Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ATRC | ||
Entity Registrant Name | AtriCure, Inc. | ||
Entity Central Index Key | 1,323,885 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 38,605,737 | ||
Entity Public Float | $ 911.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 32,231 | $ 21,809 |
Short-term investments | 92,171 | 12,642 |
Accounts receivable, less allowance for doubtful accounts of $547 and $32 | 25,195 | 23,083 |
Inventories | 22,484 | 22,451 |
Prepaid and other current assets | 2,592 | 2,273 |
Total current assets | 174,673 | 82,258 |
Property and equipment, net | 27,080 | 28,749 |
Intangible assets, net | 49,254 | 50,764 |
Goodwill | 105,257 | 105,257 |
Other noncurrent assets | 495 | 676 |
Total Assets | 356,759 | 267,704 |
Current liabilities: | ||
Accounts payable | 9,659 | 12,431 |
Accrued liabilities | 25,840 | 18,911 |
Other current liabilities and current maturities of capital leases and long-term debt | 4,717 | 561 |
Total current liabilities | 40,216 | 31,903 |
Capital leases | 12,172 | 12,761 |
Long-term debt | 35,571 | 24,100 |
Other noncurrent liabilities | 19,419 | 37,774 |
Total Liabilities | 107,378 | 106,538 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity: | ||
Common stock, $0.001 par value, 90,000 shares authorized and 38,604 and 34,586 issued and outstanding | 39 | 35 |
Additional paid-in capital | 496,544 | 386,963 |
Accumulated other comprehensive (loss) income | (199) | 34 |
Accumulated deficit | (247,003) | (225,866) |
Total Stockholders' Equity | 249,381 | 161,166 |
Total Liabilities and Stockholders' Equity | $ 356,759 | $ 267,704 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 547 | $ 32 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 38,604,000 | 34,586,000 |
Common stock, shares outstanding | 38,604,000 | 34,586,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss [Abstract] | |||
Revenue | $ 201,630 | $ 174,716 | $ 155,109 |
Cost of revenue | 54,510 | 48,553 | 44,008 |
Gross profit | 147,120 | 126,163 | 111,101 |
Operating expenses: | |||
Research and development expenses | 34,723 | 34,144 | 35,824 |
Selling, general and administrative expenses | 129,524 | 116,998 | 106,415 |
Total operating expenses | 164,247 | 151,142 | 142,239 |
Loss from operations | (17,127) | (24,979) | (31,138) |
Other income (expense): | |||
Interest expense | (4,607) | (2,264) | (1,801) |
Interest income | 1,006 | 227 | 227 |
Other | (183) | 138 | (586) |
Loss before income tax expense | (20,911) | (26,878) | (33,298) |
Income tax expense | 226 | 14 | 40 |
Net loss | $ (21,137) | $ (26,892) | $ (33,338) |
Basic and diluted net loss per share | $ (0.62) | $ (0.83) | $ (1.05) |
Weighted average shares outstanding — basic and diluted | 34,087 | 32,387 | 31,609 |
Comprehensive loss: | |||
Unrealized (loss) gain on investments | $ (31) | $ 15 | $ 18 |
Foreign currency translation adjustment | (202) | 487 | 125 |
Other comprehensive (loss) income | (233) | 502 | 143 |
Net loss | (21,137) | (26,892) | (33,338) |
Comprehensive loss, net of tax | $ (21,370) | $ (26,390) | $ (33,195) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 32 | $ 352,900 | $ (165,636) | $ (611) | $ 186,685 |
Beginning Balance, Shares at Dec. 31, 2015 | 32,274 | ||||
Issuance of common stock under equity incentive plans | $ 1 | 1,636 | 1,637 | ||
Issuance of common stock under equity incentive plans, Shares | 934 | ||||
Issuance of common stock under employee stock purchase plan | 1,618 | 1,618 | |||
Issuance of common stock under employee stock purchase plan, Shares | 134 | ||||
Share-based employee compensation expense | 11,697 | 11,697 | |||
Other comprehensive income (loss) | 143 | 143 | |||
Net loss | (33,338) | (33,338) | |||
Ending Balance at Dec. 31, 2016 | $ 33 | 367,851 | (198,974) | (468) | 168,442 |
Ending Balance, Shares at Dec. 31, 2016 | 33,342 | ||||
Issuance of common stock under equity incentive plans | $ 2 | 2,387 | 2,389 | ||
Issuance of common stock under equity incentive plans, Shares | 1,112 | ||||
Issuance of common stock under employee stock purchase plan | 2,110 | 2,110 | |||
Issuance of common stock under employee stock purchase plan, Shares | 132 | ||||
Share-based employee compensation expense | 14,615 | 14,615 | |||
Other comprehensive income (loss) | 502 | 502 | |||
Net loss | (26,892) | (26,892) | |||
Ending Balance at Dec. 31, 2017 | $ 35 | 386,963 | (225,866) | 34 | 161,166 |
Ending Balance, Shares at Dec. 31, 2017 | 34,586 | ||||
Issuance of common stock through public offering | $ 3 | 82,870 | 82,873 | ||
Issuance of common stock through public offering, Shares | 2,875 | ||||
Issuance of common stock for settlement of contingent consideration | 6,279 | 6,279 | |||
Issuance of common stock for settlement of contingent consideration, Shares | 232 | ||||
Issuance of common stock under equity incentive plans | $ 1 | 1,554 | 1,555 | ||
Issuance of common stock under equity incentive plans, Shares | 781 | ||||
Issuance of common stock under employee stock purchase plan | 2,383 | 2,383 | |||
Issuance of common stock under employee stock purchase plan, Shares | 130 | ||||
Share-based employee compensation expense | 16,495 | 16,495 | |||
Other comprehensive income (loss) | (233) | (233) | |||
Net loss | (21,137) | (21,137) | |||
Ending Balance at Dec. 31, 2018 | $ 39 | $ 496,544 | $ (247,003) | $ (199) | $ 249,381 |
Ending Balance, Shares at Dec. 31, 2018 | 38,604 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (21,137) | $ (26,892) | $ (33,338) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 16,495 | 14,615 | 11,697 |
Depreciation | 7,244 | 7,761 | 7,655 |
Amortization of intangible assets | 1,510 | 1,367 | 1,644 |
Amortization of deferred financing costs | 515 | 264 | 218 |
Loss on disposal of property and equipment | 323 | 336 | 433 |
Realized loss (gain) from foreign exchange on intercompany transactions | 165 | (173) | 407 |
Amortization (accretion) of investments | (362) | 30 | 126 |
Provision for doubtful accounts | 598 | (172) | 149 |
Change in value of contingent consideration | (10,825) | (4,078) | 969 |
Payment of contingent consideration in excess of purchase accounting amount | (96) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,837) | (1,464) | (1,982) |
Inventories | (146) | (4,477) | (79) |
Other current assets | (367) | 829 | 122 |
Accounts payable | (2,398) | 1,290 | (1,072) |
Accrued liabilities | 7,016 | 2,228 | (1,915) |
Other noncurrent assets and liabilities | 131 | (408) | (153) |
Net cash used in operating activities | (4,171) | (8,944) | (15,119) |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (106,588) | (16,455) | (28,592) |
Sales and maturities of available-for-sale securities | 27,389 | 26,600 | 24,202 |
Purchases of property and equipment | (6,211) | (6,384) | (7,692) |
Proceeds from sale of property and equipment | 6 | 3 | |
Net cash (used in) provided by investing activities | (85,404) | 3,761 | (12,079) |
Cash flows from financing activities: | |||
Proceeds from sale of stock, net of offering costs of $229 | 82,873 | ||
Proceeds from debt borrowings | 17,381 | 25,000 | |
Payments on debt and capital leases | (1,755) | (1,689) | (439) |
Payment of debt fees | (1,136) | (50) | (120) |
Proceeds from stock option exercises | 6,012 | 4,402 | 3,337 |
Shares repurchased for payment of taxes on stock awards | (4,457) | (2,013) | (1,701) |
Proceeds from issuance of common stock under employee stock purchase plan | 2,383 | 2,110 | 1,618 |
Payment of contingent consideration amounts established in purchase accounting | (1,125) | ||
Net cash provided by financing activities | 100,176 | 2,760 | 27,695 |
Effect of exchange rate changes on cash and cash equivalents | (179) | 24 | (53) |
Net increase (decrease) in cash and cash equivalents | 10,422 | (2,399) | 444 |
Cash and cash equivalents-beginning of period | 21,809 | 24,208 | 23,764 |
Cash and cash equivalents-end of period | 32,231 | 21,809 | 24,208 |
Supplemental cash flow information: | |||
Cash paid for interest | 3,870 | 2,002 | 1,506 |
Cash paid for income taxes | 65 | 37 | 30 |
Non-cash investing and financing activities: | |||
Accrued purchases of property and equipment | 348 | 650 | 340 |
Assets acquired through capital lease | 24 | $ 2 | 152 |
Share-settled portion of contingent consideration | 6,279 | ||
Capital lease asset early termination | $ 6 | $ (37) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Condensed Consolidated Statements of Cash Flows [Abstract] | |
Offering cost for sale of stock | $ 229 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. DE SCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management and sells its products to medical centers globally through its direct sales force and distributors. Principles of Consolidation— The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, Endoscopic Technologies, LLC and nContact Surgical, LLC, the Company’s wholly-owned subsidiaries, all organized in the State of Delaware; AtriCure Europe B.V. (AtriCure Europe), the Company’s wholly-owned subsidiary incorporated in the Netherlands; AtriCure Spain, S.L., AtriCure Europe’s wholly-owned subsidiary incorporated in Spain; AtriCure Germany GmbH, AtriCure Europe’s wholly-owned subsidiary incorporated in Germany; AtriCure Hong Kong Limited, the Company’s wholly-owned subsidiary incorporated in Hong Kong; and AtriCure (Beijing) Medicine Information Consulting Services, Co., Ltd., AtriCure Hong Kong Limited’s wholly-owned subsidiary incorporated in Beijing. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents— The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents . Investments— The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds, commercial paper and asset-backed securities and classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income or expense. Revenue Recognition— The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. This generally occurs upon shipment of goods to customers. See Note 11 for further discussion on revenue. Sales Returns and Allowances — T he Company maintains a provision for potential returns of defective or damaged products, products shipped in error and invoice adjustments. The Company adjusts the provision quarterly using a combination of specific identification and an estimated general reserve based on historical experience. Increases to the provision result in a reduction of revenue and the provision is included in accrued liabilities. Allowance for Doubtful Accounts Receivable— The Company evaluates the collectability of accounts receivable to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in selling, general and administrative expense s . The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs has not been significant. Inventories— Inventories are stated at the lower of cost or net realizable value based on the first-in, first-out cost method (FIFO) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. An inventory reserve for excess, slow moving and obsolete inventory is recorded quarterly. An increase to inventory reserves results in a corresponding increase in cost of revenue. Inventories are written off against the reserve when they are physically disposed. Property and Equipment— Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of assets (see Note 7). The Company reassesses the useful lives of property and equipment annually and retires assets if they are no longer in service. Maintenance and repair costs are expensed as incurred. The Company’s RF and cryo generators are generally placed with customers served by our direct sales force . The estimated useful lives of this equipment are based on anticipated usage by customers and the timing and impact of expected new technology rollouts by the Company and may change in a future period if the Company experiences changes in the usage of the equipment or introduces new technologies. Depreciation related to generators and other capital equipment is recorded in cost of revenue. The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections of expected future cash flows. Property and equipment impairments recorded by the Company have not been significant. Intangible Assets— Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. The Company reassesses the useful lives of intangible assets annually . Included in intangible assets is In Process Research and Development (IPR&D) , representing the value of acquired technology which has not yet reached technological feasibility. The primary basis for determining the technological feasibility is obtaining specific regulatory approvals. IPR&D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, the IPR&D will be amortized over its estimated useful life. If the IPR&D project is abandoned, the related IPR&D asset would be written off. The IPR&D asset represents an estimate of the fair value of the pre-market approval (PMA) that may result from the CONVERGE IDE clinical trial. The Company reviews intangible assets for impairment using its best estimates based on reasonable and supportable assumptions and projections at least annually. The Company has historically tested IPR&D for impairment annually on November 30. In 2018, the Company has changed its testing date from November 30 to October 1. This change in the method of applying an accounting principle is preferred as it better aligns with the Company’s long-term planning process, which is a significant input to the testing, and it did not result in a material change to the Company's Consolidated Financial Statements. Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. The Company’s goodwill is accounted for in a single reporting unit representing the Company as a whole. The Company has historically tested goodwill for impairment annually on November 30, or more often if impairment indicators are present. In 2018, the Company has changed its goodwill testing date from November 30 to October 1. This change in the method of applying an accounting principle is preferred by the Company as it better aligns with the Company’s long-term planning process, which is a significant input to the testing, and it did not result in a material change to the Company’s Consolidated Financial Statements. Other Noncurrent Liabilities— Other noncurrent liabilities consist of contingent consideration recorded in business combinations, deferred revenues and other contractual obligations. T he contingent consideration balance is included in noncurrent liabilities as such settlement is both required and expected to be made primarily in shares of the Company’s common stock pursuant to the nContact merger agreement. Other Income (Expense)— Other income (expense) consists of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and invoices denominated in British Pounds. Taxes — Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. The Company’s estimate of the valuation allowance for deferred income tax assets requires it to make significant estimates and judgments about its future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that some portion of the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred tax income assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future reversals of existing taxable temporary differences, future taxable income, exclusive of reversing temporary differences and carryforwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is significant objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against substantially all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. Net Loss Per Share— Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (ASC 260) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 3, 869 , 4,321 and 4,320 stock options , restricted stock awards, restricted stock units and performance share awards as of December 31, 2018, 2017 and 2016 because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)— In addition to net losses, the comprehensive loss includes foreign currency translation adjustments and unrealized gains and losses on investments. Accumulated o ther comprehensive (loss) income consisted of the following (net of tax): 2018 2017 2016 Total accumulated other comprehensive income (loss) at beginning of period $ 34 $ (468) $ (611) Unrealized losses on investments Balance at beginning of period $ (6) $ (21) $ (39) Other comprehensive (loss) income before reclassifications (31) 15 18 Amounts reclassified from accumulated other comprehensive (loss) income to other income — — — Balance at end of period $ (37) $ (6) $ (21) Foreign currency translation adjustment Balance at beginning of period $ 40 $ (447) $ (572) Other comprehensive (loss) income before reclassifications (367) 660 532 Amounts reclassified from accumulated other comprehensive (loss) income to other income 165 (173) (407) Balance at end of period $ (162) $ 40 $ (447) Total accumulated other comprehensive (loss) income at end of period $ (199) $ 34 $ (468) Research and Development Costs — Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development of and research related to new and existing products or concepts, preclinical studies, clinical trials, healthcare compliance and regulatory affairs. Advertising Costs — The Company expenses advertising costs as incurred. Advertising expense was $785 , $900 and $625 during the years ended December 31, 2018, 2017 and 2016. Share-Based Compensation— The Company follows FASB ASC 718 “Compensation-Stock Compensation” (ASC 718) to record share-based compensation for all share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statements of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. The Company estimates forfeitures at the time of grant and revises them, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of time-based options on the date of grant using the Black-Scholes option-pricing model (Black-Scholes model). The Company’s determination of fair value is affected by the Company’s stock price, as well as assumptions regarding several subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. The fair value of market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the awards that is ultimately expected to vest is recognized as expense over the requisite service periods in the Consolidated Statements of Operations and Comprehensive Loss. The Company estimates the fair value of restricted stock awards, restricted stock units and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company also has an employee stock purchase plan (ESPP) which is available to all eligible employees as defined by the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the ESPP at the beginning of each purchase period based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model and records estimated compensation expense during the period. Expense is adjusted at the time of stock purchase. Use of Estimates— The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Fair Value Disclosures — The Company classifies cash investments in U.S. government agencies and securities, accounts receivable, short-term other assets, accounts payable and accrued liabilities as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Cash equivalents and investments in corporate bonds, commercial paper and asset-backed securities are classified as Level 2 within the fair value hierarchy. The fair value of fixed term debt is estimated by calculating the net present value of future debt payments at current market interest rates and is classified as Level 2. The book value of the Company’s fixed term debt approximates its fair value because the interest rate varies with market rates. Significant unobservable inputs with respect to the fair value measurement of the Level 3 contingent consideration liability are developed using Company data. See Note 3 – Fair Value for further information on fair value measurements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, “Leases” (ASU 2016-02), codified as ASC 842, which requires lessees to record most leases onto their balance sheet but recognize expenses on their income statement in a manner similar to today’s accounting. The guidance is effective for interim and annual reporting periods beginning within 2019. We plan to adopt the standard using the transition method provided by ASU 2018-11, “Leases (Topic 842): Targeted Improvements”. Under this method, we will apply the new requirements to only those leases that exist as of January 1, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods will be presented under existing lease guidance. Upon transition, we plan to apply the package of practical expedients permitted under ASC 842 transition guidance. As a result, we are not required to reassess (1) whether expired or existing contracts contain leases under the new definition of a lease, including whether an existing or expired contract contains an embedded lease, (2) lease classification for expired or existing leases and (3) any initial direct costs of existing leases. The Company is finalizing procedures to validate the completeness of arrangements that meet the new definition of operating lease, in parallel with our assessment of policy elections, processes and internal controls. T he Company currently estimates the adoption of this guidance will result in the recognition of right-of-use assets and lease liabilities for operating leases of approximately $2,000 to $4,000 as of January 1, 2019 . In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment” (ASU 2017-04). The guidance removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under ASU 2017-04, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance becomes effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted, and applied prospectively. The Company is evaluating the provisions of ASU 2017-04 to determine the impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (ASU 2018-13). The amendments modify the disclosure requirements for fair value measurements and are effective for all entities for interim and annual reporting periods beginning within 2020. Early adoption of either the entire standard or only the provisions that eliminate or modify the requirements is permitted. The Company is evaluating the provisions of ASU 2018-13 to determine the impact on its fair value measurement disclosures. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (ASU 2018-15). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Entities should apply the guidance in ASC 350-40 on internal-use software when capitalizing implementation costs related to a hosting arrangement that is a service contract and expense the capitalized implementation costs related to a hosting arrangement that is a service contract over the hosting arrangement's term, presenting the expense in the same line item in the statement of income as that in which the fee associated with the hosting arrangement is presented. The amendments are effective for all entities for interim and annual reporting periods beginning within 2020. Early adoption is permitted, and entities have the option of applying either a retrospective or prospective transition method. The Company is evaluating the provisions of ASU 2018-15 to determine the impact on its consolidated financial statements and related disclosures. In August 2018, the SEC issued a final rule that amends certain of its disclosure requirements. The final rule was effective as of November 5, 2018. Among other amendments, the final rule extends to interim periods the annual disclosure requirement of changes in stockholders’ equity. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or a separate statement. The analysis should present a reconciliation of the beginning balance of each period for which a statement of comprehensive income is required to be filed. The Company anticipates its first presentation of changes in stockholders’ equity will be included in its Form 10-Q for the quarter ended March 31, 2019. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value | 3. FAIR VALUE FASB ASC 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1—Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The valuation under this approach does not entail a significant degree of judgment. · Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The valuation technique for the Company’s Level 2 assets is based on quoted market prices for similar assets from observable pricing sources at the reporting date. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: Quoted Prices in Active Significant Significant Markets for Other Other Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ — $ 16,193 $ — $ 16,193 Commercial paper — 40,731 — 40,731 U.S. government agencies and securities 6,734 — — 6,734 Corporate bonds — 30,195 — 30,195 Asset-backed securities — 14,511 — 14,511 Total assets $ 6,734 $ 101,630 $ — $ 108,364 Liabilities: Acquisition-related contingent consideration $ — $ — $ 18,773 $ 18,773 Total liabilities $ — $ — $ 18,773 $ 18,773 The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: Quoted Prices in Active Significant Significant Markets for Other Other Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ — $ 12,774 $ — $ 12,774 Commercial paper — 7,472 — 7,472 U.S. government agencies and securities 2,999 — — 2,999 Corporate bonds — 2,920 — 2,920 Total assets $ 2,999 $ 23,166 $ — $ 26,165 Liabilities: Acquisition-related contingent consideration $ — $ — $ 37,098 $ 37,098 Total liabilities $ — $ — $ 37,098 $ 37,098 There were no changes in the levels or methodology of measurement of financial assets and liabilities during the years ended December 31, 2018 and 2017. Acquisition-Related Contingent Consideration. Contingent consideration arrangements under the nContact merger agreement obligate the Company to pay former shareholders of nContact for the following milestones, if achieved: · Trial Enrollment Milestone – $7,500 upon completion of patient enrollment in the CONVERGE IDE clinical trial. The Company completed patient enrollment on August 21, 2018, and payment was made to former nContact shareholders on September 20, 2018. · Regulatory Milestone – up to $42,500 upon the completion of the CONVERGE IDE clinical trial and receiving a PMA from FDA for the EPi-Sense AF Guided Coagulation System and/or any other nContact product with an indication for symptomatic persistent Afib or similar or related indication. The full contingent consideration amount of $42,500 is only earned if such regulatory approvals are received on or before January 1, 2020. The potential contingent consideration is reduced by 8.33% (or one-twelfth) each month following January 2020 and is reduced to zero if the regulatory milestone is achieved after December 31, 2020. Any payment of the regulatory milestone contingent consideration is due within 30 days following the receipt of the related PMA approval. · Commercial Milestone – for calendar years 2016 through 2019, nContact revenues in excess of specified target revenue amounts will result in contingent consideration equal to 1.5 times the revenues in excess of target. Payments of contingent consideration when the commercial milestone is achieved are due within 65 days of each calendar year end. No payments were made for calendar years 2016 through 2018 as revenues did not exceed the targets for these years. Subject to the terms and conditions of the merger agreement, all contingent consideration must be paid first in shares of AtriCure common stock. The merger agreement limits the total number of shares of AtriCure common stock issued in connection with the acquisition to 5,660 , of which 3,757 shares were issued at closing of the nContact acquisition on October 13, 2015. As a result of the achievement of the trial enrollment milestone, the Company made cash payments totaling approximately $1,221 and issued and delivered 232 shares of common stock to the former shareholders of nContact on September 20, 2018. The Company measures contingent consideration liabilities using unobservable inputs by applying an income approach, such as the discounted cash flow technique or the probability-weighted scenario method. Various key assumptions, such as the probability and timing of achievement of the agreed milestones, projected revenues and the discount rate, are used in the determination of fair value of contingent consideration arrangements and are not observable in the market, thus representing a Level 3 measurement within the fair value hierarchy. The contingent consideration liability is recorded in other noncurrent liabilities. Subsequent revisions to key assumptions, which impact the estimated fair value of contingent consideration liabilities, are recorded in selling, general and administrative expenses. The fair value of the nContact contingent consideration was remeasured during 2018, resulting in a decrease in fair value of $10,825 . This decrease in fair value is due to actual 2018 revenues falling below the commercial milestone target, a decrease in forecasted 2019 revenues for the 2019 commercial milestone, and changes in estimates related to the timing of achievement of the regulatory milestone as a result of the completion of enrollment in the CONVERGE IDE clinical trial in 2018. Adjustments to fair value are recorded in selling, general and administrative expenses. The following table represents the company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration for each of the years ended December 31: 2018 2017 2016 Beginning Balance – January 1 $ 37,098 $ 41,176 $ 40,207 Settlement of trial enrollment milestone (7,500) — — Changes in fair value included in selling, general and administrative expenses (10,825) (4,078) 969 Ending Balance – December 31 $ 18,773 $ 37,098 $ 41,176 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | 4. INVESTMENTS Investments as of December 31, 2018 consisted of the following: Unrealized Gains Cost Basis (Losses) Fair Value Corporate bonds $ 30,223 $ (28) $ 30,195 U.S. government agencies and securities 6,734 — 6,734 Commercial paper 40,731 — 40,731 Asset-backed securities 14,520 (9) 14,511 Total $ 92,208 $ (37) $ 92,171 Investments as of December 31, 2017 consisted of the following: Unrealized Gains Cost Basis (Losses) Fair Value Corporate bonds $ 2,925 $ (5) $ 2,920 U.S. government agencies and securities 3,000 (1) 2,999 Commercial paper 6,723 — 6,723 Total $ 12,648 $ (6) $ 12,642 The Company has not experienced any significant realized gains or losses on its investments in the years ended December 31, 2018, 2017 and 2016. |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible Assets And Goodwill | 5. INTANGIBLE ASSETS AND GOODWILL The following table provides a summary of the Company’s intangible assets at December 31: 2018 2017 Estimated Accumulated Accumulated Useful Life Cost Amortization Cost Amortization Fusion technology 8 years $ 9,242 $ 4,763 $ 9,242 $ 3,697 Clamp & probe technology 3 years 829 829 829 829 SUBTLE access technology 5 years 2,179 1,425 2,179 981 IPR&D 44,021 — 44,021 — Total $ 56,271 $ 7,017 $ 56,271 $ 5,507 Amortization expense related to intangible assets with definite lives, which excludes the IPR&D asset, was $1,510 , $1,367 and $1,644 for the years ended December 31, 2018, 2017 and 2016. In 2018, the Company reduced the ten-year estimated useful life of the Fusion technology asset by two years based on changes in estimated periods benefited. This change in estimate resulted in additional amortization expense of $143 in 2018 and will be applied prospectively. Intangible assets with definite lives will be fully amortized in 2021. Future amortization expense is projected as follows: 2019 $ 1,936 2020 1,804 2021 1,493 Total $ 5,233 The following table provides a summary of the Company’s goodwill, which is not amortized, but rather tested annually for impairment: Net carrying amount as of December 31, 2016 $ 105,257 Additions (impairments) — Net carrying amount as of December 31, 2017 105,257 Additions (impairments) — Net carrying amount as of December 31, 2018 $ 105,257 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Inventories | 6. INVENTORIES Inventories consisted of the following at December 31: 2018 2017 Raw materials $ 9,100 $ 7,755 Work in process 1,232 1,299 Finished goods 12,152 13,397 Inventories $ 22,484 $ 22,451 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Property and Equipment | 7. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31: Estimated Useful Life 2018 2017 Generators and other capital equipment 1 -3 years $ 18,158 $ 15,754 Building under capital lease 15 years 14,250 14,250 Computer and other office equipment 3 years 6,360 5,873 Machinery, equipment and vehicles 3 -7 years 4,859 4,576 Furniture and fixtures 3 -7 years 4,702 4,366 Leasehold improvements 5 -15 years 3,943 3,636 Construction in progress N/A 1,868 1,810 Equipment under capital leases 3 -5 years 213 221 Total 54,353 50,486 Less accumulated depreciation (27,273) (21,737) Property and equipment, net $ 27,080 $ 28,749 Property and equipment depreciation expense was $7,244 , $7,761 and $7,655 for the years ended December 31, 2018, 2017 and 2016. Depreciation related to generators and other capital equipment was $3,191 , $3,574 and $3,591 in 2018, 2017 and 2016. As of December 31, 2018 and 2017, the net carrying value of generators and other capital equipment was $4,545 and $4,656 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 8. ACCRUED LIABILITIES Accrued liabilities consisted of the following at December 31: 2018 2017 Accrued bonus $ 9,100 $ 4,726 Accrued commissions 8,065 6,964 Accrued payroll and employee-related expenses 4,512 4,097 Sales returns and allowances 1,410 1,169 Other accrued liabilities 1,205 695 Accrued taxes and value-added taxes payable 886 634 Accrued royalties 662 626 Total $ 25,840 $ 18,911 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2018 | |
Indebtedness [Abstract] | |
Indebtedness | 9. INDEBTEDNESS Credit Facility. The Company has a Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank (SVB). The Loan Agreement, as amended, restated and modified effective February 23, 2018 and as further amended on December 28, 2018, includes a $40,000 term loan and $20,000 revolving line of credit, with an option to increase the revolving line of credit by an additional $20,000. The term loan and revolving credit facility both mature or expire, as applicable, in February 2023 . Principal payments of the term loan are to be made ratably commencing September 2019 through the loan’s maturity date. If the Company meets certain conditions, as specified by the Loan Agreement, the commencement of term loan principal payments may be deferred by an additional six months. The term loan accrues interest at the greater of the Prime Rate plus 0.50% or 5.00% . Financing costs related to the term loan of $6 20 are netted against the outstanding loan balance in the Consolidated Balance Sheets and amortized ratably over the term of the Loan Agreement. The revolving line of credit is subject to an annual facility fee of 0 .33% of the revolving line of credit, and any borrowings thereunder bear interest at the greater of the Prime Rate or 4.50% . Borrowing availability under the revolving credit facility is based on the lesser of $20,000 or a borrowing base calculation as defined by the Loan Agreement. As of December 31, 2018, the Company had no borrowings under the revolving credit facility and had borrowing availability of $20,000 . Financing costs related to the revolving line of credit are included in other assets in the Consolidated Balance Sheets and amortized ratably over the twelve-month period of the annual fee. The Loan Agreement also provides for certain prepayment and early termination fees if repaid before January 2020, as well as establishes a minimum liquidity covenant and dividend restrictions, along with other customary terms and conditions. Specified assets have been pledged as collateral. Capital Lease Obligations . As of December 31, 2018, the Company had capital leases for its corporate headquarters building and computer equipment that expire at various terms through 2030 . Capital lease assets are depreciated over their estimated useful lives. As of December 31, 2018, the cost of the leased assets, both building and computer equipment, was $14,463 , and accumulated amortization on the capital lease assets was $3,198 . In connection with the terms of the Company’s corporate headquarters lease, a letter of credit in the amount of $1,250 was issued to the landlord of the building in October 2015. The letter of credit is renewed annually and remains outstanding as of December 31, 2018. Future maturities on debt and capital lease obligations are projected as follows: 2019 $ 5,303 2020 12,942 2021 12,947 2022 12,968 2023 3,467 2024 and thereafter 11,393 Total payments $ 59,020 Imputed interest on capital lease obligations (6,225) Net debt obligations, of which $4,433 is current and $48,362 is noncurrent $ 52,795 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Lease Commitments. The Company leases certain office and warehouse facilities and a vehicle under noncancelable operating leases that expire at various terms through 2022 . Future minimum lease payments under non-cancelable operating leases are projected as follows: 2019 $ 1,064 2020 893 2021 648 2022 405 Total $ 3,010 Rent expense was $1,146 , $850 and $1,250 in 2018, 2017, and 2016. Royalty Agreements. The Company has certain royalty agreements in place with terms that include payment of royalties of 3% to 5% of specified product sales. The current royalty agreements have effective dates as early as 2003 and terms ranging from eighteen years to at least twenty years. Parties to the royalty agreements have the right at any time to terminate the agreement immediately for cause. Royalty expense of $2,715 , $2,323 and $1,895 was recorded as part of cost of revenue for the years ended December 31, 2018, 2017 and 2016. Purchase Agreements. The Company enters into standard purchase agreements with certain vendors in the ordinary course of business. Outstanding commitments at December 31, 2018 were not significant. Legal. The Company may, from time to time, become a party to legal proceedings. Such matters are subject to many uncertainties and to outcomes of which the financial impacts are not predictable with assurance and that may not be known for extended periods of time. When management has assessed that a loss is probable and an amount can be reasonably estimated, the Company records a liability in the Consolidated Financial Statements. The Company received a Civil Investigative Demand (CID) from the U.S. Department of Justice (USDOJ) in December 2017 stating that it is investigating the Company to determine whether the Company has violated the False Claims Act, relating to the promotion of certain medical devices related to the treatment of atrial fibrillation for off-label use and submitted or caused to be submitted false claims to certain federal and state health care programs for medically unnecessary healthcare services related to the treatment of atrial fibrillation. The CID covers the period from January 2010 to December 2017 and requires the production of documents and answers to written interrogatories. The Company had no knowledge of the investigation prior to receipt of the CID. The Company maintains rigorous policies and procedures to promote compliance with the False Claims Act and other applicable regulatory requirements. The Company provided the USDOJ with documents and answers to the written interrogatories and is cooperating with its investigation. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation or its potential impact on the Company. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Revenue | 11. REVENUE The Company adopted FASB ASC 606, “Revenue from Contracts with Customers” (ASC 606) using the modified retrospective method effective January 1, 2018. The adoption of ASC 606 did not have a material impact on the amount and timing of revenue recognized in the Consolidated Financial Statements. Revenue is generated primarily from the sale of medical devices. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those devices when control of promised devices is transferred to customers. At contract inception, the Company assesses the products promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a product that is distinct. The Company’s devices are distinct and represent performance obligations. These performance obligations are satisfied and revenue is recognized at a point in time upon shipment or delivery of products. Sales of devices are categorized as follows: open-heart ablation, minimally invasive ablation (MIS), appendage management and valve tools. Shipping and handling activities performed after control over products transfers to customers are considered activities to fulfill the promise to transfer the products rather than as separate promises to customers. Revenue includes shipping and handling revenue of $1,236 , $1,090 and $1,266 in 2018, 2017 and 2016. Products are sold primarily through a direct sales force and through distributors in certain international markets. Terms of sale are generally consistent for both end-users and distributors, except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with limited exceptions. The Company does not maintain any post-shipping obligations to customers. No installation, calibration or testing of products is performed by the Company subsequent to shipment in order to render products operational. Significant judgments and estimates involved in the Company’s recognition of revenue include the determination of the timing of transfer of control of products to customers and the estimation of a provision for returns. The Company considers the following indicators when determining when the control of products transfers to customers: (i) the Company has a right to payment in accordance with the shipping terms set forth in its contracts with customers; (ii) customers have legal title to products in accordance with shipping terms; (iii) the Company transfers physical possession of products either when the Company presents the products to a third party carrier for delivery to a customer (FOB shipping point) or when a customer receives the delivered goods (FOB destination); (iv) customers have the significant risks and rewards of ownership of products; and (v) customers have accepted products in connection with contractual shipping terms. In the normal course of business, the Company does not accept product returns unless a product is defective as manufactured. The Company establishes estimated provisions for returns based on historical experience. The Company does not provide customers with the right to a refund. The Company expects to be entitled to the total consideration for the products ordered by customers as product pricing is fixed according to the terms of customer contracts and payment terms are short. Payment terms fall within the one-year guidance for the practical expedient which allows the Company to forgo adjustment of the promised amount of consideration for the effects of a significant financing component. The Company excludes taxes assessed by governmental authorities on revenue-producing transactions from the measurement of the transaction price. Costs associated with product sales include commissions and royalties. Considering that product sales are performance obligations in contracts that are satisfied at a point in time, commission expense associated with product sales and royalties paid based on sales of certain products is incurred at that point in time rather than over time. Therefore, the Company applies the practical expedient and recognizes commissions and royalties as expense when incurred because the expense is incurred at a point in time and the amortization period is less than one year. Commissions are recorded as selling expense and royalties are recorded as cost of revenue. See Note 16 for disaggregated revenue by geographic area and by product category. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Tax Provision | 12. INCOME TAXES The Company files federal, state, local and foreign income tax returns in jurisdictions with varying statutes of limitations. Income taxes are computed using the asset and liability method in accordance with FASB ASC 740, “Income Taxes”, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. The Company has recorded a full valuation allowance against substantially all net deferred tax assets as it is more likely than not that the benefit of the deferred tax assets will not be recognized in future periods. On December 22, 2017, H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the Tax Reform Act) was enacted and amends the Internal Revenue Code to reduce tax rates and modify policies, credits and deductions for businesses. For businesses, U.S. GAAP requires resulting tax effects of accounting for the Tax Reform Act to be recorded in the reporting period of enactment. On December 22, 2017, the SEC staff also issued Staff Accounting Bulletin No. 118 (SAB 118) which allowed businesses to record provisional amounts in the application of U.S. GAAP during a measurement period, not to extend beyond one year from the enactment of the Tax Reform Act, in situations when a registrant did not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. We have completed our accounting for the tax effects of enactment of the Tax Reform Act which resulted in the following: Reduction of US federal corporate tax rate: The Tax Reform Act reduces the corporate tax rate from 34 to 21 percent, effective January 1, 2018. Consequently, the Company has recorded a reduction to its federal deferred tax assets of $29,480 with an offsetting reduction in its valuation allowance at December 31, 2017. In addition, the Company’s state deferred tax assets and corresponding valuation allowance have been adjusted to account for the impact of the federal rate change on state deferred taxes. Interest Limitation: The Tax Reform Act limits a Company’s interest deduction to 30% of tax earnings before interest, tax, depreciation and amortization beginning in 2018 through 2021. Thereafter, the interest deduction is limited to 30% of tax earnings before interest and taxes. Any disallowed interest in a year becomes a separate deferred tax asset with an indefinite carryforward period that can be utilized by a Company in a future tax year by an amount equal to its interest limitation in excess of its interest expense for that year. In 2018, the Company’s net interest expense of $3 ,131 was disallowed and became a $774 deferred tax asset on which a full valuation allowance was recorded. Compensation and Shared-Based Payment Awards: The Tax Reform Act modifies the deductibility of covered employees’ compensation and eliminates the exclusion of performance-based compensation under IRC § 162(m), prospectively. The Tax Reform Act includes a transition rule that permits the continued exclusion of performance-based compensation paid pursuant to a written, binding contract which was in effect on November 2, 2017, and which was not modified in any material respect on or after such date. In 2018, the Company completed its analysis of all of its relevant equity compensation agreements and recorded a reduction to its federal deferred tax assets of $2,482 with an offsetting reduction in its valuation allowance at December 31, 2018. Corporate Alternative Minimum Tax (AMT): The repeal of AMT provides companies with the ability to obtain refunds of historic AMT credits. In 2018, the Company has recorded a current federal tax refund of $51 of its historic AMT credits. Bonus Depreciation: The Tax Reform Act provides for 100 percent bonus depreciation on personal tangible property expenditures beginning September 27, 2017 through 2022. The bonus depreciation percentage is phased down from 100 percent beginning in 2023 through 2026. The Company intends to claim 100 percent bonus depreciation for eligible property in 2018. International Tax : The Tax Reform Act provides for a one-time "deemed repatriation" of accumulated foreign earnings for the year ended December 31, 2017. In addition, beginning in 2018 the Tax Reform Act imposes a new tax on global intangible low taxed income of foreign subsidiaries and provides a new deduction for foreign derived intangible income of a domestic company. The Company did not incur a tax on the deemed repatriation or its current year foreign earnings as a result of its foreign deficits and previously taxed foreign earnings. The Company also did not receive a deduction for its foreign derived income due to its net operating losses. The Tax Reform Act provided companies with the ability to elect to reclassify the income tax effects of the Tax Cuts and Jobs Act on items within accumulated other comprehensive income (loss) to retained earnings. The Company will not make this election due to its full valuation allowance. The detail of deferred tax assets and liabilities at December 31 is as follows: 2018 2017 Deferred tax assets (liabilities): Net operating loss carryforward $ 68,563 $ 64,776 Research and development and AMT credit carryforwards, net 6,206 5,339 Deferred interest 774 — Equity compensation 4,750 6,955 Accruals and reserves 802 874 Inventories 726 588 Intangible assets (11,448) (11,297) Property and equipment, net (608) (339) Other, net 135 179 Subtotal 69,900 67,075 Less valuation allowance (69,849) (66,973) Total $ 51 $ 102 The Company’s provision for income taxes for each of the years ended December 31 is as follows: 2018 2017 2016 Current Tax Expense Federal $ (51) $ — $ — State 28 44 32 Foreign 198 72 8 Total current tax expense 175 116 40 Deferred Tax Expense Federal $ (3,048) $ 18,485 $ (7,333) State 178 (1,337) 210 Foreign 45 (2,241) (1,177) Change in valuation allowance 2,876 (15,009) 8,300 Total deferred tax expense 51 (102) — Total tax expense $ 226 $ 14 $ 40 The Company has federal net operating loss carryforwards of $239,162 whi ch have expirations between 2021 and 2038 and $18,228 which ha s no expiration as a result of the Tax Reform Act. The Company has state and local net operating loss carryforwards of $15 4 , 370 with varying expirations from 2019 to 2039 . A portion of the Company’s federal and state net operating loss carryforwards are subject to certain limitations under Internal Revenue Code Sections 382 and 383. The Company has federal research and development credit carryforwards of $6,154 which have expirations between 2023 and 2039 . Additionally, the Company has foreign net operating loss carryforwards of approximately $37,694 which have expirations between 2019 and 2028 . At December 31, 2016, there were $2,816 of unrecognized deferred tax assets that arose from tax deductions for equity compensation in excess of compensation recognized for financial reporting during years when net operating losses were created. On January 1, 2017, the Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and recognized $2,816 of previously unrecognized deferred tax assets with a corresponding increase in its valuation allowance. The Company’s 2018, 2017 and 2016 effective income tax rates differ from the federal statutory rate as follows: 2018 2017 2016 Federal tax at statutory rate 21.00 % $ (4,391) 34.00 % $ (9,139) 34.00 % $ (11,322) Federal and Foreign tax rate change (6.84) 1,430 (109.68) 29,480 — — Federal R&D credit 4.39 (918) (0.40) 107 2.89 (962) Federal deferred adjustment (10.77) 2,253 — — — — Federal NOL adjustment for ASU — — 10.48 (2,816) — — Valuation allowance (13.75) 2,876 55.84 (15,009) (24.93) 8,300 State income taxes (0.99) 206 4.81 (1,292) (0.69) 231 Foreign NOL adjustment (1.22) 256 1.30 (348) (1.36) 452 Foreign tax rate differential (0.60) 125 (2.45) 658 (1.62) 539 Permanent differences and other 7.70 (1,611) 6.05 (1,627) (8.41) 2,802 Effective tax rate (1.08) % $ 226 (0.05) % $ 14 (0.12) % $ 40 The Company’s pre-tax book loss for domestic and international operations was $(13,44 3 ) and $(7,468) for 2018, ( $19,409 ) and ( $7,469 ) for 2017 and ( $27,271 ) and ( $6,027 ) for 2016. The Company had undistributed earnings of foreign subsidiaries of approximately $234 at December 31, 2018. The Company does not consider these earnings as permanently reinvested and thus has recognized appropriate U.S. current and deferred taxes on such amounts. Federal, state and local tax returns of the Company are routinely subject to examination by various taxing authorities. Federal income tax returns for periods beginning in 2015 are open for examination. Generally, state and foreign income tax returns for periods beginning in 2014 are open for examination. H owever, taxing authorities have the ability to adjust net operating loss and tax credit carryforwards from years prior to these periods. The Company has not recognized certain tax benefits because of the uncertainty of realizing the entire value of the tax position taken on income tax returns upon review by the taxing authorities. A reconciliation of the change in federal and state unrecognized tax benefits for 2018, 2017 and 2016 is presented below: 2018 2017 2016 Balance at the beginning of the year $ 1,157 $ 3,175 $ 1,982 Increases (decreases) for prior year tax positions — (2,018) 1,193 Increases (decreases) for current year tax positions — — — Increases (decreases) related to settlements — — — Decreases related to statute lapse — — — Balance at the end of the year $ 1,157 $ 1,157 $ 3,175 The Internal Revenue Service completed its review of the Company’s 2014 federal income tax return in February 2017. In 2017, the Company also completed a detailed analysis of R&D credit carryforwards for the tax years 2008 through 2016. As a result of this analysis, as well as completion of the IRS audit of the 2014 credit, the Company has reduced both the R&D credit carryforward and related unrecognized tax benefits by $2,018 . The Company has not had to accrue any interest and penalties related to unrecognized income tax benefits as a result of offsetting of net operating losses. However, if the situation occurs, the Company will recognize interest and penalties within income tax expense and the related tax liability. There are no amounts included in the balance of unrecognized tax benefits at December 31, 2018, 2017 and 2016 that, if recognized, would affect the effective tax rate. Included in the balance of unrecognized tax benefits at December 31, 2018 are $1,157 of tax benefits that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes and valuation allowance. The Company does not expect that its unrecognized tax benefits for research credits will significantly change within twelve months of December 31, 2018. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Concentrations [Abstract] | |
Concentrations | 13. CONCENTRATIONS During 2018, 2017 and 2016, approximately 10.8% , 13.2% and 14.4% of the Company’s total net revenue was derived from its top ten customers. During 2018, 2017 and 2016 no individual customer accounted for more than 10% of the Company’s revenue. As of December 31, 2018 and 2017, 11.8% and 19.7% of the Company’s total accounts receivable balance was derived from its top ten customers. No individual customer accounted for more than 10% of the Company’s accounts receivable as of December 31, 2018 and 2017. The Company maintains cash and cash equivalents balances at financial institutions which at times exceed FDIC limits. As of December 31, 2018, $31,955 of the cash and cash equivalents balance was in excess of the FDIC limits. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 14. EMPLOYEE BENEFIT PLANS The Company sponsors the AtriCure, Inc. 401(k) Plan (401(k) Plan), a defined contribution plan covering substantially all U.S. employees of the Company. Eligible employees may contribute pre-tax annual compensation up to specified maximums under the Internal Revenue Code. During 2018, 2017 and 2016 the Company made matching contributions of 50% on the first 6% of employee contributions to the 401(k) Plan. The Company’s matching contributions expensed during 2018, 2017 and 2016 were $1,560 , $1,367 and $1,222 . Additional amounts may be contributed to the 401(k) Plan at the discretion of the Company’s Board of Directors, however, no such discretionary contributions were made during 2018, 2017 or 2016. The Company also provides retirement benefits for employees of AtriCure Europe and other foreign subsidiaries. Total contributions to retirement plans for these employees were $243 , $205 and $101 in 2018, 2017 and 2016. |
Equity Compensation Plans
Equity Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Equity Compensation Plans [Abstract] | |
Equity Compensation Plans | 15. EQUITY COMPENSATION PLANS The Company has two share-based incentive plans: the 2014 Stock Incentive Plan (2014 Plan) and the 2018 Employee Stock Purchase Plan (ESPP). Stock Incentive Plan Under the 2014 Plan, the Board of Directors may grant incentive stock options to Company employees and may grant restricted stock awards, restricted stock units, collectively “RSAs”, nonstatutory stock options, performance share awards (PSAs) or stock appreciation rights to Company employees, directors and consultants. The administrator (the Compensation Committee of the Board of Directors) has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration. As of December 31, 2018, 11,099 shares of common stock had been reserved for issuance under the 2014 Plan and 1,319 shares were available for future grants. Effective March 1, 2018, the Compensation Committee of the Board approved the grant of performance share awards (2018 PSAs) to the Company’s named executive officers and certain other executive employees pursuant to the Company’s 2014 Plan. The form of award agreement for the 2018 PSAs (2018 PSA Grant Form) provides, among other things, that (i) each 2018 PSA that vests represents the right to receive one share of the Company’s common stock; (ii) the 2018 PSAs vest based on the Company achieving specified performance measurements over a performance period of three years, beginning January 1, 2018; (iii) the performance measurements include revenue CAGR as defined in the 2018 PSA Grant Form; (iv) threshold, target and maximum payout opportunities established for the 2018 PSAs will be used to calculate the number of shares that will be issuable when the award vests, which may range from 0% to 200% of the target amount; (v) any 2018 PSAs that are earned are scheduled to vest and be settled in shares of the Company’s common stock at the end of the performance period; and (vi) all or a portion of the 2018 PSAs may vest following a change of control or a termination of service by reason of death or disability (each as described in greater detail in the 2018 PSA Grant Form). With respect to the 2018 PSAs, the number of shares that vest and are issued to the recipient is based upon the Company’s performance as measured against the specified targets at the end of the three -year performance period as determined by the Compensation Committee of the Board. The Company estimated the fair value of the 2018 PSAs based on its closing stock price on the grant date and will adjust compensation expense over the performance period based on its estimate of performance target achievement. Stock options granted prior to 2018 under the 2014 Plan generally expire ten years from the date of grant and generally vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter over the following three years. Restricted stock awards granted prior to 2018 generally vest between one and four years from the date of grant. Beginning in 2018, stock options, restricted stock awards, and restricted stock units granted generally vest in one-third increments on the first, second and third anniversaries of the grant date. Activity under the plans during 2018 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Time-Based Stock Options Outstanding Price Term Value Outstanding at January 1, 2018 2,026 $ 13.30 Granted 52 26.05 Exercised (474) 12.70 Cancelled (22) 18.14 Outstanding at December 31, 2018 1,582 $ 13.83 5.02 $ 26,587 Vested and expected to vest 1,574 $ 13.78 5.00 $ 26,525 Exercisable at December 31, 2018 1,419 $ 12.99 4.63 $ 24,991 Weighted Weighted RSA Average PSA Average Shares Grant Date Shares Grant Date Restricted Stock Awards and Performance Share Awards Outstanding Fair Value Outstanding Fair Value Outstanding at January 1, 2018 1,845 $ 18.22 — $ — Awarded 630 18.71 90 17.71 Released (638) 18.87 — — Forfeited (91) 17.97 — — Outstanding at December 31, 2018 1,746 $ 18.19 90 $ 17.71 Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Performance Stock Options Outstanding Price Term Value Outstanding at January 1, 2018 450 $ 13.48 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2018 450 $ 13.48 4.45 $ 5,555 Exercisable at December 31, 2018 350 $ 13.48 4.45 $ 4,321 Activity under the plans during 2017 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Time-Based Stock Options Outstanding Price Term Value Outstanding at January 1, 2017 2,454 $ 12.51 Granted 65 20.22 Exercised (458) 9.61 Cancelled (35) 19.08 Outstanding at December 31, 2017 2,026 $ 13.30 5.62 $ 11,730 Vested and expected to vest 2,004 $ 13.23 5.58 $ 11,717 Exercisable at December 31, 2017 1,766 $ 12.48 5.20 $ 11,471 Weighted Number of Average Shares Grant Date Restricted Stock Awards Outstanding Fair Value Outstanding at January 1, 2017 1,416 $ 17.40 Awarded 771 19.38 Released (331) 17.43 Forfeited (11) 18.52 Outstanding at December 31, 2017 1,845 $ 18.22 Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Performance Stock Options Outstanding Price Term Value Outstanding at January 1, 2017 450 $ 13.48 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2017 450 $ 13.48 5.45 $ 2,774 Exercisable at December 31, 2017 250 $ 13.48 5.45 $ 1,541 The total intrinsic value of options exercised during the years ended December 31, 2018, 2017 and 2016 was $5,343 , $5,121 and $3,550 . As a result of the Company’s full valuation allowance on its net deferred tax assets, no tax benefit was recognized related to the stock option exercises. The exercise price per share of each option is equal to the fair market value of the underlying share on the date of grant. For 2018, 2017 and 2016, $6,012 , $4,402 and $3,337 in cash proceeds were included in the Company’s Consolidated Statements of Cash Flows as a result of the exercise of stock options. The total fair value of restricted stock vested during 2018, 2017 and 2016 was $11,864 , $6,235 and $5,102 . The Company issues registered shares of common stock to satisfy stock option exercises and restricted stock grants. The Company has awarded 450 performance options to its President and Chief Executive Officer. The options expire ten years from the date of grant and vest in increments of 25 shares when the volume adjusted weighted average closing price of the common stock of the Company as reported by NASDAQ (or any other exchange on which the common stock of the Company is listed) for 30 consecutive days equals or exceeds each of $10.00 per share, $12.50 per share, $15.00 per share, $17.50 per share, $20.00 per share, $25.00 per share, $30.00 per share, $35.00 per share and $40.00 per share. In accordance with FASB ASC 718, a Monte Carlo simulation was performed to estimate the fair values, vesting terms and vesting probabilities for each tranche of options. Expense calculated using these estimates is being recorded over the estimated vesting terms. The Company recognized expense related to the performance options during 2018, 2017 and 2016 of $0 , $43 and $269 . As of December 31, 2017, compensation costs related to non-vested performance options were fully recognized. Employee Stock Purchase Plan The ESPP is available to eligible employees as defined in the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount (currently 15% ) of the lesser of the closing price of the Company’s common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year and may not purchase a value of more than 3 shares during an offering period. As of December 31, 2018, there were 595 shares available for future issuance under the ESPP. Valuation and Expense Information Under FASB ASC 718 The following table summarizes share-based compensation expense related to employees, directors and consultants under FASB ASC 718 for 2018, 2017 and 2016. The expense was allocated as follows: 2018 2017 2016 Cost of revenue $ 1,545 $ 610 $ 420 Research and development expenses 1,987 2,052 1,825 Selling, general and administrative expenses 12,963 11,953 9,452 Total $ 16,495 $ 14,615 $ 11,697 Share-based compensation expense with respect to the ESPP was $697 , $664 and 556 for 2018, 2017 and 2016. The Company recognized expense related to time-based stock options, restricted stock awards, and restricted stock units for 2018, 2017, and 2016 of $15,032 , $13,908 and $10,872 . The Company recognized expense of $766 related to performance share awards in 2018. As of December 31, 2018 there was $20,198 of unrecognized compensation costs related to non-vested stock options and restricted stock arrangements ( $1,432 relating to stock options and $18,766 relating to restricted stock). This cost is expected to be recognized over a weighted-average period of 2.0 years for stock options and 1.5 years for restricted stock. As of December 31, 2018 there was $1,869 of unrecognized compensation costs related to non-vested performance share awards , and th is cost is expected to be recognized over a weighted-average period of 1.9 years. In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions: 2018 2017 2016 Risk-free interest rate 2.31 - 3.01 % 1.75 - 2.12 % 1.06 - 2.02 % Expected life of option (years) 5.14 to 5.71 5.21 to 5.76 5.27 to 7.10 Expected volatility of stock 41.00 - 42.00 % 43.00 - 48.00 % 46.00 - 51.00 % Weighted-average volatility 41.51 % 44.50 % 48.87 % Dividend yield 0.00 % 0.00 % 0.00 % The Company’s estimate of volatility is based solely on the Company’s trading history over the expected option life. The risk-free interest rate assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. The Company estimates the expected terms of options using historical employee exercise behavior. The fair value of restricted stock awards, restricted stock units and performance share awards is based on the market value of the Company’s stock on the date of the awards. Based on the assumptions noted above, the weighted average estimated grant date fair value per share of the stock options, restricted stock awards and performance share awards granted for 2018, 2017 and 2016 was as follows: 2018 2017 2016 Stock options $ 10.97 $ 8.60 $ 8.25 Restricted stock awards 18.71 19.38 16.35 Performance share awards 17.71 — — In calculating compensation expense for performance options, the fair value of the options was estimated on the grant dates using a Monte Carlo simulation including strike prices of $5.91 and $21.04 , contractual terms of 10 years, expected volatility of 69.60% and 60.50% and interest rates of 1.75% and 2.73% . The contractual term assumes that the performance options issued to the CEO of the Company will be held until expiration. Expected volatility was estimated based on the Company’s trading history over the expected option life. The expected rate of return assumption was based upon the U.S. treasury yield curve at the time of grant for the expected option life. Based on the assumptions noted above, the estimated grant date fair value per share of the performance options granted were as follows: Price Fair Value of Fair Value of Target 2012 Grant 2014 Grant Tranche 1 $ 10.00 $ 4.32 $ 14.74 Tranche 2 12.50 4.30 14.74 Tranche 3 15.00 4.27 14.74 Tranche 4 17.50 4.23 14.74 Tranche 5 20.00 4.19 14.73 Tranche 6 25.00 4.10 14.73 Tranche 7 30.00 4.01 14.71 Tranche 8 35.00 3.92 14.67 Tranche 9 40.00 3.83 14.61 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 16. SEGMENT AND GEOGRAPHIC INFORMATION The Company evaluates reporting segments in accordance with FASB ASC 280, “Segment Reporting”. The Company develops, manufactures and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. These devices are developed and marketed to a broad base of medical centers globally. Management considers all such sales to be part of a single operating segment. Revenue attributed to geographic areas is based on the location of the customers to whom products are sold. Revenue by geographic area was as follows: 2018 2017 2016 United States $ 162,146 $ 138,387 $ 122,385 Europe 25,912 21,901 19,772 Asia 12,687 13,616 12,223 Other international 885 812 729 Total international 39,484 36,329 32,724 Total revenue $ 201,630 $ 174,716 $ 155,109 United States revenue by product type was as follows: 2018 2017 2016 Open-heart ablation $ 72,250 $ 64,517 $ 58,050 Minimally invasive ablation 35,053 34,421 31,169 Appendage management 52,891 37,281 30,321 Total ablation and appendage management 160,194 136,219 119,540 Valve tools 1,952 2,168 2,845 Total United States $ 162,146 $ 138,387 $ 122,385 International revenue by product type was as follows: 2018 2017 2016 Open-heart ablation $ 21,118 $ 20,718 $ 20,189 Minimally invasive ablation 9,176 8,007 8,065 Appendage management 8,988 7,251 3,986 Total ablation and appendage management 39,282 35,976 32,240 Valve tools 202 353 484 Total international $ 39,484 $ 36,329 $ 32,724 The Company’s long-lived assets are located primarily in the United States, except for $1,296 as of December 31, 2018 and $957 as of December 31, 2017, which are located primarily in Europe. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | 17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) For the Three Months Ended March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Operating Results: Revenue $ 46,994 $ 41,273 $ 51,802 $ 45,231 $ 49,941 $ 42,150 $ 52,893 $ 46,062 Gross profit 34,503 30,008 38,079 32,554 35,948 30,918 38,590 32,683 Income (loss) from operations (9,430) (9,642) 958 (6,355) (6,048) (6,847) (2,607) (2,135) Net loss (10,134) (10,183) (338) (6,883) (7,235) (7,246) (3,430) (2,580) Net loss per share (basic and diluted) $ (0.31) $ (0.32) $ (0.01) $ (0.21) $ (0.22) $ (0.22) $ (0.09) $ (0.08) Amounts may not sum to consolidated totals for the full year due to rounding. Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCH EDULE II VALUATION AND QUALIFYING ACCOUNTS Beginning Ending Balance Additions Deductions Balance Reserve for sales returns and allowances Year ended December 31, 2018 $ 1,169 $ 312 $ 71 $ 1,410 Year ended December 31, 2017 834 441 106 1,169 Year ended December 31, 2016 207 634 7 834 Allowance for inventory valuation Year ended December 31, 2018 $ 889 $ 718 $ 578 $ 1,029 Year ended December 31, 2017 1,080 1,004 1,195 889 Year ended December 31, 2016 843 1,692 1,455 1,080 Valuation allowance for deferred tax assets Year ended December 31, 2018 $ 66,973 $ 2,876 $ — $ 69,849 Year ended December 31, 2017 81,982 — 15,009 66,973 Year ended December 31, 2016 73,682 8,300 — 81,982 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Nature of the Business | Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management and sells its products to medical centers globally through its direct sales force and distributors. |
Principles of Consolidation | Principles of Consolidation— The Consolidated Financial Statements include the accounts of the Company, AtriCure, LLC, Endoscopic Technologies, LLC and nContact Surgical, LLC, the Company’s wholly-owned subsidiaries, all organized in the State of Delaware; AtriCure Europe B.V. (AtriCure Europe), the Company’s wholly-owned subsidiary incorporated in the Netherlands; AtriCure Spain, S.L., AtriCure Europe’s wholly-owned subsidiary incorporated in Spain; AtriCure Germany GmbH, AtriCure Europe’s wholly-owned subsidiary incorporated in Germany; AtriCure Hong Kong Limited, the Company’s wholly-owned subsidiary incorporated in Hong Kong; and AtriCure (Beijing) Medicine Information Consulting Services, Co., Ltd., AtriCure Hong Kong Limited’s wholly-owned subsidiary incorporated in Beijing. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash And Cash Equivalents | Cash and Cash Equivalents— The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents |
Investments | Investments— The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds, commercial paper and asset-backed securities and classifies all investments as available-for-sale. Investments with maturities of less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income or expense. |
Revenue Recognition | Revenue Recognition— The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. This generally occurs upon shipment of goods to customers. See Note 11 for further discussion on revenue. |
Sales Returns and Allowances | Sales Returns and Allowances — T he Company maintains a provision for potential returns of defective or damaged products, products shipped in error and invoice adjustments. The Company adjusts the provision quarterly using a combination of specific identification and an estimated general reserve based on historical experience. Increases to the provision result in a reduction of revenue and the provision is included in accrued liabilities. |
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts Receivable— The Company evaluates the collectability of accounts receivable to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in selling, general and administrative expense s . The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs has not been significant. |
Inventories | Inventories— Inventories are stated at the lower of cost or net realizable value based on the first-in, first-out cost method (FIFO) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. An inventory reserve for excess, slow moving and obsolete inventory is recorded quarterly. An increase to inventory reserves results in a corresponding increase in cost of revenue. Inventories are written off against the reserve when they are physically disposed. |
Property and Equipment | Property and Equipment— Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of assets (see Note 7). The Company reassesses the useful lives of property and equipment annually and retires assets if they are no longer in service. Maintenance and repair costs are expensed as incurred. The Company’s RF and cryo generators are generally placed with customers served by our direct sales force . The estimated useful lives of this equipment are based on anticipated usage by customers and the timing and impact of expected new technology rollouts by the Company and may change in a future period if the Company experiences changes in the usage of the equipment or introduces new technologies. Depreciation related to generators and other capital equipment is recorded in cost of revenue. The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections of expected future cash flows. Property and equipment impairments recorded by the Company have not been significant. |
Intangible Assets | Intangible Assets— Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. The Company reassesses the useful lives of intangible assets annually . Included in intangible assets is In Process Research and Development (IPR&D) , representing the value of acquired technology which has not yet reached technological feasibility. The primary basis for determining the technological feasibility is obtaining specific regulatory approvals. IPR&D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, the IPR&D will be amortized over its estimated useful life. If the IPR&D project is abandoned, the related IPR&D asset would be written off. The IPR&D asset represents an estimate of the fair value of the pre-market approval (PMA) that may result from the CONVERGE IDE clinical trial. The Company reviews intangible assets for impairment using its best estimates based on reasonable and supportable assumptions and projections at least annually. The Company has historically tested IPR&D for impairment annually on November 30. In 2018, the Company has changed its testing date from November 30 to October 1. This change in the method of applying an accounting principle is preferred as it better aligns with the Company’s long-term planning process, which is a significant input to the testing, and it did not result in a material change to the Company's Consolidated Financial Statements. |
Goodwill | Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. The Company’s goodwill is accounted for in a single reporting unit representing the Company as a whole. The Company has historically tested goodwill for impairment annually on November 30, or more often if impairment indicators are present. In 2018, the Company has changed its goodwill testing date from November 30 to October 1. This change in the method of applying an accounting principle is preferred by the Company as it better aligns with the Company’s long-term planning process, which is a significant input to the testing, and it did not result in a material change to the Company’s Consolidated Financial Statements. |
Other Noncurrent Liabilities | Other Noncurrent Liabilities— Other noncurrent liabilities consist of contingent consideration recorded in business combinations, deferred revenues and other contractual obligations. T he contingent consideration balance is included in noncurrent liabilities as such settlement is both required and expected to be made primarily in shares of the Company’s common stock pursuant to the nContact merger agreement. |
Other Income (Expense) | Other Income (Expense)— Other income (expense) consists of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and invoices denominated in British Pounds. |
Taxes | Taxes — Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. The Company’s estimate of the valuation allowance for deferred income tax assets requires it to make significant estimates and judgments about its future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that some portion of the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred tax income assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future reversals of existing taxable temporary differences, future taxable income, exclusive of reversing temporary differences and carryforwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. In evaluating whether to record a valuation allowance, the applicable accounting standards deem that the existence of cumulative losses in recent years is significant objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need to record a valuation allowance. The Company has recorded a full valuation allowance against substantially all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. |
Net Loss Per Share | Net Loss Per Share— Basic and diluted net loss per share is computed in accordance with FASB ASC 260 “Earnings Per Share” (ASC 260) by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 3, 869 , 4,321 and 4,320 stock options , restricted stock awards, restricted stock units and performance share awards as of December 31, 2018, 2017 and 2016 because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. |
Comprehensive Income (Loss) And Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)— In addition to net losses, the comprehensive loss includes foreign currency translation adjustments and unrealized gains and losses on investments. Accumulated o ther comprehensive (loss) income consisted of the following (net of tax): 2018 2017 2016 Total accumulated other comprehensive income (loss) at beginning of period $ 34 $ (468) $ (611) Unrealized losses on investments Balance at beginning of period $ (6) $ (21) $ (39) Other comprehensive (loss) income before reclassifications (31) 15 18 Amounts reclassified from accumulated other comprehensive (loss) income to other income — — — Balance at end of period $ (37) $ (6) $ (21) Foreign currency translation adjustment Balance at beginning of period $ 40 $ (447) $ (572) Other comprehensive (loss) income before reclassifications (367) 660 532 Amounts reclassified from accumulated other comprehensive (loss) income to other income 165 (173) (407) Balance at end of period $ (162) $ 40 $ (447) Total accumulated other comprehensive (loss) income at end of period $ (199) $ 34 $ (468) |
Research and Development Costs | Research and Development Costs — Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development of and research related to new and existing products or concepts, preclinical studies, clinical trials, healthcare compliance and regulatory affairs. |
Advertising Costs | Advertising Costs — The Company expenses advertising costs as incurred. Advertising expense was $785 , $900 and $625 during the years ended December 31, 2018, 2017 and 2016. |
Share-Based Compensation | Share-Based Compensation— The Company follows FASB ASC 718 “Compensation-Stock Compensation” (ASC 718) to record share-based compensation for all share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statements of Operations and Comprehensive Loss. The expense has been reduced for estimated forfeitures. The Company estimates forfeitures at the time of grant and revises them, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of time-based options on the date of grant using the Black-Scholes option-pricing model (Black-Scholes model). The Company’s determination of fair value is affected by the Company’s stock price, as well as assumptions regarding several subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. The fair value of market-based performance option grants is estimated at the date of grant using a Monte-Carlo simulation. The value of the portion of the awards that is ultimately expected to vest is recognized as expense over the requisite service periods in the Consolidated Statements of Operations and Comprehensive Loss. The Company estimates the fair value of restricted stock awards, restricted stock units and performance share awards based upon the grant date closing market price of the Company’s common stock. The Company also has an employee stock purchase plan (ESPP) which is available to all eligible employees as defined by the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the ESPP at the beginning of each purchase period based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model and records estimated compensation expense during the period. Expense is adjusted at the time of stock purchase. |
Use of Estimates | Use of Estimates— The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Fair Value Disclosures | Fair Value Disclosures — The Company classifies cash investments in U.S. government agencies and securities, accounts receivable, short-term other assets, accounts payable and accrued liabilities as Level 1. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Cash equivalents and investments in corporate bonds, commercial paper and asset-backed securities are classified as Level 2 within the fair value hierarchy. The fair value of fixed term debt is estimated by calculating the net present value of future debt payments at current market interest rates and is classified as Level 2. The book value of the Company’s fixed term debt approximates its fair value because the interest rate varies with market rates. Significant unobservable inputs with respect to the fair value measurement of the Level 3 contingent consideration liability are developed using Company data. See Note 3 – Fair Value for further information on fair value measurements. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 2018 2017 2016 Total accumulated other comprehensive income (loss) at beginning of period $ 34 $ (468) $ (611) Unrealized losses on investments Balance at beginning of period $ (6) $ (21) $ (39) Other comprehensive (loss) income before reclassifications (31) 15 18 Amounts reclassified from accumulated other comprehensive (loss) income to other income — — — Balance at end of period $ (37) $ (6) $ (21) Foreign currency translation adjustment Balance at beginning of period $ 40 $ (447) $ (572) Other comprehensive (loss) income before reclassifications (367) 660 532 Amounts reclassified from accumulated other comprehensive (loss) income to other income 165 (173) (407) Balance at end of period $ (162) $ 40 $ (447) Total accumulated other comprehensive (loss) income at end of period $ (199) $ 34 $ (468) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: Quoted Prices in Active Significant Significant Markets for Other Other Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ — $ 16,193 $ — $ 16,193 Commercial paper — 40,731 — 40,731 U.S. government agencies and securities 6,734 — — 6,734 Corporate bonds — 30,195 — 30,195 Asset-backed securities — 14,511 — 14,511 Total assets $ 6,734 $ 101,630 $ — $ 108,364 Liabilities: Acquisition-related contingent consideration $ — $ — $ 18,773 $ 18,773 Total liabilities $ — $ — $ 18,773 $ 18,773 The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: Quoted Prices in Active Significant Significant Markets for Other Other Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ — $ 12,774 $ — $ 12,774 Commercial paper — 7,472 — 7,472 U.S. government agencies and securities 2,999 — — 2,999 Corporate bonds — 2,920 — 2,920 Total assets $ 2,999 $ 23,166 $ — $ 26,165 Liabilities: Acquisition-related contingent consideration $ — $ — $ 37,098 $ 37,098 Total liabilities $ — $ — $ 37,098 $ 37,098 |
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition-Related Contingent Consideration | 2018 2017 2016 Beginning Balance – January 1 $ 37,098 $ 41,176 $ 40,207 Settlement of trial enrollment milestone (7,500) — — Changes in fair value included in selling, general and administrative expenses (10,825) (4,078) 969 Ending Balance – December 31 $ 18,773 $ 37,098 $ 41,176 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Summary of Short-term Investments | Investments as of December 31, 2018 consisted of the following: Unrealized Gains Cost Basis (Losses) Fair Value Corporate bonds $ 30,223 $ (28) $ 30,195 U.S. government agencies and securities 6,734 — 6,734 Commercial paper 40,731 — 40,731 Asset-backed securities 14,520 (9) 14,511 Total $ 92,208 $ (37) $ 92,171 Investments as of December 31, 2017 consisted of the following: Unrealized Gains Cost Basis (Losses) Fair Value Corporate bonds $ 2,925 $ (5) $ 2,920 U.S. government agencies and securities 3,000 (1) 2,999 Commercial paper 6,723 — 6,723 Total $ 12,648 $ (6) $ 12,642 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets And Goodwill [Abstract] | |
Company's Intangible Assets | 2018 2017 Estimated Accumulated Accumulated Useful Life Cost Amortization Cost Amortization Fusion technology 8 years $ 9,242 $ 4,763 $ 9,242 $ 3,697 Clamp & probe technology 3 years 829 829 829 829 SUBTLE access technology 5 years 2,179 1,425 2,179 981 IPR&D 44,021 — 44,021 — Total $ 56,271 $ 7,017 $ 56,271 $ 5,507 |
Future Amortization Expense Related to Intangible Assets with Definite Lives | 2019 $ 1,936 2020 1,804 2021 1,493 Total $ 5,233 |
Summary of Company's Goodwill | Net carrying amount as of December 31, 2016 $ 105,257 Additions (impairments) — Net carrying amount as of December 31, 2017 105,257 Additions (impairments) — Net carrying amount as of December 31, 2018 $ 105,257 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Summary Of Inventories | 2018 2017 Raw materials $ 9,100 $ 7,755 Work in process 1,232 1,299 Finished goods 12,152 13,397 Inventories $ 22,484 $ 22,451 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and Equipment [Abstract] | |
Summary of Property and Equipment | Estimated Useful Life 2018 2017 Generators and other capital equipment 1 -3 years $ 18,158 $ 15,754 Building under capital lease 15 years 14,250 14,250 Computer and other office equipment 3 years 6,360 5,873 Machinery, equipment and vehicles 3 -7 years 4,859 4,576 Furniture and fixtures 3 -7 years 4,702 4,366 Leasehold improvements 5 -15 years 3,943 3,636 Construction in progress N/A 1,868 1,810 Equipment under capital leases 3 -5 years 213 221 Total 54,353 50,486 Less accumulated depreciation (27,273) (21,737) Property and equipment, net $ 27,080 $ 28,749 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 2018 2017 Accrued bonus $ 9,100 $ 4,726 Accrued commissions 8,065 6,964 Accrued payroll and employee-related expenses 4,512 4,097 Sales returns and allowances 1,410 1,169 Other accrued liabilities 1,205 695 Accrued taxes and value-added taxes payable 886 634 Accrued royalties 662 626 Total $ 25,840 $ 18,911 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Indebtedness [Abstract] | |
Future Maturities On Debt And Capital Lease Obligations | 2019 $ 5,303 2020 12,942 2021 12,947 2022 12,968 2023 3,467 2024 and thereafter 11,393 Total payments $ 59,020 Imputed interest on capital lease obligations (6,225) Net debt obligations, of which $4,433 is current and $48,362 is noncurrent $ 52,795 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | 2019 $ 1,064 2020 893 2021 648 2022 405 Total $ 3,010 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Summary of Detail of Deferred Tax Assets and Liabilities | 2018 2017 Deferred tax assets (liabilities): Net operating loss carryforward $ 68,563 $ 64,776 Research and development and AMT credit carryforwards, net 6,206 5,339 Deferred interest 774 — Equity compensation 4,750 6,955 Accruals and reserves 802 874 Inventories 726 588 Intangible assets (11,448) (11,297) Property and equipment, net (608) (339) Other, net 135 179 Subtotal 69,900 67,075 Less valuation allowance (69,849) (66,973) Total $ 51 $ 102 |
Summary Of Company's Provision for Income Taxes | 2018 2017 2016 Current Tax Expense Federal $ (51) $ — $ — State 28 44 32 Foreign 198 72 8 Total current tax expense 175 116 40 Deferred Tax Expense Federal $ (3,048) $ 18,485 $ (7,333) State 178 (1,337) 210 Foreign 45 (2,241) (1,177) Change in valuation allowance 2,876 (15,009) 8,300 Total deferred tax expense 51 (102) — Total tax expense $ 226 $ 14 $ 40 |
Summary Of Difference Between Effective Income Tax Rates and Federal Statutory Rate | 2018 2017 2016 Federal tax at statutory rate 21.00 % $ (4,391) 34.00 % $ (9,139) 34.00 % $ (11,322) Federal and Foreign tax rate change (6.84) 1,430 (109.68) 29,480 — — Federal R&D credit 4.39 (918) (0.40) 107 2.89 (962) Federal deferred adjustment (10.77) 2,253 — — — — Federal NOL adjustment for ASU — — 10.48 (2,816) — — Valuation allowance (13.75) 2,876 55.84 (15,009) (24.93) 8,300 State income taxes (0.99) 206 4.81 (1,292) (0.69) 231 Foreign NOL adjustment (1.22) 256 1.30 (348) (1.36) 452 Foreign tax rate differential (0.60) 125 (2.45) 658 (1.62) 539 Permanent differences and other 7.70 (1,611) 6.05 (1,627) (8.41) 2,802 Effective tax rate (1.08) % $ 226 (0.05) % $ 14 (0.12) % $ 40 |
Summary Of Reconciliation of Change in Federal and State Unrecognized Tax Benefits | 2018 2017 2016 Balance at the beginning of the year $ 1,157 $ 3,175 $ 1,982 Increases (decreases) for prior year tax positions — (2,018) 1,193 Increases (decreases) for current year tax positions — — — Increases (decreases) related to settlements — — — Decreases related to statute lapse — — — Balance at the end of the year $ 1,157 $ 1,157 $ 3,175 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Compensation Plans [Abstract] | |
Activity Under Stock Based Compensation Plans | Activity under the plans during 2018 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Time-Based Stock Options Outstanding Price Term Value Outstanding at January 1, 2018 2,026 $ 13.30 Granted 52 26.05 Exercised (474) 12.70 Cancelled (22) 18.14 Outstanding at December 31, 2018 1,582 $ 13.83 5.02 $ 26,587 Vested and expected to vest 1,574 $ 13.78 5.00 $ 26,525 Exercisable at December 31, 2018 1,419 $ 12.99 4.63 $ 24,991 Weighted Weighted RSA Average PSA Average Shares Grant Date Shares Grant Date Restricted Stock Awards and Performance Share Awards Outstanding Fair Value Outstanding Fair Value Outstanding at January 1, 2018 1,845 $ 18.22 — $ — Awarded 630 18.71 90 17.71 Released (638) 18.87 — — Forfeited (91) 17.97 — — Outstanding at December 31, 2018 1,746 $ 18.19 90 $ 17.71 Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Performance Stock Options Outstanding Price Term Value Outstanding at January 1, 2018 450 $ 13.48 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2018 450 $ 13.48 4.45 $ 5,555 Exercisable at December 31, 2018 350 $ 13.48 4.45 $ 4,321 Activity under the plans during 2017 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Time-Based Stock Options Outstanding Price Term Value Outstanding at January 1, 2017 2,454 $ 12.51 Granted 65 20.22 Exercised (458) 9.61 Cancelled (35) 19.08 Outstanding at December 31, 2017 2,026 $ 13.30 5.62 $ 11,730 Vested and expected to vest 2,004 $ 13.23 5.58 $ 11,717 Exercisable at December 31, 2017 1,766 $ 12.48 5.20 $ 11,471 Weighted Number of Average Shares Grant Date Restricted Stock Awards Outstanding Fair Value Outstanding at January 1, 2017 1,416 $ 17.40 Awarded 771 19.38 Released (331) 17.43 Forfeited (11) 18.52 Outstanding at December 31, 2017 1,845 $ 18.22 Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercise Contractual Intrinsic Performance Stock Options Outstanding Price Term Value Outstanding at January 1, 2017 450 $ 13.48 Granted — — Exercised — — Cancelled — — Outstanding at December 31, 2017 450 $ 13.48 5.45 $ 2,774 Exercisable at December 31, 2017 250 $ 13.48 5.45 $ 1,541 |
Share-Based Compensation Expense Related to Employee Share-Based Compensation | 2018 2017 2016 Cost of revenue $ 1,545 $ 610 $ 420 Research and development expenses 1,987 2,052 1,825 Selling, general and administrative expenses 12,963 11,953 9,452 Total $ 16,495 $ 14,615 $ 11,697 |
Assumptions Used for Determining Fair Value of Options | 2018 2017 2016 Risk-free interest rate 2.31 - 3.01 % 1.75 - 2.12 % 1.06 - 2.02 % Expected life of option (years) 5.14 to 5.71 5.21 to 5.76 5.27 to 7.10 Expected volatility of stock 41.00 - 42.00 % 43.00 - 48.00 % 46.00 - 51.00 % Weighted-average volatility 41.51 % 44.50 % 48.87 % Dividend yield 0.00 % 0.00 % 0.00 % |
Weighted Average Estimated Grant Date Fair Value Per Share of Stock Options, Restricted Stock Granted, And Performance Awards | 2018 2017 2016 Stock options $ 10.97 $ 8.60 $ 8.25 Restricted stock awards 18.71 19.38 16.35 Performance share awards 17.71 — — |
Estimated Grant Date Fair Value Per Share of Performance Options Granted | Price Fair Value of Fair Value of Target 2012 Grant 2014 Grant Tranche 1 $ 10.00 $ 4.32 $ 14.74 Tranche 2 12.50 4.30 14.74 Tranche 3 15.00 4.27 14.74 Tranche 4 17.50 4.23 14.74 Tranche 5 20.00 4.19 14.73 Tranche 6 25.00 4.10 14.73 Tranche 7 30.00 4.01 14.71 Tranche 8 35.00 3.92 14.67 Tranche 9 40.00 3.83 14.61 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment and Geographic Information [Abstract] | |
Revenue by Geographic Area | 2018 2017 2016 United States $ 162,146 $ 138,387 $ 122,385 Europe 25,912 21,901 19,772 Asia 12,687 13,616 12,223 Other international 885 812 729 Total international 39,484 36,329 32,724 Total revenue $ 201,630 $ 174,716 $ 155,109 |
Revenue by Product Type | United States revenue by product type was as follows: 2018 2017 2016 Open-heart ablation $ 72,250 $ 64,517 $ 58,050 Minimally invasive ablation 35,053 34,421 31,169 Appendage management 52,891 37,281 30,321 Total ablation and appendage management 160,194 136,219 119,540 Valve tools 1,952 2,168 2,845 Total United States $ 162,146 $ 138,387 $ 122,385 International revenue by product type was as follows: 2018 2017 2016 Open-heart ablation $ 21,118 $ 20,718 $ 20,189 Minimally invasive ablation 9,176 8,007 8,065 Appendage management 8,988 7,251 3,986 Total ablation and appendage management 39,282 35,976 32,240 Valve tools 202 353 484 Total international $ 39,484 $ 36,329 $ 32,724 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | For the Three Months Ended March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Operating Results: Revenue $ 46,994 $ 41,273 $ 51,802 $ 45,231 $ 49,941 $ 42,150 $ 52,893 $ 46,062 Gross profit 34,503 30,008 38,079 32,554 35,948 30,918 38,590 32,683 Income (loss) from operations (9,430) (9,642) 958 (6,355) (6,048) (6,847) (2,607) (2,135) Net loss (10,134) (10,183) (338) (6,883) (7,235) (7,246) (3,430) (2,580) Net loss per share (basic and diluted) $ (0.31) $ (0.32) $ (0.01) $ (0.21) $ (0.22) $ (0.22) $ (0.09) $ (0.08) |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Description Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Depreciation | $ 7,244 | $ 7,761 | $ 7,655 | ||||||||
Net carrying amount of loaned equipment | $ 27,080 | $ 28,749 | 27,080 | 28,749 | |||||||
Revenue | $ 52,893 | $ 49,941 | $ 51,802 | $ 46,994 | $ 46,062 | $ 42,150 | $ 45,231 | $ 41,273 | $ 201,630 | $ 174,716 | $ 155,109 |
Options, restricted stock and performance based shares excluded from calculation of net loss per share | 3,869 | 4,321 | 4,320 | ||||||||
Advertising costs | $ 785 | $ 900 | $ 625 | ||||||||
Share-based compensation expense recognized | $ 16,495 | $ 14,615 | $ 11,697 | ||||||||
Maximum [Member] | |||||||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||||||
Maturity period of short term investment | 1 year |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) at beginning of period | $ 34 | $ (468) | $ (611) |
Total accumulated other comprehensive income (loss) at end of period | (199) | 34 | (468) |
Unrealized Losses On Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) at beginning of period | (6) | (21) | (39) |
Other comprehensive income (loss) | (31) | 15 | 18 |
Reclassification of accumulated other comprehensive income (loss) to other income (expense) | |||
Total accumulated other comprehensive income (loss) at end of period | (37) | (6) | (21) |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) at beginning of period | 40 | (447) | (572) |
Other comprehensive income (loss) | (367) | 660 | 532 |
Reclassification of accumulated other comprehensive income (loss) to other income (expense) | 165 | (173) | (407) |
Total accumulated other comprehensive income (loss) at end of period | $ (162) | $ 40 | $ (447) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) shares in Thousands | Sep. 20, 2018USD ($)shares | Oct. 13, 2015shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in value of contingent consideration | $ (10,825,000) | $ (4,078,000) | $ 969,000 | |||
Payments of contingent consideration | 0 | 0 | 0 | |||
Scenario, Forecast [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration revenue to target ratio | 1.5 | |||||
Payment of contingent consideration when commercial milestone achieved time allotment period | 65 days | |||||
nContact Surgical [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in value of contingent consideration | 10,825,000 | |||||
Fair value of AtriCure common stock issued at closing | 5,660,000 | |||||
Shares issued and delivered | shares | 232 | 3,757 | ||||
Payments of contingent consideration | $ 1,221,000 | |||||
Significant Other Unobservable Inputs (Level 3) [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Settlement of trial enrollment milestone one | (7,500,000) | |||||
Changes in fair value included in earnings | 10,825,000 | $ 4,078,000 | $ (969,000) | |||
Patient Enrollment In Converge IDE Trial [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in value of contingent consideration | $ 7,500,000 | |||||
Completion Of CONVERGE IDE Trial And Receiving A PMA From FDA [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Potential contingent consideration reduction, percentage | 8.33% | |||||
Potential contingent consideration reduction if regulatory milestone not met | $ 0 | |||||
Number of days payment due following receipt of approval | 30 days | |||||
Maximum [Member] | Completion Of CONVERGE IDE Trial And Receiving A PMA From FDA [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in value of contingent consideration | $ 42,500,000 |
Fair Value (Financial Assets an
Fair Value (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Total assets | $ 108,364 | $ 26,165 |
Liabilities: | ||
Acquisition-related contingent consideration | 18,773 | 37,098 |
Total liabilities | 18,773 | 37,098 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 16,193 | 12,774 |
Commercial Paper [Member] | ||
Assets: | ||
Total assets | 40,731 | 7,472 |
U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 6,734 | 2,999 |
Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 30,195 | 2,920 |
Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 14,511 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total assets | 6,734 | 2,999 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 6,734 | 2,999 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total assets | 101,630 | 23,166 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 16,193 | 12,774 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Total assets | 40,731 | 7,472 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 30,195 | 2,920 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 14,511 | |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Acquisition-related contingent consideration | 18,773 | 37,098 |
Total liabilities | $ 18,773 | $ 37,098 |
Fair Value (Level 3 Fair Value
Fair Value (Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition-Related Contingent Consideration) (Details) - Significant Other Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning Balance | $ 37,098 | $ 41,176 | $ 40,207 |
Settlement of trial enrollment milestone one | (7,500) | ||
Changes in fair value included in selling, general and administrative expenses | (10,825) | (4,078) | 969 |
Ending Balance | $ 18,773 | $ 37,098 | $ 41,176 |
Investments (Summary Of Short-t
Investments (Summary Of Short-term Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | ||
Short-term investments, Cost Basis | $ 92,208 | $ 12,648 |
Short-term investment, Unrealized gains (losses) | (37) | (6) |
Short-term investments, Fair value | 92,171 | 12,642 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Short-term investments, Cost Basis | 30,223 | 2,925 |
Short-term investment, Unrealized gains (losses) | (28) | (5) |
Short-term investments, Fair value | 30,195 | 2,920 |
U.S. Government Securities [Member] | ||
Investment [Line Items] | ||
Short-term investments, Cost Basis | 6,734 | 3,000 |
Short-term investment, Unrealized gains (losses) | (1) | |
Short-term investments, Fair value | 6,734 | 2,999 |
Commercial Paper [Member] | ||
Investment [Line Items] | ||
Short-term investments, Cost Basis | 40,731 | 6,723 |
Short-term investments, Fair value | 40,731 | $ 6,723 |
Asset-backed Securities [Member] | ||
Investment [Line Items] | ||
Short-term investments, Cost Basis | 14,520 | |
Short-term investment, Unrealized gains (losses) | (9) | |
Short-term investments, Fair value | $ 14,511 |
Intangible Assets And Goodwil_2
Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets And Goodwill [Abstract] | |||
Amortization of intangible assets | $ 1,510 | $ 1,367 | $ 1,644 |
Additional amortization expense | $ 143 |
Intangible Assets (Company's In
Intangible Assets (Company's Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 56,271 | $ 56,271 |
Accumulated Amortization | $ 7,017 | 5,507 |
Fusion Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 8 years | |
Cost | $ 9,242 | 9,242 |
Accumulated Amortization | $ 4,763 | 3,697 |
Clamp and Probe Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Cost | $ 829 | 829 |
Accumulated Amortization | $ 829 | 829 |
SUBTLE Access Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Cost | $ 2,179 | 2,179 |
Accumulated Amortization | 1,425 | 981 |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 44,021 | $ 44,021 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense Related to Intangible Assets with Definite Lives) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Intangible Assets And Goodwill [Abstract] | |
2,019 | $ 1,936 |
2,020 | 1,804 |
2,021 | 1,493 |
Total | $ 5,233 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Summary Of Company's Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets And Goodwill [Abstract] | ||
Goodwill, Beginning Balance | $ 105,257 | $ 105,257 |
Additions (impairments) | ||
Goodwill, Ending Balance | $ 105,257 | $ 105,257 |
Inventories (Summary Of Invento
Inventories (Summary Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||
Raw materials | $ 9,100 | $ 7,755 |
Work in process | 1,232 | 1,299 |
Finished goods | 12,152 | 13,397 |
Inventories | $ 22,484 | $ 22,451 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 7,244 | $ 7,761 | $ 7,655 |
Net carrying amount of loaned equipment | 27,080 | 28,749 | |
Generators and Related Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 3,191 | 3,574 | $ 3,591 |
Net carrying amount of loaned equipment | $ 4,545 | $ 4,656 |
Property and Equipment (Summary
Property and Equipment (Summary Of Property And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 54,353 | $ 50,486 |
Less accumulated depreciation | (27,273) | (21,737) |
Property, and equipment, net | 27,080 | 28,749 |
Generators and Related Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,158 | 15,754 |
Property, and equipment, net | $ 4,545 | 4,656 |
Building under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 15 years | |
Property and equipment, gross | $ 14,250 | 14,250 |
Computers, Software and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Property and equipment, gross | $ 6,360 | 5,873 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,859 | 4,576 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,702 | 4,366 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,943 | 3,636 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,868 | 1,810 |
Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 213 | $ 221 |
Minimum [Member] | Generators and Related Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 1 year | |
Minimum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Minimum [Member] | Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum [Member] | Generators and Related Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | minus 3 years | |
Maximum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | minus 7 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | minus 7 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | minus 15 years | |
Maximum [Member] | Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | minus 5 years |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Accrued bonus | $ 9,100 | $ 4,726 |
Accrued commissions | 8,065 | 6,964 |
Accrued payroll and employee-related expenses | 4,512 | 4,097 |
Sales returns and allowances | 1,410 | 1,169 |
Other accrued liabilities | 1,205 | 695 |
Accrued royalties | 662 | 626 |
Accrued taxes | 886 | 634 |
Total | $ 25,840 | $ 18,911 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | Feb. 23, 2018 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Cost of assets under lease | $ 14,463,000 | |
Accumulated amortization on the capital leases | $ 3,198,000 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan term | 1 year | |
Silicon Valley Bank, Amended And Restated Loan Agreement Effective 2/23/18 [Member] | ||
Line of Credit Facility [Line Items] | ||
Upon certain conditions met, deferred loan payment period | 6 months | |
Silicon Valley Bank, Amended And Restated Loan Agreement Effective 2/23/18 [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit | $ 20,000,000 | |
Maturity date | Feb. 28, 2023 | |
Line of credit, amount outstanding | $ 0 | |
Line of credit, availability | $ 20,000,000 | |
Annual commitment fee, percentage | 0.33% | |
Silicon Valley Bank, Amended And Restated Loan Agreement Effective 2/23/18 [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis rate | 4.50% | |
Computer And Office Equipment [Member] | ||
Line of Credit Facility [Line Items] | ||
Capital lease expiration period | Dec. 31, 2030 | |
Term Loan [Member] | Silicon Valley Bank, Amended And Restated Loan Agreement Effective 2/23/18 [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan amount | $ 40,000,000 | |
Financing costs | $ 620,000 | |
Term Loan [Member] | Silicon Valley Bank, Amended And Restated Loan Agreement Effective 2/23/18 [Member] | Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis rate | 0.50% | |
Interest rate | 5.00% | |
Mason Lease [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letter of credit outstanding | $ 1,250,000 |
Indebtedness (Future Maturities
Indebtedness (Future Maturities On Debt And Capital Lease Obligations) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Indebtedness [Abstract] | |
2,019 | $ 5,303 |
2,020 | 12,942 |
2,021 | 12,947 |
2,022 | 12,968 |
2,023 | 3,467 |
2024 and thereafter | 11,393 |
Total payments | 59,020 |
Imputed interest | (6,225) |
Net debt obligations, of which $4,433 is current and $48,362 is noncurrent | 52,795 |
Net capital lease obligations, current | 4,433 |
Net capital lease obligations, noncurrent | $ 48,362 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Line Items] | |||
Advertising costs | $ 785 | $ 900 | $ 625 |
Operating lease rent expense | 1,146 | 850 | 1,250 |
Royalty expense | $ 2,715 | $ 2,323 | $ 1,895 |
Minimum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Royalty rates | 3.00% | ||
Maximum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Royalty rates | 5.00% | ||
Royalty agreement term | 20 years | ||
Office, Manufacturing, Warehouse Facilities, And Equipment [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating leases expire at various terms | Dec. 31, 2022 |
Commitments and Contingencies_3
Commitments and Contingencies (Future Minimum Lease Payments Under Non-cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies [Abstract] | |
2,019 | $ 1,064 |
2,020 | 893 |
2,021 | 648 |
2,022 | 405 |
Total | $ 3,010 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 201,630 | $ 174,716 | $ 155,109 |
Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration Risk, Percentage | 10.80% | 13.20% | 14.40% |
Shipping and Handling [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,236 | $ 1,090 | $ 1,266 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||
Federal tax at statutory rate | 21.00% | 34.00% | 34.00% | ||
Net interest expense | $ 3,131,000 | ||||
Deferred tax asset which full valuation allowance was recorded | 774,000 | ||||
Reduction to federal deferred tax assets | 2,482,000 | $ 29,480,000 | |||
Current federal tax refund | 51,000 | ||||
Research and development credit carryforward | 6,206,000 | 5,339,000 | |||
Pre-tax book loss for domestic operations | (13,443,000) | (19,409,000) | $ (27,271,000) | ||
Pre-tax book loss for international operations | (7,468,000) | (7,469,000) | (6,027,000) | ||
Undistributed earnings of foreign subsidiaries | 234,000 | ||||
Unrecognized deferred tax assets | 2,816,000 | $ 2,816,000 | |||
Deferred tax assets tax credit carryforwards research and unrecognized tax benefits reduction from IRS audit | 2,018,000 | ||||
Unrecognized tax benefits that would impact effective tax rate | 0 | 0 | 0 | ||
Unrecognized tax benefits | $ 1,157,000 | $ 1,157,000 | $ 3,175,000 | $ 1,982,000 | |
Tax Year 2014 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open Tax Year | 2,014 | ||||
Tax Year 2015 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open Tax Year | 2,015 | ||||
Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward | $ 18,228,000 | ||||
Research and development credit carryforward | 6,154,000 | ||||
Federal [Member] | Tax Year 2021 And 2038 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward | 239,162,000 | ||||
State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward | 154,370,000 | ||||
Foreign [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward | $ 37,694,000 | ||||
Minimum [Member] | Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2021 | ||||
Research and development credit credit carryforwards expiration year | Dec. 31, 2023 | ||||
Minimum [Member] | State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2019 | ||||
Minimum [Member] | Foreign [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2019 | ||||
Maximum [Member] | Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2038 | ||||
Research and development credit credit carryforwards expiration year | Dec. 31, 2039 | ||||
Maximum [Member] | State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2039 | ||||
Maximum [Member] | Foreign [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforward, expiration year | Dec. 31, 2028 |
Income Taxes (Summary Of Detail
Income Taxes (Summary Of Detail Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets (liabilities): | ||
Net operating loss carryforward | $ 68,563 | $ 64,776 |
Research and development and AMT credit carryforwards, net | 6,206 | 5,339 |
Deferred interest | 774 | |
Equity compensation | 4,750 | 6,955 |
Accruals and reserves | 802 | 874 |
Inventories | 726 | 588 |
Intangible assets | (11,448) | (11,297) |
Property and equipment, net | (608) | (339) |
Other, net | 135 | 179 |
Subtotal | 69,900 | 67,075 |
Less valuation allowance | (69,849) | (66,973) |
Total | $ 51 | $ 102 |
Income Taxes (Summary Of Compan
Income Taxes (Summary Of Company's Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Tax Expense | |||
Federal | $ (51) | ||
State | 28 | $ 44 | $ 32 |
Foreign | 198 | 72 | 8 |
Total current tax expense | 175 | 116 | 40 |
Deferred Tax Expense | |||
Federal | (3,048) | 18,485 | (7,333) |
State | 178 | (1,337) | 210 |
Foreign | 45 | (2,241) | (1,177) |
Change in valuation allowance | 2,876 | (15,009) | 8,300 |
Total deferred tax expense | 51 | (102) | |
Total tax expense | $ 226 | $ 14 | $ 40 |
Income Taxes (Summary Of Differ
Income Taxes (Summary Of Difference Between Effective Income Tax Rates And Federal Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Federal tax at statutory rate | 21.00% | 34.00% | 34.00% |
Federal and Foreign tax rate change | (6.84%) | (109.68%) | |
Federal R&D credit | 4.39% | (0.40%) | 2.89% |
Federal deferred adjustment | (10.77%) | ||
Federal NOL adjustment for ASU | 10.48% | ||
Valuation allowance | (13.75%) | 55.84% | (24.93%) |
State income taxes | (0.99%) | 4.81% | (0.69%) |
Foreign NOL adjustment | (1.22%) | 1.30% | (1.36%) |
Foreign tax rate differential | (0.60%) | (2.45%) | (1.62%) |
Permanent differences and other | 7.70% | 6.05% | (8.41%) |
Effective tax rate, Total | (1.08%) | (0.05%) | (0.12%) |
Federal tax at statutory rate | $ (4,391) | $ (9,139) | $ (11,322) |
Federal and Foreign tax rate change | 1,430 | 29,480 | |
Federal deferred adjustment | 2,253 | ||
Federal R&D credit | (918) | 107 | (962) |
Federal NOL adjustment for ASU | (2,816) | ||
Valuation allowance | 2,876 | (15,009) | 8,300 |
State income taxes | 206 | (1,292) | 231 |
Foreign NOL adjustment | 256 | (348) | 452 |
Foreign tax rate differential | 125 | 658 | 539 |
Permanent differences and other | (1,611) | (1,627) | 2,802 |
Total tax expense | $ 226 | $ 14 | $ 40 |
Income Taxes (Summary Of Reconc
Income Taxes (Summary Of Reconciliation Of Change In Federal And State Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Balance at the beginning of the year | $ 1,157 | $ 3,175 | $ 1,982 |
Increases (decreases) for prior year tax positions | 1,193 | ||
Increases (decreases) for prior year tax positions | (2,018) | ||
Increases (decreases) for current year tax positions | |||
Increases (decreases) related to settlements | |||
Decreases related to statute lapse | |||
Balance at the end of the year | $ 1,157 | $ 1,157 | $ 3,175 |
Concentrations (Narrative) (Det
Concentrations (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)customer | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of customers | customer | 10 | ||
Cash and cash equivalents balance in excess of FDIC limits | $ | $ 31,955 | ||
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Percentage representation of significant customer | 10.80% | 13.20% | 14.40% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage representation of significant customer | 11.80% | 19.70% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |||
Employee contribution percent | 50.00% | 50.00% | 50.00% |
Maximum percentage of employee contribution to the plan | 6.00% | 6.00% | 6.00% |
Company's matching contribution | $ 1,560,000 | $ 1,367,000 | $ 1,222,000 |
Discretionary contributions made | 0 | 0 | 0 |
Total contributions to retirement plan | $ 243,000 | $ 205,000 | $ 101,000 |
Equity Compensation Plans (Narr
Equity Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 5,343,000 | $ 5,121,000 | $ 3,550,000 |
Tax benefit recognized | 0 | 0 | 0 |
Share-based compensation expense recognized | $ 16,495,000 | $ 14,615,000 | 11,697,000 |
Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognizing cost | 2 years | ||
Options awarded | 52 | 65 | |
Stock options compensation costs | $ 1,432,000 | ||
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognizing cost | 1 year 6 months | ||
Total fair value of restricted stock vested | $ 11,864,000 | $ 6,235,000 | 5,102,000 |
Unrecognized compensation costs related to non-vested performance options | $ 18,766,000 | ||
Performance options awarded to President and CEO | 630 | 771 | |
Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry of options from the date of grant | 10 years | ||
Weighted average period of recognizing cost | 1 year 10 months 24 days | ||
Share-based compensation expense recognized | $ 0 | $ 43,000 | 269,000 |
Options awarded | |||
Number of shares options vest in | 25 | ||
Period of considering closing price of common stock | 30 days | ||
Stock options compensation costs | $ 1,869,000 | ||
Contractual term (years) | 10 years | ||
Stock Options And Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs related to non-vested share-based compensation arrangements with performance shares | $ 20,198,000 | ||
Share-based compensation expense recognized | $ 15,032,000 | $ 13,908,000 | $ 10,872,000 |
Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance options awarded to President and CEO | 90 | ||
President And CEO [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options awarded | 450 | ||
Minimum [Member] | Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term (years) | 5 years 1 month 21 days | 5 years 2 months 16 days | 5 years 3 months 7 days |
Expected volatility of stock | 41.00% | 43.00% | 46.00% |
Interest rate | 2.31% | 1.75% | 1.06% |
Minimum [Member] | Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Minimum [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Strike price | $ 5.91 | ||
Expected volatility of stock | 60.50% | ||
Interest rate | 1.75% | ||
Maximum [Member] | Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term (years) | 5 years 8 months 16 days | 5 years 9 months 4 days | 7 years 1 month 6 days |
Expected volatility of stock | 42.00% | 48.00% | 51.00% |
Interest rate | 3.01% | 2.12% | 2.02% |
Maximum [Member] | Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Maximum [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Strike price | $ 21.04 | ||
Expected volatility of stock | 69.60% | ||
Interest rate | 2.73% | ||
2014 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry of options from the date of grant | 10 years | ||
Common stock reserved for issuance | 11,099 | ||
Shares available for future grants | 1,319 | ||
2014 Plan [Member] | Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercisable period beginning | 3 years | ||
2008 Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized | $ 697,000 | $ 664,000 | $ 556,000 |
Company's common stock may be purchased at a discount | 15.00% | ||
Participants purchase limit value | $ 25,000 | ||
Description of participants purchase limit | Participants may not purchase more than $25 of the Company's common stock in a calendar year and may not purchase a value of more than 3 shares during an offering period. | ||
Participants purchase limit shares | 3 | ||
Offering period | 6 months | ||
Shares available for future issuance under the ESPP | 595 | ||
2018 PSAs [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2018 PSAs [Member] | Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized | $ 766,000 | ||
2018 PSAs [Member] | Minimum [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance stock award threshold, target and maximum payout opportunity percentage | 0.00% | ||
2018 PSAs [Member] | Maximum [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance stock award threshold, target and maximum payout opportunity percentage | 200.00% | ||
First Anniversary Date Of Grant [Member] | 2014 Plan [Member] | Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual vesting percentage | 25.00% | ||
First, Second, And Third Anniversaries [Member] | Stock Options, RSA's, and RSU's [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual vesting percentage | 0.33% | ||
Tranche 4 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | $ 17.50 | ||
Tranche 5 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | 20 | ||
Tranche 6 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | 25 | ||
Tranche 7 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | 30 | ||
Tranche 8 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | 35 | ||
Tranche 9 [Member] | Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price by which volume adjusted weighted average closing price exceeds under vesting condition | $ 40 |
Equity Compensation Plans (Acti
Equity Compensation Plans (Activity Under Stock Based Compensation Plans) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Number of Shares Outstanding, Stock Options | 2,026 | 2,454 | |
Granted, Number of Shares Outstanding, Stock Options | 52 | 65 | |
Exercised, Number of Shares Outstanding, Stock Options | (474) | (458) | |
Cancelled or forfeited, Number of Shares Outstanding, Stock Options | (22) | (35) | |
Ending balance, Number of Shares Outstanding, Stock Options | 1,582 | 2,026 | 2,454 |
Vested and expected to vest, Number of Shares Outstanding, Stock Options | 1,574 | 2,004 | |
Exercisable, Ending balance, Number of Shares Outstanding, Stock Options | 1,419 | 1,766 | |
Beginning balance, Weighted Average Exercise Price, Stock Options | $ 13.30 | $ 12.51 | |
Granted, Weighted Average Exercise Price, Stock Options | 26.05 | 20.22 | |
Exercised, Weighted Average Exercise Price, Stock Options | 12.70 | 9.61 | |
Cancelled or forfeited, Weighted Average Exercise Price, Stock Options | 18.14 | 19.08 | |
Ending balance, Weighted Average Exercise Price, Stock Options | 13.83 | 13.30 | $ 12.51 |
Vested and expected to vest, Weighted Average Exercise Price, Stock Options | 13.78 | 13.23 | |
Exercisable, Ending balance, Weighted Average Exercise Price, Stock Options | $ 12.99 | $ 12.48 | |
Outstanding, Ending balance, Weighted Average Remaining Contractual Term, Stock Options | 5 years 7 days | 5 years 7 months 13 days | |
Vested and expected to vest, Weighted Average Remaining Contractual Term, Stock Options | 5 years | 5 years 6 months 29 days | |
Exercisable, Ending balance, Weighted Average Remaining Contractual Term, Stock Options | 4 years 7 months 17 days | 5 years 2 months 12 days | |
Outstanding, Ending balance, Aggregate Intrinsic Value, Stock Options | $ 26,587 | $ 11,730 | |
Vested and expected to vest, Aggregate Intrinsic Value, Stock Options | 26,525 | 11,717 | |
Exercisable, Ending balance, Aggregate Intrinsic Value, Stock Options | $ 24,991 | $ 11,471 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Number of Shares Outstanding | 1,845 | 1,416 | |
Awarded, Number of Shares Outstanding | 630 | 771 | |
Released, Number of Shares Outstanding | (638) | (331) | |
Forfeited, Number of Shares Outstanding | (91) | (11) | |
Ending balance, Number of Shares Outstanding | 1,746 | 1,845 | 1,416 |
Beginning balance, Weighted Average Grant Date Fair Value | $ 18.22 | $ 17.40 | |
Awarded, Weighted Average Grant Date Fair Value | 18.71 | 19.38 | $ 16.35 |
Released, Weighted Average Grant Date Fair Value | 18.87 | 18.52 | |
Forfeited, Weighted Average Grant Date Fair Value | 17.97 | 17.43 | |
Ending balance, Weighted Average Grant Date Fair Value | $ 18.19 | $ 18.22 | $ 17.40 |
Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Number of Shares Outstanding | |||
Awarded, Number of Shares Outstanding | 90 | ||
Released, Number of Shares Outstanding | |||
Forfeited, Number of Shares Outstanding | |||
Ending balance, Number of Shares Outstanding | 90 | ||
Beginning balance, Weighted Average Grant Date Fair Value | |||
Awarded, Weighted Average Grant Date Fair Value | 17.71 | ||
Released, Weighted Average Grant Date Fair Value | |||
Forfeited, Weighted Average Grant Date Fair Value | |||
Ending balance, Weighted Average Grant Date Fair Value | $ 17.71 | ||
Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Number of Shares Outstanding, Stock Options | 450 | 450 | |
Granted, Number of Shares Outstanding, Stock Options | |||
Exercised, Number of Shares Outstanding, Stock Options | |||
Cancelled or forfeited, Number of Shares Outstanding, Stock Options | |||
Ending balance, Number of Shares Outstanding, Stock Options | 450 | 450 | 450 |
Exercisable, Ending balance, Number of Shares Outstanding, Stock Options | 350 | 250 | |
Beginning balance, Weighted Average Exercise Price, Stock Options | $ 13.48 | $ 13.48 | |
Granted, Weighted Average Exercise Price, Stock Options | |||
Exercised, Weighted Average Exercise Price, Stock Options | |||
Cancelled or forfeited, Weighted Average Exercise Price, Stock Options | |||
Ending balance, Weighted Average Exercise Price, Stock Options | 13.48 | 13.48 | $ 13.48 |
Exercisable, Ending balance, Weighted Average Exercise Price, Stock Options | $ 13.48 | $ 13.48 | |
Outstanding, Ending balance, Weighted Average Remaining Contractual Term, Stock Options | 4 years 5 months 12 days | 5 years 5 months 12 days | |
Exercisable, Ending balance, Weighted Average Remaining Contractual Term, Stock Options | 4 years 5 months 12 days | 5 years 5 months 12 days | |
Outstanding, Ending balance, Aggregate Intrinsic Value, Stock Options | $ 5,555 | $ 2,774 | |
Exercisable, Ending balance, Aggregate Intrinsic Value, Stock Options | $ 4,321 | $ 1,541 |
Equity Compensation Plans (Shar
Equity Compensation Plans (Share-Based Compensation Expense Related to Employee Share-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | $ 16,495 | $ 14,615 | $ 11,697 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | 1,545 | 610 | 420 |
Research and Development Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | 1,987 | 2,052 | 1,825 |
Selling, General and Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | $ 12,963 | $ 11,953 | $ 9,452 |
Equity Compensation Plans (Assu
Equity Compensation Plans (Assumptions Used for Determining Fair Value of Options) (Details) - Time-Based Stock Options [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 41.51% | 44.50% | 48.87% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.31% | 1.75% | 1.06% |
Expected life of option (years) | 5 years 1 month 21 days | 5 years 2 months 16 days | 5 years 3 months 7 days |
Expected volatility of stock | 41.00% | 43.00% | 46.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.01% | 2.12% | 2.02% |
Expected life of option (years) | 5 years 8 months 16 days | 5 years 9 months 4 days | 7 years 1 month 6 days |
Expected volatility of stock | 42.00% | 48.00% | 51.00% |
Equity Compensation Plans (Weig
Equity Compensation Plans (Weighted Average Estimated Grant Date Fair Value Per Share of Stock Options and Restricted Stock Granted) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Time-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average estimated grant date fair value per share of the stock options granted | $ 10.97 | $ 8.60 | $ 8.25 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average estimated grant date fair value per share of the restricted stock granted | 18.71 | $ 19.38 | $ 16.35 |
Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average estimated grant date fair value per share of the restricted stock granted | $ 17.71 |
Equity Compensation Plans (Esti
Equity Compensation Plans (Estimated Grant Date Fair Value Per Share of Performance Options Granted) (Details) - Performance Stock Options [Member] | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Tranche 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | $ 10 |
Tranche 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 12.50 |
Tranche 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 15 |
Tranche 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 17.50 |
Tranche 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 20 |
Tranche 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 25 |
Tranche 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 30 |
Tranche 8 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 35 |
Tranche 9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Price Target | 40 |
Fair Value Of 2012 Grant [Member] | Tranche 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.32 |
Fair Value Of 2012 Grant [Member] | Tranche 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.30 |
Fair Value Of 2012 Grant [Member] | Tranche 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.27 |
Fair Value Of 2012 Grant [Member] | Tranche 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.23 |
Fair Value Of 2012 Grant [Member] | Tranche 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.19 |
Fair Value Of 2012 Grant [Member] | Tranche 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.10 |
Fair Value Of 2012 Grant [Member] | Tranche 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 4.01 |
Fair Value Of 2012 Grant [Member] | Tranche 8 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 3.92 |
Fair Value Of 2012 Grant [Member] | Tranche 9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 3.83 |
Fair Value Of 2014 Grant [Member] | Tranche 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.74 |
Fair Value Of 2014 Grant [Member] | Tranche 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.74 |
Fair Value Of 2014 Grant [Member] | Tranche 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.74 |
Fair Value Of 2014 Grant [Member] | Tranche 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.74 |
Fair Value Of 2014 Grant [Member] | Tranche 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.73 |
Fair Value Of 2014 Grant [Member] | Tranche 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.73 |
Fair Value Of 2014 Grant [Member] | Tranche 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.71 |
Fair Value Of 2014 Grant [Member] | Tranche 8 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | 14.67 |
Fair Value Of 2014 Grant [Member] | Tranche 9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Fair Value | $ 14.61 |
Segment and Geographic Inform_3
Segment and Geographic Information (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Europe [Member] | ||
Long-lived assets | $ 1,296 | $ 957 |
Segment and Geographic Inform_4
Segment and Geographic Information (Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 52,893 | $ 49,941 | $ 51,802 | $ 46,994 | $ 46,062 | $ 42,150 | $ 45,231 | $ 41,273 | $ 201,630 | $ 174,716 | $ 155,109 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 162,146 | 138,387 | 122,385 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 25,912 | 21,901 | 19,772 | ||||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 12,687 | 13,616 | 12,223 | ||||||||
Other International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 885 | 812 | 729 | ||||||||
International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 39,484 | $ 36,329 | $ 32,724 |
Segment and Geographic Inform_5
Segment and Geographic Information (Revenue by Product Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 52,893 | $ 49,941 | $ 51,802 | $ 46,994 | $ 46,062 | $ 42,150 | $ 45,231 | $ 41,273 | $ 201,630 | $ 174,716 | $ 155,109 |
United States [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 162,146 | 138,387 | 122,385 | ||||||||
United States [Member] | Open-heart Ablation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 72,250 | 64,517 | 58,050 | ||||||||
United States [Member] | Minimally Invasive Ablation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 35,053 | 34,421 | 31,169 | ||||||||
United States [Member] | Appendage Management [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 52,891 | 37,281 | 30,321 | ||||||||
United States [Member] | Ablation And Appendage Management [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 160,194 | 136,219 | 119,540 | ||||||||
United States [Member] | Valve Tools [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 1,952 | 2,168 | 2,845 | ||||||||
International [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 39,484 | 36,329 | 32,724 | ||||||||
International [Member] | Open-heart Ablation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 21,118 | 20,718 | 20,189 | ||||||||
International [Member] | Minimally Invasive Ablation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 9,176 | 8,007 | 8,065 | ||||||||
International [Member] | Appendage Management [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 8,988 | 7,251 | 3,986 | ||||||||
International [Member] | Ablation And Appendage Management [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 39,282 | 35,976 | 32,240 | ||||||||
International [Member] | Valve Tools [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 202 | $ 353 | $ 484 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Results: | |||||||||||
Revenue | $ 52,893 | $ 49,941 | $ 51,802 | $ 46,994 | $ 46,062 | $ 42,150 | $ 45,231 | $ 41,273 | $ 201,630 | $ 174,716 | $ 155,109 |
Gross profit | 38,590 | 35,948 | 38,079 | 34,503 | 32,683 | 30,918 | 32,554 | 30,008 | 147,120 | 126,163 | 111,101 |
Income (loss) from operations | (2,607) | (6,048) | 958 | (9,430) | (2,135) | (6,847) | (6,355) | (9,642) | (17,127) | (24,979) | (31,138) |
Net loss | $ (3,430) | $ (7,235) | $ (338) | $ (10,134) | $ (2,580) | $ (7,246) | $ (6,883) | $ (10,183) | $ (21,137) | $ (26,892) | $ (33,338) |
Net loss per share (basic and diluted) | $ (0.09) | $ (0.22) | $ (0.01) | $ (0.31) | $ (0.08) | $ (0.22) | $ (0.21) | $ (0.32) |
Schedule II (Schedule Of Valuat
Schedule II (Schedule Of Valuation And Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Returns and Allowances [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 1,169 | $ 834 | $ 207 |
Additions | 312 | 441 | 634 |
Deductions | 71 | 106 | 7 |
Ending Balance | 1,410 | 1,169 | 834 |
Allowance For Inventory Valuation [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 889 | 1,080 | 843 |
Additions | 718 | 1,004 | 1,692 |
Deductions | 578 | 1,195 | 1,455 |
Ending Balance | 1,029 | 889 | 1,080 |
Valuation Allowance For Deferred Tax Assets [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 66,973 | 81,982 | 73,682 |
Additions | 2,876 | 8,300 | |
Deductions | 15,009 | ||
Ending Balance | $ 69,849 | $ 66,973 | $ 81,982 |