASC 606 represents a change in accounting principle that will primarily impact how revenue is recognized for the Company's drug delivery product line and how the Company accounts for contract acquisition costs such as commissions. In accordance with ASC 606, revenue is recognized when a customer obtains control of the promised products. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these products. To achieve this core principle, the Company applies the following five steps as outlined in ASC 606: 1) Identify the contract with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to performance obligations in the contract; 5) Recognize revenue when or as the Company satisfies a performance obligation. The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2018 and 2017: Three months Six months (in thousands) 2018 2017 2018 2017 U.S. Omnipod $ 78,047 $ 65,361 $ 148,319 $ 125,016 International Omnipod 28,509 26,575 66,913 51,719 Drug Delivery 17,706 17,820 32,608 34,734 Total $ 124,262 $ 109,756 $ 247,840 $ 211,469 U.S. and International Omnipod The Company generates the majority of its revenue from sales of its Omnipod, which is sold in the U.S., Canada, Europe and Israel. The Omnipod is sold either directly to end users or indirectly through intermediaries, such as independent distributors who resell the Omnipod to end users or wholesalers who sell the Company's product to end users through the pharmacy channel. The Company's exclusive European distribution agreement with its former European distributor expired on June 30, 2018, at which time the Company assumed all commercial activities (including, among other things, distribution, sales, marketing, training and support) of the Omnipod across Europe. • Contracts with Customers. The Company's contracts with its direct customers generally consist of a physician order form, a patient information form and, if applicable, third-party insurance (payor) approval. Contracts with the Company's intermediaries are generally in the form of master service agreements against which firm purchase orders are issued. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including historical payment experience or, in the case of a new intermediary, published credit, credit references and other available financial information pertaining to the customer and in the case of a new direct customer, an investigation of insurance eligibility. • Performance Obligations. The performance obligations in contracts for the delivery of the Omnipod to new end users, either directly to end users or through intermediaries, consist of the PDM, the initial quantity of Pods ordered, training, and in Canada a service-type warranty. To the extent a contract includes multiple promised items, the Company must apply judgment to determine whether promised items are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. • Transaction Price. The price charged for the PDM and Pods is dependent on the Company's pricing as established with third party payors and intermediaries. The Company provides a right of return for sales of its Omnipod to new patients. The Company also provides for certain rebates and discounts for sales of its product through intermediaries. These rights of return, discounts and rebates represent variable consideration and reduce the transaction price at the outset of the contract based on the Company's estimates, which are primarily based on the expected value method using historical and other data related to actual product returns, discounts and rebates paid in each market in which the Omnipod is sold. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. There were no constraints recorded to variable consideration and none of the Company's contracts as of January 1, 2018 or June 30, 2018 contained a significant financing component. • Allocation of Transaction Price. The Company allocates the transaction price to each performance obligation based on its relative stand-alone selling price, which is determined based on the price at which the Company typically sells the deliverable or, if the performance obligation is not typically sold separately, the stand-alone selling price is estimated based on cost plus a reasonable profit margin or the price that a third party would charge for a similar product or service. • Recognition of Revenue. The Company transfers the Omnipod at a point in time, which is determined based on when the customer gains control of the product. Generally, intermediaries obtain control upon shipment based on the contractual terms including right to payment and transfer of title and risk of loss. For sales directly to end users, control is generally transferred at the time of delivery based on customary business practices related to risk of ownership. Training is delivered at a point in time when the end user receives the training. Service warranty revenue is recognized over the service warranty period, which is typically five years. Drug Delivery The Company's drug delivery product line includes sales of a modified version of the Omnipod to pharmaceutical and biotechnology companies who uses the Company’s technology as a delivery method for their drugs. Under ASC 606, for the majority of this product line, revenue is recognized as the product is produced pursuant to the customer’s firm purchase commitments as the Company has an enforceable right to payment for performance completed to date and the inventory has no alternative use to the Company. Judgment is required in the assessment of progress toward completion of in-process inventory. The Company recognizes revenue over time using a blend of costs incurred to date relative to total estimated costs at completion and time incurred to date relative to total production time to measure progress toward the satisfaction its performance obligations. The Company believes that both incurred cost and elapsed time reflect the value generated, which best depicts the transfer of control to the customer. Contract costs include third party costs as well as an allocation of manufacturing overhead. Changes from quarter to quarter in quantity and stage of production of in-process inventory could have a significant quarterly impact on revenue. Material Right The adoption of ASC 606 required the Company to record a contract liability, which the Company refers to as deferred revenue, on January 1, 2018, associated with a volume-based pricing discount granted to the Company's European distributor at the outset of the distribution contract in 2010. The deferred revenue was recognized as revenue through the completion of the distributor contract during the first half of 2018 as the distributor purchased the product. Costs to Obtain and Fulfill a Contract The Company capitalizes commission costs that are related to new patient starts. These costs are deferred in other assets on the Company's consolidated balance sheet, net of the short term portion included in prepaid and other current assets. The judgments made in determining the amount of costs incurred include whether the commissions are incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as sales and marketing expense on a straight line basis over the expected period of benefit, which considers future product upgrades for which a commission would be paid. These capitalized costs are periodically reviewed for impairment. As of June 30, 2018, capitalized contract acquisition costs were $22.1 million , including a current balance of $6.6 million and a non-current balance of $15.5 million . The Company recognized $3.3 million of amortization of capitalized commission costs during the six months ended June 30, 2018. There were no impairments to capitalized costs to obtain a contract recorded during the period. Financial Statement Impact of Adopting ASC 606 The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. The following table shows the adjustments made to accounts on the condensed consolidated balance sheet as of January 1, 2018 as a result of adopting the new guidance. The table also compares the reported condensed consolidated balance sheet accounts as of June 30, 2018 that were impacted by the new guidance to pro forma balance sheet amounts had the previous guidance been in effect. As Reported (1) Adjustments (2) As Adjusted As Reported (3) Adjustments Pro forma (4) (in thousands) 12/31/2017 1/1/2018 1/1/2018 6/30/2018 6/30/2018 6/30/2018 Assets Unbilled receivable (a) $ — $ 5,119 $ 5,119 $ 13,958 $ (13,958 ) $ — Inventories 33,793 (753 ) 33,040 40,808 2,103 42,911 Prepaid expenses and other current assets (b) 9,949 5,568 15,517 17,559 (6,554 ) 11,005 Total current assets 537,171 9,934 547,105 421,793 (18,409 ) 403,384 Other assets (b) 1,969 13,326 15,295 17,961 (15,491 ) 2,470 Total assets 816,744 23,260 840,004 838,856 (33,900 ) 804,956 Liabilities and Stockholder's Equity Deferred revenue (c) 2,356 2,625 4,981 2,338 (854 ) 1,484 Total current liabilities 86,025 2,625 88,650 76,109 (854 ) 75,255 Other long-term liabilities 6,030 271 6,301 6,480 (270 ) 6,210 Total liabilities 658,228 2,896 661,124 659,708 (1,124 ) 658,584 Accumulated deficit (707,255 ) 20,349 (686,906 ) (695,166 ) (32,786 ) (727,952 ) Total stockholders' equity 158,516 20,364 178,880 179,148 (32,776 ) 146,372 Total liabilities and stockholders' equity 816,744 23,260 840,004 838,856 (33,900 ) 804,956 (1) Financial statement amounts as reported in the Company's consolidated balance sheet as of December 31, 2017. Financial statement amounts that are not shown on the above table were not impacted by the adoption of ASC 606. (2) Adjustments made on January 1, 2018 to adopt ASC 606. (3) Financial statement amounts as reported in the interim condensed consolidated balance sheet as of June 30, 2018. Financial statement amounts that are not shown on the above table were not impacted by the adoption of ASC 606. (4) Pro forma balance sheet amounts that would have been reported as of June 30, 2018 had the Company applied the previous guidance under ASC 605. (a) U nbilled receivable that reflects revenue for a portion of the Company's drug delivery product line as the product is produced. The unbilled receivable is reclassified to accounts receivable as the product is completed and shipped to the customer. (b) Other current and non-current assets include contract acquisition costs related to the sale of the Omnipod. These costs are amortized over the estimated period of benefit. (c) The Company recorded deferred revenue for a material right associated with a volume-based pricing discount granted to the Company's European distributor at the outset of the distribution contract in 2010. The deferred revenue related to this material right was recognized as revenue through the completion of the distributor contract during the first half of 2018. The following summarizes the significant changes on the Company’s consolidated statement of operations for the three and six months ended June 30, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if the Company had continued to recognize revenue under ASC 605: Three months ended June 30, 2018 Six months ended June 30, 2018 (in thousands, except per share amounts) As reported Adjustments Pro forma as if the previous accounting guidance was in effect As reported Adjustments Pro forma as if the previous accounting guidance was in effect U.S. Omnipod $ 78,047 $ 77 $ 78,124 $ 148,319 $ 126 $ 148,445 International Omnipod (a) 28,509 (621 ) 27,888 66,913 (1,898 ) 65,015 Drug Delivery (b) 17,706 (8,512 ) 9,194 32,608 (8,839 ) 23,769 Revenue 124,262 (9,056 ) 115,206 247,840 (10,611 ) 237,229 Cost of revenue 42,190 (1,283 ) 40,907 89,953 (1,351 ) 88,602 Gross profit 82,072 (7,773 ) 74,299 157,887 (9,260 ) 148,627 Sales and marketing (c) 35,605 736 36,341 67,738 3,173 70,911 Total operating expenses 77,747 736 78,483 153,562 3,173 156,735 Operating income (loss) 4,325 (8,509 ) (4,184 ) 4,325 (12,433 ) (8,108 ) Loss before income taxes (1,279 ) (8,509 ) (9,788 ) (7,515 ) (12,433 ) (19,948 ) Net loss $ (1,691 ) $ (8,509 ) $ (10,200 ) $ (8,260 ) $ (12,433 ) $ (20,693 ) Net loss per basic and diluted share $ (0.03 ) $ (0.14 ) $ (0.17 ) $ (0.14 ) $ (0.21 ) $ (0.35 ) (a) International Omnipod revenue under ASC 606 includes the amortization of a material right associated with a volume-based pricing discount granted to the Company's European distributor at the outset of the distribution contract in 2010. The deferred revenue was recognized as revenue through the completion of the distributor contract during the first half of 2018. (b) ASC 606 accelerated the recognition of revenue and fulfillment costs related to certain drug delivery contracts for which recognition was previously recorded when the product was shipped to the customer and is recorded as the product is produced under ASC 606. (c) ASC 606 resulted in the amortization of capitalized commission costs that were recorded as part of the cumulative effect adjustment upon adoption and during the six months ended June 30, 2018. Amortization of these capitalized costs to selling and marketing expenses, net of commission costs that were capitalized in the three and six month periods, reduced sales and marketing expenses in each period. Six Months Ended June 30, 2018 Statement of Cash Flows (in thousands) As Reported Adjustments Pro Forma Net loss $ (8,260 ) $ (12,433 ) $ (20,693 ) Adjustments to reconcile net loss to net cash used in operating activities Non-cash items 38,131 — 38,131 Changes in operating assets and liabilities: — Accounts receivable and unbilled receivable (7,217 ) 8,839 1,622 Inventories (7,959 ) (1,351 ) (9,310 ) Prepaid expenses and other assets (4,823 ) 3,174 (1,649 ) Accounts payable, accrued expenses and other current liabilities (17,873 ) — (17,873 ) Deferred revenue (2,626 ) 1,771 (855 ) Other long-term liabilities 232 — 232 Net cash used in operating activities $ (10,395 ) $ — $ (10,395 ) The adoption of ASC 606 had no net impact on the Company’s cash used in operating, investing or financing activities. Revenue recognized during the three and six months ended June 30, 2018 from amounts included in deferred revenue at the beginning of the period was approximately $1.1 million and $2.4 million , respectively. No revenue was recognized during the three and six months ended June 30, 2018 from performance obligations satisfied or partially satisfied in previous periods. During the six months ended June 30, 2018, a $5.1 million unbilled receivable became billable. There were no contract modifications entered into during the three and six months ended June 30, 2018 impacting the Company’s unbilled receivable or deferred revenue.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table provides a summary of assets that are measured at fair value as of June 30, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: (in thousands) Fair Value Measurements June 30, 2018 Total Level 1 Level 2 Level 3 Recurring fair value measurements: Money market mutual funds $ 85,905 $ 85,905 $ — $ — U.S. government and agency bonds 9,989 9,989 — — Total cash equivalents $ 95,894 $ 95,894 $ — $ — U.S. government and agency bonds $ 120,653 $ 84,591 $ 36,062 $ — Corporate bonds 40,940 — 40,940 — Certificates of deposit 1,953 — 1,953 — Total short-term investments $ 163,546 $ 84,591 $ 78,955 $ — U.S. government and agency bonds $ 100,817 $ 68,950 $ 31,867 $ — Corporate bonds 47,510 — 47,510 — Certificates of deposit 7,733 — 7,733 — Total long-term investments $ 156,060 $ 68,950 $ 87,110 $ — December 31, 2017 Recurring fair value measurements: Money market mutual funds $ 236,936 $ 236,936 $ — $ — U.S. government and agency bonds 5,000 5,000 — — Total cash equivalents $ 241,936 $ 241,936 $ — $ — U.S. government and agency bonds $ 112,076 $ 90,703 $ 21,373 $ — Corporate bonds 47,681 — 47,681 — Certificates of deposit 7,722 — 7,722 — Total short-term investments $ 167,479 $ 90,703 $ 76,776 $ — U.S. government and agency bonds $ 92,464 $ 49,651 $ 42,813 $ — Corporate bonds 27,812 — 27,812 — Certificates of deposit 5,273 — 5,273 — Total long-term investments $ 125,549 $ 49,651 $ 75,898 $ — Convertible Debt The estimated fair value of the Company's convertible debt is based on the Level 2 quoted market prices for the same or similar issues and includes the impact of the conversion features. The carrying amounts, net of unamortized discounts and issuance costs, and the estimated fair values of the Company's convertible debt as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 December 31, 2017 (in thousands) Carrying Value Estimated Fair Value Carrying Estimated Fair 2% Convertible Senior Notes $ — $ — $ 3,421 $ 5,467 1.375% Convertible Senior Notes 283,436 455,831 276,172 407,652 1.25% Convertible Senior Notes 293,683 522,116 286,580 450,881 Total $ 577,119 $ 977,947 $ 566,173 $ 864,000

Investments

Investments	6 Months Ended
	Jun. 30, 2018
Short-term Investments [Abstract]
Investments	Investments The Company's short-term and long-term investments in debt securities have maturity dates that range from 13 days to 23.5 months as of June 30, 2018 . Amortized costs, gross unrealized holding gains and losses, and fair values at June 30, 2018 and December 31, 2017 are as follows: (in thousands) Amortized cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018 U.S. government and agency bonds $ 120,965 $ — $ (312 ) $ 120,653 Corporate bonds 41,054 — (114 ) 40,940 Certificates of deposit 1,953 — — 1,953 Total short-term investments $ 163,972 $ — $ (426 ) $ 163,546 U.S. government and agency bonds $ 101,485 $ 3 $ (672 ) $ 100,816 Corporate bonds 47,789 — (278 ) 47,511 Certificates of deposit 7,733 — — 7,733 Total long-term investments $ 157,007 $ 3 $ (950 ) $ 156,060 December 31, 2017 U.S. government and agency bonds $ 112,311 $ — $ (235 ) $ 112,076 Corporate bonds 47,713 3 (35 ) 47,681 Certificates of deposit 7,722 — — 7,722 Total short-term investments $ 167,746 $ 3 $ (270 ) $ 167,479 U.S. government and agency bonds $ 92,677 $ — $ (213 ) $ 92,464 Corporate bonds 27,871 — (59 ) 27,812 Certificates of deposit 5,273 — — 5,273 Total long-term investments $ 125,821 $ — $ (272 ) $ 125,549 The Company’s investment portfolio included approximately 150 available-for-sale debt securities that had insignificant unrealized loss positions as of June 30, 2018. The Company does not intend to sell these investments prior to maturity and has concluded that it will not be required to sell these securities prior to the recovery of amortized costs at maturity. There were no charges recorded in the period for other-than-temporary declines in the fair value of available-for-sale debt securities. The Company had insignificant realized gains or losses for the six months ended June 30, 2018 and in the year ended December 31, 2017 .

Convertible Debt, Net

Convertible Debt, Net	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Convertible Debt, Net	Convertible Debt, Net The Company had outstanding convertible debt and related deferred financing costs on its condensed consolidated balance sheet as follows: As of (in thousands) June 30, 2018 December 31, 2017 Principal amount of 2.0% Convertible Senior Notes $ — $ 3,664 Principal amount of 1.25% Convertible Senior Notes 345,000 345,000 Principal amount of 1.375% Convertible Senior Notes 402,500 402,500 Unamortized debt discount (157,152 ) (170,448 ) Deferred financing costs (13,229 ) (14,543 ) Total convertible debt, net $ 577,119 $ 566,173 Interest expense related to the convertible notes was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Contractual coupon interest $ 2,462 $ 1,413 $ 4,942 $ 2,827 Accretion of debt discount 6,616 3,572 13,138 7,077 Amortization of debt issuance costs 648 500 1,289 990 Total interest expense related to convertible debt $ 9,726 $ 5,485 $ 19,369 $ 10,894 Interest expense related to convertible debt for the three and six months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,383 $ 1,078 $ 1 $ 2,462 $ 2,767 $ 2,156 $ 19 $ 4,942 Amortization of debt discount and issuance costs 3,654 3,589 21 7,264 7,265 7,102 60 14,427 Total interest expense $ 5,037 $ 4,667 $ 22 $ 9,726 $ 10,032 $ 9,258 $ 79 $ 19,369 Interest expense related to convertible debt for the three and six months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in thousands) 1.25% 2.0% Total 1.25% 2.0% Total Contractual coupon interest $ 1,078 $ 335 $ 1,413 $ 2,157 $ 670 $ 2,827 Amortization of debt discount and issuance costs 3,367 705 4,072 6,670 1,397 8,067 Total interest expense $ 4,445 $ 1,040 $ 5,485 $ 8,827 $ 2,067 $ 10,894 1.375% Convertible Senior Notes In November 2017, the Company issued and sold $402.5 million in aggregate principal amount of 1.375% Convertible Senior Notes, due November 15, 2024 (the " 1.375% Notes"). The interest rate on the notes is 1.375% per annum, payable semi-annually in arrears in cash on May 15 and November 15 of each year. Interest began accruing on November 10, 2017 and the first interest payment was made on May 15, 2018. The 1.375% Notes are convertible into the Company’s common stock at an initial conversion rate of 10.7315 shares of common stock per $1,000 principal amount of the 1.375% Notes, which is equivalent to a conversion price of approximately $93.18 per share, subject to adjustment under certain circumstances. The 1.375% Notes will be convertible prior to the close of business on the business day immediately preceding August 15, 2024 only under certain circumstances and during certain periods, and will be convertible on or after August 15, 2024 until the close of business on the second scheduled trading day immediately preceding November 15, 2024, regardless of those circumstances. The Company recorded a debt discount of $120.7 million related to the 1.375% Notes resulting from the allocation of a portion of the proceeds to the fair value of the conversion feature reflecting a nonconvertible debt borrowing rate of 6.8% per annum. The debt discount was recorded as additional paid-in capital and is being amortized as non-cash interest expense over the seven year term of the 1.375% Notes. The Company also incurred debt issuance costs and other expenses related to the 1.375% Notes of approximately $10.9 million , of which $3.3 million was reclassified as a reduction to the value of the conversion feature allocated to equity. The remaining $7.6 million of debt issuance costs is presented as a reduction of debt in the consolidated balance sheet and is being amortized using the effective interest method as non-cash interest expense over the seven year term of the 1.375% Notes. As of June 30, 2018 , the Company included $283.4 million on its balance sheet in long-term debt related to the 1.375% Notes. 1.25% Convertible Senior Notes In September 2016, the Company issued and sold $345.0 million in principal amount of 1.25% Convertible Senior Notes, due September 15, 2021 (the " 1.25% Notes"). The interest rate on the notes is 1.25% per annum, payable semi-annually in arrears in cash on March 15 and September 15 of each year. The 1.25% Notes are convertible into the Company’s common stock at an initial conversion rate of 17.1332 shares of common stock per $1,000 principal amount of the 1.25% Notes, which is equivalent to a conversion price of approximately $58.37 per share, subject to adjustment under certain circumstances. The 1.25% Notes will be convertible prior to the close of business on the business day immediately preceding June 15, 2021 only under certain circumstances and during certain periods, and will be convertible on or after June 15, 2021 until the close of business on the second scheduled trading day immediately preceding September 15, 2021, regardless of those circumstances. The Company recorded a debt discount of $ 66.7 million related to the 1.25% Notes resulting from allocating a portion of the proceeds to the fair value of the conversion feature reflecting a nonconvertible debt borrowing rate of 5.8% per annum. The debt discount is being amortized as non-cash interest expense over the five year term of the 1.25% Notes. The Company incurred debt issuance costs and other expenses related to this offering of approximately $11.3 million , of which $2.2 million was reclassified as a reduction to the value of the amount allocated to equity. The remainder is presented as a reduction of debt in the consolidated balance sheet and is being amortized using the effective interest method as non-cash interest expense over the five year term of the 1.25% Notes. As of June 30, 2018 , the Company has $293.7 million , net of discounts and issuance costs, on its balance sheet in long-term debt related to the 1.25% Notes. 2% Convertible Senior Notes In June 2014, the Company issued and sold $201.3 million in principal amount of 2% Convertible Senior Notes due June 15, 2019 (the " 2% Notes"). The 2% Notes were convertible into the Company’s common stock at an initial conversion rate of 21.5019 shares of common stock per $1,000 principal amount of the 2% Notes, which is equivalent to a conversion price of approximately $46.51 per share. In separately negotiated transactions, the Company repurchased $134.2 million in principal of the notes in September 2016 and $63.4 million in principal of the notes in November 2017. The Company elected to call the remaining notes in March 2018 and settled the outstanding principal and conversion feature of the notes for $6.7 million in cash in the second quarter of 2018. The Company allocated approximately $3.2 million of the settlement to the fair value of the equity component and $3.5 million to the debt component, which was consistent with the carrying value of the notes as of the settlement date, resulting in no gain or loss on extinguishment.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
Disclosure Potential Common Shares Excluded From Computation Of Diluted Net Loss Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period, excluding unvested restricted common shares. Diluted net loss per share is computed using the weighted average number of common shares outstanding and, when dilutive, potential common share equivalents from options, restricted stock units and warrants (using the treasury-stock method), and potential common shares from convertible securities (using the if-converted method). Because the Company reported a net loss for the three and six months ended June 30, 2018 and 2017 , all potential dilutive common shares have been excluded from the computation of the diluted net loss per share for all periods presented, as the effect would have been anti-dilutive. Potential dilutive common share equivalents consist of the following: Three and Six Months Ended June 30, 2018 2017 1.375% Convertible Senior Notes 4,319,429 — 2.00% Convertible Senior Notes — 1,442,433 1.25% Convertible Senior Notes 5,910,954 5,910,954 Unvested restricted stock units 914,710 978,683 Outstanding stock options 3,199,238 3,582,149 Total dilutive common share equivalents 14,344,331 11,914,219

Accounts Receivable, Net

Accounts Receivable, Net	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net Accounts receivable consist of amounts due from third-party payors, patients and third-party intermediaries. The Company records an allowance for doubtful accounts at the time potential collection risk is identified. The Company estimates its allowance based on historical experience, assessment of specific risk, and discussions with individual customers. The Company believes the reserve is adequate to mitigate current collection risk. Customers that represented greater than 10% of gross accounts receivable as of June 30, 2018 and December 31, 2017 were as follows: As of June 30, 2018 December 31, 2017 Amgen, Inc. * 10 % Ypsomed * 31 % * Represents less than 10% of gross accounts receivable as of June 30, 2018. The components of accounts receivable are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Trade receivables $ 52,895 $ 55,914 Allowance for doubtful accounts (3,219 ) (2,541 ) Total accounts receivable, net $ 49,676 $ 53,373

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are held at the lower of cost or market, determined under the first-in, first-out method, and include the costs of material, labor and overhead. Inventory has been recorded at cost, or net realizable value as appropriate, as of June 30, 2018 and December 31, 2017 . The Company reviews inventories for net realizable value based on quantities on hand and expectations of future use. Work in process is calculated based upon a buildup in the stage of completion using estimated labor inputs for each stage in production. The components of inventories are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Raw materials $ 5,243 $ 2,146 Work-in-process 8,128 23,918 Finished goods, net 27,437 7,729 Total inventories $ 40,808 $ 33,793

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	6 Months Ended
	Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets The components of prepaid expenses and other current assets are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Prepaid expenses $ 11,005 $ 9,949 Capitalized contract acquisition costs, current portion 6,554 — Total prepaid expenses and current other assets $ 17,559 $ 9,949 The components of other assets are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Other assets $ 2,486 $ 1,969 Capitalized contract acquisition costs, net of current portion 15,475 — Total other assets $ 17,961 $ 1,969 Upon the adoption of ASC 606 on January 1, 2018, the Company capitalizes commission costs that are related to new patient starts. These costs are deferred in other assets on the Company's consolidated balance sheet, net of the current portion included in prepaid and other current assets. See Note 3 "Revenue from Contracts with Customers" for a further discussion of the accounting for costs to obtain and fulfill a contract and the impact on the consolidated balance sheet upon adoption of this new guidance.

Other Intangible Assets, Net

Other Intangible Assets, Net	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets, Net	Other Intangible Assets, Net The Company’s finite-lived intangible assets are stated at cost less accumulated amortization. The Company assesses its intangible and other long-lived assets for impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be recoverable. The Company recognizes an impairment loss for intangible and other finite-lived assets if the carrying amount of a long-lived asset is not recoverable based on its undiscounted future cash flows. Any such impairment loss is measured as the difference between the carrying amount and the fair value of the asset. The components of other intangible assets are as follows: As of June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer and contractual relationships $ 2,040 $ (1,764 ) $ 276 $ 2,135 $ (1,764 ) $ 371 Internal-use software 9,751 (4,280 ) 5,471 7,545 (3,565 ) 3,980 Total intangible assets $ 11,791 $ (6,044 ) $ 5,747 $ 9,680 $ (5,329 ) $ 4,351 Amortization expense for intangible assets was approximately $0.4 million and $0.3 million for the three months ended June 30, 2018 and 2017 , respectively. Amortization expense for intangible assets was approximately $0.8 million and $0.6 million for the six months ended June 30, 2018 and 2017 , respectively. Amortization expense is recorded in general and administrative expenses in the consolidated statements of operations. Amortization expense expected for the next five years and thereafter is as follows: (in thousands) Years Ending December 31, Customer and Contractual Relationships Internal-Use Software Total 2018 (remaining) $ 79 $ 863 $ 942 2019 132 1,519 1,651 2020 65 1,257 1,322 2021 — 979 979 2022 — 683 683 Thereafter — 170 170 Total $ 276 $ 5,471 $ 5,747 As of June 30, 2018 , the weighted average amortization period of the Company’s intangible assets is approximately 3.8 years .

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Employee compensation and related costs $ 21,470 $ 34,942 Professional and consulting services 8,512 9,273 Supplier charges 3,651 3,542 Other 14,947 11,499 Total accrued expenses and other current liabilities $ 48,580 $ 59,256 Product Warranty Costs The Company provides a four -year warranty on its PDMs sold in the United States and a five -year warranty on its PDMs sold in Canada and may replace any Omnipod that does not function in accordance with product specifications. The Company estimates its warranty at the time the product is shipped based on historical experience and the estimated cost to service the claims. Warranty expense is recorded in cost of goods sold on the statement of operations. Cost to service the claims reflects the current product cost. As these estimates are based on historical experience, and the Company continues to introduce new products and versions, the Company also considers the anticipated performance of the product over its warranty period in estimating warranty reserves. A reconciliation of the changes in the Company’s product warranty liability is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Product warranty liability at the beginning of the period $ 5,386 $ 4,562 $ 5,337 $ 4,388 Warranty expense 1,529 1,135 3,501 1,641 Warranty claims settled (1,412 ) (880 ) (3,335 ) (1,212 ) Product warranty liability at the end of the period $ 5,503 $ 4,817 $ 5,503 $ 4,817 As of (in thousands) June 30, 2018 December 31, 2017 Composition of balance: Short-term $ 2,335 $ 1,653 Long-term 3,168 3,684 Total warranty liability: $ 5,503 $ 5,337

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. Operating Leases The Company leases facilities in Massachusetts, California, Tennessee, the United Kingdom, Canada and China. The Company’s leases are accounted for as operating leases. The leases generally provide for a base rent plus real estate taxes and certain operating expenses related to the leases. The Company leases approximately 100,000 square feet of laboratory and office space for its corporate headquarters in Billerica, Massachusetts. The lease expires in November 2022 and contains escalating payments over the life of the lease. Additionally, the Company leases approximately 29,000 square feet of warehousing space in Billerica, Massachusetts under a lease expiring in September 2019. The Company leases other facilities in Canada, China, the United Kingdom, France, Germany, California, Tennessee and Utah containing a total of approximately 20,000 square feet under leases expiring from August 2018 to June 2021. Certain of the Company’s operating lease agreements contain scheduled rent increases. Rent expense is recorded using the straight-line method and deferred rent is included in other liabilities in the accompanying consolidated balance sheets. Rental expense under operating leases was $0.9 million and $0.7 million for the three months ended June 30, 2018 and 2017 , respectively. Rental expense under operating leases was $1.7 million and $1.4 million for the six months ended June 30, 2018 and 2017 , respectively. The aggregate future minimum lease payments related to these leases as of June 30, 2018 are as follows: (in thousands) Years Ending December 31, Minimum Lease Payments 2018 (remaining) $ 1,691 2019 3,035 2020 2,651 2021 2,402 2022 2,131 Thereafter — Total $ 11,910 Legal Proceedings Between May 5, 2015 and June 16, 2015 , three class action lawsuits were filed by shareholders in the U.S. District Court, for the District of Massachusetts, against the Company and certain individual current and former executives of the Company. Two suits subsequently were voluntarily dismissed. Arkansas Teacher Retirement System v. Insulet, et al. , 1:15-cv-12345, (“ATRS”) alleged that the Company (and certain executives) committed violations of Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 by making allegedly false and misleading statements about the Company’s business, operations, and prospects. On December 14, 2017, following a series of negotiations, the Company, the individual defendants and their insurers reached an agreement in principle with the plaintiffs in the ATRS matter, individually and on behalf of the respective classes they purport to represent, to settle and release all claims with respect to the matter. On February 8, 2018, the parties executed a binding stipulation of settlement. On April 6, 2018, the court preliminarily approved the settlement, and scheduled a final settlement approval hearing for August 2, 2018. Under the terms of the settlement stipulation, a payment will be made to the plaintiffs and the classes they purport to represent. The Company has accrued fees and expenses in connection with this matter up to and including the amount of the expected residual settlement liability that would not be covered by insurance, and such amount is not material to the Company's consolidated financial statements. In addition, on April 26, 2017, a derivative action (Walker v. DeSisto, et al., 1:17-cv-10738) (“Walker”) was filed, and on October 13, 2017, a second derivative action (Carnazza v. DeSisto, et al., 1:17-cv-11977) (“Carnazza”) was filed, both on behalf of the Company, each by a shareholder in the U.S. District Court for the District of Massachusetts against the Company (as a nominal defendant) and certain individual current and former officers and directors of the Company. Both actions were filed as related actions to the securities class action referenced above, and the allegations in the actions are substantially similar to those alleged in the securities class action. The actions seek, among other things, damages, disgorgement of certain types of compensation or profits, and attorneys’ fees and costs. On May 10, 2018, following a series of negotiations, the Company, the individual defendants, and their insurers reached an agreement in principle with the plaintiffs in both of the derivative actions to settle and release all claims with respect to the matters. On July 11, 2018, the parties executed a binding stipulation of settlement. On July 13, 2018, the plaintiffs filed a motion for preliminary approval of the settlement. Under the terms of the settlement stipulation, a payment of attorneys’ fees and reimbursement of expenses will be paid to plaintiffs’ counsel, subject to the Court’s approval. The Company has accrued fees and expenses in connection with this matter up to and including the amount of any expected residual settlement that would not be covered by insurance, and such amount is not material to the Company's consolidated financial statements. The Company is, from time to time, involved in the normal course of business in various legal proceedings, including intellectual property, contract, employment and product liability suits. Although the Company is unable to quantify the exact financial impact of any of these matters, the Company believes that none of these currently pending matters will have an outcome material to its financial condition or business.

Stock-Based Compensation and St

Stock-Based Compensation and Stockholder' Equity	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stockholder' Equity	Stock-Based Compensation and Stockholder' Equity The Company accounts for stock-based compensation under the provisions of ASC 718-10, Compensation — Stock Compensation (“ASC 718-10”), which requires all share-based payments to employees and directors, including grants of stock options and restricted stock units, to be recognized in the income statement based on their fair values. Share-based payments that contain performance conditions are recognized when such conditions are probable of being achieved. The Company grants share-based awards to employees in the form of options to purchase the Company’s common stock, the ability to purchase stock at a discounted price under the employee stock purchase plan and restricted stock units. The Company uses the Black-Scholes option pricing model to determine the weighted-average fair value of options granted and determines the intrinsic value of restricted stock units based on the closing price of its common stock on the date of grant. The Company recognizes the compensation expense of share-based awards on a straight-line basis for awards with only service conditions and on an accelerated basis for awards with performance conditions. Compensation expense is recognized over the vesting period of the awards. The following table reflects the Company's stock-based compensation expense related to share-based awards recognized in the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, Six Months Ended June 30, Unamortized Expense Weighted Average Remaining Expense Period (Years) ($ in thousands) 2018 2017 2018 2017 At June 30, 2018 Stock options $ 2,272 $ 2,909 $ 4,630 $ 5,688 $ 17,424 2.6 Restricted stock units 4,371 4,500 9,899 8,737 35,936 2.0 Employee stock purchase plan 294 122 588 230 494 0.4 Total $ 6,937 $ 7,531 $ 15,117 $ 14,655 $ 53,854 Equity Award Plans In May 2007, in conjunction with the Company's initial public offering, the Company adopted its 2007 Stock Option and Incentive Plan (the "2007 Plan"). The 2007 Plan was amended and restated in November 2008, May 2012 and May 2015 to provide for the issuance of additional shares and to amend certain other provisions. Under the 2007 Plan, awards were granted to persons who were, at the time of grant, employees, officers, non-employee directors or key persons (including consultants and prospective employees) of the Company or the Company's subsidiaries. The 2007 Plan provided for the grant of stock options, restricted stock units, stock appreciation rights, deferred stock awards, restricted stock, unrestricted stock, cash-based awards, performance share awards or dividend equivalent rights. Options granted under the 2007 Plan generally vest over a period of four years and expire ten years from the date of grant. In May 2017, the Company adopted the 2017 Stock Option and Incentive Plan (the "2017 Plan"), which has replaced the 2007 Plan as the means by which the Company makes equity and cash awards. Effective May 18, 2017, the 2017 Plan became effective (the "2017 Plan Effective Date") and the Company ceased granting awards under the 2007 Plan. Outstanding awards under the 2007 Plan remain subject to the terms of the 2007 Plan. Under the 2017 Plan, awards may be granted to persons who are, at the time of grant, employees, officers, non-employee directors, consultants, or advisers of the Company or the Company's subsidiaries and affiliates. The 2017 Plan provides for the grant of stock options, restricted stock units, stock appreciation rights, deferred stock awards, restricted stock, unrestricted stock, cash-based awards, performance share awards or dividend equivalent rights. Stock options granted under the 2017 Plan generally vest over a period of four years and expire ten years from the date of grant. Shares of stock subject to awards granted under the 2007 Plan and the 2017 Plan that are forfeited, expire or otherwise terminate without delivery generally become available for future issuance under the 2017 Plan. Stock Options There were no shares of performance-based incentive stock options awarded in the six months ended June 30, 2018 and there were 34,500 shares of performance-based incentive stock options awarded in the six months ended June 30, 2017 . The stock options were granted under the 2007 and 2017 Plans and vest over a four year period from the grant date with the potential of an accelerated vesting period pursuant to the achievement of certain performance conditions. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the stock price and the following assumptions, including expected volatility, expected life of the awards, the risk-free interest rate, and the dividend yield. • Expected volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period and is computed over expected terms based upon the historical volatility of the Company's stock. • The expected life of the awards is estimated based on the midpoint scenario, which combines historical exercise data with hypothetical exercise data for outstanding options, as the Company believes this data currently represents the best estimate of the expected life of a new employee option. The Company stratifies its employee population into two groups based upon organizational hierarchy. • The risk-free interest rate assumption is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. • The dividend yield assumption is based on Company history and expectation of paying no dividends. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized in the financial statements is based on awards that are ultimately expected to vest. If the Company’s actual forfeiture rate is materially different from its estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. The Company evaluates the assumptions used to value the awards on a quarterly basis and if factors change and different assumptions are utilized, stock-based compensation expense may differ significantly from what has been recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. The following summarizes the activity under the Company’s stock option plans during the six months ended June 30, 2018 : Number of Options (#) Weighted Average Exercise Price ($) Aggregate Intrinsic Value ($ in thousands) Weighted Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 3,377,220 $ 35.10 Granted 269,853 76.32 Exercised (318,102 ) 32.91 $ 17,024 Canceled (129,733 ) 40.28 Outstanding at June 30, 2018 3,199,238 $ 38.59 $ 150,872 7.3 Vested, June 30, 2018 2,007,167 $ 34.29 $ 103,188 6.7 Vested or expected to vest, June 30, 2018 (1) 3,066,211 $ 146,303 (1) Represents total outstanding stock options as of June 30, 2018 , adjusted for estimated forfeitures. The aggregate intrinsic value of stock options exercised was calculated based on the positive difference between the estimated fair value of the Company’s common stock on the date of exercise and the exercise price of the underlying options. The aggregate intrinsic value of options exercised in the six months ended June 30, 2018 and 2017 was $17.0 million and $5.4 million , respectively. The aggregate intrinsic value for outstanding awards as of June 30, 2018 was calculated based on the positive difference between the Company’s closing stock price of $85.70 on June 30, 2018 and the exercise price of the underlying options. Employee stock-based compensation related to stock options in the six months ended June 30, 2018 and 2017 was $4.6 million and $5.7 million , respectively, and was based on awards ultimately expected to vest. At June 30, 2018 , the Company had $17.4 million of total unrecognized compensation expense related to stock options that will be recognized over a weighted average period of 2.6 years. Restricted Stock Units In the six months ended June 30, 2018 , the Company awarded 326,144 restricted stock units to certain employees and non-employee members of the Board of Directors, which included 111,239 restricted stock units subject to the achievement of performance conditions (performance-based restricted stock units). For performance-based restricted stock units for which the performance criteria has not yet been achieved, the Company recognized stock compensation expense of $1.0 million and $2.1 million in the three and six months ended June 30, 2018 as it expects a portion of the performance-based restricted stock units granted in 2017 and 2018 will be earned based on its evaluation of the performance criteria. An additional $0.3 million and $1.4 million of stock compensation expense was recognized in the three and six months ended June 30, 2018 for performance-based restricted stock units for which the performance criteria has been achieved. The restricted stock units were granted under the 2007 and 2017 Plans and generally vest annually over a one or three year period from the grant date, except for the performance-based restricted stock units, which follow different vesting patterns. The restricted stock units granted during the six months ended June 30, 2018 have a weighted average fair value of $75.36 per share based on the closing price of the Company’s common stock on the date of grant and were valued at approximately $24.1 million on their grant date. The Company is recognizing the compensation expense over the vesting period. Approximately $3.2 million and $3.2 million in the three months ended June 30, 2018 and 2017, respectively, of stock-based compensation expense related to the vesting of non-performance based restricted stock units was recognized. Approximately $6.4 million and $6.2 million in the six months ended June 30, 2018 and 2017, respectively, of stock-based compensation expense related to the vesting of non-performance based restricted stock units was recognized. Under the terms of the awards, the Company will issue shares of common stock on each of the vesting dates. The following table summarizes the status of the Company’s restricted stock units during the six months ended June 30, 2018 : Number of Shares (#) Weighted Average Fair Value ($) Outstanding at December 31, 2017 994,364 $ 38.08 Granted 326,144 75.36 Adjustment (1) 147,301 29.54 Vested (487,001 ) 33.39 Forfeited (66,098 ) 44.43 Outstanding at June 30, 2018 914,710 $ 52.04 (1) Certain performance-based restricted stock units are subject to a three -year vesting period subject to meeting performance targets and continued employment. During the three months ended March 31, 2018, the Compensation Committee of the Board of Directors determined that the performance was achieved at 200% of target for certain performance-based awards issued in 2016, resulting in an adjustment to the shares that will ultimately vest for these awards. Employee Stock Purchase Plan The Employee Stock Purchase Plan (“ESPP”) authorizes the issuance of up to a total of 380,000 shares of common stock to participating employees. The Company typically makes two offerings each year to eligible employees to purchase stock under the ESPP. Offering periods begin on the first business day occurring on or after each December 1 and June 1 and end on the last business day occurring on or before the following May 31 and November 30, respectively. Each employee who is a participant in the Company’s ESPP may purchase up to a maximum of 800 shares per offering period or $25,000 worth of common stock, valued at the start of the purchase period, per year by authorizing payroll deductions of up to 10% of his or her base salary. Unless the participating employee withdraws from the offering period, his or her accumulated payroll deductions will be used to purchase common stock. The purchase price for each share purchased is 85% of the lower of (i) the fair market value of the common stock on the first day of the offering period or (ii) the fair market value of the common stock on the last day of the offering period.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes (“ASC 740-10”) under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect in the years in which the differences are expected to reverse. The Company reviews its deferred tax assets for recoverability considering historical profitability, projected future taxable income, and the expected timing of the reversals of existing temporary differences and tax planning strategies. The effect of a change in enacted tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. As of June 30, 2018, the Company had no uncertain tax positions. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act ("Tax Reform Act"). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system, expanding the tax base and imposing a tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate federal income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The Company recognized the impact of the Tax Reform Act in the consolidated financial statements as of December 31, 2017. Staff Accounting Bulletin No. 118 ("SAB 118") provides guidance on accounting for the impact of the Tax Reform Act. Specifically, SAB 118 provides for a measurement period, not to exceed one year, that begins on the date of enactment of December 22, 2017, and ends when the Company has obtained, prepared, and analyzed information needed to complete accounting requirements. In accordance with SAB 118, the Company recorded provisional amounts reflecting the impact of the Tax Reform Act in its consolidated financial statements and related disclosures as of December 31, 2017. As of December 31 2017, the Company recorded a reduction in net operating losses in 2017 of $0.8 million offset by an associated reduction in the valuation allowance of the $0.8 million related to the deemed repatriation. However, the final impact of the deemed repatriation tax computation is still open due to finalization of the earnings and profits of the Company's foreign subsidiaries, as well as the Company’s evaluation of certain elections and guidance. The Company expects to complete its evaluation upon the filing of its federal and state tax returns, generally in its third quarter of 2018. The Tax Reform Act subjects the Company to current tax on global intangible low-taxed income, or ("GILTI") earned by certain of its foreign subsidiaries. The Company has elected to recognize the income tax related to GILTI as a period expense in the period the tax is incurred or expected to occur for the year ended December 31, 2018. The inclusion of GILTI had no impact on the Company's income tax expense or effective tax rate in the period due to the full valuation allowance applied to the U.S. entity. The Company files federal, state and foreign tax returns. These returns are generally open to examination by the relevant tax authorities from three to four years from the date they are filed. The tax filings relating to the Company's federal and state tax returns are currently open to examination for tax years 2014 through 2016 and 2013 through 2016, respectively. In addition, the Company has generated tax losses since its inception in 2000. These years may be subject to examination if the losses are carried forward and utilized in future years. At June 30, 2018 and December 31, 2017 , the Company provided a full valuation allowance against its domestic net deferred tax asset because it is not more likely than not that the future tax benefit will be realized. In addition, the Company has a net deferred tax asset in foreign jurisdictions where no valuation allowance is recorded as it is more likely than not that the future tax benefit will be realized. Income tax expense was $0.4 million and $0.1 million for the three months ended June 30, 2018 and 2017. Income tax expense was $0.7 million and $0.2 million for the six months ended June 30, 2018 and 2017 , respectively. Income tax expense for both periods in the current year was primarily driven by income generated in foreign jurisdictions, mainly the United Kingdom and Canada.

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles (“U.S. GAAP” or "GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 , or for any other subsequent interim period. The unaudited consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 .
Use of Estimates in Preparation of Financial Statements	Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of its significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. Actual results may differ from those estimates. See Note 3 related to the Company's adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, for a discussion of judgments associated with the recognition of revenue and deferral of cost to obtain a contract.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Translation	Foreign Currency Translation For foreign operations, asset and liability accounts are translated at exchange rates as of the balance sheet date; income and expenses are translated using weighted average exchange rates for the reporting period. Resulting translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders' equity. Gains and losses arising from transactions and revaluation of period-end balances denominated in currencies other than the local entity's functional currency, primarily the Canadian dollar and the Euro, are included in other income, net, and were not material in the three and six months ended June 30, 2018 and 2017 .
Cash and Cash Equivalents	Cash and Cash Equivalents For the purpose of financial statement classification, the Company considers all highly-liquid investment instruments with original maturities of 90 days or less, when purchased, to be cash equivalents. Cash equivalents include money market mutual funds, corporate bonds, U.S. government and agency bonds, and certificates of deposit, and are carried at cost which approximates their fair value.
Investments in Marketable Securities	Investments in Marketable Securities Short-term and long-term investment securities consist of available-for-sale marketable debt securities and are carried at fair value with unrealized gains or losses included as a component of other comprehensive loss in stockholders' equity. Investments with a stated maturity date of one year or more from the balance sheet date and that are not expected to be used in current operations, are classified as long-term investments. Short-term and long-term investments include U.S. government and agency bonds, corporate bonds, and certificates of deposit. The Company reviews investments for other-than-temporary impairment when the fair value of an investment is less than its amortized cost. If an available-for-sale security is other than temporarily impaired, the loss is charged to earnings.
Fair Value Measurements	Fair Value Measurements To measure fair value of assets and liabilities required to be measured or disclosed at fair value, the Company uses the following fair value hierarchy based on three levels of inputs of which the first two are considered observable and the last unobservable: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 — unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions Certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities are carried at cost, which approximates their fair value because of the short-term maturity of these financial instruments. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the stock price and the following assumptions, including expected volatility, expected life of the awards, the risk-free interest rate, and the dividend yield. • Expected volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period and is computed over expected terms based upon the historical volatility of the Company's stock. • The expected life of the awards is estimated based on the midpoint scenario, which combines historical exercise data with hypothetical exercise data for outstanding options, as the Company believes this data currently represents the best estimate of the expected life of a new employee option. The Company stratifies its employee population into two groups based upon organizational hierarchy. • The risk-free interest rate assumption is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. • The dividend yield assumption is based on Company history and expectation of paying no dividends. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized in the financial statements is based on awards that are ultimately expected to vest. If the Company’s actual forfeiture rate is materially different from its estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. The Company evaluates the assumptions used to value the awards on a quarterly basis and if factors change and different assumptions are utilized, stock-based compensation expense may differ significantly from what has been recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense.
Property and Equipment	Property and Equipment Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful life of the respective assets. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. Assets acquired under capital leases are amortized in accordance with the respective class of owned assets and the amortization is included within depreciation expense. Maintenance and repair costs are expensed as incurred.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision-maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance of the segment. The Company has concluded that its Chief Executive Officer is the CODM as he is the ultimate decision maker for key operating decisions, determining the allocation of resources and assessing the financial performance of the Company. These decisions, allocations and assessments are performed by the CODM using consolidated financial information. The Company’s products are relatively consistent and manufacturing is centralized and consistent across product offerings. Based on these factors, key operating decisions and resource allocations are made by the CODM using consolidated financial data and as such the Company has concluded that it operates as one segment.
Goodwill	Goodwill Goodwill represents the excess of the cost of acquired businesses over the fair value of identifiable net assets acquired. The Company follows the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 350-20, Intangibles - Goodwill and Other (“ASC 350-20”). The Company performs an assessment of its goodwill for impairment on at least an annual basis or whenever events or changes in circumstances indicate there might be impairment. The Company's annual impairment test date is October 1st. As the Company operates in one segment, the Company has considered whether that segment contains multiple components which represent separate reporting units. The Company has concluded that it has a single reporting unit. In reaching this conclusion, the Company considered how components of the business are managed, whether discrete financial information at the component level is reviewed on a regular basis by segment management and whether components may be aggregated based on economic similarity. In performing its annual goodwill test, the Company utilizes the two-step approach as currently prescribed by ASC 350-20. The first step compares the carrying value of the reporting unit to its fair value. If the reporting unit’s carrying value exceeds its fair value, the Company would perform the second step and record an impairment loss to the extent that the carrying value of the reporting unit's goodwill exceeds its implied fair value.
Shipping and Handling Costs	Shipping and Handling Costs The Company does not typically charge its customers for shipping and handling costs associated with shipping its product to its customers unless non-standard shipping and handling services are requested. These shipping and handling costs are included in general and administrative expenses and were $1.4 million and $0.9 million for the three months ended June 30, 2018 and 2017 , respectively, and were $2.5 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, short-term and long-term investments in marketable debt securities and accounts receivable. The Company maintains the majority of its cash with one financial institution. Accounts are partially insured up to various amounts mandated by the Federal Deposit Insurance Corporation or by the foreign country where the account is held.
Recently Adopted and Not Yet Adopted Accounting Pronouncements	Recently Adopted Accounting Standards: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 and its related amendments (collectively referred to as ASC 606) requires that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under this guidance, an entity makes additional estimates regarding performance conditions and the allocation of variable consideration and must evaluate whether revenue derived from a contract should be recognized at a point in time or over time. The Company adopted the standard as of the required effective date of January 1, 2018 using the modified retrospective method. Under this method, the new guidance was applied to contracts that were not yet completed as of January 1, 2018 with the cumulative effect of initially applying the guidance recognized through accumulated deficit as the date of initial application. See Note 3 "Revenue from Contracts with Customers". Effective January 1, 2018, the Company adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 changes the GAAP model for the accounting of equity investments, whereby equity investments with readily determinable fair value will be carried at fair value with changes reported in net income (loss) as opposed to other comprehensive income (loss). The Company adopted ASU 2016-01 as of the required effective date of January 1, 2018. There was no impact on the consolidated financial statements upon the adoption of ASU 2016-01 as of the effective date or as of and for the period ended June 30, 2018. Effective January 1, 2018, the Company retrospectively adopted ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. There was no impact on the consolidated statements of cash flows upon the adoption of ASU 2016-15. Effective January 1, 2018, the Company adopted ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . ("ASU 2017-09"). ASU 2017-09 specifies the types of changes to the terms or conditions of a share-based payment award that require an entity to apply modification accounting in accordance with Topic 718. The adoption of ASU 2017-09 did not have a material impact on the Company's consolidated financial statements. Effective January 1, 2018, the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires than an entity recognized the income tax effects of an intra-entity transfer of an asset, other than inventory, when the transfer occurs as opposed to when the asset is sold to a third party. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Accounting Standards Issued and Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 and its related amendments (collectively referred to as ASC 842) requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 also amends ASC 420, Exit or Disposal Cost Obligations , to exclude costs to terminate a lease from its scope. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. While the Company continues to evaluate the impact of ASU 2016-02, the Company plans to adopt this standard in the first quarter of 2019 and expects to record right-of-use assets and associated lease obligations on its balance sheet primarily related to its leased office and warehousing space. The Company is also evaluating whether its supplier agreements may contain embedded leases. The Company expects that the adoption of this standard will require updates to its processes and internal controls over financial reporting. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating "Step 2" from the goodwill impairment test, which requires an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge, and alternatively, requires an entity to measure the impairment of goodwill assigned to a reporting unit as the amount by which the carrying value of the assets and liabilities of the reporting unit, including goodwill, exceeds the reporting unit's fair value. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted for all entities. The Company is currently evaluating the impact of ASU 2017-04 but does not expect it to be material to the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities . ("ASU 2017-12"). ASU 2017-12 updates the current hedge accounting guidance with the objective of improving the financial reporting of hedging activities by better portraying the economic results of an entity's risk management activities in its financial statements. The new guidance is effective for the Company on January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-12 on its consolidated financial statements.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts receivable consist of amounts due from third-party payors, patients and third-party intermediaries. The Company records an allowance for doubtful accounts at the time potential collection risk is identified. The Company estimates its allowance based on historical experience, assessment of specific risk, and discussions with individual customers. The Company believes the reserve is adequate to mitigate current collection risk.
Inventories	Inventories are held at the lower of cost or market, determined under the first-in, first-out method, and include the costs of material, labor and overhead. Inventory has been recorded at cost, or net realizable value as appropriate, as of June 30, 2018 and December 31, 2017 . The Company reviews inventories for net realizable value based on quantities on hand and expectations of future use. Work in process is calculated based upon a buildup in the stage of completion using estimated labor inputs for each stage in production.
Product Warranty Costs	The Company provides a four -year warranty on its PDMs sold in the United States and a five -year warranty on its PDMs sold in Canada and may replace any Omnipod that does not function in accordance with product specifications. The Company estimates its warranty at the time the product is shipped based on historical experience and the estimated cost to service the claims. Warranty expense is recorded in cost of goods sold on the statement of operations. Cost to service the claims reflects the current product cost. As these estimates are based on historical experience, and the Company continues to introduce new products and versions, the Company also considers the anticipated performance of the product over its warranty period in estimating warranty reserves.
Intangible Assets, Net	The Company’s finite-lived intangible assets are stated at cost less accumulated amortization. The Company assesses its intangible and other long-lived assets for impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be recoverable. The Company recognizes an impairment loss for intangible and other finite-lived assets if the carrying amount of a long-lived asset is not recoverable based on its undiscounted future cash flows. Any such impairment loss is measured as the difference between the carrying amount and the fair value of the asset.
Equity	The Company accounts for stock-based compensation under the provisions of ASC 718-10, Compensation — Stock Compensation (“ASC 718-10”), which requires all share-based payments to employees and directors, including grants of stock options and restricted stock units, to be recognized in the income statement based on their fair values. Share-based payments that contain performance conditions are recognized when such conditions are probable of being achieved. The Company grants share-based awards to employees in the form of options to purchase the Company’s common stock, the ability to purchase stock at a discounted price under the employee stock purchase plan and restricted stock units. The Company uses the Black-Scholes option pricing model to determine the weighted-average fair value of options granted and determines the intrinsic value of restricted stock units based on the closing price of its common stock on the date of grant. The Company recognizes the compensation expense of share-based awards on a straight-line basis for awards with only service conditions and on an accelerated basis for awards with performance conditions. Compensation expense is recognized over the vesting period of the awards. The following table reflects the Company's stock-based compensation expense related to share-based awards recognized in the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, Six Months Ended June 30, Unamortized Expense Weighted Average Remaining Expense Period (Years) ($ in thousands) 2018 2017 2018 2017 At June 30, 2018 Stock options $ 2,272 $ 2,909 $ 4,630 $ 5,688 $ 17,424 2.6 Restricted stock units 4,371 4,500 9,899 8,737 35,936 2.0 Employee stock purchase plan 294 122 588 230 494 0.4 Total $ 6,937 $ 7,531 $ 15,117 $ 14,655 $ 53,854 Equity Award Plans In May 2007, in conjunction with the Company's initial public offering, the Company adopted its 2007 Stock Option and Incentive Plan (the "2007 Plan"). The 2007 Plan was amended and restated in November 2008, May 2012 and May 2015 to provide for the issuance of additional shares and to amend certain other provisions. Under the 2007 Plan, awards were granted to persons who were, at the time of grant, employees, officers, non-employee directors or key persons (including consultants and prospective employees) of the Company or the Company's subsidiaries. The 2007 Plan provided for the grant of stock options, restricted stock units, stock appreciation rights, deferred stock awards, restricted stock, unrestricted stock, cash-based awards, performance share awards or dividend equivalent rights. Options granted under the 2007 Plan generally vest over a period of four years and expire ten years from the date of grant. In May 2017, the Company adopted the 2017 Stock Option and Incentive Plan (the "2017 Plan"), which has replaced the 2007 Plan as the means by which the Company makes equity and cash awards. Effective May 18, 2017, the 2017 Plan became effective (the "2017 Plan Effective Date") and the Company ceased granting awards under the 2007 Plan. Outstanding awards under the 2007 Plan remain subject to the terms of the 2007 Plan. Under the 2017 Plan, awards may be granted to persons who are, at the time of grant, employees, officers, non-employee directors, consultants, or advisers of the Company or the Company's subsidiaries and affiliates. The 2017 Plan provides for the grant of stock options, restricted stock units, stock appreciation rights, deferred stock awards, restricted stock, unrestricted stock, cash-based awards, performance share awards or dividend equivalent rights. Stock options granted under the 2017 Plan generally vest over a period of four years and expire ten years from the date of grant. Shares of stock subject to awards granted under the 2007 Plan and the 2017 Plan that are forfeited, expire or otherwise terminate without delivery generally become available for future issuance under the 2017 Plan.
Income Taxes	The Company files federal, state and foreign tax returns. These returns are generally open to examination by the relevant tax authorities from three to four years from the date they are filed.

Basis of Presentation and Sum23

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of revenue from major customers	Revenue for customers comprising more than 10% of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Amgen, Inc. 14% 16 % 13% 16% Ypsomed * 20 % 17% 20% Cardinal Health Inc. and affiliates 13% 10 % 12% 10% * Represents less than 10% of consolidated revenue. Customers that represented greater than 10% of gross accounts receivable as of June 30, 2018 and December 31, 2017 were as follows: As of June 30, 2018 December 31, 2017 Amgen, Inc. * 10 % Ypsomed * 31 %

Revenue from Contracts with C24

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2018 and 2017: Three months Six months (in thousands) 2018 2017 2018 2017 U.S. Omnipod $ 78,047 $ 65,361 $ 148,319 $ 125,016 International Omnipod 28,509 26,575 66,913 51,719 Drug Delivery 17,706 17,820 32,608 34,734 Total $ 124,262 $ 109,756 $ 247,840 $ 211,469
Summary of Financial Statement Impact of ASC 606 Adoption	The table also compares the reported condensed consolidated balance sheet accounts as of June 30, 2018 that were impacted by the new guidance to pro forma balance sheet amounts had the previous guidance been in effect. As Reported (1) Adjustments (2) As Adjusted As Reported (3) Adjustments Pro forma (4) (in thousands) 12/31/2017 1/1/2018 1/1/2018 6/30/2018 6/30/2018 6/30/2018 Assets Unbilled receivable (a) $ — $ 5,119 $ 5,119 $ 13,958 $ (13,958 ) $ — Inventories 33,793 (753 ) 33,040 40,808 2,103 42,911 Prepaid expenses and other current assets (b) 9,949 5,568 15,517 17,559 (6,554 ) 11,005 Total current assets 537,171 9,934 547,105 421,793 (18,409 ) 403,384 Other assets (b) 1,969 13,326 15,295 17,961 (15,491 ) 2,470 Total assets 816,744 23,260 840,004 838,856 (33,900 ) 804,956 Liabilities and Stockholder's Equity Deferred revenue (c) 2,356 2,625 4,981 2,338 (854 ) 1,484 Total current liabilities 86,025 2,625 88,650 76,109 (854 ) 75,255 Other long-term liabilities 6,030 271 6,301 6,480 (270 ) 6,210 Total liabilities 658,228 2,896 661,124 659,708 (1,124 ) 658,584 Accumulated deficit (707,255 ) 20,349 (686,906 ) (695,166 ) (32,786 ) (727,952 ) Total stockholders' equity 158,516 20,364 178,880 179,148 (32,776 ) 146,372 Total liabilities and stockholders' equity 816,744 23,260 840,004 838,856 (33,900 ) 804,956 (1) Financial statement amounts as reported in the Company's consolidated balance sheet as of December 31, 2017. Financial statement amounts that are not shown on the above table were not impacted by the adoption of ASC 606. (2) Adjustments made on January 1, 2018 to adopt ASC 606. (3) Financial statement amounts as reported in the interim condensed consolidated balance sheet as of June 30, 2018. Financial statement amounts that are not shown on the above table were not impacted by the adoption of ASC 606. (4) Pro forma balance sheet amounts that would have been reported as of June 30, 2018 had the Company applied the previous guidance under ASC 605. (a) U nbilled receivable that reflects revenue for a portion of the Company's drug delivery product line as the product is produced. The unbilled receivable is reclassified to accounts receivable as the product is completed and shipped to the customer. (b) Other current and non-current assets include contract acquisition costs related to the sale of the Omnipod. These costs are amortized over the estimated period of benefit. (c) The Company recorded deferred revenue for a material right associated with a volume-based pricing discount granted to the Company's European distributor at the outset of the distribution contract in 2010. The deferred revenue related to this material right was recognized as revenue through the completion of the distributor contract during the first half of 2018. The following summarizes the significant changes on the Company’s consolidated statement of operations for the three and six months ended June 30, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if the Company had continued to recognize revenue under ASC 605: Three months ended June 30, 2018 Six months ended June 30, 2018 (in thousands, except per share amounts) As reported Adjustments Pro forma as if the previous accounting guidance was in effect As reported Adjustments Pro forma as if the previous accounting guidance was in effect U.S. Omnipod $ 78,047 $ 77 $ 78,124 $ 148,319 $ 126 $ 148,445 International Omnipod (a) 28,509 (621 ) 27,888 66,913 (1,898 ) 65,015 Drug Delivery (b) 17,706 (8,512 ) 9,194 32,608 (8,839 ) 23,769 Revenue 124,262 (9,056 ) 115,206 247,840 (10,611 ) 237,229 Cost of revenue 42,190 (1,283 ) 40,907 89,953 (1,351 ) 88,602 Gross profit 82,072 (7,773 ) 74,299 157,887 (9,260 ) 148,627 Sales and marketing (c) 35,605 736 36,341 67,738 3,173 70,911 Total operating expenses 77,747 736 78,483 153,562 3,173 156,735 Operating income (loss) 4,325 (8,509 ) (4,184 ) 4,325 (12,433 ) (8,108 ) Loss before income taxes (1,279 ) (8,509 ) (9,788 ) (7,515 ) (12,433 ) (19,948 ) Net loss $ (1,691 ) $ (8,509 ) $ (10,200 ) $ (8,260 ) $ (12,433 ) $ (20,693 ) Net loss per basic and diluted share $ (0.03 ) $ (0.14 ) $ (0.17 ) $ (0.14 ) $ (0.21 ) $ (0.35 ) (a) International Omnipod revenue under ASC 606 includes the amortization of a material right associated with a volume-based pricing discount granted to the Company's European distributor at the outset of the distribution contract in 2010. The deferred revenue was recognized as revenue through the completion of the distributor contract during the first half of 2018. (b) ASC 606 accelerated the recognition of revenue and fulfillment costs related to certain drug delivery contracts for which recognition was previously recorded when the product was shipped to the customer and is recorded as the product is produced under ASC 606. (c) ASC 606 resulted in the amortization of capitalized commission costs that were recorded as part of the cumulative effect adjustment upon adoption and during the six months ended June 30, 2018. Amortization of these capitalized costs to selling and marketing expenses, net of commission costs that were capitalized in the three and six month periods, reduced sales and marketing expenses in each period. Six Months Ended June 30, 2018 Statement of Cash Flows (in thousands) As Reported Adjustments Pro Forma Net loss $ (8,260 ) $ (12,433 ) $ (20,693 ) Adjustments to reconcile net loss to net cash used in operating activities Non-cash items 38,131 — 38,131 Changes in operating assets and liabilities: — Accounts receivable and unbilled receivable (7,217 ) 8,839 1,622 Inventories (7,959 ) (1,351 ) (9,310 ) Prepaid expenses and other assets (4,823 ) 3,174 (1,649 ) Accounts payable, accrued expenses and other current liabilities (17,873 ) — (17,873 ) Deferred revenue (2,626 ) 1,771 (855 ) Other long-term liabilities 232 — 232 Net cash used in operating activities $ (10,395 ) $ — $ (10,395 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	The following table provides a summary of assets that are measured at fair value as of June 30, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: (in thousands) Fair Value Measurements June 30, 2018 Total Level 1 Level 2 Level 3 Recurring fair value measurements: Money market mutual funds $ 85,905 $ 85,905 $ — $ — U.S. government and agency bonds 9,989 9,989 — — Total cash equivalents $ 95,894 $ 95,894 $ — $ — U.S. government and agency bonds $ 120,653 $ 84,591 $ 36,062 $ — Corporate bonds 40,940 — 40,940 — Certificates of deposit 1,953 — 1,953 — Total short-term investments $ 163,546 $ 84,591 $ 78,955 $ — U.S. government and agency bonds $ 100,817 $ 68,950 $ 31,867 $ — Corporate bonds 47,510 — 47,510 — Certificates of deposit 7,733 — 7,733 — Total long-term investments $ 156,060 $ 68,950 $ 87,110 $ — December 31, 2017 Recurring fair value measurements: Money market mutual funds $ 236,936 $ 236,936 $ — $ — U.S. government and agency bonds 5,000 5,000 — — Total cash equivalents $ 241,936 $ 241,936 $ — $ — U.S. government and agency bonds $ 112,076 $ 90,703 $ 21,373 $ — Corporate bonds 47,681 — 47,681 — Certificates of deposit 7,722 — 7,722 — Total short-term investments $ 167,479 $ 90,703 $ 76,776 $ — U.S. government and agency bonds $ 92,464 $ 49,651 $ 42,813 $ — Corporate bonds 27,812 — 27,812 — Certificates of deposit 5,273 — 5,273 — Total long-term investments $ 125,549 $ 49,651 $ 75,898 $ —
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis	The carrying amounts, net of unamortized discounts and issuance costs, and the estimated fair values of the Company's convertible debt as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 December 31, 2017 (in thousands) Carrying Value Estimated Fair Value Carrying Estimated Fair 2% Convertible Senior Notes $ — $ — $ 3,421 $ 5,467 1.375% Convertible Senior Notes 283,436 455,831 276,172 407,652 1.25% Convertible Senior Notes 293,683 522,116 286,580 450,881 Total $ 577,119 $ 977,947 $ 566,173 $ 864,000

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2018
Short-term Investments [Abstract]
Schedule investments	Amortized costs, gross unrealized holding gains and losses, and fair values at June 30, 2018 and December 31, 2017 are as follows: (in thousands) Amortized cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018 U.S. government and agency bonds $ 120,965 $ — $ (312 ) $ 120,653 Corporate bonds 41,054 — (114 ) 40,940 Certificates of deposit 1,953 — — 1,953 Total short-term investments $ 163,972 $ — $ (426 ) $ 163,546 U.S. government and agency bonds $ 101,485 $ 3 $ (672 ) $ 100,816 Corporate bonds 47,789 — (278 ) 47,511 Certificates of deposit 7,733 — — 7,733 Total long-term investments $ 157,007 $ 3 $ (950 ) $ 156,060 December 31, 2017 U.S. government and agency bonds $ 112,311 $ — $ (235 ) $ 112,076 Corporate bonds 47,713 3 (35 ) 47,681 Certificates of deposit 7,722 — — 7,722 Total short-term investments $ 167,746 $ 3 $ (270 ) $ 167,479 U.S. government and agency bonds $ 92,677 $ — $ (213 ) $ 92,464 Corporate bonds 27,871 — (59 ) 27,812 Certificates of deposit 5,273 — — 5,273 Total long-term investments $ 125,821 $ — $ (272 ) $ 125,549

Convertible Debt, Net (Tables)

Convertible Debt, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Outstanding Convertible Debt and Related Deferred Financing Costs	The Company had outstanding convertible debt and related deferred financing costs on its condensed consolidated balance sheet as follows: As of (in thousands) June 30, 2018 December 31, 2017 Principal amount of 2.0% Convertible Senior Notes $ — $ 3,664 Principal amount of 1.25% Convertible Senior Notes 345,000 345,000 Principal amount of 1.375% Convertible Senior Notes 402,500 402,500 Unamortized debt discount (157,152 ) (170,448 ) Deferred financing costs (13,229 ) (14,543 ) Total convertible debt, net $ 577,119 $ 566,173
Interest and Other Expense	Interest expense related to convertible debt for the three and six months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,383 $ 1,078 $ 1 $ 2,462 $ 2,767 $ 2,156 $ 19 $ 4,942 Amortization of debt discount and issuance costs 3,654 3,589 21 7,264 7,265 7,102 60 14,427 Total interest expense $ 5,037 $ 4,667 $ 22 $ 9,726 $ 10,032 $ 9,258 $ 79 $ 19,369 Interest expense related to convertible debt for the three and six months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in thousands) 1.25% 2.0% Total 1.25% 2.0% Total Contractual coupon interest $ 1,078 $ 335 $ 1,413 $ 2,157 $ 670 $ 2,827 Amortization of debt discount and issuance costs 3,367 705 4,072 6,670 1,397 8,067 Total interest expense $ 4,445 $ 1,040 $ 5,485 $ 8,827 $ 2,067 $ 10,894 Interest expense related to the convertible notes was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Contractual coupon interest $ 2,462 $ 1,413 $ 4,942 $ 2,827 Accretion of debt discount 6,616 3,572 13,138 7,077 Amortization of debt issuance costs 648 500 1,289 990 Total interest expense related to convertible debt $ 9,726 $ 5,485 $ 19,369 $ 10,894

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Potential Common Shares Excluded From Computation Of Diluted Net Loss Per Share [Abstract]
Potential Common Shares Excluded from Computation of Diluted Net Loss per Share	Potential dilutive common share equivalents consist of the following: Three and Six Months Ended June 30, 2018 2017 1.375% Convertible Senior Notes 4,319,429 — 2.00% Convertible Senior Notes — 1,442,433 1.25% Convertible Senior Notes 5,910,954 5,910,954 Unvested restricted stock units 914,710 978,683 Outstanding stock options 3,199,238 3,582,149 Total dilutive common share equivalents 14,344,331 11,914,219

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Schedule of accounts receivable from major customers	Revenue for customers comprising more than 10% of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Amgen, Inc. 14% 16 % 13% 16% Ypsomed * 20 % 17% 20% Cardinal Health Inc. and affiliates 13% 10 % 12% 10% * Represents less than 10% of consolidated revenue. Customers that represented greater than 10% of gross accounts receivable as of June 30, 2018 and December 31, 2017 were as follows: As of June 30, 2018 December 31, 2017 Amgen, Inc. * 10 % Ypsomed * 31 %
Components of Accounts Receivable	The components of accounts receivable are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Trade receivables $ 52,895 $ 55,914 Allowance for doubtful accounts (3,219 ) (2,541 ) Total accounts receivable, net $ 49,676 $ 53,373

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Raw materials $ 5,243 $ 2,146 Work-in-process 8,128 23,918 Finished goods, net 27,437 7,729 Total inventories $ 40,808 $ 33,793

Prepaid Expenses and Other As31

Prepaid Expenses and Other Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of prepaid expenses and other assets	The components of prepaid expenses and other current assets are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Prepaid expenses $ 11,005 $ 9,949 Capitalized contract acquisition costs, current portion 6,554 — Total prepaid expenses and current other assets $ 17,559 $ 9,949 The components of other assets are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Other assets $ 2,486 $ 1,969 Capitalized contract acquisition costs, net of current portion 15,475 — Total other assets $ 17,961 $ 1,969

Other Intangible Assets, Net (T

Other Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Other Intangible Assets	The components of other intangible assets are as follows: As of June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer and contractual relationships $ 2,040 $ (1,764 ) $ 276 $ 2,135 $ (1,764 ) $ 371 Internal-use software 9,751 (4,280 ) 5,471 7,545 (3,565 ) 3,980 Total intangible assets $ 11,791 $ (6,044 ) $ 5,747 $ 9,680 $ (5,329 ) $ 4,351
Amortization Expense Expected for Next Five Years	Amortization expense expected for the next five years and thereafter is as follows: (in thousands) Years Ending December 31, Customer and Contractual Relationships Internal-Use Software Total 2018 (remaining) $ 79 $ 863 $ 942 2019 132 1,519 1,651 2020 65 1,257 1,322 2021 — 979 979 2022 — 683 683 Thereafter — 170 170 Total $ 276 $ 5,471 $ 5,747

Accrued Expenses and Other Cu33

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Components of accrued expenses and other current liabilities	The components of accrued expenses and other current liabilities are as follows: As of (in thousands) June 30, 2018 December 31, 2017 Employee compensation and related costs $ 21,470 $ 34,942 Professional and consulting services 8,512 9,273 Supplier charges 3,651 3,542 Other 14,947 11,499 Total accrued expenses and other current liabilities $ 48,580 $ 59,256
Reconciliation of Changes in Product Warranty Liability	A reconciliation of the changes in the Company’s product warranty liability is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Product warranty liability at the beginning of the period $ 5,386 $ 4,562 $ 5,337 $ 4,388 Warranty expense 1,529 1,135 3,501 1,641 Warranty claims settled (1,412 ) (880 ) (3,335 ) (1,212 ) Product warranty liability at the end of the period $ 5,503 $ 4,817 $ 5,503 $ 4,817 As of (in thousands) June 30, 2018 December 31, 2017 Composition of balance: Short-term $ 2,335 $ 1,653 Long-term 3,168 3,684 Total warranty liability: $ 5,503 $ 5,337

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Aggregate future minimum lease payments	The aggregate future minimum lease payments related to these leases as of June 30, 2018 are as follows: (in thousands) Years Ending December 31, Minimum Lease Payments 2018 (remaining) $ 1,691 2019 3,035 2020 2,651 2021 2,402 2022 2,131 Thereafter — Total $ 11,910

Stock-Based Compensation and 35

Stock-Based Compensation and Stockholder' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of compensation related costs, share-based payments	The following table reflects the Company's stock-based compensation expense related to share-based awards recognized in the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, Six Months Ended June 30, Unamortized Expense Weighted Average Remaining Expense Period (Years) ($ in thousands) 2018 2017 2018 2017 At June 30, 2018 Stock options $ 2,272 $ 2,909 $ 4,630 $ 5,688 $ 17,424 2.6 Restricted stock units 4,371 4,500 9,899 8,737 35,936 2.0 Employee stock purchase plan 294 122 588 230 494 0.4 Total $ 6,937 $ 7,531 $ 15,117 $ 14,655 $ 53,854
Stock option activity	The following summarizes the activity under the Company’s stock option plans during the six months ended June 30, 2018 : Number of Options (#) Weighted Average Exercise Price ($) Aggregate Intrinsic Value ($ in thousands) Weighted Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 3,377,220 $ 35.10 Granted 269,853 76.32 Exercised (318,102 ) 32.91 $ 17,024 Canceled (129,733 ) 40.28 Outstanding at June 30, 2018 3,199,238 $ 38.59 $ 150,872 7.3 Vested, June 30, 2018 2,007,167 $ 34.29 $ 103,188 6.7 Vested or expected to vest, June 30, 2018 (1) 3,066,211 $ 146,303 (1) Represents total outstanding stock options as of June 30, 2018 , adjusted for estimated forfeitures.
Summary of restricted stock units	The following table summarizes the status of the Company’s restricted stock units during the six months ended June 30, 2018 : Number of Shares (#) Weighted Average Fair Value ($) Outstanding at December 31, 2017 994,364 $ 38.08 Granted 326,144 75.36 Adjustment (1) 147,301 29.54 Vested (487,001 ) 33.39 Forfeited (66,098 ) 44.43 Outstanding at June 30, 2018 914,710 $ 52.04 (1) Certain performance-based restricted stock units are subject to a three -year vesting period subject to meeting performance targets and continued employment. During the three months ended March 31, 2018, the Compensation Committee of the Board of Directors determined that the performance was achieved at 200% of target for certain performance-based awards issued in 2016, resulting in an adjustment to the shares that will ultimately vest for these awards.

Basis of Presentation and Sum36

Basis of Presentation and Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)location	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segmentlocation	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Significant Accounting Policies [Line Items]
Restricted cash	$ 2,000,000		$ 2,000,000		$ 500,000
Property and equipment, accumulated depreciation	57,900,000		$ 57,900,000		$ 51,600,000
Number of operating segments (in segments) | segment			1
Goodwill impairment loss			$ 0
Cost of revenue	$ 42,190,000	$ 45,117,000	$ 89,953,000	$ 87,432,000
Number of accredited financial institutions which the Company maintains the majority of its cash | location	1		1
Percentage of accounts payable, accrued expenses, and other current liabilities			16.00%		20.00%
Total revenue | Customer concentration risk | Amgen, Inc.
Significant Accounting Policies [Line Items]
Concentration risk, percentage	14.00%	16.00%	13.00%	16.00%
Total revenue | Customer concentration risk | Ypsomed
Significant Accounting Policies [Line Items]
Concentration risk, percentage		20.00%	17.00%	20.00%
Total revenue | Customer concentration risk | Cardinal Health Inc. and affiliates
Significant Accounting Policies [Line Items]
Concentration risk, percentage	13.00%	10.00%	12.00%	10.00%
Shipping and Handling
Significant Accounting Policies [Line Items]
Cost of revenue	$ 1,400,000	$ 900,000	$ 2,500,000	$ 2,200,000

Revenue from Contracts with C37

Revenue from Contracts with Customers - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Capitalized contract cost, net	$ 22,100,000	$ 22,100,000
Capitalized contract cost, current	6,600,000	6,600,000
Capitalized contract cost, noncurrent	15,500,000	15,500,000
Capitalized contract cost, amortization expense	3,300,000	3,300,000
Capitalized contract cost, impairment	0	0
Revenue recognized	1,100,000	2,400,000
Unbilled receivable reclassified to billable		5,100,000
Net cash used in operating activities		(10,395,000)	$ (3,871,000)
Net Cash Provided by (Used in) Investing Activities		(117,103,000)	(64,266,000)
Net Cash Provided by (Used in) Financing Activities		(8,172,000)	$ 4,194,000
Revenue recognized from performance obligations satisfied in previous periods	$ 0	0
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net cash used in operating activities		0
Net Cash Provided by (Used in) Investing Activities		0
Net Cash Provided by (Used in) Financing Activities		$ 0

Revenue from Contracts with C38

Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 124,262	$ 109,756	$ 247,840	$ 211,469
U.S. Omnipod
Disaggregation of Revenue [Line Items]
Revenue	78,047	65,361	148,319	125,016
International Omnipod
Disaggregation of Revenue [Line Items]
Revenue	28,509	26,575	66,913	51,719
Drug Delivery
Disaggregation of Revenue [Line Items]
Revenue	$ 17,706	$ 17,820	$ 32,608	$ 34,734

Revenue from Contracts with C39

Revenue from Contracts with Customers - Financial Statement Impact of Adopting ASC 606 (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet
Unbilled receivable	$ 13,958,000		$ 13,958,000		$ 5,119,000	$ 0
Inventories	40,808,000		40,808,000		33,040,000	33,793,000
Prepaid expenses and other current assets	17,559,000		17,559,000		15,517,000	9,949,000
Total current assets	421,793,000		421,793,000		547,105,000	537,171,000
Other assets	2,486,000		2,486,000		15,295,000	1,969,000
Total assets	838,856,000		838,856,000		840,004,000	816,744,000
Deferred revenue	2,338,000		2,338,000		4,981,000	2,356,000
Total current liabilities	76,109,000		76,109,000		88,650,000	86,025,000
Other long-term liabilities	6,480,000		6,480,000		6,301,000	6,030,000
Total liabilities	659,708,000		659,708,000		661,124,000	658,228,000
Accumulated deficit	(695,166,000)		(695,166,000)		(686,906,000)	(707,255,000)
Total stockholders' equity	179,148,000		179,148,000		178,880,000	158,516,000
Total liabilities and stockholders' equity	838,856,000		838,856,000		840,004,000	816,744,000
Statement of Operations
Revenue	124,262,000	$ 109,756,000	247,840,000	$ 211,469,000
Cost of revenue	42,190,000	45,117,000	89,953,000	87,432,000
Gross profit	82,072,000	64,639,000	157,887,000	124,037,000
Sales and marketing	35,605,000	29,475,000	67,738,000	57,570,000
Total operating expenses	77,747,000	67,997,000	153,562,000	132,703,000
Operating income (loss)	4,325,000	(3,358,000)	4,325,000	(8,666,000)
Nonoperating Income (Expense)	(5,604,000)	(4,308,000)	(11,840,000)	(8,881,000)
Loss before income taxes	(1,279,000)	(7,666,000)	(7,515,000)	(17,547,000)
Income Tax Expense (Benefit)	412,000	101,000	745,000	197,000
Net loss	$ (1,691,000)	$ (7,767,000)	$ (8,260,000)	$ (17,744,000)
Net loss from continuing operations per share basic and diluted (in dollars per share)	$ (0.03)	$ (0.13)	$ (0.14)	$ (0.31)
Statement of Cash Flows
Non-cash interest expense	$ 7,264,000	$ 4,072,000	$ 14,427,000	$ 8,067,000
Accounts receivable and unbilled receivable			7,217,000	9,630,000
Inventories			(7,959,000)	1,527,000
Prepaid expenses and other assets			(4,823,000)	(1,662,000)
Accounts payable, accrued expenses and other current liabilities			(17,873,000)	(7,408,000)
Deferred revenue			(2,626,000)	44,000
Other long-term liabilities			232,000	477,000
Net cash used in operating activities			(10,395,000)	(3,871,000)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Balance Sheet
Unbilled receivable	(13,958,000)		(13,958,000)		5,119,000
Inventories	2,103,000		2,103,000		(753,000)
Prepaid expenses and other current assets	(6,554,000)		(6,554,000)		5,568,000
Total current assets	(18,409,000)		(18,409,000)		9,934,000
Other assets	(15,491,000)		(15,491,000)		13,326,000
Total assets	(33,900,000)		(33,900,000)		23,260,000
Deferred revenue	(854,000)		(854,000)		2,625,000
Total current liabilities	(854,000)		(854,000)		2,625,000
Other long-term liabilities	(270,000)		(270,000)		271,000
Total liabilities	(1,124,000)		(1,124,000)		2,896,000
Accumulated deficit	(32,786,000)		(32,786,000)		20,349,000
Total stockholders' equity	(32,776,000)		(32,776,000)		20,364,000
Total liabilities and stockholders' equity	(33,900,000)		(33,900,000)		$ 23,260,000
Statement of Operations
Revenue	(9,056,000)		(10,611,000)
Cost of revenue	(1,283,000)		(1,351,000)
Gross profit	(7,773,000)		(9,260,000)
Sales and marketing	736,000		3,173,000
Total operating expenses	736,000		3,173,000
Operating income (loss)	(8,509,000)		(12,433,000)
Loss before income taxes	(8,509,000)		(12,433,000)
Net loss	$ (8,509,000)		$ (12,433,000)
Net loss from continuing operations per share basic and diluted (in dollars per share)	$ (0.14)		$ (0.21)
Statement of Cash Flows
Non-cash interest expense			$ 0
Accounts receivable and unbilled receivable			(8,839,000)
Inventories			(1,351,000)
Prepaid expenses and other assets			3,174,000
Accounts payable, accrued expenses and other current liabilities			0
Deferred revenue			1,771,000
Other long-term liabilities			0
Net cash used in operating activities			0
Calculated under Revenue Guidance in Effect before Topic 606
Balance Sheet
Unbilled receivable	$ 13,958,000		13,958,000			0
Inventories	40,808,000		40,808,000			33,793,000
Prepaid expenses and other current assets	17,559,000		17,559,000			9,949,000
Total current assets	421,793,000		421,793,000			537,171,000
Other assets	17,961,000		17,961,000			1,969,000
Total assets	838,856,000		838,856,000			816,744,000
Deferred revenue	2,338,000		2,338,000			2,356,000
Total current liabilities	76,109,000		76,109,000			86,025,000
Other long-term liabilities	6,480,000		6,480,000			6,030,000
Total liabilities	659,708,000		659,708,000			658,228,000
Accumulated deficit	(695,166,000)		(695,166,000)			(707,255,000)
Total stockholders' equity	179,148,000		179,148,000			158,516,000
Total liabilities and stockholders' equity	838,856,000		838,856,000			$ 816,744,000
Statement of Operations
Revenue	124,262,000		247,840,000
Cost of revenue	42,190,000		89,953,000
Gross profit	82,072,000		157,887,000
Sales and marketing	35,605,000		67,738,000
Total operating expenses	77,747,000		153,562,000
Operating income (loss)	4,325,000		4,325,000
Loss before income taxes	(1,279,000)		(7,515,000)
Net loss	$ (1,691,000)		$ (8,260,000)
Net loss from continuing operations per share basic and diluted (in dollars per share)	$ (0.03)		$ (0.14)
Statement of Cash Flows
Non-cash interest expense			$ 38,131,000
Accounts receivable and unbilled receivable			7,217,000
Inventories			(7,959,000)
Prepaid expenses and other assets			(4,823,000)
Accounts payable, accrued expenses and other current liabilities			(17,873,000)
Deferred revenue			(2,626,000)
Other long-term liabilities			232,000
Net cash used in operating activities			(10,395,000)
Pro Forma
Balance Sheet
Unbilled receivable	$ 0		0
Inventories	42,911,000		42,911,000
Prepaid expenses and other current assets	11,005,000		11,005,000
Total current assets	403,384,000		403,384,000
Other assets	2,470,000		2,470,000
Total assets	804,956,000		804,956,000
Deferred revenue	1,484,000		1,484,000
Total current liabilities	75,255,000		75,255,000
Other long-term liabilities	6,210,000		6,210,000
Total liabilities	658,584,000		658,584,000
Accumulated deficit	(727,952,000)		(727,952,000)
Total stockholders' equity	146,372,000		146,372,000
Total liabilities and stockholders' equity	804,956,000		804,956,000
Statement of Operations
Revenue	115,206,000		237,229,000
Cost of revenue	40,907,000		88,602,000
Gross profit	74,299,000		148,627,000
Sales and marketing	36,341,000		70,911,000
Total operating expenses	78,483,000		156,735,000
Operating income (loss)	(4,184,000)		(8,108,000)
Loss before income taxes	(9,788,000)		(19,948,000)
Net loss	$ (10,200,000)		$ (20,693,000)
Net loss from continuing operations per share basic and diluted (in dollars per share)	$ (0.17)		$ (0.35)
Statement of Cash Flows
Non-cash interest expense			$ 38,131,000
Accounts receivable and unbilled receivable			(1,622,000)
Inventories			(9,310,000)
Prepaid expenses and other assets			(1,649,000)
Accounts payable, accrued expenses and other current liabilities			(17,873,000)
Deferred revenue			(855,000)
Other long-term liabilities			232,000
Net cash used in operating activities			(10,395,000)
U.S. Omnipod
Statement of Operations
Revenue	$ 78,047,000	65,361,000	148,319,000	125,016,000
U.S. Omnipod | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Statement of Operations
Revenue	77,000		126,000
U.S. Omnipod | Calculated under Revenue Guidance in Effect before Topic 606
Statement of Operations
Revenue	78,047,000		148,319,000
U.S. Omnipod | Pro Forma
Statement of Operations
Revenue	78,124,000		148,445,000
International Omnipod
Statement of Operations
Revenue	28,509,000	26,575,000	66,913,000	51,719,000
International Omnipod | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Statement of Operations
Revenue	(621,000)		(1,898,000)
International Omnipod | Calculated under Revenue Guidance in Effect before Topic 606
Statement of Operations
Revenue	28,509,000		66,913,000
International Omnipod | Pro Forma
Statement of Operations
Revenue	27,888,000		65,015,000
Drug Delivery
Statement of Operations
Revenue	17,706,000	$ 17,820,000	32,608,000	$ 34,734,000
Drug Delivery | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Statement of Operations
Revenue	(8,512,000)		(8,839,000)
Drug Delivery | Calculated under Revenue Guidance in Effect before Topic 606
Statement of Operations
Revenue	17,706,000		32,608,000
Drug Delivery | Pro Forma
Statement of Operations
Revenue	$ 9,194,000		$ 23,769,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured on a Recurring and Nonrecurring Basis (Details) - Recurring fair value measurements: - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 95,894	$ 241,936
Short-term investments	163,546	167,479
Long-term investments	156,060	125,549
Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	85,905	236,936
U.S. government and agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,989	5,000
Short-term investments	120,653	112,076
Long-term investments	100,817	92,464
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	40,940	47,681
Long-term investments	47,510	27,812
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,953	7,722
Long-term investments	7,733	5,273
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	95,894	241,936
Short-term investments	84,591	90,703
Long-term investments	68,950	49,651
Level 1 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	85,905	236,936
Level 1 | U.S. government and agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,989	5,000
Short-term investments	84,591	90,703
Long-term investments	68,950	49,651
Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	78,955	76,776
Long-term investments	87,110	75,898
Level 2 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 | U.S. government and agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	36,062	21,373
Long-term investments	31,867	42,813
Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	40,940	47,681
Long-term investments	47,510	27,812
Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	1,953	7,722
Long-term investments	7,733	5,273
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Long-term investments	0	0
Level 3 | Money market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 | U.S. government and agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Long-term investments	0	0
Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	$ 0	$ 0

Fair Value Measurements - Sch41

Fair Value Measurements - Schedule of Liabilities Measure on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2016	Jun. 30, 2014
2% Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, interest rate	2.00%			2.00%
1.375% Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, interest rate	1.375%
1.25% Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, interest rate	1.25%		1.25%
Carrying Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	$ 577,119	$ 566,173
Carrying Value | 2% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	0	3,421
Carrying Value | 1.375% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	283,436	276,172
Carrying Value | 1.25% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	293,683	286,580
Estimated Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	977,947	864,000
Estimated Fair Value | 2% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	0	5,467
Estimated Fair Value | 1.375% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	455,831	407,652
Estimated Fair Value | 1.25% Convertible Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instrument value	$ 522,116	$ 450,881

Investments (Details)

Investments (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2018USD ($)Security	Dec. 31, 2017USD ($)
Debt Securities, Available-for-sale [Line Items]
Number of positions | Security	150
Minimum
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, length of time until maturity date	11 days
Maximum
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, length of time until maturity date	23 months
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 163,972	$ 167,746
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(426)	(270)
Fair Value	163,546	167,479
Short-term investments | U.S. government and agency bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	120,965	112,311
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(312)	(235)
Fair Value	120,653	112,076
Short-term investments | Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	41,054	47,713
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(114)	(35)
Fair Value	40,940	47,681
Short-term investments | Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized cost	1,953	7,722
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,953	7,722
Long-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	157,007	125,821
Gross Unrealized Gains	3	0
Gross Unrealized Losses	(950)	(272)
Fair Value	156,060	125,549
Long-term investments | U.S. government and agency bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	101,485	92,677
Gross Unrealized Gains	3	0
Gross Unrealized Losses	(672)	(213)
Fair Value	100,816	92,464
Long-term investments | Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	47,789	27,871
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(278)	(59)
Fair Value	47,511	27,812
Long-term investments | Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized cost	7,733	5,273
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 7,733	$ 5,273

Convertible Debt, Net - Outstan

Convertible Debt, Net - Outstanding Convertible Debt and Related Deferred Financing Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2016	Jun. 30, 2014
Debt Instrument [Line Items]
Unamortized debt discount	$ (157,152)	$ (170,448)
Deferred financing costs	$ (13,229)	(14,543)
2% Convertible Senior Notes
Debt Instrument [Line Items]
Debt, interest rate	2.00%			2.00%
1.25% Convertible Senior Notes
Debt Instrument [Line Items]
Debt, interest rate	1.25%		1.25%
1.375% Convertible Senior Notes
Debt Instrument [Line Items]
Debt, interest rate	1.375%
Convertible Debt
Debt Instrument [Line Items]
Principal amount of Senior Notes	$ 577,119	566,173
Convertible Debt | 2% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of Senior Notes	0	3,664
Convertible Debt | 1.25% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of Senior Notes	345,000	345,000
Convertible Debt | 1.375% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of Senior Notes	$ 402,500	$ 402,500

Convertible Debt, Net - Interes

Convertible Debt, Net - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Contractual coupon interest	$ 2,462	$ 1,413	$ 4,942	$ 2,827
Accretion of debt discount	6,616	3,572	13,138	7,077
Amortization of debt issuance costs	648	500	1,289	990
Total interest expense related to convertible debt	9,726	5,485	19,369	10,894
Non-cash interest expense	7,264	4,072	14,427	8,067
1.375% Convertible Senior Notes
Debt Instrument [Line Items]
Contractual coupon interest	1,383		2,767
Total interest expense related to convertible debt	5,037		10,032
Non-cash interest expense	3,654		7,265
1.25% Convertible Notes
Debt Instrument [Line Items]
Contractual coupon interest	1,078	1,078	2,156	2,157
Total interest expense related to convertible debt	4,667	4,445	9,258	8,827
Non-cash interest expense	3,589	3,367	7,102	6,670
2% Convertible Senior Notes
Debt Instrument [Line Items]
Contractual coupon interest	1	335	19	670
Total interest expense related to convertible debt	22	1,040	79	2,067
Non-cash interest expense	$ 21	$ 705	$ 60	$ 1,397

Convertible Debt, Net - Narrati

Convertible Debt, Net - Narrative (Details)	1 Months Ended			3 Months Ended		6 Months Ended
	Nov. 30, 2017USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2014USD ($)$ / shares	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)
Debt Instrument [Line Items]
Unamortized discount				$ 157,152,000	$ 170,448,000	$ 157,152,000
Convertible debt, net of current portion				$ 577,119,000	566,173,000	577,119,000
Repayment of convertible notes						$ 6,687,000	$ 0
1.375% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of senior notes	$ 402,500,000
Debt, interest rate				1.375%		1.375%
Convertible debt, net of current portion				$ 283,400,000		$ 283,400,000
1.25% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of senior notes		$ 345,000,000
Debt, interest rate		1.25%		1.25%		1.25%
Debt conversion rate		0.0171332
Conversion price, per share (USD per share) | $ / shares		$ 58.37
Nonconvertible debt borrowing rate		5.80%
Debt discount amortization period		5 years
Deferred financing costs, gross		$ 11,300,000
Finance costs reclassified against equity		$ 2,200,000
Deferred financing costs, amortization period		5 years
Long-term debt				$ 293,700,000		$ 293,700,000
1.25% Convertible Senior Notes | Investor
Debt Instrument [Line Items]
Unamortized discount		$ 66,700,000
2% Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount of senior notes	$ 63,400,000		$ 201,300,000
Debt, interest rate			2.00%	2.00%		2.00%
Debt conversion rate			0.0215019
Conversion price, per share (USD per share) | $ / shares			$ 46.51
Repurchased amount		$ 134,200,000
Repayment of convertible notes				$ 6,700,000
Carrying amount of equity component				3,200,000		$ 3,200,000
Convertible debt				3,500,000		$ 3,500,000
Gain (loss) on extinguishment of debt				$ 0
Senior Notes | 1.375% Convertible Senior Notes
Debt Instrument [Line Items]
Debt, interest rate	1.375%
Debt conversion rate	0.0107315
Conversion price, per share (USD per share) | $ / shares	$ 93.18
Nonconvertible debt borrowing rate	6.80%
Debt discount amortization period	7 years
Deferred financing costs, gross					10,900,000
Finance costs reclassified against equity					3,300,000
Debt issuance costs					$ 7,600,000
Senior Notes | 1.375% Convertible Senior Notes | Investor
Debt Instrument [Line Items]
Unamortized discount	$ 120,700,000

Net Loss Per Share - Potential

Net Loss Per Share - Potential Common Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	14,344,331	11,914,219
1.375% Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	4,319,429	0
Debt, interest rate	1.375%
2% Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	0	1,442,433
Debt, interest rate	2.00%
1.25% Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	5,910,954	5,910,954
Debt, interest rate	1.25%
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	914,710	978,683
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive common shares (in shares)	3,199,238	3,582,149

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2018
Concentration Risk [Line Items]
Trade receivables	$ 55,914	$ 52,895
Allowance for doubtful accounts	(2,541)	(3,219)
Total accounts receivable, net	$ 53,373	$ 49,676
Amgen, Inc. | Customer concentration risk | Accounts receivable
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Ypsomed | Customer concentration risk | Accounts receivable
Concentration Risk [Line Items]
Concentration risk, percentage	31.00%

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 5,243		$ 2,146
Work-in-process	8,128		23,918
Finished goods, net	27,437		7,729
Total inventories	$ 40,808	$ 33,040	$ 33,793

Prepaid Expenses and Other As49

Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 11,005		$ 9,949
Capitalized contract acquisition costs, current portion	6,554		0
Total prepaid expenses and current other assets	17,559	$ 15,517	9,949
Other assets	2,486	$ 15,295	1,969
Capitalized contract acquisition costs, net of current portion	15,475		0
Total other assets	$ 17,961		$ 1,969

Other Intangible Assets, Net -

Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Increase in finite-lived intangible assets	$ 5,747		$ 5,747		$ 4,351
Amortization of other intangible assets	400	$ 300	$ 800	$ 600
Intangible asset, weighted average amortization period			3 years 9 months 15 days
Customer and Contractual Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Increase in finite-lived intangible assets	276		$ 276		371
Internal-use software
Acquired Finite-Lived Intangible Assets [Line Items]
Increase in finite-lived intangible assets	$ 5,471		$ 5,471		$ 3,980

Other Intangible Assets, Net 51

Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 11,791	$ 9,680
Accumulated Amortization	(6,044)	(5,329)
Net Book Value	5,747	4,351
Customer and Contractual Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,040	2,135
Accumulated Amortization	(1,764)	(1,764)
Net Book Value	276	371
Internal-use software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,751	7,545
Accumulated Amortization	(4,280)	(3,565)
Net Book Value	$ 5,471	$ 3,980

Other Intangible Assets, Net 52

Other Intangible Assets, Net - Amortization Expense Expected for Next Five Years (Details) $ in Thousands	Jun. 30, 2018USD ($)
Expected Amortization Expense [Line Items]
2018 (remaining)	$ 942
2,019	1,651
2,020	1,322
2,021	979
2,022	683
Thereafter	170
Net Book Value	5,747
Customer and Contractual Relationships
Expected Amortization Expense [Line Items]
2018 (remaining)	79
2,019	132
2,020	65
2,021	0
2,022	0
Thereafter	0
Net Book Value	276
Internal-use software
Expected Amortization Expense [Line Items]
2018 (remaining)	863
2,019	1,519
2,020	1,257
2,021	979
2,022	683
Thereafter	170
Net Book Value	$ 5,471

Accrued Expenses and Other Cu53

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Employee compensation and related costs	$ 21,470	$ 34,942
Professional and consulting services	8,512	9,273
Supplier charges	3,651	3,542
Other	14,947	11,499
Total accrued expenses and other current liabilities	$ 48,580	$ 59,256

Accrued Expenses and Other Cu54

Accrued Expenses and Other Current Liabilities - Narrative (Details)	6 Months Ended
	Jun. 30, 2018
United States
Product Warranty Liability [Line Items]
Product warranty term for PDMs	4 years
CANADA
Product Warranty Liability [Line Items]
Product warranty term for PDMs	5 years

Accrued Expenses and Other Cu55

Accrued Expenses and Other Current Liabilities - Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Product warranty liability at the beginning of the period	$ 5,386	$ 4,562	$ 5,337	$ 4,388
Warranty expense	1,529	1,135	3,501	1,641
Warranty claims settled	(1,412)	(880)	(3,335)	(1,212)
Product warranty liability at the end of the period	5,503	4,817	5,503	4,817
Composition of balance:
Short-term					$ 2,335	$ 1,653
Long-term					3,168	3,684
Total warranty balance	$ 5,386	$ 4,562	$ 5,337	$ 4,388	$ 5,503	$ 5,337

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 16, 2015LegalMatter	Jun. 30, 2018USD ($)ft²	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)ft²	Jun. 30, 2017USD ($)
Loss Contingencies [Line Items]
Operating leases, rent expense | $		$ 0.9	$ 0.7	$ 1.7	$ 1.4
Number of class actions filed (in legal matters) | LegalMatter	3
Number of class actions dismissed (in legal matters) | LegalMatter	2
Laboratory And Office Space | Billerica Massachusetts
Loss Contingencies [Line Items]
Area of real estate property		100,000		100,000
Warehouse | Billerica Massachusetts
Loss Contingencies [Line Items]
Area of real estate property		29,000		29,000
Property, Plant and Equipment, Other Types
Loss Contingencies [Line Items]
Area of real estate property		20,000		20,000

Commitments and Contingencies57

Commitments and Contingencies - Aggregate Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2018USD ($)
Minimum Lease Payments
2018 (remaining)	$ 1,691
2,019	3,035
2,020	2,651
2,021	2,402
2,022	2,131
Thereafter	0
Total	$ 11,910

Stock-Based Compensation and 58

Stock-Based Compensation and Stockholder' Equity - Schedule of Stock-Based Compensation Expense Related to Share-Based Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 6,937	$ 7,531	$ 15,117	$ 14,655
Unamortized Expense	53,854		53,854
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,272	2,909	4,630	5,688
Unamortized Expense	17,424		$ 17,424
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, exercisable, weighted average remaining contractual term			2 years 7 months
Unvested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	4,371	4,500	$ 9,899	8,737
Unamortized Expense	35,936		$ 35,936
Share-based compensation arrangement by share-based payment award, equity instruments other than options, outstanding, weighted average remaining contractual term			2 years
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	294	$ 122	$ 588	$ 230
Unamortized Expense	$ 494		$ 494
Share-based compensation arrangement by share-based payment award, equity instruments other than options, outstanding, weighted average remaining contractual term			5 months

Stock-Based Compensation and 59

Stock-Based Compensation and Stockholder' Equity - Stock Options Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price	$ 85.70		$ 85.70
Shares granted during the period (in shares)			269,853
Stock-based compensation expense	$ 6,937	$ 7,531	$ 15,117	$ 14,655
Unamortized Expense	53,854		$ 53,854
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Expiration period			10 years
Stock-based compensation expense	2,272	$ 2,909	$ 4,630	$ 5,688
Unamortized Expense	$ 17,424		$ 17,424
Performance based stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years 7 months
Shares granted during the period (in shares)			0	34,500
Performance based stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years

Stock-Based Compensation and 60

Stock-Based Compensation and Stockholder' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Number of Options
Beginning balance (in shares)	3,377,220
Granted (in shares)	269,853
Exercised (in shares)	(318,102)
Canceled (in shares)	(129,733)
Ending balance (in shares)	3,199,238
Vested, at end of period (in shares)	2,007,167
Vested and expected to vest, at end of period (in shares)	3,066,211
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 35.10
Granted (in dollars per share)	76.32
Exercised (in dollars per share)	32.91
Canceled (in dollars per share)	40.28
Ending balance (in dollars per share)	38.59
Vested, at end of period (in dollars per share)	$ 34.29
Aggregate Intrinsic Value
Exercised	$ 17,024	$ 5,400
Ending balance	150,872
Vested, at end of period	103,188
Vested and expected to vest, at end of period	$ 146,303
Options outstanding, weighted average remaining contractual life	7 years 3 months
Options exercisable, weighted average remaining contractual life	6 years 8 months

Stock-Based Compensation and 61

Stock-Based Compensation and Stockholder' Equity - Restricted Stock Units Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,937	$ 7,531	$ 15,117	$ 14,655
Unvested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted during the period (in shares)			326,144
Stock-based compensation expense	4,371	4,500	$ 9,899	8,737
Vesting period			3 years
Other than options - granted in period, weighted average fair value (in dollars per share)			$ 75.36
Other than options - grant date fair value (in dollars per share)			$ 24,100
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted during the period (in shares)			111,239
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Performance Based Restricted Stock Units - Performance Criteria Not Met
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,000		$ 2,100
Performance Based Restricted Stock Units - Performance Criteria Met
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	300		1,400
Non-Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,200	$ 3,200	$ 6,400	$ 6,200

Stock-Based Compensation and 62

Stock-Based Compensation and Stockholder' Equity - Summary of Restricted Stock Units (Details) - Unvested restricted stock units	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Number of Shares
Beginning balance (in shares) | shares	994,364
Granted (in shares) | shares	326,144
Adjustment (in shares) | shares	147,301
Vested (in shares) | shares	(487,001)
Forfeited (in shares) | shares	(66,098)
Ending balance (in shares) | shares	914,710
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 38.08
Granted (in dollars per share) | $ / shares	75.36
Adjustment (in dollars per share) | $ / shares	29.54
Vested (in dollars per share) | $ / shares	33.39
Forfeited (in dollars per share) | $ / shares	44.43
Ending balance (in dollars per share) | $ / shares	$ 52.04

Stock-Based Compensation and 63

Stock-Based Compensation and Stockholder' Equity - Employee Stock Purchase Plan Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized per offering period (in shares)	800		800
Stock-based compensation expense	$ 6,937,000	$ 7,531,000	$ 15,117,000	$ 14,655,000
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	380,000		380,000
Annual maximum value purchase per employee	$ 25,000		$ 25,000
Purchase price percentage of fair market value	85.00%		85.00%
Stock-based compensation expense	$ 294,000	$ 122,000	$ 588,000	$ 230,000
Employee stock purchase plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of employees' compensation deduction for share purchase	10.00%		10.00%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Significant Accounting Policies [Line Items]
Unrecognized tax benefits	$ 0		$ 0
Reduction in net operating loss					$ 800,000
Reduction in valuation allowance					$ 800,000
Income tax expense	$ 412,000	$ 101,000	$ 745,000	$ 197,000
Minimum
Significant Accounting Policies [Line Items]
Number of open tax years			3 years
Maximum
Significant Accounting Policies [Line Items]
Number of open tax years			4 years